Non Financial Techniques for Motivation

8/6/2019 Non Financial Techniques for Motivation

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PREPARED BY-

ARUSHI(BBS 3HR)


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The greatest motivation comes from a personsbelief system

Motivation islikea fire- unlessyou keep addingfuelto it,itdies. But,if thesource of motivation isbelief in inner values,it becomeslong lasting

Experienceshowsthat People willdo alot formoney, more for a goodleader anddo most for abelief

Peopledo things for their own reasons, notyours


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Methodto increase Employee participation and

Employeesatisfaction

Use of rewards,awards,and other benefits for bothemployeesandtheir families

Startedin 1980s by American corporates

Recognition isthedriving force nowadays


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ocreates positive work culture

o Encouragesto deliver quality

oCreates personal challenges

oEffective way of building loyalty

oInspiresto givetheir best


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JOBROTATION

JOBENRICHMENT

QULITYCIRCLES

STATUSCONSULTATION

TEAM WORK

FRINGEBENEFITS

NON

FINANCIALTECHNIQUESFOR

MOTIVATION


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Thisis motivating for several reasons:

It gives workersthe chanceto testthemselvesand

usetheir full range of abilityincreasesthe complexity or challengeinvolvedinthetask, rather than justsimply providing morevarietyto the work.

Workerss obtain a greater sense of achievement

Workers respond better as managershaveshowntrustin the factthatthey possesstheabilityto handle

theincreasing complexityand pressures of the work.


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Itimpliesdividing a fulltime work between anumber of parttime workersespecially 2workers

Itisimportantin administration .for eg-

one might worktwo days per weekandtheother worker threedays per week


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Teamworking is whereemployees workin groupsor teams.This can meeta workerssocial needsasaperson can moreeasily build friendshipsand feelasense of belonging to a unit or group andhopefully

to the businessasa whole.A business can createa number of differenttypesof team; examplesinclude production teams (oftenknown as cells), quality circlesand management

teams.Employees feel commited and will beanxioustomaketheir own tem succesful andhence will workhard


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Employees feel motivatedif theyhave oppurtunitiesto moveto higher levels of businessandtake on

increasing responsibilities

To meetthe need for status,companies provideoppurtunities for improving educaation,training or

fundthem for coursesto improvetheir promotionalprospects


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Itisthe process where managersdiscusses withemployeesandseekstheir viewsandadvice

Businesses benefitthroughdecision making in sucha waysincethey get new ideasandemployees feelmotivatedthrough participation in decisionmaking


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Originatedin japan and now being usedin mostparts of the world

Another approachto team work..employeesareorganised to teamsand meet regularlyto examinethe quality of whattheyaredoing and find outwaysto do the job better


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Usually reffered to as perks, come up with manyoccupationsandare usually relatedto theseniority of theemployee

For example-director and other senior memberscan beentitledto benefitsas company cars,expensea/c ,private healthcare, freeeducationfor children, pension schemes,tripsabroad,etc

Factory floor workers may beentitledto freeuniforms,transportto work,saving schemes,luncheon vouchersetc


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Recognition/Attention.

Applause.

One-on-One CoachingTraining

Career Path

Job Titles

Good Work Environment.On-the-Spot Praise.

Leadership Roles.

Team Spirit.


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Executive Recognition

Social Gatherings

Casual Dress Day.

Time Off

Outside Seminars

Additional ResponsibilityTheme Contests

Stress Management

Pizza/Popcorn/Cookie DaysGags and Gimmicks


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Motivatesemployeesto perform better

Coststhe organization nextto nothing

Buildstremendousself-esteem amongpeople

Makesemployees moreloyalto company

Createsan atmosphere where changer isnot resented


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Demotivates if processis nottransparent

Could resultin unhealthy competition amongpeople

Mayleadto short-sighted,hastydecision making

Workintrudes on thehomelife of employees

Will never workif monetary rewardsareinadequate


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Many financial rewards mainly generate

short-term boosts of energy, which can havedamaging unintended consequences. Indeed,the economic crisis, with its imperative to

reduce costs and to balance short- and long-term performance effectively, gives businessleaders a great opportunity to reassess thecombination of financial and nonfinancial

incentives that will serve their companies bestthrough and beyond the downturn.


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Memory Value. Thevalue of an honorary or informal recognition award,whether it'sa plaque,a mug, or asimilar item,islonger-lasting than cashsincecashisspentand gone, whereasthe recognition items remain on employees'desks or in their homes.

Trophy Value.Nonmonetaryawards can often beshown to co-workersandfriendsasatrophy given in appreciation of good work. A check or a bankstatementis generallysomething thatemployeesdon'tdisplay.

Flexibility. Thetype of nonmonetary recognition given can bedesignedtoemphasize particular organizational or team goals.For example,a mug or atee-shirt withtheteam'slogo could beawardedto ateam thathas

accomplishedashort-term goal on time.Theaward recognizes goodperformanceand promotesteamwork.

Cash Awards Cost More. A study of privatesector awards foundthatemployersspentless money on nonmonetaryawardsthan cashawards.However,thesurveyalso foundthatemployers reportedaboutthesamelevelof performanceimprovement with cashand nonmonetaryawardsandthatthe

awardsheldapproximatelythesame perceivedvalue


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Thanks! You Made A Difference" Award.

One example of a Federal organization with an activeandinnovative nonmonetaryawards program comes from theNavalAviation Supply Office (ASO) in Philadelphia, Pennsylvania. ASO'sprogram supportsits corporatestrategies of employeeempowermentand customer service.For instance,theyhavean

award called, "Thanks! You Madea Difference!" Thisawardis givenby co-workers recognizing groups or individuals who have gonetheextra mileto help othersat ASO.Theemployee beingrecognized receivesastanding ovation from co-workers,acertificate commending his or her performance,a cluster of helium

ballons,a photograph of theevent,and other smallitems withtheOfficelogo displayed. ASO also hasa Recognition Lotteryin whichpreviously recognizedemployees can win awards,suchasareserved parking spot for 6 months,lunch withtheCommandingOfficer,having their picturesdisplayedin a prominent place, or

having ahallway namedafter them


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A recentMcKinsey Quarterly survey2 underscores the opportunity. Therespondents view

three noncash motivatorspraise from immediate managers,leadership attention (for example, one-on-one conversations),andachanceto lead projects or task forcesas no lessandeven moreeffective motivatorsthan thethreehighest-rated financialincentives:

cash bonuses,increased base pay,andstock or stock options(exhibit).

Thesurveystopthree nonfinancial motivators play critical rolesin

making employees feelthattheircompanies valuethem,taketheirwell-being seriously,andstriveto create opportunitiesfor careergrowth.Thesethemes recur constantlyin moststudies on waystomotivateandengage employees.


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Cashbonus

Increasein base pay

Stock or stock option

60%

32%

50%

Praiseand commendation

Attention from leaders

Oppurtunities to leadprojects

67%

73%

62%

EFFECTIVENESS

PERCENT

Source: June 2009 McKinseyglobalsurvey of 1,047executives, managers,andemployees from a range ofsectors


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Control charts

Deming

Juran trilogyValueanalysis

Tqm

Quality circlesISO

DOE

Brecker pi


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Statistical QualityControl (SQC) or Statistical ProcessControl (SPC)for repetitive,highvolume production began in the 1930's whenShewhart developed control charts. Small production samples weremeasured periodicallyto monitor quality. Sample mean (Xbar) andrange (R) charts were usedto detect when a process was going out

of "economic control."

The causes of variationsthatexceedthe upper andlower controllimits (UCL and LCL respectively),suchasat "A", must beeliminatedin order to bring the process backinto statistical control.


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the Deming / Shewhart Cycle wasespecially usefulin solving these quality

problems.The PDCA Circledenotes continuousimprovement by repeating thebasic cycle of

Plan Getthedata

Analyzethe problem

Plan thesolution

"Do" ItCheck -- Measurethe change Act -- Modifyas neededaslong assignificantimprovementsare obtained.

.


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Juran focused on quality control withthe "trilogy" qualityplanning quality control qualityimprovement.

An SPC representation of thetrilogyis usedin the figureatthe right. A spec isdeveloped -- usually witha tolerance. Acontrol chartis usedto getthe process under control. As

special causesare removedto improvethe process,variationis reduced.Thesearethe basic stepsin Six Sigma processimprovement.


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In Value Analysis,developed by LarryMilesat GEduring WWII, multi-functionalteams (design,production engineering, purchasing, quality) useaformalized processto identifyalternative materials,

manufacturing processes,anddesignsto improvefunction while reducing costs.

Theverystructured function diagramming and costingtechniques providedata for quantified (costandvalue)

decision-making.The wholeVA processisa precursorof theMAI -- Measure, Analyze, Improve -- in the broadbased Six Sigmaimprovement process. Six SigmaaddstheC or Controlstep.


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Total QualityManagement (TQM) emphasized using multi-functionalteams (professionalstaff and workers from alldepartmentsinvolved) to solve problems.Theteams weretrainedto use basic statisticaltoolsto collectandanalyzedata.

Flow charts or process maps were usedto visualizethe flow ofproduct or documentsthroughaseries of processsteps.Thepredominant goal of Process Improvement

Teams wasto eliminatethe non-valueadding stepsandtoresolve quality problemsin order to reducethe (cycle) timeneededto completethe process.


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ISO9000 wasdevelopedasastandard for business qualitysystems.

To be certified, businesses neededto documenttheir qualitysystem andinsureadherenceto it with reviewsandaudits.

A keyelement wastheidentification of non-conformancesandaCorrective Action System to prevent reoccurences. Specific qualityimprovement methodologies were not prescribed.

Theautomotiveindustryadoptedthe QS9000 standard for theirsuppliersto requirethe use of specific practicesin quality planningandin production operations.Advanced Product Quality Plans

Design / ProcessFailureModeand Effects Analysis (FMEA)Production Part Approval ProcessControl Plans (for production)Measurement Systems Analysis


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Brecker AssociatesintegratedtheTeam-based Process Improvement ofTQM Data gathering and brainstorming of VA Quality methodologiesof QS9000 Statistical process control of Juran Process capabilityanalysisand DOE techniques of Six Sigmainto a more powerfulProcess Improvement methodologythat gets better results, faster,andwithlesseffort.


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Non Financial Techniques for Motivation