Description
ABOUT EMPLOYEES MOTIVATION IN HRM.
A STUDY ON EMPLOYEE MOTIVATION
CHAPTER-1 INTRODUCTION
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with reference to identify the factors which will motivate the employees and the organizational functions . Management’s basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the ‘will to work’ among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees.
Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the
organisation.
“What are the factors which help to motivate the employees?
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A STUDY ON EMPLOYEE MOTIVATION
SIGNIFICANCE OF THE STUDY
The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture. Motivation has variety of effects. These effects may be seen in the context of an individual’s physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers “who can deliver value to the organization. Proliferating and nurturing the number of “true believers” 1is the challenge for future and present HR managers. This means innovation and creativity. It also means a change in the gear for HR polices and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom. This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs.
Why study and apply employee motivation principles?
Quite apart from the benefit and moral value of an altruistic approach to treating colleagues as human beings and respecting human dignity in all its forms, research and observations show that well motivated employees are more productive and creative. The inverse also holds true. The schematic below indicates the potential contribution the practical application of the principles this paper has on reducing work content in the organization.
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CHAPTER 2 LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force. It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.
Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful indoing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.
The concept of motivation
The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. 3
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There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.
Definition of Motivation.
According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.
Types of Motivation.
Motivation of employees are divided into two types that are intrinsic motivation and extrinsic motivation. Intrinsic Motivation Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Intrinsic motivation can be enhanced by job design or role design. The job itself must provide sufficient variety, sufficient complexity, sufficient challenge and skill to engage the abilities of the workers. Extrinsic Motivation Extrinsic motivation occurs when things are done to or for people to motivate them. These includes rewards, such as incentives, increase pay, praise or promotion; and punishments, such as disciplinary action, withholding pay, or criticism. Extrinsic motivation can have an immediate and powerful effect, but will not necessarily last long. The intrinsic motivators, which are concerned the ‘quality of working life’, are likely to have a deeper and longer-term effect because they are inherent in individuals and their work and not imposed from outside in such forms as incentive pay. 4
A STUDY ON EMPLOYEE MOTIVATION
Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus:
•
Job performance = f (ability) (motivation)
Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation:
• • • • • • •
Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance
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Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap.
Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. 1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. 3. The rates of labor’s turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5. The number of complaints and grievances will come down. Accident will also be low. 6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.
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Motivation Process.
1. Identification of need 2. Tension 3. Course of action 4. Result –Positive/Negative 5. Feed back
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CHAPTER 3
THEORIES OF MOTIVATION
Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S. Adam’s Equity Theory, Vrooms Expectation Theory, Two factor Theory.
Employee Motivation: Theory and practice
The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. McClelland’s Achievement Need Theory. According to McClelland’s there are three types of needs; Need for Achievement (n Ach); This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement. 8
A STUDY ON EMPLOYEE MOTIVATION
Need for Power (n Pow) It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style. Need for affiliation (n Aff) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle. Behavioural Modification Theory : According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives. More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior. Abraham H Maslow Need Hierarchy or Deficient theory of Motivation : The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a 9
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hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators. Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.
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The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off. Physiological or Body Needs: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job. Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements. Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group. Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem
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Example : need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals. Self realization or Actualization needs: - This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.
Process Theory:
In process theory, the emphasis is on the psychological processes of forces that affect motivation, as well as on basic needs. It is also known as ‘cognitive theory’ because it is concerned with people’s perceptions of their working environment and the ways in which they interpret and understand it. According to Guest (1992), process they provides a much more relevant approach to motivation that replaces the theories of Maslow and Herzberg which, he claims, have been shown by extensive research to be wrong.
Expectancy theory:
The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.
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Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships: • Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal? • Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards. • Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.
Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality. Advantages of the Expectancy Theory • It is based on self-interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction. • This theory stresses upon the expectations and perception; what is real and actual is immaterial. • It emphasizes on rewards or pay-offs. • It focuses on psychological extravagance where final objective of individual is to attain maximum pleasure and least pain.
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Limitations of the Expectancy Theory • The expectancy theory seems to be idealistic because quite a few individuals perceive high degree correlation between performance and rewards. • The application of this theory is limited as reward is not directly correlated with performance in many organizations. It is related to other parameters also such as position, effort, responsibility, education, etc. Implications of the Expectancy Theory ? The managers can correlate the preferred outcomes to the aimed performance levels. ? The managers must ensure that the employees can achieve the aimed performance levels. ? The deserving employees must be rewarded for their exceptional performance. ? The reward system must be fair and just in an organization. ? Organizations must design interesting, dynamic and challenging jobs. ? The employee’s motivation level should be continually assessed through various techniques such as questionnaire, personal interviews, etc.
Goal Theory:
Goal theory as developed by Latham and Locke (1979) states that motivation and performance are higher when individuals are set specific goals, when goals are difficult but accepted, and when there is feedback on performance. Participation in goal setting is important as a means of getting agreement to the setting of higher goals.
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A process of managing, motivating and appraising people by setting objectives or goals and measuring performance against those objectives. But management by objectives or MBO fell itnto disrepute because it was tackled bureaucratically without gaining the real support of those involved and, importantly without ensuring that managers were aware of the significance of the processes of agreement, reinforcement and feedback, and were skilled in practicing them. Goal theory, however, plays a key part in performance management.
Social Learning Theory:
Social learning theory as developed by Bandura (1977) combines aspects of both behavioural and expectancy theory. It recognizes the significance of the basic behavioural concept of reinforcement as a determinant of future behaviour but also emphasizes the importance of internal psychological factors, especially expectancies about the value of goals and the individual’s ability to reach them. The term ‘reciprocal determinism’ is used to denote the concept that while situation will affect behaviour, individuals will simultaneously influence the situation. Robertson and Cooper (1983) have pointed out that ‘there are many similarities between social learning theory and expectancy theory in their joint emphasis on expectancies, individual goals and values and the influence of both person and situational factors.’
Instrumentality Theory:
‘Instrumentality’ is the belief that if we do one thing it will lead to another. In its crudest form, instrumentality theory states that people only work for money. The theory emerged in the second half of the 19th century with its century with its emphasis on the need to rationalize work and economic outcomes. It assumes that people will be motivated to work if rewards and penalties are tied directly to their performance; thus the awards are contingent upon effective performance. Instrumentality theory has its roots in the scientific management methods of Taylor(1911), who wrote: ‘It is impossible, through any long period of time, to get workmen to work much harder than the average men around then unless are assured a large and permanent increase in their pay.’ This theory provides rationale for incentive pay, albeit a dubious one. It is based on principle of reinforcement. Motivation using this approach has been and still is widely adopted and can 15
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successful in some circumstances. But it is based exclusively on a system of external controls and fails to recognize a number of other human needs. It also fails to appreciate the fact that the formal control system can be seriously affected by the informal relationship existing between workers.
Reinforcement Theory:
As experience is gained in taking action to satisfy needs; people perceive that certain actions help to achieve their goals while others are less successful. Some actions bring rewards; others result in failure or even punishment. Reinforcement theory as developed by Hull (1951) suggests that in achieving goals and rewards act as positive incentives and reinforce the successful behaviour, which is repeated the next time a similar need emerges. The more powerful, obvious and frequent the reinforcement, the more likely it is that the behaviour will be repeated until, eventually, it can become a more or less unconscious reaction to an event. Conversely, failures or punishments provide negative reinforcement, suggesting that it is necessary to seek alternative means of achieving goals. This process has been called ‘the law of effect.’ The associated concept of operant conditioning (Skinner, 1974) explains that new behaviours or responses become established through particular stimuli, hence conditioning – getting people to repeat behaviour by positive reinforcement in the form of feedback and knowledge of results. The concept suggests that people behave in ways they expect will produce positive outcomes. The degree to which experience shapes future behaviour does, of course, depend, first, on the extent to which individuals correctly perceive the connection between the behaviour and its outcome and, second, on the extent to which they are able to recognize the resemblance between the previous situation and the one that now confronts them. Perceptive ability varies between people as does the ability to identify correlations between events. For these reasons, some people are better at learning from experience than others just as some people are more easily motivated than others.
Content ( Need ) Theory:
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The theory focuses on the content of motivation in the shape of needs. It basis is the belief that an unsatisfied need creates tension and a state of disequilibrium. To restore the balance a goal is identified that will satisfy the need, and a behaviour pathway is selected that will lead to the achievement of the goal and the satisfaction of the need. All behaviour is therefore motivated by unsatisfied needs. There are three points that emerge from this model. First, people have a multiplicity of needs depending on themselves and the situation they are in. Second, they can select all sorts of goals and actions to satisfy those needs. Third, while we can observe their behaviour we cannot be certain of the needs and goals that motivated it. It is unwise to assume that any one approach to motivation will appeal to all affected by it. Motivation policies and practices must recognize that people are different.
ERG Theory (Alderfer):
Alderfer (1972) devised a theory of human needs that postulated three primary categories: 1. Existence needs such as hunger and thirst – pay, fringe benefitsand working conditions are other types of existence needs. 2. Relatedness needs, which acknowledge that people are not self-contained units but must engage in transactions with their human environment – acceptance, understandings, confirmation and influence are elements of the relatedness process. 3. Growth needs, which involve people in finding the opportunities ‘to be what they are most fully and to become what they can.’
HERZBERG’S Two-Factor Model:
Two Factor Theory
Douglas McGregor introduced the theory with the help of two views; X assumptions are conservative in style Assumptions are modern in style. Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize output. In relations to
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Theory Y the organization is trying to create the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It can relate to Esteem when the manager is trying to promote self - esteem, confidence, achievement, respect of others, and respect by others. X Theory • • • Individuals inherently dislike work. People must be coerced or controlled to do work to achieve the objectives. People prefer to be directed
In this theory, which has been proven counter effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employees' compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause diseconomies of scale in large businesses.
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Y Theory • • • People view work as being as natural as play and rest People will exercise self direction and control towards achieving objectives they are committed to People learn to accept and seek responsibility.
In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to them work is as natural as play[1]. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It's human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would the sharing of decision making so that subordinates have say in decisions that influence them. J.S Adams Equity Theory Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation. Vrooms Expectation Theory 19
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Vroom’s theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated. Application of employee motivation theory to the workplace Management literature is replete with actual case histories of what does and what does not motivate people. Presented here is a tentative initial broad selection of the various practices that have been tried in order to draw lessons for the future. 'Stick' or 'carrot' approach? The traditional Victorian style of strict discipline and punishment has not only failed to deliver the goods, but it has also left a mood of discontent amongst the "working class". Punishment appears to have produced negative rather than positive results and has increased the hostility between 'them' (the management) and 'us' (the workers). In contrast to this, the 'carrot' approach, involving approval, praise and recognition of effort has markedly improved the work atmosphere, leading to more productive work places and giving workers greater job satisfaction. Manager's motivation 'toolkit' The manager's main task is to develop a productive work place, with and through those he or she is in charge of. The manager should motivate his or her team, both individually and collectively so that a productive work place is maintained and developed and at the same time employees derive satisfaction from their jobs. This may appear somewhat contradictory, but it seems to work. The main tools in the manager's kitbag for motivating the team are:
• • •
approval, praise and recognition trust, respect and high expectations loyalty, given that it may be received
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•
removing organizational barriers that stand in the way of individual and group performance (smooth business processes, systems, methods and resources - see outline team building program)
• • •
job enrichment good communications financial incentives
These are arranged in order of importance and it is interesting to note that cash is way down the ladder of motivators. Let's look at a couple of examples taken from real life situations. The Swedish shipbuilding company, Kockums, turned a 15 million dollar loss into a 100 million dollar profit in the course of ten years due entirely to a changed perception of the workforce brought about by better motivation. At Western Electric there was a dramatic improvement in output after the supervisors and managers started taking greater interest in their employees. Don't coerce - persuade! Persuasion is far more powerful than coercion, just as the pen is mightier than the sword. Managers have a much better chance of success if they use persuasion rather than coercion. The former builds morale, initiative and motivation, whilst the latter quite effectively kills such qualities. The three basic components in persuasion are:
• • •
suggest; play on the person's sentiments; and appeal to logic.
Once convinced, the person is so motivated as to deliver the 'goods'. The manager will have achieved the goal quietly, gently and with the minimum of effort. It is, in effect, an effortless achievement. There has been a considerable amount of research into persuasion / motivation in the field of advertising and marketing. The research is entirely of the applied type, which can and has
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been used to great practical advantage. Some of the findings in this field were first published in the fifties in a book with the title, The Hidden Persuaders, which became a bestseller. More contemporary 'persuaders' used by advertising and marketing people include:
• •
Faster talk is found to be more effective, since it is remembered better. Brain emits fast beta waves when a person is really interested in a particular presentation. These waves can be detected by an instrument. Subliminal approach using short duration presentation, whereby the message is transmitted below the level of awareness.
•
Can these findings be used in actual work conditions? AT&T (The American Telephone and Telegraph Co.,) recognizing the importance of hidden needs, at one time succeeded in promoting long distance calls by use of the simple phrase: 'Reach out, reach out and touch someone'. Managers will need to adapt this persuasion / motivation technique to their own situation.
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CHAPTER 4 WAYS TO MOTIVATE EMPLOYEES
20 Ways To Motivate Your Employees Without Raising Their Pay
It is a costly mistake to get lost in the false theory that more money equals happy employees. Believing this is costing you valuable time, revenue, employees...and even threatening your own job. Cash will always be a major factor in motivating people and a solid compensation plan is critical to attracting and keeping key personnel. But the key is that additional cash is not always the only answer and in many cases not even the best answer. Too many bonus or commission checks get cashed, spent and forgotten just that quickly. Grocery stores and gasoline stations are among the necessary stops that seem to get in the way of using your extra cash on something special for you. One alternative to giving commissions or bonus dollars is to give gifts through a catalog point system. The company you choose will provide you with catalogs, price sheets and point checks at no charge. The structure for your bonus plan can remain the same but instead of awarding cash to your employees you award equivalent points. Those points may then be used to purchase an enormous variety of gifts or travel plans from the catalog. The stimulation involved is long-lasting. It begins with the employee being able to browse the catalog choosing what they will strive to earn. The catalog acts as a tangible reminder of their goal. The gift itself will last as evidence of their achievements. Whenever I have implemented this program, the employees are overwhelmingly in favor of the point system as opposed to cash. This type of program is very popular with employees because they purchase things they would never normally have the "money" to afford. 23
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With solid compensation in place, let's look at non-monetary motivation...20 steps to success. 1. Recognition/Attention: When your employees accomplish something they have achieved something. Your recognition is appreciation for that achievement. I believe that most managers don't give enough recognition because they don't get enough. Therefore, it doesn't come natural to do it. If this applies to you, you need to drop this excuse like a bad habit! Become a giver! Look at the price. Recognition is free! 2. Applause: A form of recognition yes, but a very specific form. Physically applaud your people by giving them a round of applause for specific achievements. Where? When? The answer is wherever and whenever. At meetings or company-sponsored social gatherings, a luncheon, or in the office. At the end of a shift, before a shift, and whenever possible in the middle of a shift. Using plaques or trophies is another effective way of applauding your people. Although "wooden applause" is often successfully used in the form of Employee of the Month plaques, more creative ideas are sorely underutilized. Take the time to be creative, matching special accomplishments with unique awards. 3. One-on-One Coaching: Coaching is employee development. Your only cost is time. Time means you care. And remember your people don't care how much you know... until they know how much you care. Whenever the emphasis is on positive feedback, I make sure to do this coaching in "public." Whenever you recognize and encourage people in "public," it acts as a natural stimulant for others who are close enough to see or hear what's taking place.
4. Training: Is training ever finished? Can you possibly overtrain? NO and NO. For whatever reasons, too many people feel "My people have already been trained" or "I've got good people...they only
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need a little training." But training never ends. Schedule "tune- up" training sessions. These should be led by you or by a supervisor with help from specific employees who show a particular strength in the skills taught. I know this takes time, but these types of training sessions will continually enhance the performance of your people and the productivity of your business. 5. Career Path: Your employees need to know what is potentially ahead for them, what opportunities there are for growth. This issue is a sometimes forgotten ingredient as to the importance it plays in the overall motivation of people. Set career paths within your organization. Do you promote from within? I hope you can answer yes to that. Although specific circumstances require you to look for talent outside your company you should always first consider internal personnel. If you do this you are sending a very positive message to every one that there are indeed further career opportunities within your organization. 6. Job Titles: When you talk about job titles you are tapping the self-esteem of people. How someone feels about the way they are perceived in the workforce is a critical component to overall attitude and morale. Picture a social gathering that includes some of your staff. The subject of work inevitably comes up. Will your people be proud, or embarrassed, to share their title and workplace? The importance of feeling proud of who you are and what you do is monumental. Be creative as you think of possibilities for titles. Have your staff come up with ideas giving them input into the titles. Bottom line, you are dealing with pride...and pride enhances a positive attitude...and a positive attitude is the foundation for continuing success.
7. Good Work Environment: A recent industry study shows just how inaccurate your results can be. Employers were asked to rank what they thought motivated their people and then employees were asked to rank what really did motivate them. 25
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Employers felt "working conditions" was a nine (or next to last) in terms of importance. What did the employees say? Number two! Working conditions are very important to the way employees feel about where they work. Cosmetically, does your office look nice? Are there pictures on the walls, plants and fresh paint among other features that generally make people feel good about their environment? Does their work space have enough room or are they cramped in a "sardine can?" What about furniture? Is the desk the right size, chair comfortable? Is there file space and do they have the miscellaneous office supplies needed for maximum performance? Is the temperature regulated properly so they don't feel they're in the Amazon jungle one minute and the North Pole the next? 8. On-the-Spot Praise: This too is associated with recognition but the key here is timing. When there is a reason for praising someone don't put it off for any reason! Promptness equals effectiveness. Praise people when the achievement is fresh on everyone's mind. What is effective is for us to get off our keisters and go out and tell whoever it is what a great presentation it was or applaud them for the sale...praise them promptly for what they accomplished or achieved! Don't allow time to creep in and snatch away any ounce of the positive impact that praise can have when it is delivered promptly. 9. Leadership Roles: Give your people leadership roles to reward their performance and also to help you identify future promotable people. Most people are stimulated by leadership roles even in spot appearances. For example, when visitors come to your workplace use this opportunity to allow an employee to take the role of visitors guide. A great place to hand out leadership roles is to allow your people to lead brief meetings. Utilize your employees' strengths and skills by setting up "tune up" training sessions and let one of your employees lead the training. The best time to do this is when new people start. Or, assign a meeting leader after someone has attended an outside seminar or workshop. Have them lead a post show, briefing the other employees regarding seminar content and highlights. Have your employees help you lead a project team to improve internal processes. 26
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10. Team Spirit: Have a picture taken on your entire staff (including you!), have it enlarged and hang it in a visible spot. Most people like to physically see themselves as part of a group or team. When running contests in your area, try to create contests and affiliated activity that are team driven. People driving to reach goals together definitely enhance team spirit solely because they must lean upon others and be prepared to be leaned on. One very effective idea for me has been building a collage of creative ideas with the "Team" theme. All employees are responsible for submitting a phrase referring to TEAM on a weekly rotation. Each of these ideas (such as TEAM: Total Enthusiasm of All Members or There is no I in Team) is placed on a wall, creating a collage of Team-oriented phrases. Don't have one person responsible for this...do it as a team. 11. Executive Recognition: This is the secret weapon. And like any secret weapon, timing is most critical. If this is used too often the value is diminished. And if it is used only for special occasions and rare achievements the value is escalated. We talked earlier about general recognition and the positive impact that has on your people. That will go up a few notches when it comes from an executive. Some of the same vehicles can be used here such as memos and voice mail. To add yet another level of stimulation, have an executive either personally call to congratulate someone (or a group) or even show up in person to shake hands and express his or her appreciation.
12. Social Gatherings: Scheduled offsite events enhance bonding which in turn helps team spirit, which ultimately impacts your positive work environment. Halloween costume parties, picnics on July 4th, Memorial Day or Labor Day, and Christmas parties are only some of the ideas that successfully bring people together for an enjoyable time. Some others that I've used with equal success are softball games (against other companies or among employees, depending on staff size), groups going putt-putt golfing or movie madness. 27
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13. Casual Dress Day: This will apply more to the Business-to-Business world based on the difference in normal dress codes from the Business-to-Consumer arena. For those required to "dress business" every day a casual day becomes a popular desire. Use holidays to create theme color casual days such as red and green before Christmas or red, white and blue before July 4th, or black and orange prior to Halloween. This will add to the impact you're trying to have by calling a casual day in the first place. Establish pre-vacation casual days for each individual employee to enjoy on the day before his or her vacation. Major sports events are a perfect opportunity for casual days to support your local or favorite team with appropriate colors, buttons, and logo wear. Spontaneous casual days produce a lot or stimulation based on the element of surprise. Announce a casual dress day for the following work day "just because." Use individual or team casual dress days as contest prizes or awards for specific accomplishment. 14. Time Off: Implement contests that earn time off. People will compete for 15 minutes or 1/2 hour off just as hard as they will for a cash award. And in many cases, I have had people pick time off over cash when given the choice. Put goals in place (padded of course) and when these goals are reached by individuals, teams or the entire staff, reward them with time off. Allow early dismissals, late arrivals, and extended lunch periods or additional breaks.
15. Outside Seminars: Outside seminars are a stimulating break. Because outside seminars are not always cost efficient for most people, consider on-site seminars or workshops for your staff. Use outside seminars as a contest prize for one or two people. Then set up a structured plan for those seminar attendees to briefly recreate the seminar to the rest of your people when they return. Now everyone gets educated for the price of one.
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16. Additional Responsibility: There are definitely employees in your organization who are begging for and can handle additional responsibility. Our job as managers is to identify who they are and if possible match responsibilities to their strengths and desires. 17. Theme Contests: Over the years my contests have produced up to 170% increase in performance. But equally as important, they've helped maintain positive environments that have reduced employee turnover by 400%. Overall the most successful contests seem to be those affiliated with different themes. Holidays, anniversaries, sports and culture are examples of ideas to base contests on. Sports, without a doubt, provide the largest opportunity for a wide variety of contests. Even Culture can be used to create theme contest. My favorite is using the '50s and '60s as a theme for a contest that I run at least once a year. 18. Stress Management: There are many articles and books available on the subject. Make this reference material available to your people. Make sure they know it is available and encourage them to use it. If possible, have an in-house seminar on stress management techniques. So that production time is not lost, you might consider having a brown bag luncheon with a guest speaker on this subject. Because stress is an ongoing concern, anytime is a good time for a seminar like this to take place. Be as flexible as you can with breaks during the course of the day. 19. Pizza/Popcorn/Cookie Days: Every now and then pizza, popcorn, or cookie days will help break up that everyday routine and help people stay motivated. Because it is a natural tendency for people to get excited in anticipation of something, structure some of these days in advance. Then buy some pizzas or different cookies or even whip out some different types of popcorn. 20. Gags and Gimmicks: 29
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Use different gimmicks as awards to help inspire performance increases from your people. The key to awards is establishing the perception of priceless value that is associated with them. They should be recognized as status symbols in your environment. Here are some of my ideas:
• • • • • • • • • • • •
Plastic/rubber whale for "whale" of a performance. Pillsbury dough boy for the person raisin' the most bread. Cardboard stars for star-studded performances. Plastic phonograph records for setting a new record. California raisins for those with the highest percentage of "raisin" their productivity. Special parking space for the person who drives the hardest. Toy cymbals for those "symbolizing" total effort. Special Mountain Dew can for that person who exemplifies the "can do" attitude. A figurine of E.T. for out-of-this-world performance. The Eveready Bunny for those that keep going, and going, and going. Large Tootsie Roll replica for those on a "roll." A drum for the person that "drums" up the most business.
Incentives
An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.
Need for Incentives Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those
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which are not associated with monetary rewards. They include intangible incentives like egosatisfaction, self-actualization and responsibility.
INCENTIVES
Financial Incentives Wages and Salaries. Bonus Medical reimbursement Insurance Housing facility Retirement benefits.
Non-financial incentives - Competition - Group recognition - Job security - Praise - Knowledge of result - Workers participation. - Suggestion system. - Opportunities for growth
CHAPTER 5
BENEFIT OF MOTIVATION
Motivation is a very important for an organization because of the following benefits it provides:-
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1. Puts human resources into action: Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. 2. Improves level of efficiency of employees: The level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result intoa. Increase in productivity, b. Reducing cost of operations, and c. Improving overall efficiency. 3. Leads to achievement of organizational goals: The goals of an enterprise can be achieved only when the following factors take place :a. There is best possible utilization of resources, b. There is a co-operative work environment, c. The employees are goal-directed and they act in a purposive manner, d. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation. 4. Builds friendly relationship
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Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a. Monetary and non-monetary incentives, b. Promotion opportunities for employees, c. Disincentives for inefficient employees.
In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: a. Effective co-operation which brings stability, b. Industrial dispute and unrest in employees will reduce, c. The employees will be adaptable to the changes and there will be no resistance to the change, d. This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, e. This will result in profit maximization through increased productivity.
5. Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the 33
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market which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout. We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1. Motivation will help him achieve his personal goals. 2. If an individual is motivated, he will have job satisfaction. 3. Motivation will help in self-development of individual. 4. An individual would always gain by working with a dynamic team.
Similarly, motivation is important to a business as: 1. The more motivated the employees are, the more empowered the team is. 2. The more is the team work and individual employee contribution, more profitable and successful is the business. 3. During period of amendments, there will be more adaptability and creativity. 4. Motivation will lead to an optimistic and challenging attitude at work place.
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CHAPTER 6 CONCLUSION
The study concludes that, the motivational program procedure in HYDERABAD INDUSTRIES LTD is found effective but not highly effective. The study on employee motivation highlighted so many factors which will help to motivate the employees. The study 35
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was conducted among 50 employees and collected information through structured questionnaire. The study helped to findings which were related with employee motivational programs which are provided in the organization. The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out it. Steps should be taken to improve the motivational programs procedure in the future. The suggestions of this report may help in this direction. There is no simple answer to the question of how to motivate people. Can money motivate? Yes, but money alone is not enough, though it does help. We have discussed some of the pertinent theories bearing on human motivation and this is balanced by some of the practical factors which can lead to excellence. Human resource remains the focal point and leadership the critical component, and motivation has to be 'tailored' to each individual. The next section deals with an important mode of motivation, namely financial aspects of rewarding employees.
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doc_905687734.doc
ABOUT EMPLOYEES MOTIVATION IN HRM.
A STUDY ON EMPLOYEE MOTIVATION
CHAPTER-1 INTRODUCTION
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with reference to identify the factors which will motivate the employees and the organizational functions . Management’s basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the ‘will to work’ among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees.
Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the
organisation.
“What are the factors which help to motivate the employees?
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SIGNIFICANCE OF THE STUDY
The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture. Motivation has variety of effects. These effects may be seen in the context of an individual’s physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers “who can deliver value to the organization. Proliferating and nurturing the number of “true believers” 1is the challenge for future and present HR managers. This means innovation and creativity. It also means a change in the gear for HR polices and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom. This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs.
Why study and apply employee motivation principles?
Quite apart from the benefit and moral value of an altruistic approach to treating colleagues as human beings and respecting human dignity in all its forms, research and observations show that well motivated employees are more productive and creative. The inverse also holds true. The schematic below indicates the potential contribution the practical application of the principles this paper has on reducing work content in the organization.
1
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CHAPTER 2 LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force. It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.
Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful indoing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.
The concept of motivation
The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. 3
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There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.
Definition of Motivation.
According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.
Types of Motivation.
Motivation of employees are divided into two types that are intrinsic motivation and extrinsic motivation. Intrinsic Motivation Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Intrinsic motivation can be enhanced by job design or role design. The job itself must provide sufficient variety, sufficient complexity, sufficient challenge and skill to engage the abilities of the workers. Extrinsic Motivation Extrinsic motivation occurs when things are done to or for people to motivate them. These includes rewards, such as incentives, increase pay, praise or promotion; and punishments, such as disciplinary action, withholding pay, or criticism. Extrinsic motivation can have an immediate and powerful effect, but will not necessarily last long. The intrinsic motivators, which are concerned the ‘quality of working life’, are likely to have a deeper and longer-term effect because they are inherent in individuals and their work and not imposed from outside in such forms as incentive pay. 4
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Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus:
•
Job performance = f (ability) (motivation)
Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation:
• • • • • • •
Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance
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Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap.
Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. 1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. 3. The rates of labor’s turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5. The number of complaints and grievances will come down. Accident will also be low. 6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.
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Motivation Process.
1. Identification of need 2. Tension 3. Course of action 4. Result –Positive/Negative 5. Feed back
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CHAPTER 3
THEORIES OF MOTIVATION
Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S. Adam’s Equity Theory, Vrooms Expectation Theory, Two factor Theory.
Employee Motivation: Theory and practice
The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. McClelland’s Achievement Need Theory. According to McClelland’s there are three types of needs; Need for Achievement (n Ach); This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement. 8
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Need for Power (n Pow) It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style. Need for affiliation (n Aff) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle. Behavioural Modification Theory : According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives. More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior. Abraham H Maslow Need Hierarchy or Deficient theory of Motivation : The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a 9
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hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators. Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.
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The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off. Physiological or Body Needs: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job. Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements. Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group. Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem
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Example : need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals. Self realization or Actualization needs: - This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.
Process Theory:
In process theory, the emphasis is on the psychological processes of forces that affect motivation, as well as on basic needs. It is also known as ‘cognitive theory’ because it is concerned with people’s perceptions of their working environment and the ways in which they interpret and understand it. According to Guest (1992), process they provides a much more relevant approach to motivation that replaces the theories of Maslow and Herzberg which, he claims, have been shown by extensive research to be wrong.
Expectancy theory:
The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.
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Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships: • Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal? • Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards. • Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.
Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality. Advantages of the Expectancy Theory • It is based on self-interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction. • This theory stresses upon the expectations and perception; what is real and actual is immaterial. • It emphasizes on rewards or pay-offs. • It focuses on psychological extravagance where final objective of individual is to attain maximum pleasure and least pain.
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Limitations of the Expectancy Theory • The expectancy theory seems to be idealistic because quite a few individuals perceive high degree correlation between performance and rewards. • The application of this theory is limited as reward is not directly correlated with performance in many organizations. It is related to other parameters also such as position, effort, responsibility, education, etc. Implications of the Expectancy Theory ? The managers can correlate the preferred outcomes to the aimed performance levels. ? The managers must ensure that the employees can achieve the aimed performance levels. ? The deserving employees must be rewarded for their exceptional performance. ? The reward system must be fair and just in an organization. ? Organizations must design interesting, dynamic and challenging jobs. ? The employee’s motivation level should be continually assessed through various techniques such as questionnaire, personal interviews, etc.
Goal Theory:
Goal theory as developed by Latham and Locke (1979) states that motivation and performance are higher when individuals are set specific goals, when goals are difficult but accepted, and when there is feedback on performance. Participation in goal setting is important as a means of getting agreement to the setting of higher goals.
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A process of managing, motivating and appraising people by setting objectives or goals and measuring performance against those objectives. But management by objectives or MBO fell itnto disrepute because it was tackled bureaucratically without gaining the real support of those involved and, importantly without ensuring that managers were aware of the significance of the processes of agreement, reinforcement and feedback, and were skilled in practicing them. Goal theory, however, plays a key part in performance management.
Social Learning Theory:
Social learning theory as developed by Bandura (1977) combines aspects of both behavioural and expectancy theory. It recognizes the significance of the basic behavioural concept of reinforcement as a determinant of future behaviour but also emphasizes the importance of internal psychological factors, especially expectancies about the value of goals and the individual’s ability to reach them. The term ‘reciprocal determinism’ is used to denote the concept that while situation will affect behaviour, individuals will simultaneously influence the situation. Robertson and Cooper (1983) have pointed out that ‘there are many similarities between social learning theory and expectancy theory in their joint emphasis on expectancies, individual goals and values and the influence of both person and situational factors.’
Instrumentality Theory:
‘Instrumentality’ is the belief that if we do one thing it will lead to another. In its crudest form, instrumentality theory states that people only work for money. The theory emerged in the second half of the 19th century with its century with its emphasis on the need to rationalize work and economic outcomes. It assumes that people will be motivated to work if rewards and penalties are tied directly to their performance; thus the awards are contingent upon effective performance. Instrumentality theory has its roots in the scientific management methods of Taylor(1911), who wrote: ‘It is impossible, through any long period of time, to get workmen to work much harder than the average men around then unless are assured a large and permanent increase in their pay.’ This theory provides rationale for incentive pay, albeit a dubious one. It is based on principle of reinforcement. Motivation using this approach has been and still is widely adopted and can 15
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successful in some circumstances. But it is based exclusively on a system of external controls and fails to recognize a number of other human needs. It also fails to appreciate the fact that the formal control system can be seriously affected by the informal relationship existing between workers.
Reinforcement Theory:
As experience is gained in taking action to satisfy needs; people perceive that certain actions help to achieve their goals while others are less successful. Some actions bring rewards; others result in failure or even punishment. Reinforcement theory as developed by Hull (1951) suggests that in achieving goals and rewards act as positive incentives and reinforce the successful behaviour, which is repeated the next time a similar need emerges. The more powerful, obvious and frequent the reinforcement, the more likely it is that the behaviour will be repeated until, eventually, it can become a more or less unconscious reaction to an event. Conversely, failures or punishments provide negative reinforcement, suggesting that it is necessary to seek alternative means of achieving goals. This process has been called ‘the law of effect.’ The associated concept of operant conditioning (Skinner, 1974) explains that new behaviours or responses become established through particular stimuli, hence conditioning – getting people to repeat behaviour by positive reinforcement in the form of feedback and knowledge of results. The concept suggests that people behave in ways they expect will produce positive outcomes. The degree to which experience shapes future behaviour does, of course, depend, first, on the extent to which individuals correctly perceive the connection between the behaviour and its outcome and, second, on the extent to which they are able to recognize the resemblance between the previous situation and the one that now confronts them. Perceptive ability varies between people as does the ability to identify correlations between events. For these reasons, some people are better at learning from experience than others just as some people are more easily motivated than others.
Content ( Need ) Theory:
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The theory focuses on the content of motivation in the shape of needs. It basis is the belief that an unsatisfied need creates tension and a state of disequilibrium. To restore the balance a goal is identified that will satisfy the need, and a behaviour pathway is selected that will lead to the achievement of the goal and the satisfaction of the need. All behaviour is therefore motivated by unsatisfied needs. There are three points that emerge from this model. First, people have a multiplicity of needs depending on themselves and the situation they are in. Second, they can select all sorts of goals and actions to satisfy those needs. Third, while we can observe their behaviour we cannot be certain of the needs and goals that motivated it. It is unwise to assume that any one approach to motivation will appeal to all affected by it. Motivation policies and practices must recognize that people are different.
ERG Theory (Alderfer):
Alderfer (1972) devised a theory of human needs that postulated three primary categories: 1. Existence needs such as hunger and thirst – pay, fringe benefitsand working conditions are other types of existence needs. 2. Relatedness needs, which acknowledge that people are not self-contained units but must engage in transactions with their human environment – acceptance, understandings, confirmation and influence are elements of the relatedness process. 3. Growth needs, which involve people in finding the opportunities ‘to be what they are most fully and to become what they can.’
HERZBERG’S Two-Factor Model:
Two Factor Theory
Douglas McGregor introduced the theory with the help of two views; X assumptions are conservative in style Assumptions are modern in style. Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize output. In relations to
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Theory Y the organization is trying to create the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It can relate to Esteem when the manager is trying to promote self - esteem, confidence, achievement, respect of others, and respect by others. X Theory • • • Individuals inherently dislike work. People must be coerced or controlled to do work to achieve the objectives. People prefer to be directed
In this theory, which has been proven counter effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employees' compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause diseconomies of scale in large businesses.
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Y Theory • • • People view work as being as natural as play and rest People will exercise self direction and control towards achieving objectives they are committed to People learn to accept and seek responsibility.
In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to them work is as natural as play[1]. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It's human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would the sharing of decision making so that subordinates have say in decisions that influence them. J.S Adams Equity Theory Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation. Vrooms Expectation Theory 19
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Vroom’s theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated. Application of employee motivation theory to the workplace Management literature is replete with actual case histories of what does and what does not motivate people. Presented here is a tentative initial broad selection of the various practices that have been tried in order to draw lessons for the future. 'Stick' or 'carrot' approach? The traditional Victorian style of strict discipline and punishment has not only failed to deliver the goods, but it has also left a mood of discontent amongst the "working class". Punishment appears to have produced negative rather than positive results and has increased the hostility between 'them' (the management) and 'us' (the workers). In contrast to this, the 'carrot' approach, involving approval, praise and recognition of effort has markedly improved the work atmosphere, leading to more productive work places and giving workers greater job satisfaction. Manager's motivation 'toolkit' The manager's main task is to develop a productive work place, with and through those he or she is in charge of. The manager should motivate his or her team, both individually and collectively so that a productive work place is maintained and developed and at the same time employees derive satisfaction from their jobs. This may appear somewhat contradictory, but it seems to work. The main tools in the manager's kitbag for motivating the team are:
• • •
approval, praise and recognition trust, respect and high expectations loyalty, given that it may be received
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•
removing organizational barriers that stand in the way of individual and group performance (smooth business processes, systems, methods and resources - see outline team building program)
• • •
job enrichment good communications financial incentives
These are arranged in order of importance and it is interesting to note that cash is way down the ladder of motivators. Let's look at a couple of examples taken from real life situations. The Swedish shipbuilding company, Kockums, turned a 15 million dollar loss into a 100 million dollar profit in the course of ten years due entirely to a changed perception of the workforce brought about by better motivation. At Western Electric there was a dramatic improvement in output after the supervisors and managers started taking greater interest in their employees. Don't coerce - persuade! Persuasion is far more powerful than coercion, just as the pen is mightier than the sword. Managers have a much better chance of success if they use persuasion rather than coercion. The former builds morale, initiative and motivation, whilst the latter quite effectively kills such qualities. The three basic components in persuasion are:
• • •
suggest; play on the person's sentiments; and appeal to logic.
Once convinced, the person is so motivated as to deliver the 'goods'. The manager will have achieved the goal quietly, gently and with the minimum of effort. It is, in effect, an effortless achievement. There has been a considerable amount of research into persuasion / motivation in the field of advertising and marketing. The research is entirely of the applied type, which can and has
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been used to great practical advantage. Some of the findings in this field were first published in the fifties in a book with the title, The Hidden Persuaders, which became a bestseller. More contemporary 'persuaders' used by advertising and marketing people include:
• •
Faster talk is found to be more effective, since it is remembered better. Brain emits fast beta waves when a person is really interested in a particular presentation. These waves can be detected by an instrument. Subliminal approach using short duration presentation, whereby the message is transmitted below the level of awareness.
•
Can these findings be used in actual work conditions? AT&T (The American Telephone and Telegraph Co.,) recognizing the importance of hidden needs, at one time succeeded in promoting long distance calls by use of the simple phrase: 'Reach out, reach out and touch someone'. Managers will need to adapt this persuasion / motivation technique to their own situation.
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CHAPTER 4 WAYS TO MOTIVATE EMPLOYEES
20 Ways To Motivate Your Employees Without Raising Their Pay
It is a costly mistake to get lost in the false theory that more money equals happy employees. Believing this is costing you valuable time, revenue, employees...and even threatening your own job. Cash will always be a major factor in motivating people and a solid compensation plan is critical to attracting and keeping key personnel. But the key is that additional cash is not always the only answer and in many cases not even the best answer. Too many bonus or commission checks get cashed, spent and forgotten just that quickly. Grocery stores and gasoline stations are among the necessary stops that seem to get in the way of using your extra cash on something special for you. One alternative to giving commissions or bonus dollars is to give gifts through a catalog point system. The company you choose will provide you with catalogs, price sheets and point checks at no charge. The structure for your bonus plan can remain the same but instead of awarding cash to your employees you award equivalent points. Those points may then be used to purchase an enormous variety of gifts or travel plans from the catalog. The stimulation involved is long-lasting. It begins with the employee being able to browse the catalog choosing what they will strive to earn. The catalog acts as a tangible reminder of their goal. The gift itself will last as evidence of their achievements. Whenever I have implemented this program, the employees are overwhelmingly in favor of the point system as opposed to cash. This type of program is very popular with employees because they purchase things they would never normally have the "money" to afford. 23
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With solid compensation in place, let's look at non-monetary motivation...20 steps to success. 1. Recognition/Attention: When your employees accomplish something they have achieved something. Your recognition is appreciation for that achievement. I believe that most managers don't give enough recognition because they don't get enough. Therefore, it doesn't come natural to do it. If this applies to you, you need to drop this excuse like a bad habit! Become a giver! Look at the price. Recognition is free! 2. Applause: A form of recognition yes, but a very specific form. Physically applaud your people by giving them a round of applause for specific achievements. Where? When? The answer is wherever and whenever. At meetings or company-sponsored social gatherings, a luncheon, or in the office. At the end of a shift, before a shift, and whenever possible in the middle of a shift. Using plaques or trophies is another effective way of applauding your people. Although "wooden applause" is often successfully used in the form of Employee of the Month plaques, more creative ideas are sorely underutilized. Take the time to be creative, matching special accomplishments with unique awards. 3. One-on-One Coaching: Coaching is employee development. Your only cost is time. Time means you care. And remember your people don't care how much you know... until they know how much you care. Whenever the emphasis is on positive feedback, I make sure to do this coaching in "public." Whenever you recognize and encourage people in "public," it acts as a natural stimulant for others who are close enough to see or hear what's taking place.
4. Training: Is training ever finished? Can you possibly overtrain? NO and NO. For whatever reasons, too many people feel "My people have already been trained" or "I've got good people...they only
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need a little training." But training never ends. Schedule "tune- up" training sessions. These should be led by you or by a supervisor with help from specific employees who show a particular strength in the skills taught. I know this takes time, but these types of training sessions will continually enhance the performance of your people and the productivity of your business. 5. Career Path: Your employees need to know what is potentially ahead for them, what opportunities there are for growth. This issue is a sometimes forgotten ingredient as to the importance it plays in the overall motivation of people. Set career paths within your organization. Do you promote from within? I hope you can answer yes to that. Although specific circumstances require you to look for talent outside your company you should always first consider internal personnel. If you do this you are sending a very positive message to every one that there are indeed further career opportunities within your organization. 6. Job Titles: When you talk about job titles you are tapping the self-esteem of people. How someone feels about the way they are perceived in the workforce is a critical component to overall attitude and morale. Picture a social gathering that includes some of your staff. The subject of work inevitably comes up. Will your people be proud, or embarrassed, to share their title and workplace? The importance of feeling proud of who you are and what you do is monumental. Be creative as you think of possibilities for titles. Have your staff come up with ideas giving them input into the titles. Bottom line, you are dealing with pride...and pride enhances a positive attitude...and a positive attitude is the foundation for continuing success.
7. Good Work Environment: A recent industry study shows just how inaccurate your results can be. Employers were asked to rank what they thought motivated their people and then employees were asked to rank what really did motivate them. 25
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Employers felt "working conditions" was a nine (or next to last) in terms of importance. What did the employees say? Number two! Working conditions are very important to the way employees feel about where they work. Cosmetically, does your office look nice? Are there pictures on the walls, plants and fresh paint among other features that generally make people feel good about their environment? Does their work space have enough room or are they cramped in a "sardine can?" What about furniture? Is the desk the right size, chair comfortable? Is there file space and do they have the miscellaneous office supplies needed for maximum performance? Is the temperature regulated properly so they don't feel they're in the Amazon jungle one minute and the North Pole the next? 8. On-the-Spot Praise: This too is associated with recognition but the key here is timing. When there is a reason for praising someone don't put it off for any reason! Promptness equals effectiveness. Praise people when the achievement is fresh on everyone's mind. What is effective is for us to get off our keisters and go out and tell whoever it is what a great presentation it was or applaud them for the sale...praise them promptly for what they accomplished or achieved! Don't allow time to creep in and snatch away any ounce of the positive impact that praise can have when it is delivered promptly. 9. Leadership Roles: Give your people leadership roles to reward their performance and also to help you identify future promotable people. Most people are stimulated by leadership roles even in spot appearances. For example, when visitors come to your workplace use this opportunity to allow an employee to take the role of visitors guide. A great place to hand out leadership roles is to allow your people to lead brief meetings. Utilize your employees' strengths and skills by setting up "tune up" training sessions and let one of your employees lead the training. The best time to do this is when new people start. Or, assign a meeting leader after someone has attended an outside seminar or workshop. Have them lead a post show, briefing the other employees regarding seminar content and highlights. Have your employees help you lead a project team to improve internal processes. 26
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10. Team Spirit: Have a picture taken on your entire staff (including you!), have it enlarged and hang it in a visible spot. Most people like to physically see themselves as part of a group or team. When running contests in your area, try to create contests and affiliated activity that are team driven. People driving to reach goals together definitely enhance team spirit solely because they must lean upon others and be prepared to be leaned on. One very effective idea for me has been building a collage of creative ideas with the "Team" theme. All employees are responsible for submitting a phrase referring to TEAM on a weekly rotation. Each of these ideas (such as TEAM: Total Enthusiasm of All Members or There is no I in Team) is placed on a wall, creating a collage of Team-oriented phrases. Don't have one person responsible for this...do it as a team. 11. Executive Recognition: This is the secret weapon. And like any secret weapon, timing is most critical. If this is used too often the value is diminished. And if it is used only for special occasions and rare achievements the value is escalated. We talked earlier about general recognition and the positive impact that has on your people. That will go up a few notches when it comes from an executive. Some of the same vehicles can be used here such as memos and voice mail. To add yet another level of stimulation, have an executive either personally call to congratulate someone (or a group) or even show up in person to shake hands and express his or her appreciation.
12. Social Gatherings: Scheduled offsite events enhance bonding which in turn helps team spirit, which ultimately impacts your positive work environment. Halloween costume parties, picnics on July 4th, Memorial Day or Labor Day, and Christmas parties are only some of the ideas that successfully bring people together for an enjoyable time. Some others that I've used with equal success are softball games (against other companies or among employees, depending on staff size), groups going putt-putt golfing or movie madness. 27
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13. Casual Dress Day: This will apply more to the Business-to-Business world based on the difference in normal dress codes from the Business-to-Consumer arena. For those required to "dress business" every day a casual day becomes a popular desire. Use holidays to create theme color casual days such as red and green before Christmas or red, white and blue before July 4th, or black and orange prior to Halloween. This will add to the impact you're trying to have by calling a casual day in the first place. Establish pre-vacation casual days for each individual employee to enjoy on the day before his or her vacation. Major sports events are a perfect opportunity for casual days to support your local or favorite team with appropriate colors, buttons, and logo wear. Spontaneous casual days produce a lot or stimulation based on the element of surprise. Announce a casual dress day for the following work day "just because." Use individual or team casual dress days as contest prizes or awards for specific accomplishment. 14. Time Off: Implement contests that earn time off. People will compete for 15 minutes or 1/2 hour off just as hard as they will for a cash award. And in many cases, I have had people pick time off over cash when given the choice. Put goals in place (padded of course) and when these goals are reached by individuals, teams or the entire staff, reward them with time off. Allow early dismissals, late arrivals, and extended lunch periods or additional breaks.
15. Outside Seminars: Outside seminars are a stimulating break. Because outside seminars are not always cost efficient for most people, consider on-site seminars or workshops for your staff. Use outside seminars as a contest prize for one or two people. Then set up a structured plan for those seminar attendees to briefly recreate the seminar to the rest of your people when they return. Now everyone gets educated for the price of one.
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16. Additional Responsibility: There are definitely employees in your organization who are begging for and can handle additional responsibility. Our job as managers is to identify who they are and if possible match responsibilities to their strengths and desires. 17. Theme Contests: Over the years my contests have produced up to 170% increase in performance. But equally as important, they've helped maintain positive environments that have reduced employee turnover by 400%. Overall the most successful contests seem to be those affiliated with different themes. Holidays, anniversaries, sports and culture are examples of ideas to base contests on. Sports, without a doubt, provide the largest opportunity for a wide variety of contests. Even Culture can be used to create theme contest. My favorite is using the '50s and '60s as a theme for a contest that I run at least once a year. 18. Stress Management: There are many articles and books available on the subject. Make this reference material available to your people. Make sure they know it is available and encourage them to use it. If possible, have an in-house seminar on stress management techniques. So that production time is not lost, you might consider having a brown bag luncheon with a guest speaker on this subject. Because stress is an ongoing concern, anytime is a good time for a seminar like this to take place. Be as flexible as you can with breaks during the course of the day. 19. Pizza/Popcorn/Cookie Days: Every now and then pizza, popcorn, or cookie days will help break up that everyday routine and help people stay motivated. Because it is a natural tendency for people to get excited in anticipation of something, structure some of these days in advance. Then buy some pizzas or different cookies or even whip out some different types of popcorn. 20. Gags and Gimmicks: 29
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Use different gimmicks as awards to help inspire performance increases from your people. The key to awards is establishing the perception of priceless value that is associated with them. They should be recognized as status symbols in your environment. Here are some of my ideas:
• • • • • • • • • • • •
Plastic/rubber whale for "whale" of a performance. Pillsbury dough boy for the person raisin' the most bread. Cardboard stars for star-studded performances. Plastic phonograph records for setting a new record. California raisins for those with the highest percentage of "raisin" their productivity. Special parking space for the person who drives the hardest. Toy cymbals for those "symbolizing" total effort. Special Mountain Dew can for that person who exemplifies the "can do" attitude. A figurine of E.T. for out-of-this-world performance. The Eveready Bunny for those that keep going, and going, and going. Large Tootsie Roll replica for those on a "roll." A drum for the person that "drums" up the most business.
Incentives
An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.
Need for Incentives Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those
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which are not associated with monetary rewards. They include intangible incentives like egosatisfaction, self-actualization and responsibility.
INCENTIVES
Financial Incentives Wages and Salaries. Bonus Medical reimbursement Insurance Housing facility Retirement benefits.
Non-financial incentives - Competition - Group recognition - Job security - Praise - Knowledge of result - Workers participation. - Suggestion system. - Opportunities for growth
CHAPTER 5
BENEFIT OF MOTIVATION
Motivation is a very important for an organization because of the following benefits it provides:-
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1. Puts human resources into action: Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. 2. Improves level of efficiency of employees: The level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result intoa. Increase in productivity, b. Reducing cost of operations, and c. Improving overall efficiency. 3. Leads to achievement of organizational goals: The goals of an enterprise can be achieved only when the following factors take place :a. There is best possible utilization of resources, b. There is a co-operative work environment, c. The employees are goal-directed and they act in a purposive manner, d. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation. 4. Builds friendly relationship
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Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a. Monetary and non-monetary incentives, b. Promotion opportunities for employees, c. Disincentives for inefficient employees.
In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: a. Effective co-operation which brings stability, b. Industrial dispute and unrest in employees will reduce, c. The employees will be adaptable to the changes and there will be no resistance to the change, d. This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, e. This will result in profit maximization through increased productivity.
5. Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the 33
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market which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout. We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1. Motivation will help him achieve his personal goals. 2. If an individual is motivated, he will have job satisfaction. 3. Motivation will help in self-development of individual. 4. An individual would always gain by working with a dynamic team.
Similarly, motivation is important to a business as: 1. The more motivated the employees are, the more empowered the team is. 2. The more is the team work and individual employee contribution, more profitable and successful is the business. 3. During period of amendments, there will be more adaptability and creativity. 4. Motivation will lead to an optimistic and challenging attitude at work place.
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CHAPTER 6 CONCLUSION
The study concludes that, the motivational program procedure in HYDERABAD INDUSTRIES LTD is found effective but not highly effective. The study on employee motivation highlighted so many factors which will help to motivate the employees. The study 35
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was conducted among 50 employees and collected information through structured questionnaire. The study helped to findings which were related with employee motivational programs which are provided in the organization. The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out it. Steps should be taken to improve the motivational programs procedure in the future. The suggestions of this report may help in this direction. There is no simple answer to the question of how to motivate people. Can money motivate? Yes, but money alone is not enough, though it does help. We have discussed some of the pertinent theories bearing on human motivation and this is balanced by some of the practical factors which can lead to excellence. Human resource remains the focal point and leadership the critical component, and motivation has to be 'tailored' to each individual. The next section deals with an important mode of motivation, namely financial aspects of rewarding employees.
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