• What motivates you?• Morse & Weiss (1955)• Morale• Content theories• Maslow’s hierarchy of needs• Herzberg’s two-factor theory • Process theories of motivation• Vroom • Sources of motivation• Financial rewards• Importance of pay• Performance related pay• Group bonus schemes• Profit sharing schemes• Participation

Chapter 15Motivating

individuals and groups

Motivation

• Motivation is the urge to take action to achieve something or to avoid something

• If managers understand what motivates their staff they can actively use this knowledge to get employees to achieve organisation’s objectives

• Clearly about more than money

Basic assumptions of motivation

Assume that:• People seek to satisfy needs• Organisations can offer some of that satisfaction• Organisations can influence people’s behaviour

Meeting needs = job satisfaction + positive attitude to work

Needs

Even the same basic need will cause different people to act in different ways:

Hunger

Junk food

Ready meal

Takeaway

FruitCook

healthy dinner

Needs & goals

Even the same basic need will cause different people to act in different ways.

Goals also vary with time, circumstances & other factors

Influences Comments

Childhood environment/education

Aspiration levels are formed early on

Experience Teaches us what to expect from life, ie “we learn from our mistakes”

Age & position Career may be very important before having children, after which prospective changes

Culture Some organisations emphasis the organisation, whilst others emphasis is on individual

Self-concept What employee thinks of themselves & their position is also important

Morale

• Military term related to satisfaction• Low morale implies dissatisfaction• Dissatisfaction is bad news as can result in:

– Low productivity

– High labour turnover• Attitude surveys can also used to indicate workers’

perceptive of job satisfaction

Theories of motivation

Motivation theories

What motivates peopleCONTENT THEORIES

How can people be motivated?PROCESS THEORIES

Content theories

• Assume people have a set of needs • Motivate an employee by finding out what their needs are

and offer rewards that satisfy them

Approaches:• Maslow’s hierarchy of needs• Herzberg’s two-factor theory

Maslow’s hierarchy of needs

• Each need dominates until it is met

• Self-actualisation can rarely be satisfied

• Needs may be satisfied outside of work

• Not all people want to rise to top

• Ignores delayed gratification & altruistic behaviour

Herzberg’s two-factor theory

Hygiene

Factors

Motivating

Factors

Dissatisfied Satisfied Motivated

Herzberg (cont’d)

Need for personal growth = Motivator factors

• Status• Advancement (or

opportunities for it)• Recognition• Responsibility• Challenging work• Sense of achievement• Growth in the job

Hygiene factors = satisfiers

• Company policy & administration

• Salary• Quality of supervision• Interpersonal relations• Working conditions• Job security

Herzberg conclusions

Motivation can be increased by:• Job enlargement – widening job by including number of operation• Job rotation – planned transfer of staff from one job to other to

increase job variety• Job enrichment – planned, deliberate action to build greater

responsibility, breadth and challenge of work into job.

Conclusion – it’s what you do that makes you work harder, the conditions in which you do it don’t make you happy, but can prevent you from fulfilling your potential

Criticisms of Herzberg• An inadequately small sample size – 203 engineers & accountants • Limited cultural context – Western professionals • Impact of job satisfaction has proved difficult to verify

& measure

Process theories of motivation

Process theories ask:• ‘How can individuals be motivated?’ • They explore the process through which outcomes

become desirable and are pursued by individuals

Victor Vroom expectancy theory• Expectancy × valence = force of motivation

Vroom Expectancy• The strength of the individual’s expectation that behaving in a certain way will

result in a given outcome

Valence• The value that the individual places on the outcome (whether positive/desired

or negative/undesired)

Force of motivation• The strength of the individual’s motivation to behave in the given way (and the

likelihood he will do so)• High force is only possible if both high Valence and Expectancy exist

Vroom example• High force is only possible if:

High valence + High expectancy

Consider your FAB exam:

You must want to pass the exam and believe that it is possible to be motivated to study for it.

Managerial implications of process theories

• Intended results should be made clear• Individuals are more committed to specific goals which

they helped to set• Immediate & ongoing feedback should be given• Individuals might set lower standards if they know their

rewards are linked to achieving them

Choosing a motivational approach

• McGregor presented 2 opposing assumptions held by managers about employees, which affected how they managed & motivated them

• Theory X – assumes that individuals have an inherent dislike for work & will avoid it if they can

• Theory Y – asserts that work is as natural as play or rest

• Opposite ends of a continuum

Theory X

Employee characteristics:• Prefers to be directed• Has little ambition• Is resistant to change• Gullible• Must be coerced & controlled

= “carrot ‘n’ stick approach”

Theory Y

Employee characteristics:• Self direction• Self control• An emphasis on self actualising needs

• Motivated by circumstances of work

Rewards & incentives

• Reward – given in recognition of success• Intrinsic reward – related to the job itself, eg loving being a

nurse• Extrinsic rewards – outside the job, eg financial – you like

the pay, or non-financial – you like the working hours• Incentive – offer of a reward designed to motivate current

& future performance

Sources of Motivation

Financial Rewards

Job Satisfact

ion

Job Design

Participation in

decision making

1. Financial rewards• Maslow & Herzberg both recognise money as a means of

satisfying some needs & symbolising worth

BUT• If you were paid twice as much would you work twice as

hard?

Importance of Pay

Pay is important because:• It is a major cost for the organisation• People feel strongly about it• Legal issue eg minimum wage• It enables the organisation to attract & retain individuals

with required skills, knowledge & experience

How pay is determined• Job evaluation – based on job content, reflecting the relative worth of the

role• Fairness – must be perceived to match the level of work• Negotiated pay scales• Market rates• Individual performance in the job

Types of Rewards• Basic wages• Overtime payments• Performance related bonus• Shares• Share options• Benefits in kind eg healthcare• Pension contributions• Service contracts & termination payments

Performance related pay• Form of incentive system, awarding extra pay for extra output or

performance

Examples:• Piecework • Bonuses for achievement of specific objectives/ outstanding

performance

Benefits of performance related pay• Improves commitment & capability• Complements other HR initiatives• Improves focus on the business’s performance objectives• Encourages 2 way communication• Greater supervisory responsibility• It recognises achievement when other means are not available

Potential problems of PRP

• Subjectivity of awards for less measurable criteria (eg teamwork)

• Encouraging short-term focus & target hitting (rather than improvement)

• Divisive against team working (if awards are individual)• Difficulties in gaining union acceptance (if perceived to

erode basic pay)

Rewarding the Team

Group bonus schemes• Group bonus schemes can be used to encourage everyone to

work together• But, get bonus even if you don’t pull your weight

Profit sharing schemes• Offer employees bonuses directly related to the profits or value

added• Based on the assumption all employees can contribute to profit

and should care

To be successful:• Sum should be significant• Clear & timely link between effort & reward• Reasonable chance of achieving goal

Job satisfaction

Is a key motivator & is achieved through:• Variety• Task identity/clarity• Autonomy/ownership• Constructive feedback• Task significance

Job design

Job design or redesign can increase motivation:• Job rotation – moves staff from one job to another to

increase variety• Job enlargement – widen the number of operations in

which job holder is involved to increase variety• Job enrichment – making the job more interesting

Participation

Participation works as a motivator if the “5 Cs” are present:

1. Certainty

2. Consistency

3. Clarity

4. Capacity

5. Commitment

Specimen paper

Which one of the following statements is correct in relation to monetary rewards in accordance with Herzberg’s two-factor theory?

A Pay increases are a powerful long-term motivator

B Inadequate monetary rewards are a powerful dissatisfier

C Monetary rewards are more important than non-monetary rewards

D Pay can never be used as a motivator

(2 marks)

Chapter 15 – summary

What is motivation? Rewards and Incentives

Motivating individuals and groups

'Desire to take or avoid

action'Key theoretical approaches

Reward Using pay as a

motivator• Intrinsic• Extrinsic

• Job evaluation

• PRP• Bonus• Profit share

Content theories

What motivates?

Maslow Herzberg

• Motivating factors

• Hygiene factors

Self-actualisation

Esteem needs

Social needs

Safety needs

Physiological needs

Chapter 15 – summary (cont’d)

Process theories

VroomTheory X/Y – McGregor

How can people be motivated?Choosing suitable

rewards and incentives

• Job design• Financial

rewards• Participation –

5Cs• Job satisfaction• Feedback

• Approaches to learning theory • Honey & Mumford (1986) –

Learning styles• Classifications of learning style• The learning cycle: Kolb• Identifying the need for training• Learning gap• Setting training objectives• Personal development plan• Steps in personal development

planning• Training methods• Induction training • Responsibility for training &

development• Hamblin – 5 level model

Chapter 16Training and development

Approaches to learning theory

Approaches

Behaviourist psychology– relationship between stimuli & response to stimuli which causes

learning

Cognitive approach –Interpretation &

rationalisation from past experiences

Effective training programmes

Design of an effective training programme should assume:• The individual is motivated to learn• Clear objectives & standards set, so each task has some

meaning• Timely relevant feedback on progress• Positive & negative reinforcement should be judiciously

used• Active participation is more telling than passive reception

Honey & Mumford (1986) – Learning styles

• Found that the way people learn depends upon their psychological preferences

• 4 classifications of learning style• Knowledge of style favoured by learner helps tailor

learning activities

1. Theorists – seek to understand the underlying concepts taking an intellectual & logical approach

2. Reflectors – observe & consider phenomena then act at their own pace

3. Activists – deal with practical active problems, in a hands-on experience manner

4. Pragmatists – study if there is a direct link to practical problems (on the job training)

The learning cycle: Kolb

Learning organisation

Facilitates:• Acquisition & sharing of knowledge• Learning of all its members• Continuous & strategic transformation to rapidly changing

market

Strengths of learning organisations• Experimentation – ie tolerate risk that things may go wrong• Learning from past experience• Learning from others• Transferring knowledge quickly & efficiently throughout the

organisation

Training & development

Training & development strategies

Benefits of training for the organisation

• Improves productivity of staff• Reduces accidents & errors at work (at associated costs)• Improves motivation & retention of staff• Improves quality of staff available internally for promotion• Attracts better staff due to showing commitment &

progression opportunities• Enables succession planning & career development• Source of competitive advantage through innovation• Helps build corporate culture

Benefits of training for the employee

• Enhances portfolio of skills• Psychological benefits – helps self esteem & confidence in

future• Social benefit – helps satisfy social needs• The job – helps them to do it successfully

Systematic approach to training

In order to ensure that training meets the real needs of the organisation, larger firms adopt a systematic approach.

Includes:• Definition• Objective setting• Planning training programmes• Delivering training programmes• Evaluating results

Identifying the need for training

• Obvious & automatic – eg new computer system• Response to critical incident – eg bad press about

customer service• Qualitative indicators – eg number of complaints• Self assessment – eg employee attitude surveys

Learning gap

Required competence – present competence = training need

Determining required competenceJob analysisSkills analysisRole analysisExisting recordsCompetence analysis

Setting training objectives

SMART objectives detailing:• Behaviour – what should the trainee be able to do?• Standard – to what level of performance?• Environment – under what conditions? (so that the

performance level is realistic)

• Specific• Measureable• Achievable• Relevant• Time-bound

Personal development plan

Individuals can incorporate training & development objectives into a personal development plan.

Purpose of personal development plan:• Improving performance in the existing job• Developing future skills

Steps in personal development planning

1.Analyse the current position – personal SWOT analysis or use skills analysis

The aim is to incorporate more of the employees’ interests into their actual roles.

Steps in personal development planning (cont’d)

2. Set goals:• Cover performance in the existing job• Future changes in current role• Move elsewhere in organisation• Develop specialist expertise

3. Draw up an action plan to achieve goals, including:• The objective• Methods to develop skills• Timescales for progress review• Methods of monitoring & reviewing progress

& achievement

Goals must be SMART

Training methods

Off the job trainingEg: Courses run by organisation’s training department, outside the context

of job, computer based learning.

Advantages:• No risk – allows exploration/experimentation• Focus on learning away from distractions of work• Standardised training• May confer status, implying promotion

Disadvantages• May not be directly relevant or transferable to the job and/or content• May be perceived as a waste of time• Immediate & relevant feedback may not be available

(eg if delay for exam results)• Tends to be more theoretical – doesn’t suit “hands on” learning styles• May represent a threat – implying inadequacy

On the job training

Eg: demonstration, job rotation, temporary promotion, assistant to positions, committees, project work

Advantages:• Takes account of job context – high relevance & transfer of learning• Suits “hands on” learning styles – learning by doing• No adjustment barriers• Develops working relationships as well as skills

Disadvantages:• Undesirable aspects of job context – eg corner-cutting learned• Doesn’t suit “hands off” learning styles• Trial & error may be threatening• Risks of throwing people in at deep end with real consequences of

mistakes• Distractions & pressures of the workplace may hamper learning focus

Induction training

Purposes:• Help new recruits find their bearings• Begin to socialise new recruits into the culture & norms of

team/organisation• Support recruits• Identify training/development needs• Avoid initial problems at the “induction crisis” stage of the

employment lifecycle – which may cause employees to leave prematurely

Responsibility for training & development

• Trainee• HR department or training department• Line managers• Training manager

Increasingly, responsibility for training & development is being devolved to the individual learner in collaboration with line managers & training providers.

Responsibility of training manager

• Liaison – with HR & operating departments• Scheduling – convenient training times• Needs identification – existing & future skills shortages• Programme design – developing tailored training

programmes• Feedback – to trainee, the operating department & HR• Evaluation – measuring the effectiveness of the training

Evaluating training programmes

• Evaluation – carry out a cost v benefit analysis• Validation – observe results of the course & measure

whether training objectives have been identified

Hamblin – 5 level evaluation model

1. Trainee’s reaction to the experience

2. Trainee learning

3. Changes in job behaviour following training

4. Impact of training on organizational goals/results

5. Ultimate value

Development

Development is wider than just training and includes:• Work experience• Guidance, support & counselling• Education & training• Planning of the individual’s future

Approaches to development

Include:• Management development (eg MBA)• Career development (career paths)• Professional development (CPD)• Personal development (more rounded individuals)

Specimen paper

Role playing exercises using video recording and playback would be most effective for which type of training?

A Development of selling skills

B Regulation and compliance

C Dissemination of technical knowledge

D Introduction of new processes or procedures

(2 marks)

Specimen paper – Section B

Specimen paper – Section B

Chapter 16 – summary

Learning/education'Knowledge acquisition'

Development'Growth of individuals'

Training and development

Training'Raises

competence'

The learning organisation

Process

• Knowledge transfer

• Tolerance for risk

• Innovation

TypesMethods

• Mentoring• Shadowing• Standing in• Secondment

• Management• Career• Professional• Personal

• Current job • Potential for future roles

Chapter 16 – summary (cont’d)

Kolb

Honey & Mumford

• Theorist• Pragmatist• Reflector• Activist

Concrete experiences

Apply/test implications of

concepts in new situations

Observation and reflection

Formation of abstract concepts and

generalisations

2nd stage (reflect on the experience)

3rd stage (draw conclusions from the experience)

4th stage (plan next steps)

1st stage (have an experience)

Benefits

Methods

Process Evaluation

Employer• Reduce cost• Productivity• Flexibility• Retention• Motivation

Employee• Skills• Social• Confidence

Off the job On the job

Hamblin• Reaction• Test• Behaviour• Impact• Value