Professional Documents
Culture Documents
7 Process-Based Approaches to Motivation.....................................................................10 Reinforcement-Based Approaches to motivation.........................................................12 Enhancing Motivation in Organizations.......................................................................13 Introduction......................................................................................................................15 What is motivation at RBS?............................................................................................17 Motivation at RBS - Total Reward................................................................................19 Current Issues in Motivation----Moneyless Motivating...............................................22 Conclusion........................................................................................................................25 Appendix I........................................................................................................................26 Appendix II.......................................................................................................................40
Motivation
The processes that account for an individuals willingness to exert high levels of effort to reach organizational goals, conditioned by the efforts ability to satisfy some individual need Effort: a measure of intensity or drive Direction: toward organizational goals Need: personalized reason to exert effort Motivation works best when individual needs are compatible with organizational goals A motivated employee is someone that works hard because they feel fulfilled when they do so. Motivation is an important area of business research and over the years there have been many 'motivational theories'. One of the best-known theories of motivation is based on Abraham Maslow's hierarchy of needs. Maslow argued that individuals have a hierarchy of needs. True motivation is achieved by fulfilling higher order needs. Basic needs Are for reasonable standards of food, shelter and clothing and those other items which are required to be the norm to meet the needs of the body and for physical survival. The base level of need will be typically met in modern industrial society by the exchange of labour for a wage packet or salary. Security needs Are also concerned with physical survival. In the context of the workplace these needs could include physical safety, security of employment, adequate rest periods, pension and sick schemes, and protection from arbitrary actions. Group needs Are concerned with an individual's need for love and affection. The majority of people want to feel that they belong to a group. Self-esteem Needs are based on an individual's desire for self-respect and the respect of others. Employees have a need to be recognised as individuals of some importance, to receive praise for their work, and to have their efforts noticed. Self-fulfilment Maslow placed self-fulfilment at the top of his hierarchy of needs. Self-fulfilment is concerned with full personal development and individual creativity. In order to meet these needs it is important for individuals to be able to use their talents and abilities fully. The organisation that wants motivated employees must pay due care and attention both to lower and higher order needs.
Motivation across Cultures Motivation is closely related to the performance of human resources in modern organizations. When motivation is studied in the context of international management, it must be remembered that although the motivation process may be the same across cultures, what motivates people often is culturally based. What motivates employees in the United States may be only moderately effective in Japan, France, or Nigeria. Therefore, although motivation is the concept of choice for analyzing employee performance, an international context requires country-by-country, or at least regional, examination of differences in motivation. This chapter examines motivation as a psychological process and explores how motivation can be used to understand and improve employee performance. It also identifies and describes internationally researched work-motivation theories and discusses their relevance for international human resource management. The specific objectives of this chapter are: 1. DEFINE motivation, and explain it as a psychological process. 2. EXAMINE the hierarchy-of-needs, two-factor, and achievement motivation theories, and assess their value to international human resource management. 3. DISCUSS how an understanding of employee satisfaction can be useful in human resource management throughout the world. 4. EXAMINE the value of process theories in motivating employees worldwide. 5. RELATE the importance of job design, work centrality, and rewards to understanding how to motivate employees in an international context.
Goals that foster external motivation are more difficult to maintain. Nevertheless, they are often necessary in order to create some sufficient motivation to complete an academic task. Try to create goals that you find internally rewarding.
Internal motivation occurs when the person attributes an internal experience to the cause of their behavior, and that valued experience occurs while pursuing the task. In a sense, people experience a "pull" by the nature of the task itself. People who are internally motivated exhibit higher levels of motivation, effort, creativity, and persistence in accomplishing the task, he added. External motivation and internal motivation is an example of control (external) versus commitment (internal). Externally motivated behavior persists as long as the reward or punishment is apparent. In a sense, workers are "controlled" by the external stimuli. Internally motivated behavior requires no threat or reward. The reward is the feeling that comes with accomplishing the task. Commitment is greater. Internal motivation includes: Pride in workmanship. Joy of work. Persistence in the face of obstacles. Creative approaches to problem solving. No need to be reminded, pushed, pressured, or rewarded by superiors. Reduced stress. High levels of job satisfaction. Low rates of absenteeism.
Differences between internal and external motivators in the workplace Motivation provides a framework for understanding why people do things Internal motivation occurs when a task or duty is meaningful External motivation is initiated by another person and is usually based on a reinforcement or reward
Motivation in Organizations
Knowing how and why to motivate employees is an important managerial skill. Nature of Motivation in Organizations Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them. Motivation and Performance in Organizations An employee's performance typically is influenced by motivation, ability, and the work environment. Some deficiencies can be addressed by providing training or altering the environment, motivation problems are not as easily addressed. Motivation is important because of its significance as a determinant of performance and its intangible nature. Historical views of Motivation Evolution can be traced from scientific management, through the human relations movement, to the human resource approach. Scientific management: The assumptions of scientific management were that work is inherently unpleasant for most people and the money they earn is more important to employees than is the nature of the job they are performing. Human relations movement: This school of thought emphasized the role of social processes in organizations and assumed that the need for belongingness and the need to feel useful are more important than money in motivating employees. Human resource approach: This view assumes that people want to contribute to organizational effectiveness and are able to make genuine contributions. The organization's responsibility is to create a work environment that makes full use of available human resources. The human resource approach guides most thinking about motivation today, but three integrative approaches conceptualize motivation more completely: need-based, processbased, and reinforcement-based approaches.
Two need-based approaches are need hierarchies and the dual-structure approach. Need Hierarchies Two of the most popular need hierarchies are Abraham Maslow's hierarchy and Clayton Alderfer's ERG theory of motivation. Maslow's hierarchy of needs assumes that people are motivated to satisfy five levels of needs: physiological, security, belongingness, esteem, and Self-actualization. The hierarchical arrangement suggests that the five levels of needs are arranged in order of increasing importance, starting with physiological needs. According to the theory, when needs at one level are satisfied, they are no longer motivators and the individual "moves up" the hierarchy to satisfy needs at the next level. Maslow's view of motivation provides a logical framework for categorizing needs, but it does not supply a complete picture. Alderfer developed the ERG theory of motivation in response to criticisms of Maslow's hierarchy ERG stands for existence, relatedness, and growth needs ERG theory. Existence needs are satisfied by food and water pay fringe benefits and working conditions. 7
Relatedness needs are satisfied by relationships with co workers, superiors family and friends. Growth needs cover the need to advance and develop. As with Maslow's theory, assumes that motivated behavior follows a hierarchy, but it has two important differences: o ERG theory suggests that more than one level of needs can cause motivation at the same time; o ERG theory has a frustration-regression element that suggests that if needs remain unsatisfied at some high level; the individual will become frustrated, regress to a lower level, and begin to pursue lower-level needs again.
The Dual-Structure Approach to Motivation The dual-structure approach was developed by Frederick Hertzberg and is often referred to as the two-factor theory. Hertzbergs studies of accountants and engineers led him to suggest that entirely different sets of factors are associated with satisfaction and with dissatisfaction. Motivation factors, relating to the job itself, result in feelings ranging from satisfaction to no satisfaction. Hygiene factors, relating to the work environment, result in feelings ranging from dissatisfaction to no dissatisfaction.
Acquired Needs Other need-based perspectives on motivation focus on acquired needs: the needs for achievement, affiliation, and power. This approach is concerned not about the ordering of needs but rather about the needs themselves. David McCleland first identified the need for achievement, which reflects an individual's desire to do something more effectively than in the past. The need for power is the desire to be influential in a group and to control one's environment
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Implications for managers: Nadler and Lawler suggest how managers can apply the basic ideas of expectancy theory. Managers should first determine the outcomes each employee is likely to want. Then they should decide what kinds and levels of performance are needed to meet organizational goals, making sure that the desired levels of performance are attainable. Managers then need to ensure that desired outcomes and desired performance are linked. Finally, the rewards need to be large enough, and the total system needs to be equitable. Equity Theory Equity theory, developed by J. Stacy Adams, suggests that once an individual has chosen an action that is expected to satisfy his or her needs, the individual assesses the equity or fairness of the outcome. Equity is an individual's beliefs that he or she is being treated fairly relative to the treatment of others. Three attitudes are possible: an individual may feel equitably rewarded, under rewarded, or over rewarded. When individuals feel under rewarded or over rewarded, they will do something to reduce the inequity. The single most important thing to remember about equity theory is that if rewards are to motivate employees, they must be perceived as being equitable and fair.
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Providing Reinforcement There are four approaches to providing reinforcement. A fixed-interval schedule provides reinforcement at fixed intervals of time, regardless of behavior. A variable-interval schedule provides reinforcement at varying time intervals. A fixed-ration schedule gives reinforcement after a fixed number of behaviors, regardless of the time that has elapsed between behaviors. A variable-ration schedule varies the number of behaviors needed for each reinforcement and is the most powerful schedule for maintaining desired behaviors. Other approaches to Motivation in organizations Goal Setting Theory This approach suggests that managers and subordinates should set goals for the individual on a regular basis and that rewards should be tied to the accomplishment of goals. Research support for goal-setting theory is more consistently favorable than any other single approach to employee motivation. The Japanese Approach To Motivation The Japanese approach is not a theory or model but a philosophy of management. The basic tenet is that managers and workers should come together as partners - as one group.
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Performance-based systems: Organizational reward systems have traditionally either a fixed salary or hourly rate system or an incentive system. Fixed rewards can be tied directly to performance through merit pay systems, whereby people get different pay raises at the end of the year, depending on their overall job performance. Many organizations are experimenting with various kinds of incentive systems, which attempt to reward employees in proportion to their accomplishments. Four popular incentive systems include profit sharing, gain sharing, lump-sum bonuses, and pay for knowledge. Interventions for enhancing motivation Three motivational interventions are behavior modification, the modified workweek, and work redesign. Behavior modification is a technique for applying the concepts of reinforcement theory in organizational settings. A modified workweek can be any work schedule that does not conform to a traditional eight-hours-a-day, five-days-a-week design. Some alternatives include the compressed workweek, flexible work schedule, working at home and job sharing. Changing the nature of people's jobs in being used as a motivational technique. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, the job characteristics approach, and autonomous work groups-could be used as part of a motivational program.
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Make it happen
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Introduction
RBS is the holding company of one of the worlds largest banking and financial services groups, with a market capitalization of 44.4bn at the end of 2007. The RBS group provides a range of retail and corporate banking, financial markets, consumer finance, insurance and wealth management services. Headquartered in Edinburgh it operates in over 50 countries across Europe, the Americas, Asia and the Middle East serving more than 40 million customers and employees over 170,000 people. Roles and performance management at RBS
For RBS to offer world-class financial services, it is vital that it attracts the most talented people. These are the business leaders of the future.
At a time when there is fierce competition for talented people, RBS positions itself as a world-class employer, with world-class employment opportunities, not just in the UK, but across the globe - in China, Hong Kong, Singapore, Japan and Australia as well as Europe, Asia and the USA. With different labors market conditions in each location, RBS recruitment is based on merit, from the widest pool of talent available. Roles at RBS Due to its scale and diverse range of businesses, RBS has lots of different career opportunities to offer. These include bankers, traders, sales, customer service, investment analysts, and business advisors. There are also business support roles such as IT, 15
marketing, human resources, finance, and legal. Careers can start directly after leaving school on an apprenticeship programme or from university on a graduate development programme. Performance management At RBS almost every role can be described in terms of specific job targets. This method of performance management allows managers to measure each individual's performance in a specific way and reward them accordingly. RBS employees will agree job objectives and targets with their line manager at the beginning of the year. Their performance is then measured and reported on during the year. At the end of the year they will have a performance review. Payments for results are an effective motivator for high performance. Some jobs are paid according to the achievement of targeted results. This means that a bonus is paid if the employee achieves agreed targets for the job. For example, a corporate banker has responsibility for gaining a certain number of new business customers each year. If the target is achieved or exceeded she/he will get a bonus payment. Particularly challenging or difficult to achieve targets are known as 'stretch targets' and the reward for achieving these will be greater.
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For many years, management theorists have tried to understand what makes some people work harder than others. Some of the motivation factors identified by theorists can be seen at work in RBS. Early theorists on staff motivation always looked at factors outside the individual. Taylor and the 'piece rate' Frederick W. Taylor (1911) was the creator of 'scientific management'. He felt that every job was measurable and each element of a job could be timed. All managers had to do was pay for every item the workers produced and they would work harder to get more money. This led to a long established pay scheme called the 'piece rate', where workers received a fixed amount for every unit of output. Schemes like this are usually associated with manufacturing industries and are not appropriate for a complex service-led organization like RBS. Hertzberg and 'two-factor' theory Another theorist, Frederick Hertzberg (1959), carried out a large-scale survey into motivation in American industry. The results of his survey led him to develop a 'twofactor' theory of motivation. Firstly, he established that if an employee's basic needs (such as a suitable working environment and a basic rate of pay) were not met, then this creates a source of dissatisfaction. Hertzberg termed these 'hygiene factors'. On the other hand, the presence of less tangible factors, such as the provision of challenging work and recognition for doing well, can create or increase work motivation. Hertzberg termed these 'motivators'. RBS has put in place several of Hertzberg's 'motivators': Employees get recognition for good work They have a collective sense of achievement when the whole business does well They gain extra responsibility and advancement through regular performance reviews When RBS people do well in their work, the company rewards them.
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The theory of Abraham H. Maslow (1943) on staff motivation is also evident at RBS. Maslow referred to a 'Hierarchy of Needs' which is usually drawn as a pyramid. According to Maslow, the most basic needs on this hierarchy had to be satisfied before workers could look to the next level. Basic physical needs were things like shelter, food, warmth and bodily functions. Next, people had to feel safe in their environment. RBS provides these basic needs wherever it creates jobs. Maslow's higher levels of need are less obvious and less easy to describe but of great importance. Social needs refer to the fact that we want to feel part of something we share in. RBS creates the opportunity for its community of employees worldwide to share in its common goals and vision for the group. It does this by rewarding the people who contribute to its success through their commitment and hard work. RBS provides 'self actualization' by offering recognition, promotion opportunities and the chance to develop a lifelong career with the Group. The next level esteem - refers to our need to feel valued, that what we do matters. The RBS mindset is that employees can 'make it happen' for themselves. It provides opportunities for all employees through promotion or training and then recognizes their achievements. Through this RBS employees can improve their self-esteem. At the very top of Maslow's hierarchy is our human need for 'self actualization'. This means we work hard in order to be as good as we possibly can be. RBS meets this by offering recognition, promotion opportunities and the chance to develop a lifelong career with the Group.
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As Maslow describes, workers are not motivated by money alone. Individuals are motivated by different things. Motivation can be about shaping a worthwhile career or it may involve having more flexibility with time. For example, at the start of your career, help to pay off your student debt may be more important to you than retirement planning. Employees at RBS enjoy Total Reward a specific benefits package designed by RBS that goes far beyond salary. It offers benefits for each member of staff that includes not just money, but also personal choice in working hours and security. The RBS Total Reward package also offers flexible pension funding, health and medical benefits, paid holidays, and a confidential advice service. Employees have a generous holiday allowance (between 25 and 30 days for full-time staff), with the option of buying or even selling days. Employees may also choose from a wide range of lifestyle benefits, Including discounted shopping vouchers, childcare facilities and RBS financial products, such as mortgages, currency exchange, personal loans and banking at special staff discounted rates. Results Based Payments At the core of the package is a competitive salary based on skills and experience regardless of where in the world RBS staffs are based. Providing competitive pay means comparing what you are offering against salaries for similar jobs in other financial services companies. All staff receives their salary credited monthly to their staff bank account. The terms and conditions of their employment specify the basic rate of pay and any further payments that they may be eligible to receive. Non Financial Rewards Whilst money may be an incentive to go to work; at work, pay cannot motivate people to give more. Theorists have long understood that staffs need a combination of motivators. This is why RBS offers so many non-financial rewards which can improve personal lifestyle. One of the most important motivators for RBS employees is the recognition of good performance by graded progression. At RBS, people are encouraged to 'make it happen' through personal development. This means RBS encourages employees to grow and develop their skills and abilities. This in turn helps RBS to grow as a company.
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Employees identify development needs with their line manager at their annual performance review. These are documented in a personal development plan. Development can involve more training, attending courses or gaining new understanding and skills. This can improve the prospects of promotion and allow employees to move up the organization and increase their Total Reward.
RBS also believes in giving its people the chance to help put something back into their own communities. Wherever RBS operates, the Group supports community involvement in projects that matter to its people. For every pound raised for charity by a member of staff, RBS will double-match the donation, making every pound raised count three times. Work-Life Balance
To attract and retain the highest qualified and motivated employees, RBS enables its employees to develop a work-life balance between work and non-work commitments. Flexible working RBS gives all employees the 'right to work flexibly'. This can be through a range of flexible working practices covering job sharing, part-time working, home working, variable working hours, compressed hours and term-time working. These are adapted to suit the local needs of each RBS centre. The policies and procedures for applying are easily available on the RBS website. RBS provides a free advice service called 'Help Direct'. Employees can call for advice on making the most of their time at and away from work. It also offers counseling on a range of life issues.
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RBS and 'Your time' RBS recognizes that in some circumstances, people may need time off from work for reasons other than sickness. Some people have special family commitments or commitments in their local community. The benefits of flexible working practices The policies of RBS in relation to work-life balance help to create a working atmosphere that relieves stress. They also help to create greater equality of opportunity for everyone. For example, this flexibility enables employees to choose working patterns that fit with their childcare arrangements or their personal lives. Following these flexible practices allows RBS to attract more talented people. Theoretical work on motivation by Elton Mayo in the 1920s showed that contented people, who are satisfied with their working environment, were likely to be more productive. The distractions of home or community pressures can be handled far more comfortably with the support of an employer such as RBS. In return, RBS gains staff loyalty and commitment, which in turn drives higher performance.
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and events occurring that week, so all learn about colleagues responsibilities and current focus. We keep the tone fun and lively, team focused, and avoid pre-planned agendas. 6) Provide staff with ownership of their responsibilities. Different employees with varying levels of experience and differing skill sets will, of course, require varying levels of supervision and direction. A good manager should be able to judge what levels of supervision works best, but, micromanaging can be a terrible working relationship for the employee. Allowing staff members to run with things, and empowering them officially to make judgment calls (without fear of ramification) can keep them motivated. At Hot Docs, some of the most successful employees have been those who have been free to reinterpret standard ways of addressing tasks and goals. This allows them to meet goals in a way that makes sense to them, and often creates a sense of personal pride in their daily work. 7) Help get staff invested in the event by helping to provide access to their friends and families. People will naturally seek to excel when they feel their work is something that can be enjoyed and respected by their friends and families. At Hot Docs, we guarantee that all levels of staff are provided with passes and tickets to the festival they can distribute as they see fit. This has the added benefit of being great word-of-mouth outreach and promotion for the festival, and helps to develop a core, dedicated audience. 8) Provide staff with adequate tools and resources for their task, and where Limitations exist, recognize these. Reasonable goals and timelines must also be attached to the proper equipment, information and manpower to reach the desired outcome. Even the most innovative employee cannot compensate for considerations that are beyond their control. At Hot Docs, as a non-profit arts organization, we try to actively recognize that were working with limited resources to achieve (sometimes and virtually) limitless goals. Our team should have enough at their disposal to do whats required, but when they dont, we try to consider the best we can do as something better than a compromised result. 9) Actively provide encouragement and recognition for all employees, and showcase exceptional performance. Direct and to-the-point motivational feedback, even for de rigueur tasks, can be an important way to keep a team encouraged through the most stressful and busy periods. At Hot Docs, we try to ensure that all staff are provided with recognition for their efforts through All Staff meetings, organization email distribution, and also by name recognition in our published materials (e.g.: programme book, website, etc.). As well, supervisors try to give positive feedback in an honest and context-driven (e.g.: This is great because) way. 10) Provide valuable (and valued) professional development opportunities. Many large organizations invest in professional development programs, courses and tools. For groups with less at their disposal, smaller and cost-effective ways can help staff expand professional horizons. Hot Docs tries to incorporate extra staff members into
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meetings outside their immediate domain. This can mean bringing a junior employee to meeting with an important external stakeholder (so they can both make a connection, and learn how these meetings operate). Also, we learn from seeing how other festivals operate: we try to provide full-time staff with opportunities to travel to other cities to see first-hand whats happening.
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Conclusion
RBS operates an exciting and forward thinking Human Resources (HR) strategy. It provides a world-class employment package for every employee, at every level, wherever they work. It adopts an attitude that motivates its staff in both financial and personal ways. By doing this, RBS is able to compete for the best people and attract them to its business. In a world where local labor market conditions can fluctuate from region to region, RBS must be sensitive to local conditions and individual needs. At RBS, motivation theory comes to life. RBS employees at all levels can enjoy a work environment where effort is seen to be valued, where achievement is recognized, where individual progress is rewarded and where a long term career is available for those who are able to grow with the business. Where individuals are made to feel a part of the bigger picture and where the rewards available are varied, practical, personal and tailored to the individual, there are motivators for all.
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Appendix I
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Appendix II
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