Motivation, Incentive & Performance

1. Motivation,Incentive &Performance

2. 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" • 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.

3. Who wants what from motivation? • The person • 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?

4. 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."

5. Pay-offs in the Employer-Employee Relationship(after Mumford 1972) • Task structure 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 • PsychologicalManagement & 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 • EthicalValues & ambiguities/inconsistencies in right/wrong behaviour

6. 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 • 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 • observation, conversation and the stories people tell • attitude surveys • productivity data • absenteeism, retention • moans & gripes • analysis of performance reviews

7. Role modelling theory – Maier 1959 • Role ambiguity may result from uncertainty about • How one's work is evaluated • Scope for advancement • Scope of responsibility • Others expectations of one's performance • It can cause • 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 • Also consider • role underload/overload • capacity & stress • demands, choices & constraints • conflict & ambiguity

8. 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"

9. 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 useCoercive - Remunerative - Normative • Employee responsesAlienated - Instrumental - Moral involvement

10. 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) • interpret rewards/pay-offs of others • judge what is fair/unfair • satisfaction if each party achieves a balance (relative equality) • Psychological extension to neutral, economic model • Construing the value & importance of input-output • Social, psychological - individual & group • Validation of personal perceptions & comparisons • clear/distorted • internal/external

11. 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

12. 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?

13. 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

14. Performance-Related Pay (PRP) • extensive but partial & sectoral • little research data on effectiveness • pay linked to specific aspect of performance • 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?

15. 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 • 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? "Job descriptions - - Burn the lot of 'em" Robert Townsend, Up the Organisation

16. Job definition elements • 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

17. MbO Record Signed: (Manager) Signed: (Post-holder)

18. 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 çè Ee • my manager as • employer (by proxy) • as a person I like/dislike, respect? • How I "see" what others are getting - internally & externally

19. 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 Organisational "Culture" Problems

20. How well has work-motivation theory dealt with this? Attribution theory Adams - Equity theory Vroom, Lawler - Expectancy theory Hackman & Oldham - job characteristics McGregor: Theory X and Theory Y "on managing …. this approach is better" dynamic, emphasis on process - how it occurs prescriptive responses Process Maslow, Alderfer, McClelland - Herzberg - hygiene & motivators, job redesign Concern with individual needs/goals emphasis on what motivates general, universal Needs & satisfactions Content (What it is & its elements) 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

21. Abraham Maslow 1954 - Need Satisfaction teleology goal-orientation Behaviour/ Action achieve drive Goals Needs satisfy

22. Abraham Maslow - Hierarchy of Needs • Influential • Content of motivation (needs that motivate) theory - not personality • Classified needs • 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

23. What is Self Actualisation? • 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 • 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.

24. 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).

25. 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 • 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.

26. Eric Trist - what people want from their jobs • 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 • Reasonably demanding work with some variety • Opportunity to learn • Some decision making • Social support and recognition • Significance & meaning • Some desirable future

27. Work restructuring empowerment place out sourcing membership commitments role of service functions? Work group job enrichment as enlargement matrix information systems technology role of supervisor Core - peripheral consultation unionisation? reward systems organisation culture management style organisation structure

28. Job restructuring Implications Benefits Disadvantages Outsourcing? Call centres? Virtual teams? Teleworking? Social impact Opportunities Flexible rewards Further skills/learning Challenge Self supervision Networking 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 Work/job attributes Work variety Use of skills/abilities Meaningful/worthwhile Contribution Advancement prospects Accountability & responsibility Discretion & decisions Autonomy

29. 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 è performance. Expectancy theory (the process of motivation) assoc.. with Vroom & Lawler/Porter Motivated to perform because of expectations relating to perceived payoffs from the performance. ______ Desirability of payoffs (valence), perception of expectancy + force of expression - intrinsic to the person. ______ Personal view of what is challenging or interesting, important to self + valuation of extrinsic payoffs - pay & material rewards

30. Expectancy Theory - Vroom et al valence A robust explanatory, predictive model? How the individual construes it all?

31. Adams & Equity - an impossible ideal? • “Felt-fairness” - how I am treated in relation to others • Equity balance sheet & "the last straw” • "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 • distributive equityhow I perceive I am treated & rewarded in comparison to others • procedural equityhow I see organisational procedures being applied

32. Equity and Justice • Distributive justicehow rewards are distributed in accordance with • “my contribution” & need • what was promised. • Procedural equityhow 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

33. 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? Organisational initiatives