Employee Motivation

By Bao Chiem Maria Lainez Ernesto Miranda H. Alan Tang Adrian Tarango

Principles of Management MHR !" #ection !$ " %!! & "'%(!

)r. #harifzida

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Table of Contents

*. **. ***. *1. 1. 1*. 1**.

*ntrod+ction Revie- of Literat+re *ntervie-s #+rvey Compiled #+rvey Res+lts Concl+sion References

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i3ility. Maslo-9s famo+s pyramid of h+man needs: -hich ranges from physiological to self. Introduction The a3ility to motivate employees is a f+ndamental re4+irement of effective management in the -or5place.t3oo5 states that motivation 7refers to the forces that energize: direct: and s+stain a person9s efforts.8 <': "!= B+t 7n+mero+s st+dies have indicated that money is not a primary motivator among employees or an especially effective one. factor theory.8 <(: .factor theory provide managers -ith val+a3le insight into the motivation and needs of employees. *n fact: 7most e.getter: and an e. *t ta5es tho+ght: attention to detail: 5no-.= Maslo-9s theory on the hierarchy of needs and Herz3erg9s t-o.8 < : .cellent recr+iter.ec+tives9 offices in the "/2!9s and "/. 6+st mention the -ord 7motivation8 and managers immediately thin5 of motivational theories s+ch as Maslo-9s theory on the hierarchy of needs and Herz3erg9s t-o. @hen -e e. Tr+e: 7money is a -onderf+l comm+nicator: a great attention.8 <0: = Managers +se many different techni4+es to motivate their employees: 3+t 7motivating people is hard -or5. Ho-ever: these are >+st t-o of the many perspectives that are availa3le to help managers gain a complete +nderstanding of employee motivation.8 <": . @e are tal5ing a3o+t the factors that 3ring a3o+t high performance in employees.act+alization: is +s+ally the first thing that comes to mind. ?+r te.amine motivation -e are referring to 7-hat ma5es the difference 3et-een doing as little as yo+ can get a-ay -ith and doing everything that yo+ possi3ly can.I.8 B+t: it is important to +nderstand that -hen -e spea5 of motivation: -e are referring to the forces that drive an individ+al to p+t forth their best endeavors in the -or5place.ho-: and: perhaps most of all: fle.= Among the more traditional means of employee motivation are 3on+s incentives andAor pay increases.!9s almost al-ays contained a little model pyramid on the des5.

This 3ehavior s+ggests that people prefer recognition associated -ith the >o3.cash re-ards are more effective motivators than money.act+alization.-ays to manage this 5no-ledge -or5force. This is: of co+rse: an element of Herz3ergBs theory of motivation. The ma>ority of people -e s+rveyed ran5 gro-th opport+nities higher than pay -hen it comes to >o3 motivation. People are motivated to f+lfill lo-er. Beca+se the physical or material: and social needs that come -ith the >o3s are already f+lfilled: these 5no-ledge -or5ers tend to move on to higher.level needs: s+ch as ego <esteem= and self.= *n fact: -hen it comes to motivating employees: gro-th opport+nities and challenges: recognition: and other non. Most of the people in the s+rvey ans-ered that they -o+ld ta5e a high. <$: $= TodayBs -or5force is 3ecoming more and more s5illf+l and technologically inclined.act+alization. Review of Literature According to Herz3ergBs t-o.8 According to Maslo-Bs hierarchy of needs: people have physical: sec+rity: social: ego and self.profile >o3 -ith more responsi3ilities 3+t -itho+t any pay increase -hen given the opport+nity.level needs 3efore they move on to f+lfill higher. II.paying >o3s: -e can infer that money alone doesnBt provide eno+gh of an incentive as a motivator for performance. Managers need to provide challenging >o3s in order to 3etter motivate todayBs 5no-ledge -or5ers. The s+rvey -e cond+cted s+ggests gro-th opport+nities and challenges have a positive effect on a person9s motivation in the -or5 place.to motivate todayBs 5no-ledge -or5ers. Diven the fact that these -or5ers command high. These 5no-ledge -or5ers -ill no longer 7-or5 for 3eans. <2: """= Cno-ing -hat people need can help +s +nderstand ho. ' .act+alization needs."(. Managers have to thin5 of ne.factor theory of motivation: money isn9t even a motivator.level of needs s+ch as ego <esteem= and self. @ith 5no-ledge and s5ills come higher salary demands.

A -or5er derives a sense of self.t. @hether the >o3 is 3y design or 3y goal setting: a highly motivated -or5er is li5ely to 3e one -ho has the necessary s5ills and s+pplies to accomplish the >o3.Also: the 3ehavior in choosing the >o3 -ith more responsi3ilities s+ggests that people are not afraid of challenges associated -ith the >o3 -hen they are presented in the right conte. <. A significant n+m3er of >o3s in the -or5place are apparently not very challenging. @or5ers -ho ro+tinely perform challenging -or5 inherit personal ( . These goals and o3>ectives need to 3e specifically stated in order to have most motivating effect.pected of them.>o3 training or company.-orth in the process of performing the >o3 and: +pon completion of that >o3: a sense of accomplishment. Managers need to +nderstand that challenging -or5 and opport+nities for gro-th really go hand in hand. @ith this vie-: the -or5er 3ecomes more motivated in order to achieve that goal. The s+rvey -eBve cond+cted sho-s that a ma>ority of the respondents consider the opport+nity for gro-th to 3e more of a factor in >o3 motivation than pay.factor theory. Managers sho+ld 5eep this in mind -hen assigning -or5 to their employees. #t+dies have sho-n that satisfied -or5ers are more prod+ctive. Companies that can provide these gro-th opport+nities reap the 3enefits of having a motivated -or5force -ith improved s5ills. *n sit+ations li5e these: managers can set goals and o3>ectives so employees 5no. *n order to design the 7right8 >o3 for the right person: the >o3 designing process needs to involve employees 3eca+se their needs have to 3e addressed.s5ills. </: "$"= Having a clear goal can ma5e a previo+sly ro+tine >o3 3ecome more of a challenge. @or5 itself is a motivator according to Herz3ergBs t-o.: "0!= *n dealing -ith todayBs 5no-ledge -or5force: managers need to design >o3s that are 3oth challenging and satisfying. These -or5ers val+e ne5no-ledge and ne.the.paid technical training.pect a certain amo+nt of recognition. *n this case: 3y ta5ing on the challenges: people may e. TodayBs 5no-ledge -or5ers also demand gro-th opport+nities from their -or5 place.-hat is e. These gro-th opport+nities can involve on.

cash re-ards appeal to employees on a personal level.8 According to @or5force Magazine 7 Eon.ceptional performance are vital for employee motivation. According to the s+rvey -e cond+cted: /'I of those s+rveyed felt that non. Employees -ant and need recognition on the >o3: and an effective -ay of satisfying this need is thro+gh non. Beca+se non.cash re-ards also play an important role in any organization: as re-ards for e. *ncreasingly: says: Cent M+rdoc5: its chief e.8 Employees li5e to 3e appla+ded for doing a great >o3 for the simple fact that it is a good feeling.Cash re-ards and incentives. As Thomas D. Eon.C.cash re-ards can 3e very effective in motivating employees. Celley has noted: 7@e m+st go 3eyond the paychec5 and recognize o+r employees.gro-th and th+s 3ecome even more motivated and prod+ctive. -atches or crystal 5nic5. $ .cash re-ards.tra time off.ec+tive: companies -ant to give Role. Eon.effective -ays to 3oost employee motivation. ranging from a post. )esigning challenging -or5 and providing gro-th opport+nities can 3e cost. #pend F :(!! on a 3on+s for a val+a3le employee: and he is +nli5ely to -eep for >oyG spend the same on a fancy -atch: and he >+st might.effective 3+t memora3le are see5ing the services of firms that specialize in employee recognition: s+ch as ?. This -ill demonstrate that -e tr+ly val+e their contri3+tion and their individ+al impact on prod+ctivity and profita3ility. This seems to demonstrate that money is not everything -hen it comes to motivating a person on the >o3. Tanner.cash a-ards play an important role in employee motivation and 5no-ing their contri3+tions co+nt is vital to employee performance.cash re-ards have proven to 3e effective motivators: companies that 7-ant re-ards to 3e cost.cash re-ards can range from anything li5e tic5ets to a local sporting event or am+sement par5 to e. Eon.it note that says: HDood 6o39 to a set of golf cl+3s or a vacation pac5age can 3e not only cost effective: 3+t also val+a3le tools that can help raise morale: increase prod+ctivity: improve 4+ality: and improve safety standards and c+stomer service.8 <"!: (2= These non.5nac5s to re-ard special performance.

-e cond+cted -ith )ennis Joster: C?? of L?R Management #ervices: some of the most effective methods he +ses to motivate employees are 7esta3lishing high e. @hile they may or may not s+cceed in disting+ishing themselves: they consider it important that they have a chance to do so. As one of the vice. 7The val+e of recognition is the attention they receive8 <"0: 0=. According to an intervie. This concept -o+ld relate to the level of 7ego8 in Maslo-9s theory on the hierarchy of needs: -hich deals -ith independence: achievement: freedom: stat+s: recognition: and self.presidents of *BM asserts: My 3est g+ess as to the +nf+lfilled needs that motivate a ma>ority of Americans: and to -hich most American motivation systems do not respond effectively: are these% Jirst: most Americans prefer to 3e dealt -ith separately as distinct individ+als: rather than as one among many.tent that circ+mstances permit them to do that: yo+ can motivate them. Dellerman states in his 3oo5: Motivation in the Real @orld% The Art of Detting E. @hat that 5ind of person needs is plenty of opport+nity for achievement and recognition.8 <" : "/'= Employees: and people in general: -ant to feel li5e they are individ+als and that they can disting+ish themselves 3y doing an e. -ant to ta5e charge of their o-n life: at least to the e. A compliment s+ch as 7a simple Hthan5 yo+9 still goes a long -ay in motivating employees. Recognition can come in many forms: most of them -ith little or no real cost to a company.8 <"": "= ?r it can 3e more formal s+ch as an 7employee of the month8 a-ard.tra Effort Jrom Everyone & *ncl+ding Ko+rself: 7*f yo+ are dealing -ith individ+als -ho: regardless of their demographics. <"': 0/2= 2 .seated needs that are 3red in a3+ndance 3y the American c+lt+re.ceptional or o+tstanding >o3.As previo+sly mentioned: recognition is another important factor that managers m+st identify in motivating their employees.8 Employees -ant to feel li5e they are ma5ing a contri3+tion to their organization -ith their efforts. #a+l @.pectations: setting goals and o3>ectives H-ith9 and not for the people: coaching them <rather than scolding=: and recognizing them for -or5 -ell done. To ma5e a name for oneself: to leave a mar5: to 3e singled o+t for some 5ind of favora3le recognitionG these are all deep.esteem.

deserve recognition 3eca+se 7if employees 3elieve yo+Bre a fair: honest and caring 3oss: most of them -ill remain loyal and respond in 5ind.cellence and -ell.performed activities of employees: managers can determine the type of recognition re4+ired.By ac5no-ledging the e. . The level of appreciation from recognition rises if it is an honest and -ell.8 <"(: 0= .

pectationsG setting goals and o3>ectives 7-ith8 not for peopleG coaching them <rather than scolding=G and recognizing for -or5 -ell done. 2= )o yo+ agree -ith the follo-ing statementL 7*n the a3sence of challenging: meas+red -or5 goals: high performance has little or nothing to do -ith level of pay.III. '= @hat: if any: are some factors that have had a de. The factors that improve >o3 performance and p+sh employees to go a3ove and 3eyond the call of d+ty. (= There are many methods that can 3e +sed to motivate an employee: -hat method or methods do yo+ find to 3e the most effectiveL Esta3lishing high e. "= Please indicate yo+r name and yo+r c+rrent position -ithin the company )ennis Joster: C??: L?R Management 0= Can yo+ tell me a little 3it a3o+t yo+r e. $= @hat: if any: additional methods have yo+ +sed to motivate yo+r employeesL ?nly things that didn9t -or5. Interviews Effective Employee Motivation Interview #1 Definition of motivation% The forces that motivate employees to p+t forth their 3est efforts in the -or5place.motivating effect on yo+ in the -or5placeL Politics: 3+rea+cracy and administrative d+ties. = @hat are some factors that have motivated yo+ to achieve yo+r c+rrent positionL Challenge: gro-th: creativity and financial independence.perience in the field of management 2 years of pro>ect management in engineering and operations: 2 years as a managerAdirector in management cons+lting <)eloitte=: company <F"(MAyear reven+e=.8 / years as president of a .

Mar5et.motivated: 3+t it -ill cost yo+ a fort+ne to hire himM . 6ac5 @elch is highly self. B+t money is short. *t ta5es tho+ght: attention to detail: 5no-.perience that can only come -ith time <and fail+res=. lived in terms of a motivator since e. Ceep +p the good -or5.8 Clearly tr+e. "! . /= @hy or -hy notL #ee a3ove. @hy the foc+s on vol+nteer -or5L Also: * am s+re yo+ +nderstand that 7good8 compensation is 7necessary: 3+t not s+fficient8 for high performance. Hope this ma5es sense. That is -hy it is ill+sive. @hat do yo+ ma5e of themL <#ee employee s+rvey data attachment= Eice >o3.@hy or -hy notL Tr+e: the iss+e -ith pay is simply one of 3eing a3le to attract and retain the talent needed to get the >o3 done. And the motivating factors do vary 3y individ+al and type of tas5 <e.a3o+t this statementL 77Motivating people is hard -or5.= Ho.g.i3ility. "!= @e recently did a s+rvey of employees and fo+nd the follo-ing res+lts.: yo+ motivate yo+r sales team slightly different than yo+r engineering team=.3ased compensation is necessary to attract and retain high performers at any level <other-ise they -ill leave and go some-here else if yo+ attempt to 7short8 them here=.pectations 3ecome 7reset8 -ith each raise or 3on+s. And 7good8 compensation is defined 3y the mar5et place.ho-: and: perhaps most of all: fle. *t ta5es a little +nderstanding of the h+man condition and e.

/= @hat: if any: additional methods have yo+ +sed to motivate yo+r employeesL Everyone -ants to 3e recognized for his or her contri3+tion. *t is +s+ally their goal to earn more money: so a lot of praise to +pper management ma5es it easier to give that person a raise -hen the time comes. (= @hat are some factors that have motivated yo+ to achieve yo+r c+rrent positionL $= Mainly: the challenge of 3+ilding a company from scratch and 3eing a part of something as it gro-s.= There are many methods that can 3e +sed to motivate an employee: -hat method or methods do yo+ find to 3e the most effectiveL * mainly try and -or5 -ith the person to determine -hat it is that they -ant o+t of a >o3. CT? = Can yo+ tell me a little 3it a3o+t yo+r e. *n this -ay the individ+al sees that +pper management is noticing their actions. 2= @hat: if any: are some factors that have had a de. ?ne is a team of technical programmers and the other is a team of acco+ntants and acco+nting associates. * go o+t of my -ay to give someone else credit for -hat has 3een accomplished.motivated.perience in the field of management '= Most recently: * have managed t-o type of teams. * tal5 to them to determine -hat their o-n personal goals are and then -or5 that person to help them achieve them. . "" .Effective Employee Motivation Interview #2 Definition of motivation% The forces that motivate employees to p+t forth their 3est efforts in the -or5place.motivating effect on yo+ in the -or5placeL @hen there are a list of impossi3le tas5s and no time to get them done: * -ill get de. "= Please indicate yo+r name and yo+r c+rrent position -ithin the company 0= Phil 6a3lons5i . The factors that improve >o3 performance and p+sh employees to go a3ove and 3eyond the call of d+ty.

To do that the person m+st 3e an o+tstanding employee for the company. ?nce yo+ learn ho. Motivating people is hard if yo+ are not +sed to doing it. *t ta5es tho+ght: attention to detail: 5no-.i3le in a system: -ill control the system. "0= @hy or -hy notL " = @e recently did a s+rvey of employees and fo+nd the follo-ing res+lts. A copy of the intervie. ""= Ho."!= )o yo+ agree -ith the follo-ing statementL 7*n the a3sence of challenging: meas+red -or5 goals: high performance has little or nothing to do -ith level of pay.ho-: and: perhaps most of all: fle.8 @hy or -hy notL People al-ays -ant to ma5e more money. @hat do yo+ ma5e of themL <#ee employee s+rvey data attachment= Loo5s right to me. "0 .i3ility. Interview #3 Brian Regan: CE? of L?R Management #ervices: LLC -as intervie-ed -ith a micro. cassette recorder.a3o+t this statementL 77Motivating people is hard -or5.people as -ell as a specific individ+al -or5: it is easier to motivate them.is availa3le +pon re4+est.8 *t has 3een said the person -ho is the most fle. They -ant it 5no-n that they are -or5ing hard and are ma5ing a difference in the company.

people ?ther " .profile >o3 position. Ko+r employer offers yo+ a high. Have yo+ ever done vol+nteer -or5L <Circle one= Kes Eo /. @hy or @hy notL <Refer to 4+estion O0= '. @hy or @hy notL <Refer to 4+estion O(= 2. @hat motivates yo+ to p+t forth yo+ 3est effort in the -or5placeL <Ran5 " & '= NNN Recognition NNN ?pport+nity for gro-th NNN Pay NNN Challenging -or5 0. )o yo+ thin5 non.e. Jorces that energize: direct: and s+stain a person9s effort. Jor the challenge P+3lic recognition Personal satisfaction Meet ne. Em lo!ee "urve! #uestions Definition of motivation. Moderately paying >o3 -ith recognition and appreciation of yo+r efforts . a certificate for employee of the year presented at a company dinnerL (. C. )o yo+ ta5e itL Kes Eo $..tra vacation time: tic5ets to an am+sement par5: etc. The position entails more responsi3ility and re4+ires ma5ing 5ey decisions -ith regard to departmental policy. B. Ho-ever: this >o39s pay rate is the same as yo+r c+rrent position. @hy did yo+ vol+nteer to do the -or5L A. @hich of the follo-ing >o3s -o+ld yo+ preferL <Choose one= A. gifts from the company: e. Diven the follo-ing scenarios: -hich one -o+ld yo+ preferL A. E. ".= can 3e effective in motivating employees to 3e more prod+ctiveL Kes Eo . ).IV. F(! 3on+s B. Highly paying >o3 3+t -ith no recognition or appreciation of yo+r efforts B.cash re-ards <i.

"urve! Results Motivation in the WorkPlace 25 25 19 15 16 24 18 18 16 13 9 6 19 16 Recognition O %&" 'h&((enging )o!* o!tunit" #o! $!ow th 20 Num ber of People 15 18 16 12 10 5 0 Best (1) Medium High (2) Medium Low (3) Level of Motivation Low (4) Non-Cash Rewards = Effective Motivator +es 94. "' .V. -o 6.

"( .150 c&sh /onus 60. . "i#h-Profile $ob 2o not 1&*e 3t 40. 1&*e it 60.!cenarios 'e!ti#ic&te o# 0m (o"ee o# the +e&! 40.

"$ .What $ob Would %ou Prefer 39 40 35 Num ber of People 30 25 20 15 10 5 0 High %&" w ith -o Recognition Mode!&te %&" w ith Recognition 26 &olunteer Work -o 23. +es 44.

Reasons for &olunteer Work 30 25 Num ber of people 20 15 10 5 0 5o! the 'h&((enge %u/(ic Recognition 26 12 6 4 2 %e!son&( 6&tis#&ction Meet -ew %eo (e Othe! "2 .

factor theory and ma5e an effort to tr+ly +nderstand their employees.VI.cash re-ards can 3e an effective and cost. *t is only 3y grasping these concepts that they can hope to effectively 3ring a3o+t contin+al high performance in their -or5ers. *n concl+sion: -hen it comes to 3ringing o+t the 3est performance of employees: gro-th opport+nities and challenges: recognition and non. @itho+t these challenges and opport+nities for gro-th: employees may not see a need to perform highly at -or5. . @e have seen that recognition plays a ma>or role in employee motivation and that it is a very effective motivator. ". They m+st 3e a3le to grasp the 5ey components of theories s+ch as Maslo-9s hierarchy of needs: and Herz3erg9s t-o. ?+r research: s+rvey res+lts: and intervie-s have given +s some val+a3le insight into motivation and its role in the -or5place. ?+r research and intervie-s have confirmed that the +se of non.cash re-ards are more effective motivators than money.efficient -ay to motivate employees: and the ma>ority of o+r s+rvey respondents agree -ith this statement. Conclusion *f managers -ish to 3e effective: they need to have at least a 3asic +nderstanding of motivation and the different motivational theories that try to e.plain the concept of motivation. Managers need to provide gro-th opport+nity and challenging >o3s in order to 3etter motivate todayBs -or5ers. Employees -ant and need to feel that their contri3+tions ma5e a difference and recognition is one -ay to satisfy those -ants or needs.

Dellerman: #a+l @. Motivation: Beliefs: and ?rganizational Transformation.Kor5 "//0. B+t5+s.% Ee.: 6ohn @iley Q #ons: *nc. 7?ne more time% Ho.tra Effort from Everyone. '.: and Raymond T.Dreen: Thad B.. . )+tton . 0.Kor5: EK. Motivation in the Real @orld% The Art of Detting E. Boston: Massach+setts.*ncl+ding Ko+rself.: 6ohn @iley Q #ons: *nc.Kor5 "//0. 7?ne more time% Ho. $. Ee. )+tton . 0!! "!.tra Effort from Everyone.: !0A!0A0!!0 "/ .do yo+ motivate employeesL8 Harvard B+siness Revie. /!!"!.#chermerhorn: H+nt: ?s3orn.8The Economist:8 1ol.% Ee. Boston: Massach+setts.Dellerman: #a+l @.Eo. Motivation in the Real @orld% The Art of Detting E.Maddoc5: Richard C. ?rganizational Behavior .Kor5: EK.Eo. @estport "///.Herz3erg: Jrederic5. @estport "//.0(. )+tton . 0!! /. J+lton.tra Effort from Everyone.th Ed.*ncl+ding Ko+rself.th Ed.*ncl+ding Ko+rself. (. /!!"!. References ".: and Richard L. Motivation in the Real @orld% The Art of Detting E.#chermerhorn: H+nt: ?s3orn. P+or+m Boo5s .Kor5 "//0.do yo+ motivate employeesL8 Harvard B+siness Revie.. P+or+m Boo5s . 2. Ee. . $0 *ss+e . ?rganizational Behavior .Dellerman: #a+l @. Motivation: Emotions: and Leadership% The #ilent #ide of Management. Ee.Herz3erg: Jrederic5.VII.

*ncl+ding Ko+rself. Ee.orcpa." *ss+e ' 0! .Celly: Thomas D.tra Effort from Everyone. .@iscom3e: 6anet. Motivation in the Real @orld% The Art of Detting E. Ee. 7@or5Jorce8: April 0!!0 1ol. "'.8 http%AA---.@iscom3e: 6anet.*ncl+ding Ko+rself.Kor5 "//0. 7@or5Jorce8: April 0!!0 1ol. Motivation in the Real @orld% The Art of Detting E. 7Recognition and Re-ardR*t Ta5es More Than 6+st a Paychec5.tra Effort from Everyone."".Kor5 "//0.htm References $continued% "0.Dellerman: #a+l @." *ss+e ' " . )+tton . "(.Dellerman: #a+l @. )+tton . .orgApressNroomAhotNne-sAemplyeere-ards.

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