MOTIVATION STRATEGIES

Road Map
What is Motivation ?
Why study Motivation theories
What is morale?
Financial and non-financial motivational strategies
Challenges (including Multigenerational workforce )

the backbone of organisations is..
Performance
Output
Productivity
High performance, high commitment and loyalty
are the primary expectations of organisations
What expectations do individuals enter organisations
with ?
people join organizations for specific reasons and
usually with some purpose in mind. - Dr. Teresa Daniel

Ordinary, everyday experience teaches us that the
same people react quite differently to different
circumstances Or at the very least, there are
different human natures which behave differently
under different conditions. - Peter Drucker
( what does this mean? ???? )
Hence motivation
What is motivation?
The set of forces that cause people to behave in
certain ways

It has to do with why behaviour gets started, is
energised, is sustained, is directed, is stopped and
what reaction is present in the person when all this
is going on

Individual performance is the function of the
product of ability and motivation

Performance= f ( ability X motivation)

Motivation is defined as an innate need or desire
with a physiological or psychological basis that
propels an individual to undertake an activity to
satisfy the need or desire

Why study motivation theories?
Theories offer insight into how to motivate
employees, what is important and what the
rewards may be

The ultimate goal being improved and/or sustained
performance by employees and the organization as
a whole

Motivation is at the heart of performance, essential
for success for both the organization and its
workforce, as a group and as individuals

Theories
Maslows Needs Hierarchy theory
Hertzbergs two factor theory
Alderfers ERG theory
McClellands Achievement theory
Vrooms Expectancy theory
Adams Equity theory
Goal setting theory



Where are the theories used?-
(Applications of motivational concepts)
Rewards and Incentives
Awards
Equity
Job designing (enlargement, enrichment)
Goal setting
Empowerment etc..

A motivational model
Felt
need
Environmental
influence
Tensions
Incentives
and goals
Expectations
Effort
and
ability
Performance
External
(praise,
promotion)
Internal
(esteem)
Rewards
(outcome)
Morale
Employee morale describes the overall outlook,
attitude, satisfaction, and confidence that
employees feel at work
It is defined by the employee's outlook, optimism,
self-concept, and assured belief in themselves and
their organization ( its mission, goals, defined path,
daily decisions, and employee appreciation)
(how is it related to motivation??????)
When employees are positive about their work
environment and believe that they can meet their
most important needs at work, employee morale is
positive or high

If employees are negative and unhappy about their
workplace, and feel unappreciated and as if they
cannot satisfy their goals and needs, employee
morale is negative or low.

Faith in self and faith in their organization are both
important factors in positive employee morale
(intrinsic/extrinsic)

Carrot and Stick v/s Intrinsic/Extrinsic
motivation
Carrot and stick doctrine
Dangling a reward in front of employees (carrot) as
an incentive, in hope that whats good will be
achieved and gets repeated OR
Putting up a system of punishment (stick) in its
various forms, in hope that whats bad will be
avoided and not get repeated
Is motivation so simplistic? Does the carrot and stick
motivation work well?

Extrinsic or Intrinsic motivation
Motivation in an individual is the result of an intrinsic
or extrinsic factor
Extrinsic: rewards-financial and non financial
the rewards system becomes critical to employee
performance and organisational success
Intrinsic: when individuals are self motivated, the
rewards may take the form of satisfaction,
commitment, enthusiasm or loyalty


Intrinsic Motivation
the desire to self-direct our own lives
the urge to get better and better at something that
matters
the yearning to do what we do in the service of
something larger than ourselves
With that I could understand much better why I do
what I do, why I dont, what really moves me, why
Im not motivated as much as I should by the
external reward-punishment system in place
Components of employee remuneration
Wages and salaries
Incentives
Fringe benefits
Perquisite
Non-monetary benefits
Wages and salaries
Wages are hourly rates of pay, salary refers to the monthly
rate of pay
Both are subject to annual increments
Depend upon the job, type of industry, seniority and merit
Incentives
Also called payment by results , paid in addition to salary
Depend on productivity, sales, profit
May be individual or group
Fringe Benefits
Include benefits such as PF, gratuity, medical care,
hospitalisation, accident /health/group insurance,
canteen, recreation etc
Perquisites
These are allowed to executives for the position they
hold
May include company car, club membership, paid
holidays, furnished house , stock option schemes
Non-monetary benefits
challenging job responsibilities, recognition ,
growth prospects, competent supervision,
comfortable working conditions, flexitime
Strategies for motivation
Motivational
practices
Rewards
Job design
Empowerment Quality
of work life
(QWL )
Others
Incentives
strategies
Other strategies

Flexible working hours (flextime)
Flexible benefits
Telecommuting (work away from the
companys main location)
Cross training Teaching workers more than
one job : multi-skilling
1. Rewards and incentives
What are rewards?

How are they different from incentives?
Reward is.
A prize that you give to your employees for doing
an exceptional job at work
Can be monetary or non-monetary
pay ,bonuses, promotions, time off, special assignments,
awards, paid vacations, verbal praise, plaques, parties
or even just a pat on the back to say "great job."
To show appreciation to the employee to encourage
him to continue achieving


Incentive is
A way to motivate employees to do a better
job going forward
Extra pay for extra performance in addition to
regular wages for a job
To encourage better performance from workers
who may not be meeting desired goals
Common incentives include offering sales
commissions, stock options or the promise of a
bigger office space etc.


Put in simple terms, a reward is something which is
actually given to an employee, whereas an
incentive is a motivating factor

For example, if you give one of your employees a
gift for their hard work, that is a reward

However, if that same employee works hard and
exceeds your expectations because of the
thought of receiving a reward, that is an incentive
Profit sharing, signing bonus and stock options
Thanking employees, praising employees,
presenting employees with a certificate of
achievement, or announcing an accomplishment at
a company meeting
Employee referral awards that some companies
use to encourage employees to refer job candidates
Company parties and celebrations, company paid
family activity events, birthday celebrations,
sporting events, paid group lunches, and sponsored
sports teams ..are all incentives

Rewards can be based on..

Job status
Competency ( skill-based pay)
Performance
Seniority

Rewards- job status based (traditional
method)
Based on the status of the job held (not on the incumbent)
Job Evaluation system used (a decision process to determine a
job's relative position in the internal hierarchy of jobs)
More efforts, duties, responsibility, difficult working conditions
= jobs having more value=higher pay grades
Was developed for static /hierarchical organizations; that is to
say, jobs and work systems not subject to frequent changes.
Motivated employees to compete for higher position
Rewards- competency based (new
model)
Skills + knowledge+ traits =competency
Rewards linked to competencies leads to skill based pay
The new model focuses on the individual and his or her
capabilities
only the most competent can expect to progress to the
highest levels (purpose is to motivate to acquire
additional skills)


Rewards- performance based
Organisational Rewards ESOPs
Profit sharing
Team Rewards Special bonus

Gain sharing

Individual Rewards Piece rate
Commission

Merit pay
Bonuses
Rewards-membership & seniority based
For joining that particular firm

On experience- seniority

Used to attract job applicants (joining bonus etc)

May not directly motivate

Rewards-examples
PepsiCo India - the "Aha-Standards of
excellence" and "Star Spot Awards" to
acknowledge outstanding employee
contributions at work
The "Star Spot Awards" are given to individuals
who have contributed value to the organisation
by going beyond the call of duty
Sends the top two or three achievers to New
York where they receive awards at the hands of
the Chairman of Pepsi's parent arm

Contd
LG- achievers and their families are given a free
holiday trip abroad
High performers get an LG product of their choice
free
LG also bestows "best employee" awards periodically-
Outstanding employees speak on their achievement
so that others can get inspired
It also has team awards whereby the entire team is
sent abroad


Jacques Creeten, MD, sales & marketing for FedEx
India, Middle East and Africa says Fed Ex always
compliments employees who do a good job
The boss can hand out theater tickets, diner
certificates and cash up to $100 to the deserving
employee on the spot
FedEx too has awards like 'Circle of Excellence,'
'Customer Service Center of the Year,' 'Club FedEx'
among others

2. Job design
The process of assigning tasks to a job including
interdependency of those tasks with other jobs
(eg.production,banks)
Some jobs have few tasks requiring limited
skills..others more complex requiring trained
professionals
From the organisations point of view- increases
productivity and reduces cost when similar
/continuous tasks are grouped







Benefits of job Design for employee
Poorly designed job =low productivity,
boredom, employee turnover, absenteeism,
complaints, resignations etc.
For employee-Motivation is affected by the
match between job factors (content,
qualifications, rewards) and personal needs




Job Design -popular approaches

Job rotation moving employees from job to job
Job engineering-tasks to be performed, methods to
be used, layout, performance standards are re-
evaluated (industrial engineering, ergonomics- IV eg))
Job enlargement expansion of the number of tasks
performed (horizontal loading)
Job enrichment adding more responsibility to make
it more exciting, challenging, creative,
rewarding(vertical loading)

Job enrichment
Means adding depth( increasing difficulty) to a job to
increase motivation and interest in performing the job
Provides the employee an opportunity for greater
recognition, achievement, growth, greater
responsibility (lack of which can cause worker
alienation)
In short, it involves modifying jobs so that they
appeal more to employees higher order needs
(Eg. allowing secretaries to sign their own outgoing
letters and to be responsible for content and quality)

Empowerment
Empowerment occurs when individuals in an
organization are given autonomy, authority,
trust, and encouragement to accomplish a task

Employee empowerment means making the
employee/s able to run the show by
himself/themselves

Forms of empowerment
Quality Circles (QCs): - work group of employees
who meet regularly to discuss their quality
problems, investigate causes, recommend
solutions and take corrective actions
QC is formed to achieve the following objectives:
Improvement in quality of product manufactured, in
methods of production.
Development of employees participating in QC.
Promoting morale of employees


CONTD
Empowered Teams: also referred to as self-
directed or self managing teams.
These groups are given a large degree of decision-
making autonomy and expected to control their
own behavior and results
They plan, set goals, supervise progress, prepare
their own budgets ,coordinate with other
departments, take responsibility for achieving
quality in their products and services


Under Tejaswini, Tata motivates its female
employees to join technical jobs by training &
improve their position in the organization

Beyond Tejaswini, Tata has an Adventure Foundation
in Tata Steels. Tata has succeeded to have a team of
self motivated female employees

Bachendri Pal, the first Indian lady to climb Mount
Everest, is from Tata Steel Adventure Foundation &
now she is the Head of the Foundation


Encourages women for these daring activities but
also motivates them to hold the jobs, which are said
to be only for men

QUALITY OF WORK LIFE (QWL)


Favorableness or un-favorableness of a total job
environment for people

Will increase productivity
Turnover might decrease
Able to attract better workers more easily
Morale might improve



Some methods of improving QWL
Job enrichment,enlargement,rotations
Cross training
Feedback and reinforcement
Well pay and floating holidays
Empowerment
Ergonomics changes
Wellness programs

Todays challenge- sustaining the
motivational levels of their employees

Why is it a challenge?
Paradigm shift in organisations today
De-layering (hierarchies reduced)
Downsizing
Cultural diversity
Job hopping
Increased focus on individual competencies etc
Multigenerational workforce
the bottom line is employees need to perform
Multigenerational workforce
Today four generations are working side by side
in the workplace
Many organizations are trying to balance a
generation gap of more than 30 years between
the oldest and youngest employees
Although there is no consensus of the exact
birth dates that define each generation, they
are generally broken into four distinct groups

The Traditionalist - born between 1927 and 1945
The Baby boomers- born between 1946 and 1964
Generation X born between 1965 and late 1970
Generation Y- born early 1980s to the early 2000 (also
known as Millenials)
The diverse perspectives, motivations, attitudes and
needs of these four generations have changed the
dynamics of the workforce



Motivating the Millennial Generation


What is the challenge ?

Does motivation differ across generations?
How to motivate ?

Some of their traits
Tech- savvy Armed with smartphones, laptops, tablets
and other gadgets, Generation Y is plugged-in 24 hours a day,
7 days a week. This generation prefers to communicate
through e-mail and text messaging rather than face-to-face
contact
Work-life balance-willing to trade high pay for fewer billable
hours, flexible schedules and a better work/life balance
Achievement oriented-confident, ambitious and
achievement-oriented. They have high expectations of their
employers, seek out new challenges and are not afraid to
question authority.
Team oriented-As children, Generation Y participated in
team sports, play groups and other group activities. They
value teamwork and seek the input and affirmation of others.

Attention craving-craves attention in the forms of
feedback and guidance. They appreciate being kept in the
loop and seek frequent praise and reassurance. Generation Y
may benefit greatly from mentors who can help guide and
develop their young careers


Indian workplace is a blend of 3 to 4
generations
the business leaders and the CEOs of baby
boomer generations (45 plus)
management teams and senior professionals
from Gen X (23 to 45)
young Gen Y professionals (23-28 )
This generation gap has lead to differences in
working styles and communication styles as
well as motivation

Situation..
Kathy has been with the company longer than any of your other
employees. She joined the company as a Sales representative. Although
she has no sales background, she possessed an innate ability to sell. Over
the years, she consistently met or exceeded her sales quotas for her
region. She likes her region and knows her customers well.. Although she
has had several opportunities to transfer to a larger region, she has
always declined the offer, stating that her preference was to stay where
she was. For the first time in her career, for the past six months, she has
consistently missed her sales quota. Until now, you have chosen to ignore
the problem. Initially, you thought it was temporary phase that would
simply go away. Your rationale was based on the fact that Kathy has
always been a good performer. You assumed that she was either
encountering temporary personal problems that was disrupting her
productivity or that sales were slow in her region. You now realize, with
mounting pressure from your employees and concerns from upper
management, that you must address the situation immediately

situation
Its happened gain. As you walk through your work area a half
our after starting time, you notice that Sams desk is empty
for the second time this week. This has become an ongoing
problem for him over the past several months. Because he
didnt ask for any time off, there is only one conclusion you
can come to-he is late again. The area gets quiet as you
glance around and notice that everyone is watching you in
anticipation. To dampen your employees suspicions, you
walk over to Sams desk, pick up a piece of paper and look at
it to show them that that is why you came into the work area
in the first place. You then quickly make your exit. Twenty
minutes later, you catch Sam sneaking in through the back
door and scrambling to his desk. This has got to stop !!

situation
George is good at what he does , but he needs to slow down.
He has just one speed- fast. Whenever you give him an
assignment, you can count on the fact that he will show up at
your office door, telling you hes done with the project a few
days early, asking for another project. The problem
confronting you is that several employees in your
organization have complained about Georges work tactics.
If he asks them for something he needs to complete an
assignment and they cant give it to him immediately , he
goes behind their backs and takes whatever he needs. How
can you motivate George to become more diplomatic
without destroying his empowered drive?