Motivation

Motivation

1. Intrinsic and extrinsic factors that stimulate people to work to achieve a goal.

   • Extrinsic motivation
     • Comes from external rewards related to working on a task.
   • Intrinsic motivation
     • Comes from the satisfaction derived from working on and completing a task.
   • MOTIVATED EMPLOYEES
     • high productivity
     • reduce unit costs
     • contribute more
   • UNMOTIVATED EMPLOYEES
     • poor performance
     • offer the minimum of what's expected
     • absenteeism

2. MOTIVATION THEORIES

   • F.W. Taylor & scientific management
     • First serious attempt.
       • He used the scientific method.
         • Scientific management.
         • RESULTS: HOW TO IMPROVE WORKER PRODUCTIVITY
           • Select workers to perform a task.
             • Observe them and record key elements.
               • Record time and identify quickest method recorded.
                 • Train all workers in the quickest method.
                   • Supervise them and pay them based on results.
   • Maslow's hierarchy of human needs
     • For the work, psychology and sociology studies.
     • Identified and classified main human needs.
       • Our needs determine our actions.
       • HIERARCHY
         • Individuals starts on lowest level.
           • Once a level is satisfied, it will try to satisfy the next one.
             • Self-actualization (maximum potential).
               • Once need is satisfied, there's no more motivation.
         • Limitations
           • Different needs.
           • Difficult to measure progress in practice.
           • Money is present in all levels.
   • Herzberg and the 'two-factor' theory
     • MOTIVATING FACTORS
       • If achieved, they lead to positive job satisfaction.
         • Achievement
         • Recognition
         • Work by itself
         • Responsibility
         • Advancement
     • HYGIENE FACTORS
       • If not followed, have the potential to cause dissatisfaction and lead to negative consequences.
         • Company policy and administration
         • Supervision
         • Salary
         • Relationships
         • Working conditions
     • Consequences
       • Pay and working conditions can be improved, but motivation won't arise by itself after that.
       • Motivators need to be in place for workers to be prepared, BY JOB ENRICHMENT
       • Workers may take things for granted and become uninterested.
   • Adam's and equity theory
     • Belief
       • Employees become demotivated towards their jobs and employer...
         • if inputs are greater than outputs!!!
           • SOLUTION
             • Achieving balance
   • Daniel Pink
     • BOOK "Drive:The Surprising Truth About What Motivates Us"
     • 3 elements of intrinsic motivation
       • Autonomy
       • Mastery
       • Purpose
       • Relevance
         • Knowledge work, creativity and problem-solving are required to stand out and succeed.

3. IN PRACTICE

   • PAYMENT OR FINANCIAL REWARD SYSTEMS
     • SALARY
       • Annual income, usually paid on a monthly basis.
     • TIME-BASED WAGE RATE
       • Hourly wage rate
         • Payment to a worker for each hour worked.
     • PIECE RATE
       • Payment to a worker for each unit produced.
     • COMMISSION
       • Payment to a sales person for each sale made.
     • PERFORMANCE-RELATED PAY
       • A bonus payable in addition to the basic salary.
         • Especially for those workers whose ‘output’ is not measurable in quantitative terms.
     • PROFIT-RELATED PAY
       • Bonus for staff based on the profits of the business.
         • Proportion of basic salary.
     • EMPLOYEE-SHARE OWNERSHIP SCHEMES
       • Instead of cash
       • Workers put as part-owners of the business.
         • Reduces the conflict that might exist between...
           • owners and managers
           • workers
     • FRINGE BENEFITS
       • Non-cash forms of reward
         • company cars
         • free insurance and pension schemes
         • private health insurance
         • discounts on company products
         • low-interest rate loans
   • NON-FINANCIAL METHODS OF MOTIVATION
     • JOB ENLARGEMENT
       • Increasing job tasks and responsibilities to make a position more challenging.
     • JOB ENRICHMENT
       • Giving workers opportunities to use the full range of their abilities.
     • JOB ROTATION
       • Moving employees between different tasks to promote experience and variety.
     • TEAM WORKING
       • Workers complete their tasks and affect the work of the whole group.
     • DELEGATION AND EMPOWERMENT
       • Allowing employees some degree of control over tasks and resources.
         • Feeling important
   • Evaluation of both
     • Cultural differences
       • Performance orientation
         • Degree to which performance improvement, innovation and striving for excellence is encouraged.
       • Future orientation
         • Engaging in future-oriented behaviour(planning and investing for the future).
       • Institutional collectivism
         • How much organizations reward or encourage resources distribution to groups and focus on collective action.
       • FRINGE BENEFITS
         • Cultural differences must be considered.
           • LOCAL FEEL
           • LOCAL DISTRIBUTION OF REWARDS
           • CULTURAL DIFFERENCES –– NONFINANCIAL REWARDS

4. MELISSA CABRERA GALAR