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Chap 10

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Chap 10

  1. 1. MOTIVATION, SATISFACTION AND PERFORMANCE SATURDAY, December 19, 09
  2. 2. IMPORTANT POINTS <ul><li>Presentations on next class </li></ul><ul><li>Submit all compensatory assignments </li></ul><ul><li>Check the quiz sheet and discuss if there are any issues </li></ul><ul><li>No marks to the student, who does not present the proof and does not deliver </li></ul>
  3. 3. Course Outline <ul><li>Sr. | Chap|Final Exam Chapter Heading </li></ul><ul><li>No.|No. | Q. No. </li></ul><ul><li>1. 1 1 An Introduction to Motivational Concept (260909) </li></ul><ul><li>2. 2 2 Motivation in the History (101009) </li></ul><ul><li>3. 3 3 Darwinian Theory of Evolution and Motivation (171009) </li></ul><ul><li>4. 4 4 Instinct and Motivation (311009) </li></ul><ul><li>5. 5 5 The Effect of Frustration, Conflict and Stress (051109 & 071109) </li></ul><ul><li>6. 6 6 Need Theories of Motivation (211109) </li></ul><ul><li>7. 7 7 Reinforcement/Incentive Theories (051209) </li></ul><ul><li>8. 8 8 Expectancy Theories of Motivation (171209) </li></ul><ul><li>9. 9 9 Motivation, Satisfaction, and Performance (191209) </li></ul><ul><li>10. 10 10 Motivation and Monetary Rewards (211209) </li></ul><ul><li>11. 11 11 Motivation Through MBO and Performance Appraisal </li></ul>Marks Distribution: Number of Quizzes attended + Midterm + Final assignment
  4. 4. MOTIVATION AND MONETARY REWARDS <ul><li>Salaries should be variable as per individual’s performance </li></ul><ul><li>There should be an incentive reward that is paid regularly </li></ul><ul><li>A ratio schedule is more effective in arousing motivation than an interval schedule </li></ul><ul><li>Incentives should match with needs </li></ul><ul><li>A partial reinforcement schedule can be a more effective motivational tool than a continuous schedule </li></ul><ul><li>The rewards should be instrumental, ie the results must be followed by rewards as devised. </li></ul>
  5. 5. <ul><li>Employee’s pay holds a motivational value if it satisfies basic needs as well as self esteem and independence needs </li></ul><ul><li>For lower level employees pay is motivational because it helps them cope up with basic financial requirements </li></ul><ul><li>For upper level employees it additionally helps to gain them social status in society </li></ul><ul><li>Designing a pay system for an organization is a very important and critical process </li></ul>MOTIVATIONAL VALUE OF PAY
  6. 6. <ul><li>Economic being 1911, Taylor </li></ul><ul><li>Social being 1930s, Human relationists </li></ul><ul><li>Self actualizing man, Growth needs focus, 1960s </li></ul><ul><li>Herzber says, money/ pay is important and a dis-satisfier </li></ul><ul><li>On the contrary, money not only brings basic need-fulfilling, it also satisfies other needs such as independency, status, security etc </li></ul>IMPORTANCE OF PAY INCENTIVE
  7. 7. <ul><li>If there is a valence attached to pay, then it becomes a motivator/ reinforcer and hence increase productivity </li></ul><ul><li>Money acquired through pay has a greater incentive value than money acquired through bonuses </li></ul><ul><li>Pay should be performance driven </li></ul>IMPORTANCE OF PAY INCENTIVE
  8. 8. <ul><li>Dissatisfaction with pay results in lesser commitment with work </li></ul><ul><li>Their expectations if not met with pay result in dissatisfaction </li></ul><ul><li>This dissatisfaction results in low motivation, sabotage, absenteeism, turnovers </li></ul><ul><li>Employees stop responding to motivational initiatives such as job enlargement, enrichment, MBO etc </li></ul>IMPORTANCE OF PAY INCENTIVE
  9. 9. <ul><li>Pay has a motivational power, because it buys the means of satisfying physiological needs, after the satisfaction of these needs any other need occurs </li></ul><ul><li>Pay can buy shelter, the job security and insurance plans serve as fulfilling the security needs for employees </li></ul><ul><li>Pay indirectly facilitates socialization needs </li></ul><ul><li>It satisfies status, power and self esteem needs </li></ul><ul><li>It does not satisfy self actualization need but may serve as a measure of achievement </li></ul><ul><li>Pay is instrumental for satisfying Physiological, security, status, power, esteem and achievement needs </li></ul><ul><li>It is least likely to satisfy socialization and self actualization needs </li></ul>IMPORTANCE OF PAY
  10. 10. <ul><li>First: NEED; Very important for the one whose basic needs are unfulfilled </li></ul><ul><li>It loses importance after the satisfaction of those needs, unless it satisfies higher order needs </li></ul><ul><li>Second: How much he receives; For high paid employees, pay becomes less important hence motivational tools other than monetary incentives, need to be devised </li></ul><ul><li>Third: Function of job levels; Lower level and blue collar workers give more value to pay as compared to even low paid high level workers/ managers. </li></ul><ul><li>The importance of pay is associated with what it can buy not what it itself is </li></ul>How much the pay is important
  11. 11. <ul><li>PIECE RATE SYSTEM VS HOURLY RATE SYSTEM </li></ul><ul><li>This system as introduced by Taylor, was instrumental in increasing the productivity of employees </li></ul><ul><li>This is not very much preferred now: </li></ul><ul><ul><li>Output measurement is not easy </li></ul></ul><ul><ul><li>Technological changes made less blue collar workers engaged in such activities where the piece rate system is used </li></ul></ul><ul><ul><li>Workers fear that increased productivity may result in increased productivity standards, rate cuts, lay offs, loss of health and self esteem </li></ul></ul><ul><ul><li>Loss of cooperation amongst employees </li></ul></ul>[PAY PREFERENCES
  12. 12. <ul><li>HOURLY WAGE VS SALARY </li></ul><ul><li>INDIVIDUAL AND GROUP INCENTIVES </li></ul><ul><ul><li>Piece rate plans </li></ul></ul><ul><ul><li>Production bonus plans </li></ul></ul><ul><ul><li>Commission plans </li></ul></ul><ul><ul><li>Merit rate plans </li></ul></ul><ul><ul><li>Group incentive plans </li></ul></ul><ul><li>COMPANY WIDE INCENTIVE PLANS </li></ul><ul><ul><li>Scanlon plan (profit sharing by labor cost saving) </li></ul></ul><ul><ul><li>Profit sharing plan </li></ul></ul><ul><ul><ul><li>Cash plan </li></ul></ul></ul><ul><ul><ul><li>Deferred payment </li></ul></ul></ul><ul><ul><ul><li>Combination </li></ul></ul></ul><ul><ul><li>Employee Stock ownership plans </li></ul></ul><ul><ul><li>Executive bonus plans </li></ul></ul><ul><ul><li>Stock option plans </li></ul></ul>[PAY PREFERENCES
  13. 13. NON PERFORMANCE CONTINGENT PAYMENTS
  14. 14. GOOD LUCK

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