Motivation & Rewards

Motivation & Rewards

1. What is Motivation

   • Involves the level, direction & persistence of effort at work
     • A highly motivated person works hard
   • Extrinsic rewards-given by another person
   • Intrinsic rewards are self administered feelings i.e. task competency
   • Rewards should be allocated for individual & Org needs
   • 3 Types of motivation theories
     • 1.Content
     • 2. Process
     • 3. Reinforcement

2. Content or Human Needs Motivation Theories-

   • Maslow’s Hierarchy of Needs
     • Lower order needs- Physiological, Safety & Social
     • Higher order needs-Ego & Self-Actualisation
   • Alderfer’s ERG Theroy
     • Lower order needs Existence & Relatedness
     • Higher order need-Growth
   • Herzberg’s 2 factor Theory
     • Lower order need-Hygiene factors
     • Higher order need-Satisfier factors
   • McClelland Acquired Needs Theroy
     • Lower order need-Affiliation
     • Higher order needs-Power & Achievement
   • Managers-respect individual needs & diversity to create motivating work enviro

3. Process Motivation Theories-How People Make Choices

   • Adam’s equity theory recognises social comparisons take place -rewards distributed in workplace
     • People treated unfairly act in ways to reduce the inequity i.e. less hard work
   • Vromm’s Expectancy theory-Motivation=Expectancy x Instrumentality x Valence (value of work outcomes)
     • Encourages managers to make sure rewards offered are achievable & individually valued
   • Locke’s goal-setting theory emphasises motivation power of goals
     • People are motivated by goals that are specific, difficult but achievable
   • Self expectancy theory- individuals focusing self confidence competence and mastery
     • By acknowledging self expectancy managers can create enviro where individuals motivate themselves
       • Modelling behaviours, giving chances to learn new skills in a safe enviro, encouraging & adding emanational feelings - develop feeling of self-efficany

4. Reinforcement Motivation Theory-Control Behaviour by Manipulation Consequences

   • Human behaviour influenced environmental consequences
   • Law of effect-behaviour followed by a pleasant consequence is likely to be repeated & Visa versa
   • Reinforcement strategies-positive, negative, punishment & extinction
     • Positive works best when laws of contingent and immediate are followed
       • Contingent reward only delivered if desired behaviour is exhibited

5. Trends in Motivation & Remuneration/Pay

   • Pay provides good test to apply motivational theories
     • Pay per performance
     • Bonuses, gain sharing
   • Pay for knowledge-link pay to mastery of job related skills