MOTIVATION

Learning Objectives:
 Define motivation
 Enumerate and discuss the key elements of Motivation
 Enumerate and differentiate the theories of motivation
 Enumerate and discuss the motivational methods and programs

Job Performance
- assesses whether a person performs a job well.
- an important criterion for organizational outcomes and success
- means to reach goal or set of goals within a job, role, or organization

DETERMINANTS

1. capacity to perform
- describes the ability to do something or amount of something can hold
- employees possesses skills, abilities, knowledge, and experiences relevant to the job
- business: the maximum output that can produce in a given period with the available resources
2. opportunity to perform
- if favorable circumstances and opportunities to perform the challenging tasks which are more
contributory towards achievement of the organizational mission and objective can be reasons to have
more effective performance from employees
3. willingness to perform
- if employee performing tasks and responsibilities in the organization with willingness level of the
performance will be high and will be up to the standards

Internal External
Worker
Force Force

- inner strengths and

weaknesses that an
organization exhibits, - factors outside the
company is in control. organization that are beyond a
ex:(a) labour – attitude, company’s control.
perceptions, motivation ex: customers, competition,
learning & goals, lifestyles; economy, technology,
(b) finance – funds, political, social conditions,
investments opportunities,
resources
sources of income; (c)
technology – location,
equipment, facilities

Certain
Course of Action Behavior

- proactive in nature and act to

- plan or method
improve situations
to be used for
ex: issue selling, taking
achieving a
initiative, innovation,
specific goal
constructive, change oriented
communication, and proactive
socialization

ORGANIZATIONAL GOAL
 - help define company’s purpose, assist its business growth and
achieve its financial objectives
- help to measure progress and determine the tasks that must be
improved to meet those business goals

ELEMENTS OF MOTIVATION

a. intensity

- “energy”, “strength of response in the chosen direction”

- how hard a person tries

- level of effort provided by the employee I the attempt to achieve the goal assigned to him

- A motivated person puts forth effort and works hard, and determined.

b. direction

- what an individual chooses to do when presented with a set of alternatives

- effortthat is channeled toward, consistent with organizational goals

c. persistence
- dimension of motivation which measures how long a person can maintain effort to achieve the
organizational goals.
- how long a person continues to devote effort in the chosen direction

THEORIES OF MOTIVATION

1) Content theories – focus on analyzing the wants and needs of an individual.

a) Hierarchy of Needs Theory of Abraham Maslow

b) ERG Theory of Clayton Alderfer

c) Acquired Needs Theory of David L. McClelland

 d) Two-factor Theory of Frederick Herzberg

2) Process Theories – explain how people act in response to the wants and needs that they have.
a) Expectancy Theory by Victor Vroom

b) Equity Theory of J. Stacey Adams

c) Goal Setting Theory of Edwin A. Locke

MOTIVATIONAL METHODS AND PROGRAMS

1. motivation through job design
- the way the elements in a job are organized

3 Important Concepts in Designing Jobs

a. job enrichment – provides worker with a more exciting job and it increases job satisfaction and
motivation.

 characteristics:
direct feedback – immediate evaluation of work
client relationship- chance to serve an external or internal client
new learning – acquires new knowledge while doing work
control over method – some control over which method to choose to accomplish a task
control over scheduling – ability to schedule work
unique experience – unique qualities or features, like the opportunity to see the world
direct communication authority – opportunity to communicate directly with people who use
the output

control over resources – some control over resources such as money, material, or people
personal accountability – accepts credits for doing a good job, and blame for a poor job

b. job characteristics model

- focuses on the task and interpersonal demands of a job
- emphasizes interaction between the individual and the specific attributes to the job
 fivecores:
skillvariety
task identity – able to do a complete job, form beginning to end, with tangible and
possible outcome

task significance – a substantial impact on the lives or work of other people

autonomy – substantial freedom, independence, and discretion in scheduling the work
and determining the procedures used in carrying it out.
feedback – provides direct information about performance

c. job crafting
- physical and mental changes workers make in the task or relationship aspect of their jobs
 common types:
changing the number and type of job tasks
changing the interaction with others on the job
changing one’s view of the job

2. organizational behavior modification (OB Mod)

-application of reinforcement theory in motivating people at work
 five-step problem-solving model:
identifying critical behaviors
developing baseline data
identifying behavioral consequences
developing and implementing an intervention strategy
evaluating performance improvement
 benefits:
improvement of employee productivity
reduction of errors, absenteeism, tardiness, and accident rates
improvement of friendliness toward customers

3. motivation through recognition and pride

 Recognition – natural human need and it is a strong motivator
 steps: (1) identify a meritorious behavior; and (2) recognize the behavior with an oral, written, or
material reward

 points for a better understanding and implementation of reward:

a. Feedback is an essential part of recognition.
b. Praise is one of the most powerful forms of recognition.
c. Reward and recognitionprograms should be limited to organizational goals.
d. Identification of the type of rewards and recognition that workers will value.
e. It is important to evaluate the effectiveness of the reward and recognition program.

Pride – a motivator, but one that is intrinsic. The feeling satisfies the need for self-esteem and self-
fulfillment.

4. motivation through financial incentives

Financial incentives – powerful tools of motivation, monetary rewards paid to employees

 forms:
a. time rates – monetary reward which use the number of hours worked. It can be hourly rate
or weekly wage, or a monthly salary
 Advantages
1. It is open to inspection and equitable because employees doing the same job will be on
the same grade level.
2. It encourages the retention of human resources by stability and this is because of the
gradual increases in rewards within the given grades.
3. It is relatively easy to administer and allows labor cost to be predicted.
4. It does not emphasize quantity of output to the detriment of quality.
 Disadvantage
1. It does not motivate employees to become more productive.

b. payment by results –links pay to the quantity of the individual’s output, or this is
commission-based
 Advantages
1. The employee is motivated to put in extra effort because by doing so, he or she will
receive additional income.
2. There is fairness because the level of reward is related to the level of output.
3. There are likely to be cost advantages since wages are directly linked to production and
less supervision is required.
 Disadvantages
1. Outputs in certain jobs cannot be easily measured.
2. Safety standards may be compromised.
3. Workers may view payment by results as a device to obtain greater effort from them
without commensurate rewards.

c. performance related pay- considers results or output plus actual behavior in the job.
 Advantages
1. It increases employee beliefs that reward will follow high performance.
2. Those that perform better are rewarded more.
3. It is comparatively objective and verifiable.
 Disadvantages
1. costs rises along with the rewards
2. the system is complex
3. employees with declining energy may experience a decrease in total pay
4. the union may resist the incentive idea
5. there is delay in the payment of incentives
 6. the system is rigid
7. it is difficult to motivate higher performance across a broad range of employees.

d. profit related pay – takes the form of direct cash outlay, or allocation of stock options.
stock option – right to purchase a certain number of company shares at a specified price.
 Advantages
1. Employees identify more closely with the success of the organization.
2. There is a breaking down or removal of the communication barrier between management
and employees.
3. Cooperation and working together for mutual benefit is encouraged.
4. Awareness of the link between performance and organizational profitability leads to a
greater awareness of costs and their impact on performance.
5. When profits fall, the decline in pay is preferable alternative to laying-off employees.
6. Group pressure could raise the performance levels of poor performers.
 Disadvantages
1. Profits are not directly related to an employee’s effort on the job, and this is a negative
factor on motivation.
2. Employees must wait for their reward, and the delay diminishes its impact.
3. Since profits are unpredictable, total worker income may vary from year to year.

e. skill/competency based pay – pay plan that sets pay levels on the basis of how many skills
employees have or how many jobs they can do.
 Advantages
1. It provides strong motivation for employees to develop their work-related skills.
2. It reinforce and employee’s sense of self-esteem.
3. It provides the organization with a highly flexible workforce that can fill in when
someone is absent.
 Disadvantages
1. The average hourly pay rate will be greater than normal.
2. A substantial investment in employee training must be made especially in the time spent
coaching by supervisors and peers.
3. Not all employees like skill pay because it places pressure on them.
4. Organization pay them higher rates than they deserve.

f. cafeteria or flexible benefits system – allows each employee to put together a benefit
package individually tailored to the own needs and situation.
 Advantages
1. It enables employees to choose option the best fit their own needs.
2. Employees are more aware of the benefits, giving them a real sense of the value of the
benefits their employers provide.
3. Flexible benefit plans can lower compensation costs because employers no longer have to
pay for unwanted benefits.
4. Employers and employees can save on taxes.
 Disadvantages
1. It creates an administrative burden.
2. It can lead to the increased insurance premiums.
Assessment

1. What condition make job performance possible in any organization?

2. What motivates people to behave differently?
3. How may one define intensity as an element of motivation?
4. What does Abraham Maslow espouse in his hierarchy of needs theory?
5. According to David McClelland, what motivates people?
6. What is the two factor theory?
7. Under the equity theory, when does equity exist?