Transcript Motivation, Incentive & Performance 1

Motivation,
Incentive &
Performance
Chris Jarvis
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Motivation – Some components
 Inclination – what I feel I want to do – active/passive,
conscious/sub-conscious
 Direction – what I am trying to do
 Action – what I do do
 Effort – how hard I try
 Persistence – how long I keep trying
 How we construe expectations, needs, drives, efforts and results
(actual & 'rationalised'/felt) - self & others
 The employment concerns? How to "motivate people to give their
all"
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Effort, performance, retention, loyalty, membership, commitment, trust,
empowerment, participation, work design
Extrinsic & intrinsic rewards
Expectancy & equity
Rhetoric vs. reality of management practice
Self-awareness & delusion – "Mirror, mirror on the wall".
Motivation & "normal" behaviour vs. the well-motivated criminal.
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Who wants what from motivation?
 The person
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Health & well-being, safety/order, social affiliation/acceptance,
recognition & rewards (extrinsic/intrinsic, stimulus & incentive.
Feelings of self-worth/value, command of destiny, realisation of
personal aspirations/expectations. Equity. Power. Affiliation
The employer
 Trusted, reliable employees who give their all,
 Ability to construe employee motivation, needs & drives + relate to:
effort, economic efficiency, performance, retention, loyalty &
commitment, membership culture, empowerment, obligation-duty,
participation & contribution, work design, better teams
Others
 Interpersonal confidence, liking and rapport, mutual confidence
and collaboration, shared values, not to be let down.
 What is the problem?
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Idiosyncrasies and patterns
 Idiosyncracies & perceptions of work, personal position and
entitlements
 Individual differences - the unique self - my construction
 Common patterns of cognition, behaviour, attitude
 Group and cultural influences
 Me - myself, you ……
"you scheming, conniving, persistent, grabbing, selfish,
resentful person ….. you …. and ….. you are a capitalist to
boot...... one of 'them' .….. a typical Lilliputian ...... I've read
all about you in Cosmopolitan."
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Pay-offs in the Employer-Employee Relationship
(after Mumford 1972)
 Task structure
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Work within firm’s policy, procedure & technical constraints. Job
roles, work arrangements & relationships
Knowledge & skill
Employer wants know-how, competence, experience. Employee
wants to be put to good use & be developed
Psychological
Management & co-workers want committed, loyal, motivated staff.
Individual wants satisfaction
Efficiency/rewards
Employer wants performance & output to a quality standard.
Employee wants equitable, felt-fair rewards & opportunity
Ethical
Values & ambiguities/inconsistencies in right/wrong behaviour
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Evaluate the following propositions:
 Good pay helps to diminish problems of high absenteeism.
 The buzz of high morale & emphasis on teamwork means that
there is moral pressure not to let workmates down. This is
reinforced by prominently displaying
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costs of absenteeism
discussing reasons for absence with absentees
saying how fellow team members are hurt by absenteeism.
 There is no direct way motivation can be measured. Indicators
can be obtained thru
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observation, conversation and the stories people tell
attitude surveys
productivity data
absenteeism, retention
moans & gripes
analysis of performance reviews
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Role modelling theory – Maier 1959
 Role ambiguity may result from uncertainty about
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How one's work is evaluated
Scope for advancement
Scope of responsibility
Others expectations of one's performance
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Insecurity, lack of confidence,tension, irritation and even anger amongst
members of a role set
These will be communicated more often than satisfaction / feelings of being
well motivated.
Natural critical/evaluative tendencies, blaming others, disgruntlement
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role underload/overload
capacity & stress
demands, choices & constraints
conflict & ambiguity
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Examination Question
 Evaluate the truth of the following proposition. How well does it
point the way to robust, theoretically sound principles that guide
our understanding of employee motivation?
Proposition
"The acquisition and development of employee skills through
sophisticated and systematic selection, induction, training and
appraisal has a positive impact on quality & productivity. It will
lead to better motivation within the company"
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Would I really work for you without reward?
 fundamental to employee contract
 traditional economic exchange model. Pay-effort
determinism
 "rate for the job"
 occupational norms, expectations and choices
 expediency - "suitable for my life package at the moment"
 Etzioni & organisational membership
 Systems employers use
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Coercive - Remunerative - Normative
Employee responses
Alienated - Instrumental - Moral involvement
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The person-as-economist expects........
 ROI - time, effort, commitment
 "What's in it for me?" calculation
 Conscious  subconscious (self image and comparisons)
 Fairness (equitable socio-economic exchange)
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interpret rewards/pay-offs of others
judge what is fair/unfair
satisfaction if each party achieves a balance (relative equality)
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Construing the value & importance of input-output
Social, psychological - individual & group
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clear/distorted
internal/external
 Psychological extension to neutral, economic model
 Validation of personal perceptions & comparisons
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Design Features of Reward Systems
 Monetary
 Time-based (not directly related to performance)
 Performance-linked
 Output, %, PRP, merit pay, commission, skill-based
 collective-output schemes
 Corporate performance-related bonuses + profit sharing
 Monetary-equivalent
 Car, phone, holidays, loans, accommodation, fees, vouchers
 Deferred (promotion, pension)
 Non-monetary / intrinsic benefits - safety, status, recognition,
plaques, contribution and empowerment
 Negatives pressure, penalties, harassment, side-lining, dismissal
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Pay by time schemes - Components
 simple to administer
 defined time – F/T, P/T, mixed-time, casual
 no attendance, no pay? Hourly, weekly, monthly
 premiums – 1.5T, 2T, nights
 Flexi-time schemes
 “Door knob syndrome”
 job grading/evaluation - evaluate the job not the person doing it
 control mechanisms & tools – clocks, supervision, time sheets?
 performance assumptions
 trust, competence, diligence, fidelity, care, good-will, cooperation
 work for Er in Er time ……vs ……...in your time?
 supervision & monitoring - “When the cats away”?
 Is actual presence necessary? Off-site working.
 life increments - pay & career progression, security?
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PRP, merit pay, skill-based schemes
 Requires
 targeting, information & measurement
 manager appraisal & judgement
 problems of "big scheme" rules and controls
 Pay linked to
 individual merit (behaviours, traits & competencies:
flexibility, cooperation, punctuality, effort, skills/abilities).
 concrete individual or group targets
 Staff appraisal criteria, rating, and exchange/intervention
process
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Performance-Related Pay (PRP)
 extensive but partial & sectoral
 little research data on effectiveness
 pay linked to specific aspect of performance
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intensity of MbO approach
problem of defining the group + outputs
what if key results not achieved?
how is control and consistency achieved?
fairness + validation of "the manager's judgment"
merit pay or bonus addition to salary for this appraisal
round only?
 The neurosis of "targetitis"
 "Fat cat bonuses" – envy + "global market for stars" +
formulae + intervention?
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Defining jobs
 how can a manager operate effectively if he/she does not
understand & cannot define staff jobs?
 shared understanding about what the job is
 reliable, factual definition of scope of job & responsibilities
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useful for organisational design & analysis of change?
help to clarify role & provide a reference point for induction,
recruitment, performance assessment & grading?
a basis for the job advert & recruitment literature?
indicates competence required - generic + job specific
confining, time consuming, out-of-date in a flexible organisation
Contractual?
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"Job descriptions - - Burn the lot of 'em"
Robert Townsend, Up the Organisation
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Job definition elements
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Job definition
 Title, reporting relationships (up, down, sideways, external)
 job summary, responsibilities, duties, scope of authority
 MbO/R: key result areas, yardsticks of performance, evaluation data
 contractual provisions
Competence specification
 levels, range of situations, performance indicators,
knowledge/wisdom, experience, skills (psycho-motor, technical,
analytical, literary, spoken, numeric, social & emotional)
 The competences this organisation values
Role & performance analysis
Personnel specification (person profile)
 characteristics of ideal candidate
 Essentials - desirables - disqualifiers. Motivators
Psychometric-objective selection - fit person to job
 Biodata, interviews, various tests, references
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MbO Record
Name
Job/Role
Key Job
Area
Objective/Target to be
Achieved
Date
Data for
Monitorin
g
Training/Learning
Needs
1.
2.
3.
4.
Progress Review Dates
Notes on Achievements/Progress
Signed: (Post-holder)
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Signed: (Manager)
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Emotional & social dynamics & expectations
 Important for employee belief & commitment
 Impact of rules-of the-scheme (formal contract) on
individual sensitivity (psychological contract).
 personal expectations
 + formal/informal exchange Er  Ee
 my manager as
 employer (by proxy)
 as a person I like/dislike, respect?
 How I "see" what others are getting - internally & externally
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Organisational "Culture" Problems
 conscious calculation & instrumentality?
 Take-it or leave it + "9-5" sub-optimisation
 rangible over non-tangible rewards
 organisational rationalisation of effort-reward
relationship
 structural inflexibility of reward packages
 constructing & controlling the performance review and
PRP system
 genuine involvement & participation
 delegation, reliance & confidence
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How well has work-motivation theory dealt with this?
Maslow, Alderfer, McClelland - Herzberg
- hygiene & motivators, job redesign
Attribution theory
Concern with individual needs/goals
Vroom, Lawler - Expectancy theory
emphasis on what motivates
Hackman & Oldham - job characteristics
general, universal
McGregor: Theory X and Theory Y
Needs & satisfactions
"on managing …. this approach is better"
Content (What it is & its elements)
dynamic, emphasis on process - how it occurs
Adams - Equity theory
prescriptive responses
Process
Behavioural
Focus on behaviour
Responses to stimuli - external
Avoidance learning & punishment
reinforcement & behaviour modification theory
(operant conditioning)
Cognitive
Consciousness/rationality
Goals & behaviour e.g. Locke - goal setting
Known & calculable
e.g. homo economicus
Learning
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Abraham Maslow 1954 - Need Satisfaction
teleology
goal-orientation
Behaviour/
Action
achieve
drive
Goals
Needs
satisfy
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Abraham Maslow - Hierarchy of Needs
 Influential
 Content of motivation (needs that
motivate) theory - not personality
 Classified needs
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lower needs must be satisfied
before higher needs are activated
Chronic need deficiency
(neurosis?) motivations action
gratified needs - equilibrium
 snakes and ladders or
 lower needs mediated by higher
order consciousness?
 simple descriptive, partial
 nb: Alderfer ERG - existence,
relatedness, growth)
 cognitive & developmental
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What is Self Actualisation?
 difficult to define
 uniquely human motive?
 a way of life > a goal.
 not a need but on-going
growth/development process.
Becoming Self-Actualised?
Be willing to change.
Take responsibility.
Examine your motives.
Experience honestly & directly.
Use positive experiences.
Be prepared to be different.
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Example characteristics
 accurate perception of reality.
 accept selves & others.
 spontaneous, open & natural
 problem centred > self centred
 pacific calm, serene in nasty situations.
 don’t take things for granted.
 peak experiences.
 affection & regard for others
 capable of deep satisfying relationships
 democratic, ethical
 creative, sense of humour.
 independent of enculturisation
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Self-actualised? Human… like everyone else…..
 displays frailty & failings, ups & downs.
 emotional, critical attitudes towards others
 urge to decide for themselves
 may say "NO" & be unpredictable - own destiny.
 wants reasons without always wishing to conform.
 accepts need for conformity most of the time to serve
their interests
 avoids being selfish & ego-centred (denying space to
others).
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Critique of Maslow
 simple, plausible, general
 useful descriptive value?
 fudgey, vague, naïve, nice but untestable concepts
 hydraulic assumption : satisfy needs to boost bigger &
better "motivated" tendencies
 pressures on people to
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Limit scope for self-actualisation
Be self-actualised (self-development movement)
 can’t predict behaviour in given situations.
 self actualisation : a positive, attractive, humanist concept
 We would all like to see ourselves as self-actualised.
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Eric Trist - what people want from their jobs
 Reasonably demanding
work with some variety
 Opportunity to learn
 Some decision making
 Social support and
recognition
 Significance & meaning
 Some desirable future
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Job design principles
At the level of the individual
 Respect
 Contribution to product
 Quantity & quality - feedback results
quickly
 Meaningful whole task
 A whole job - plan, do, evaluate
 Variety
 Optimum cycle times
At the level of the group?
 Whole, meaningful task
 Set standards, feedback on results
 Ways of discussing jobs
 Attractive future possibilities
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Work restructuring
empowerment
membership
commitments
place
out sourcing
role of service
functions?
job enrichment
as enlargement
role of supervisor
Core - peripheral
Work
group
consultation
information
systems
technology
unionisation?
reward
systems
management
style
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matrix
organisation
structure
organisation
culture
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Job restructuring
Tasks
Add new & different tasks
Increase cycle time
Add ancillary & preparatory tasks
Work organisation
Job enrichment
Empowerment
Own work method
Planning/organising
Problem-solving
Goal setting
Flexible pace and hours
Flexible location
Information feedback
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Opportunities
Flexible rewards
Further skills/learning
Challenge
Self supervision
Networking
Implications
Benefits
Disadvantages
Outsourcing?
Call centres?
Virtual teams?
Teleworking?
Social impact
Work/job attributes
Work variety
Use of skills/abilities
Meaningful/worthwhile
Contribution
Advancement prospects
Accountability &
responsibility
Discretion & decisions
Autonomy
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Expectancy theory (the process of motivation)
assoc.. with Vroom & Lawler/Porter
Motivated to perform because of
expectations relating to perceived
payoffs from the performance.
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Desirability of payoffs (valence),
perception of expectancy + force of
expression - intrinsic to the person.
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Personal view of what is challenging
or interesting, important to self +
valuation of extrinsic payoffs - pay &
material rewards
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• expectancy - If I tried could I do
it? Get away with it?
• Instrumentality - if I did it will I
attain the outcome?
• valence (subjective valuation) do I really value what's
available?
Expressed as probabilities.
Path-goal relationships which
“explain” motivation 
performance.
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Expectancy Theory - Vroom et al
valence
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A robust explanatory, predictive model?
How the individual construes it all?
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Adams & Equity - an impossible ideal?
 “Felt-fairness” - how I am treated in relation to others
 Equity balance sheet & "the last straw”
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"What you gain on the swings….." Trust/good-will
“No more … that’s it for me!”
 Internal & external comparisons (groups & individuals)
 Feelings & perceptions - not synonymous with equality
 Proposition
… better motivated if treated equitably & consistently
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distributive equity
how I perceive I am treated & rewarded in comparison to others
procedural equity
how I see organisational procedures being applied
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Equity and Justice
 Distributive justice
how rewards are distributed in accordance with
 “my contribution” & need
 what was promised.
 Procedural equity
how reward decisions are made & managed
 adequate consideration of employee’s viewpoint
 no personal bias
 consistent application of criteria
 early feedback on outcome of decisions
 adequate explanation of decisions made
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Organisational initiatives
 job design & flexibility - matching people to jobs
 MbO - defining expectations and feedback
 teams & semi-autonomous groups, empowerment
 concern for staff development, competencies and accreditation
 effort to refine & deliver “reward packages” that "motivate" PRP
 managerial behaviours
 constant organisational vigilance & sensitivity
 a rewarding, supportive climate and cultures that foster
 confidence & identification (one-ness with the firm)
 meaningful, practical commitment?
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