Motivation: Concepts and Rewards
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Transcript Motivation: Concepts and Rewards
MOTIVATION
Concepts and Rewards
MOTIVATION DEFINED
Willingness to exert high levels of effort to
reach organizational goals.
BASIC ASSUMPTIONS
Everyone is motivated
Key?
Two types of motivation
Intrinsic
Extrinsic
TYPES OF MOTIVATION
Extrinsic Motivation:
"What
gets rewarded gets done"
Based on extrinsic/tangible rewards
Intrinsic Motivation:
"What
is rewarding gets done"
Based on intrinsic/intangible rewards
Motivation Theories
Need (Maslow & ERG)
Equity
Reinforcement
Expectancy Theory
Goal-Setting Theory
Needs (stage of development)
Maslow
Self actualization
Self esteem
Social (love)
Safety
Physiological
Alderfer (ERG)
Growth
Relatedness
Existence
NEED THEORIES OF MOTIVATION
What are the implications of need-based
theories for managers?
TODAY’S TOPIC
Motivation
EQUITY THEORY
People compare their
outcome/input ratio to
that of others
Conclusions
Ratios are equal
(equity exists)
Ratios are unequal
(inequity exists)
RESPONSES TO EQUITY/INEQUITY
Equity: Maintenance
Inequity:
Change
Inputs
Change Outcomes
Quit
Forms of Justice
REINFORCEMENT THEORY
Behavior is a function
of consequences
Behavior that is
rewarded persists
To increase behavior
Positive reinforcement
negative reinforcement
REINFORCEMENT THEORY
To reduce behavior
Extinction
Punishment
Immediacy is crucial
Implications?
REWARDING B
WE HOPE FOR:
Long-term growth
Setting challenging goals
Total Quality
Candor
BUT WE
REWARD:
Teamwork
EXPECTANCY THEORY
People are motivated to do that which they
believe is possible and valuable
Expectancy: Belief that you can perform
Instrumentality: Belief that performance
will lead to an outcome
Valence: Value of the outcome
EXPECTANCY THEORY
According to expectancy theory, what must
managers do to motivate their employees?
GOAL SETTING THEORY
People naturally set goals
Benefits of Goals:
Increase
effort
Direct effort
Increase persistence
Most effective goals are:
Making MBO Work:
SMARTER Goals
S
M
A
R
T
E
R
Improve conflict management process vs.
80% reduction in grievances filed by second quarter
Motivation Theories
Need (Maslow & ERG)
Equity
Reinforcement
Expectancy Theory
Goal-Setting Theory
Effective Rewards &
Incentive Systems:
NORDSTROMS
Using theories of motivation & related keys to
effective incentive systems, evaluate the Incentive
system in place at Nordstroms.
What do you see as its strengths?
Any concerns/questions regarding the system?
Are Nordstrom employees pressured
inappropriately by the sales-per-hour system? By
management?
What (if any) changes would you recommend?
NORDSTROMS
Using theories of motivation & related keys
to effective incentive systems, evaluate the
Incentive system in place at Nordstroms.
What
do you see as its strengths?
NORDSTROMS
“This is Your Business. Treat
it Like Your Own Business.”
Highest sales productivity
Earnings > $80,000
Compound growth in sales,
earnings, stores sq. ft.
Highly, educated workforce
NORDSTROMS
Using theories of motivation & related keys
to effective incentive systems, evaluate the
Incentive system in place at Nordstroms.
What
do you see as its strengths?
Any potential concerns?
NORDSTROMS
“This is Your Business. Treat
it Like Your Own Business.”
Highest sales productivity
Earnings > $80,000
Compound growth in sales,
earnings, stores sq. ft.
Highly, educated workforce
“It’s fear that Provides
Great Customer Service”
Local 1001 publicity
campaign
Union complaint with
Washington Dept. L & I
NLRB charges
$15 million reserve against
earnings
shareholder class action suit
employee class action suit
Wall Street Journal story
60 Minutes TV story
NORDSTROMS
Are Nordstrom employees pressured
inappropriately by the sales-per-hour
system? By management?
NORDSTROMS
ACTIVITY
Drive to another store to pick
up merchandise for a customer
Home delivery
Obtain merchandise from
another department for a
customer
Thank you notes
Merchandise stocking
Store displays
Sales meetings
Inventory count
Record keeping
SELL
NONSELL
NORDSTROMS
Using theories of motivation & related keys to
effective incentive systems, evaluate the Incentive
system in place at Nordstroms.
What do you see as its strengths?
Any concerns/questions regarding the system?
Are Nordstrom employees pressured
inappropriately by the sales-per-hour system? By
management?
What (if any) changes would you recommend?