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Motivation and Reward System

Motivation is influenced by both intrinsic and extrinsic factors. Intrinsic rewards include feelings of competence and personal development, while extrinsic rewards are external incentives like pay and bonuses. Effective motivation requires understanding individual needs and goals, setting specific and challenging goals, and providing feedback and rewards for goal accomplishment. Both positive reinforcement and punishment can impact motivation when applied appropriately. Compensation trends incorporate pay for performance, knowledge, and sharing gains to align individual and organizational interests.

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Gloria Dias
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38 views

Motivation and Reward System

Motivation is influenced by both intrinsic and extrinsic factors. Intrinsic rewards include feelings of competence and personal development, while extrinsic rewards are external incentives like pay and bonuses. Effective motivation requires understanding individual needs and goals, setting specific and challenging goals, and providing feedback and rewards for goal accomplishment. Both positive reinforcement and punishment can impact motivation when applied appropriately. Compensation trends incorporate pay for performance, knowledge, and sharing gains to align individual and organizational interests.

Uploaded by

Gloria Dias
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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What is motivation?

 Basic motivational concepts


– Motivation—the forces within the individual that
account for the level, direction, and persistence of
effort expended at work.
– Reward—a work outcome of positive value to the
individual
– Extrinsic rewards—valued outcomes given to
someone by another person.
– Intrinsic rewards—valued outcomes that occur
naturally as a person works on a task.
1
What is motivation?

 Extrinsic rewards:  Intrinsic rewards:


– Pay – Feelings of
– Bonuses competency
– Promotions – Personal development
– Time off – Self-control
– Special assignments
– Office fixtures
– Awards
– Verbal praise
2
What is motivation?

 To achieve maximum motivational potential in


linking rewards to performance …
– Respect diversity and individual differences.

– Clearly understand what people want from work.

– Allocate rewards to satisfy the interests of both


individuals and the organization.

3
What are the different types of
individual needs?
 Hierarchy of needs theory
– Developed by Abraham Maslow.
– Lower order and higher order needs affect workplace
behavior and attitudes.
– Lower order needs:
• Physiological, safety, and social needs.
• Desires for physical and social well being.
– Higher order needs:
• Esteem and self-actualization needs.
• Desire for psychological growth and development.
4
What are the insights of process theories
of motivation?
 Goal-setting theory
– Developed by Edwin Locke.
– Task goals are clear and desirable performance targets.
– Motivational effects of task goals:
• Provide direction to people in their work.
• Clarify performance expectations.
• Establish a frame of reference for feedback.
• Provide a foundation for behavioral self-management.

5
What are the insights of process theories
of motivation?
 Key issues and principles in the goal-setting
process:
– Set specific goals.
– Set challenging goals.
– Build goal acceptance and commitment.
– Clarify goal priorities.
– Provide feedback on goal accomplishment.
– Reward goal accomplishment.

6
What are the insights of process theories
of motivation?
 Goal-setting theory
– Participation in goal setting …
• Allows for increased understanding of specific and
difficult goals.
• Provides for greater acceptance of and commitment
to goals.
• Management by objectives (MBO) promotes
participation.
• When participation is not possible, workers will
respond positively if supervisory trust and support
exist.
7
What role does reinforcement play in
motivation?
 Guidelines for using positive reinforcement:
– Clearly identify desired work behaviors.
– Maintain a diverse inventory of rewards.
– Inform everyone about what must be done to
get rewards.
– Recognize individual differences when
allocating rewards.
– Follow the laws of immediate and contingent
reinforcement.
8
What role does reinforcement play in
motivation?
 Guidelines for using punishment:
– Tell the person what is being done wrong.
– Tell the person what is being done right.
– Match the punishment to the behavior.
– Administer punishment in private.
– Follow laws of immediate and contingent
reinforcement.

9
What are the trends in motivation and
compensation?
 Pay for performance
– Paying people for performance is consistent
with:
• Equity theory
• Expectancy theory
• Reinforcement theory
– Merit pay
• Awards a pay increase in proportion to individual
performance contributions.

10
What are the trends in motivation and
compensation?

 Pay for knowledge

– Skills-based pay
• Pay based on number of job-relevant skills an
employee masters.

• Common in self-managing teams.

Schermerhorn - Chapter 14 11
What are the trends in motivation and
compensation?
 Incentive compensation systems
– Bonus pay plans
• One-time or lump-sum payments based on the
accomplishment of specific performance targets or
some extraordinary contribution.
– Profit-sharing plans
• Some or all employees receive a proportion of net
profits earned by the organization during a given
time period.

12
What are the trends in motivation and
compensation?
 Incentive compensation systems
– Gain-sharing plans
• Groups of employees share in any savings realized
through their efforts to reduce costs and increase
productivity.
– Employee stock ownership plans
• Employees own stock in the company that employs
them.

Schermerhorn - Chapter 14 13

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