Driving My Company (enterprise Skill)

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  • 1.Driving My Company G105 Enterprise Skills Problem 04: Motivation 6th Presentation

2. Learning Objectives 1. Describe and compare the contemporarytheories of motivation2. Apply the motivation theories tostructure work and rewards to motivatestaff3. Explain how to provide feedback andmodify behaviours through rewards andpunishment 3. Problem Analysis NoImprovementinPerformance!$500 bonus for Harris theeveryone: EmployerSourcing; Sales;How? Admin 4. What Is Motivation? Motivation Motivation is an internal process by which a persons efforts areenergized, directed, and sustained towards attaining a goal. may be intrinsic, extrinsic, or both.Intrinsic MotivationExtrinsic Motivation Drives behaviour performed for Drives behaviour performed for the sake of activity itself external rewards or to avoid Comes from internal desirepunishment such as: Comes from outside the person: interest salary and other tangibles need for challenge intangible rewards such as personal satisfaction praises from the boss 2007 Prentice Hall, Inc. All rights reserved. 164Money is but one motivator. People are motivated by different things. Harris needs to find out what works for his staff, beyond monetary rewards. 5. Motivation Rewards and punishments are used by organisations to motivate. Effectiveness of rewards varies explained by motivation theories. Content Theories Process Theories Reinforcement(focus on: Needs)(focus on: Cognitive TheoriesProcess)(focus on: Consequences) Hierarchy of Needs Expectancy Theory Operant Conditioning (Maslow)(Vroom) (Skinner) 2-Factor Theory Equity Theory (Adams) Organisation (Herzberg) Goal Setting Theory Behaviour 3 Needs Theory(Locke) Modification (Luthans (McClelland)& Kreitner) 6. Limitations & Assumptions Whenever we apply motivation theories, we have to keep in mind the following limitations & assumptions: 1.Motivation theories assume that we know what motivates other people, and what their needs, wants, priorities, and values are (which in reality is not true) 2.Motivation is a very complex issue involving many factors:i.A motivator that works for one person may not work foranother ;ii. What works for a person at one point in time may notwork in the future; &iii. No single motivator is likely to work on its own. 7. Maslows Hierarchy of Needs Lower level needs must be satisfied first before higher level needs are activated. Satisfied needs cease to motivate. the money may cater tolower level needs that no longer motivateHarris employees Unsatisfied needs can cause frustration/stress lower needs take precedence. 8. Herzbergs Two-Factor Theory To motivate staff, Harris focus should be on the increasing motivators while maintaining adequacy in the hygiene factors.Hygiene FactorsMotivating Factors inadequacy results in frustration source of motivation and lack of motivation intrinsic factors / content of work beyond adequacy, does not e.g. differentiate the bonus amount = motivateachievement & recognition of good extrinsic factors / context of work performance e.g. flat $500 9. McClellands Three Acquired Needs Theory David McClellands research indicates that individuals are motivated based on three major needs: To motivate his staff, Harris must understand what needs his employees are motivated by and structure work, assign roles, provide rewards, and behave accordingly to meet those needs.nAch nPow nAff The drive to excel, to The need to make The desire for achieve a set of others behave in a friendly & close standards, to strive way they would not interpersonal to succeed have behaved relationships E.g. otherwise E.g. Set stretch goals E.g. Praise, lunch together Provide timely Give titles & assign Show care & concern performance feedback leadership roles Listen to feedback 10. Expectancy TheoryOutcome / EffortPerformance RewardP to O Expectancy(Instrumentality) E to P Expectancylikelihood of being rewarded Valence(Expectancy)for performance preference for belief that effort will Reward influence performanceNot effective as $500 is givenpositivelyregardless of performance Is $500Could differentiate amount attractive?Provide periodic to strengthen instrumentality Differentiatefeedback to strengthenby relating it to performance-amount toexpectancyrelated goals or criteria (e.g. improve valencesales targets, cost reduction,on time billing) Expectancy, Instrumentality and Valence must be high to motivate staff to work towards the reward 11. Equity Theory Most highly-motivated employees are those who perceive their rewards are equal to their contributions.Differentiate bonus amountso that those who workharder & perform better arebetter compensated Individuals outcomes relational partners outcomes Individuals own inputsrelational partners inputs Ensure employees compensation are in line with industrys When people feel fairly treated, they are more likely to be motivated; when they feel unfairly treated, they will be easily de-motivated 12. Goal Setting Theory Harris would have to ensure that each element of the goal-setting theory must be present to motivate staff. Goal Organisational Intrinsic Acceptance Support RewardsS.M.A.R.TGoal Directed PerformanceSatisfaction Goals Effort GoalIndividual Traits Extrinsic Commitment& AbilitiesRewards Put in more effort to discuss & set Spend time to provide feedback; goals with staff Make sure staff are confident of own abilities;provide training if necessary. 13. Reinforcement TheoriesConsequences Behavioursof Behaviour Desired +ve reinforcement Org Behaviours-ve reinforcementAntecedents Undesired Extinction Org Behaviours PunishmentSet out the expectations clearly Map out the consequences of their behaviours to his staff 14. OB Mod Four Alternative ConsequencesApplicationPositiveReinforcementPunishment e.g. differentiate the Managers Usebonus amounts -ve Consequence Consequence +ve ExtinctionNegative e.g. remove bonus Reinforcementfor those who have not been performingWithdrawal 15. Operant Conditioning A behaviour is a function of its consequence. A behaviour that is reinforced/rewarded will be repeated & vice-versa. Schedules of Reinforcement: Fixed Interval Continuous Partial Variable Interval Fixed Ratio Variable Ratio most effective for steady & long-term change * Dont just depend on year-end bonus * Time rewards to followimmediately after performance 16. Integrating Contemporary Theories of Motivation 2007 Prentice Hall, Inc. All rights reserved. 17. Harris can 1. Set the right expectations (behaviours, performance goals, and rewards). 2. Understand the different needs of his staff and provide rewards that satisfy thoseneeds or are valued by your staff. 3. Focus on the motivators to encourage staff to perform better provide growthopportunity, recognition, etc. Be creative in coming up with motivators. 4. Set goals, together with his staff, that are attainable if the staff puts in the effortand ensure that the link between performance and rewards is clear. 5. Be equitable - fair compared to other companies selling OEM computer parts, &between high performers and mediocre performers within his company (e.g. topsalesman vs purchaser who just reissues purchase contracts without review). 6. Time rewards to follow immediately after performance but use a variable ratioschedule. 7. Differentiate rewards between high performers, mediocre performers, and poorperformers, so that high performers are rewarded and those who arent arepunished or at least not rewarded. 8. Make sure that the motivators and processes he put in place to motivate his staffare aligned and do not work against one another. 18. Conclusion Rewards and punishments are used to motivate staff but their effectiveness varies. The motivation theories explain why some are motivated while others are not.Using the theories, Harris can:structure his rewards based on the needs of the staff. ensure all elements that influence how the staff view the rewards have been considered in structuring the rewards. reinforce the right behaviours of the staff. 19. EXTENDED LEARNING 20. Expectancy TheoryOutcome /Effort Performance Reward E to P Expectancy (Expectancy)belief that effort willinfluence performancePositively Expectancy (E to P Expectancy) is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. This is affected by such things as: Having the right resources available (e.g. raw materials, time) Having the right skills to do the job Having the necessary support to get the job done (e.g. supervisor support,or correct information on the job) 21. Expectancy TheoryOutcome /EffortPerformance RewardP to O Expectancy(Instrumentality) likelihood of being rewarded for performance Instrumentality (P to O Expectancy) is the belief that if you perform well that a valued outcome will be received i.e. if I do a good job, there is something in it for me. This is affected by such things as: Clear understanding of the relationship between performance and outcomes e.g. the rules of the reward game Trust in the people who will take the decisions on who gets what outcome Transparency of the process that decides who gets what outcome 22. Expectancy TheoryOutcome / EffortPerformance RewardValencepreference for Reward Valence (Outcome) is the importance that the individual places upon the expected outcome. For example, if I am mainly motivated by money, I might not value offers of additional time off. 23. Expectancy TheoryOutcome /EffortPerformance Reward E to P Expectancy (Expectancy)P to O Expectancy (Instrumentality)Valencebelief that effort willlikelihood of being rewarded preference forinfluence performancefor performance RewardPositively Individuals change their level of effort according to the value they place on the outcomes they receive from the process and on their perception of the strength of the links between effort and