Motivating Employees

1. Motivating Employees 1st Class

2. Learning Objectives • Introduce important ideas about motivation of people in organizations • Discuss concepts of rewards • Learn the different theories on human needs in relation to motivation • Explore the applications of motivational ideas in job design • Learn about employee engagements • Discuss employee empowerment

3. Concepts of Motivation, Needs & Rewards • Motivation refers to the forces within or external to the person that arouse enthusiasm and persistence to pursue a certain course of action. • People have needs such as for recognition, achievement, or monetary gain that motivate specific behaviors with which to fulfill the need. • Intrinsic rewards are satisfactions a person receives in the process of performing a particular action • Extrinsic rewards are given by another person. They originate externally as a result of pleasing others. • Motivation can lead to behaviors that reflect high performance within organizations.

4. Content Perspective of Motivation(Maslow’s Hierarchy of Needs) • Content theories emphasize the needs that motivate people. These needs translate into an internal drive that motivates specific behaviors in an attempt to fulfill needs. • Abraham’s Maslow’s hierarchy of needs theory states that people are motivated by multiple needs and these needs exist in a hierarchical order.

5. Content Perspective of Motivation(Maslow’s Hierarchy of Needs) Maslow’s Hierarchy of Needs Self Actualization Needs Esteem Needs Belongingness Needs Safety Needs Physiological Needs

6. Content Perspective of Motivation(Maslow’s Hierarchy of Needs) • Physiological needs include food, water and air. In the company, these are reflected in the needs for adequate heat, air, and base salary to ensure survival. • Safety needs include safe and secure physical and emotional environment and freedom from threats. • Belongingness needs reflect the desire to be accepted by one’s peers, be part of a group and be loved. • Esteem needs relate to desires for a positive self image and to receive attention, recognition and appreciation from others. • Self actualization needs include need for self-fulfillment which is the highest need category.

7. Content Perspective of Motivation(ERG Theory by Clayton Alderfer) • This is a modification to Maslow’s theory. This identifies three categories of needs. • Existence needs are for physical well-being. • Relatedness needs are for satisfactory relationship with other people • Growth needs are needs that focus on the development of human potential and the desire for personal growth and increased competence.

8. Content Perspective of Motivation(Two-factor theory by Frederick Herzberg) • This motivation theory was developed by Frederick Herzberg. This theory prompted the notion that only two factors influence work motivation. • Hygiene factors involve the presence or absence of job dissatisfiers such as working conditions, pay, company policies, and human relations. • Motivators focus on high-level needs and include achievement, recognition, responsibility and opportunity for growth.

9. Content Perspective of Motivation(Acquired Needs Theory by David McClelland) • This theory proposes that certain types of needs are acquired during the individual’s lifetime. People are not born with these needs but may learn them through their life experiences. • The three needs frequently present in every individual are needs for achievement, affiliation and power. • Need for achievement is the desire to accomplish something difficult, attain a high standard of success, master complex tasks and surpass others. • Need for affiliation is the desire to form close personal relationships, avoid conflicts and establish warm friendship. • Need for power is the desire to influence or control others, be responsible for others and have authority over others.

10. Process Perspective of Motivation(Goal Setting Theory by Edwin Locke and Gary Latham) • Process theories of motivation explain how people select behavioral actions to meet their needs and determine whether their choices were successful. • Goal setting theory states that managers can increase motivation and enhance performance by setting specific, challenging goals, then helping people track their progress toward goal achievement by providing timely feedback. It has four components namely; goal specificity, goal difficulty, goal acceptance and feedback. • Goal specificity refers to the degree to which goals are concrete and unambiguous. • Goal difficulty can be related to the degree or level of complexity and effort required to achieve the goal • Goal acceptance means that employees have to “buy into” the goals and be committed to them. • Feedback means that people get information about how well they are doing in progressing toward goal achievement.

11. Process Perspective of Motivation(Equity Theory by J. Stacy Adams) • Equity theory focuses on individual’s perception of how fairly they are treated compared with others. This proposes that people are motivated to seek social equity in the rewards they expect for performance. • People evaluate equity by a ratio of inputs to outcome. • A state of equity exists whenever the ratio on person’s outcomes to inputs equals the ratio of another’s outcomes to inputs. • Perceived inequity creates tensions within individuals that motivate them to bring equity into balance. The most common methods for reducing perceived inequity are change of work effort, change outcomes, change perceptions and leave the job.

12. Process Perspective of Motivation(Expectancy Theory by Victor Vroom) • Expectancy Theory suggests that motivation depends on individual’s expectations about their ability to perform tasks and receive desired rewards. • This theory is based on the relationship on the individual’s effort, individual’s performance and the desirability of outcomes associated with high performance. • E – P expectancy involves determining whether putting effort into a task will lead to high performance. • P – O expectancy involves determining whether successful performance will lead to the desired outcome or reward. • Valence is the value of outcomes, or attraction to outcomes, for the individual.

13. Process Perspective of Motivation(Expectancy Theory by Victor Vroom) Major Elements of Expectancy Theory Valence (value of outcome) E – P expectancy Effort Performance Outcomes P – O expectancy

14. Reinforcement Perspective on Motivation • Reinforcement theory simply looks at the relationship between behavior and its consequences. • Behavior Modification is the name given to the set of techniques by which reinforcement theory is used to modify human behvior. • Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. The four reinforcement tools are positive reinforcements, avoidance learning, punishment and extinction. • Positive reinforcement is the administration of a pleasant and rewarding consequence following a desired behavior. • Avoidance learning is removal of an unpleasant consequence following a desired behavior. • Punishment is the imposition of unpleasant outcomes on an employee after an undesirable behavior. • Extinction is the withdrawal of a positive reward.

15. Job Design for Motivation • A job in an organization is a unit of work that a single employee is responsible for performing. • Job design is the application of motivational theories to the structure of work for improving productivity and satisfaction. • Approaches to job design are generally classified as job simplification, job rotation, job enlargement and job enrichment. • Job simplification pursues task efficiency by reducing the number of tasks once person must do. • Job rotation systematically moves employees from one job to another thereby increasing the number of tasks an employee performs without increasing the complexity of any one job. • Job enlargement combines a series of tasks into one new broader job. • Job enrichment incorporates high level motivators into the work, including job responsibility, recognition, and opportunities for growth, learning and achievements.

16. Empowering people to meet higher needs • Empowerment is power sharing, the delegation of power or authority to subordinates in an organization. • Most people have a need for self-efficacy which is the capacity to produce results or outcomes to feel that they are effective • Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: • Employees receive information about company performance. • Employees have knowledge and skills to contribute to company goals • Employees have the power to make substantive decisions • Employees are rewarded based on company performance

17. Giving meaning to work through engagement • Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals and feel a sense of belonging and commitment to the organization. • One way to evaluate employee engagement is the metric developed by Gallup Organization researchers called the Q12. • The Q12 is a list of 12 questions which provide a way to assess how managers are doing in creating environment that help employees thrive in the workplace. • Result of the Gallup study shows that organizations where employees give high marks on Q12 have less turnover, are more productive and profitable

18. MOTIVATION AT WASHBURN GUITAR Case Study

19. What motivates most Washburn Guitar employees? Their love of music and the care they feel for the instruments motivates most Washburn Guitar employees. These are people who love music to the extent that they are motivated by the fact that at the end of the process, they will possess an actual finished guitar. Their genuine love for music makes this intrinsic reward real. These are people who value the craft and design of each guitar. Working at Washburn fulfills their belongingness needs in the Hierarchy of Needs Theory. They are part of a group that appreciates music as much as they do. Their passion for a job that’s music related allows them to keep their focus on the goal which is to produce guitars of the finest quality at the best possible price. The connection they have with every single guitar takes their production to such an extraordinary level. It’s really “a labor of love.” At least that’s what Production Manager Gil Vasquez says. He is credited for inspiring employees to reach new levels of quality with the skill and attention to detail that he injected into the Washburn culture. It also doesn’t hurt one’s motivation to have a production manager who directly works with rock stars and has a vast experience with high-end guitars.

20. What kinds of guitars do employees most like to produce? Employees most like to produce signature model guitars for top recording artists. Professional musicians push their instruments to the limit and it’s through these very heavily used guitars that Washburn is able to show the exceptional quality of its products. This strengthens the relationship Washburn has with musicians and musicians’ fans as well. Finally, watching the guitars get played on the biggest stages is validation for all the hard work Washburn employees put into every guitar they produce. And as icing on the metaphorical cake, when they attend concerts, they get to hear comments such as "Man, did you see that guitar. That thing is awesome. Did you hear the way that guitar sounded? That was great." Unexpected positive feedback such as this is an extrinsic reward that really motivates people.

21. What is the connection between quality guitars and workforce motivation? Guitar making is labor intensive and requires attention to detail. Quality materials are therefore not enough. It has to be combined with quality craftsmanship in order to produce quality guitars. And quality craftsmanship is a reflection of workforce motivation. Motivation allows every employee to do his job at the highest possible level. This makes a motivated workforce indispensable. And this is especially true at Washburn. Just as musicians feel an attachment to guitars, so do Washburn employees. They make each guitar as if it is their own. They don’t cut corners. They are purpose-driven because they know that when musicians make a positive difference in the world through their art, they, as guitar makers, have a hand in that for they provide musicians with tools to create beautiful music. It would certainly be a shame if a musician failed because of a subpar guitar.

22. Case Study JOHN JOEY NELIA NIELSON CHARLES