rewards and motivation
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Rewards and Motivation. Motivation - a nagging concern. What is the problem? Effort, performance, retention, loyalty, membership, commitment, trust, empowerment, participation, work design Extrinsic and intrinsic rewards Expectancy and Equity Rhetoric versus reality - PowerPoint PPT PresentationTRANSCRIPT
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Chris Jarvis 1
Rewards and Motivation
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Chris Jarvis 2
Motivation - a nagging concern
What is the problem? Effort, performance, retention, loyalty,
membership, commitment, trust, empowerment, participation, work design
Extrinsic and intrinsic rewards Expectancy and Equity Rhetoric versus reality How I construe my/your motivation, needs &
drives
How to "motivate people to give their all"
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Chris Jarvis 3
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 Coercive - Remunerative - Normative Alienated - Instrumental - Moral involvement
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Chris Jarvis 4
The person-as-economist expects
ROI - time, effort, commitment
"What's in it for me?" calculation Conscious subconscious (self image and comparisons)
Fairness (equitable social (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 and comparisons Clear/distorted internal/external
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Chris Jarvis 5
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 ……versus ……...in your time? Supervision and monitoring - “When the cats away”? Is actual presence necessary? Off-site working. Life increments - pay & career progression, security?
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Chris Jarvis 7
PRP, merit pay, skill-based schemes
Requires targeting, information & measurement Manager appraisal and 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 and rating
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Chris Jarvis 8
Performance-Related Pay (PRP)
extensive but partial and 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"
Addition to salary (merit pay or bonus) for this appraisal round.
The apparent exaggeration of "Fat cat bonuses" – the "global labour market for stars" + formulae?
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Chris Jarvis 9
Emotional & social dynamics & expectations
Important for employee belief and 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 and externally.
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Chris Jarvis 10
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
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Chris Jarvis 11
Organisational "Culture" Problems
Conscious calculation & instrumentality? Take-it or leave it + "9-5" sub-optimisation Tangible over non-tangible rewards Organisational rationalisation of effort-reward
relationship Structural inflexibility of reward packages Constructing and controlling the performance
review and PRP system Genuine involvement & participation Delegation, reliance and confidence
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Chris Jarvis 12
How has work-motivation theory dealt with this?
Homo economicus Content theories - needs and factors:
Maslow, Alderfer, McClelland - Needs and satisfactions Herzberg - hygiene and motivators, job redesign
Process theories McGregor, Likert et al - on being managed Adams - Equity theory Vroom, Lawler - Expectancy theory Hackman & Oldham - job characteristics Locke - Goal setting
Reinforcement theory (operant conditioning) Positive (continuous, fixed and variable intervals/ratios) Avoidance learning and punishment
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Chris Jarvis 13
Abraham Maslow - Need Satisfaction
Needs
Behaviour/Action
Goals
achievedrive
satisfy
teleologygoal-orientation
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Chris Jarvis 14
Maslow's Need-Satisfaction Model
Content theory - the needs that motivate
simple description, partial account - not quantifiable
chronic deficiency drives (motivates) behaviour
gratified needs - equilibrium snakes and ladders or lower needs mediated by higher
order consciousness? nb: Alderfer ERG theory -
existence, relatedness, growth) cognitive and developmental
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Chris Jarvis 15
more efficient perception of reality + comfortable with it
acceptance of self & others + social interest
problem-orientation, spontaneity and creativity
detachment - value privacy
autonomy - independence of culture & environment
resistance to enculturation
continued freshness of appreciation
mystic experience or oceanic feeling
interpersonal relations & democratic behaviour
sense of humour
This idealised, self-actualised person?
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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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Chris Jarvis 18
Expectancy theory (the process of motivation)
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
•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.
assoc.. with Vroom & Lawler/Porter
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Chris Jarvis 19
Expectancy Theory - Vroom et al
valence
A robust explanatory, predictive model?How the individual construes it all?
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Equity & consistency - 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 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 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
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Organisational initiatives
Job design & flexibility - matching people to jobs
MbO - defining expectations and feedback
Teams and semi-autonomous groups, empowerment
Concern for staff development, competencies and accreditation Effort to refine and deliver “reward packages” that "motivate" - PRP
Managerial behaviours
Constant organisational vigilance & sensitivity
A rewarding, supportive climate
Cultures that foster confidence and identification (one-ness with the firm) meaningful, practical commitment?