Critical Understanding and Application of Motivation in Organization

It is very important to apply the various motivational concepts to the organizations so that
organizational effectiveness can be achieved. Various motivation techniques and programs have
gained varying degrees of acceptance in organizations. Some of applications of motivation and their
linking with motivational theories as depicted by Robbins have been discussed below.

 Management by Objectives
 Employee Recognition Programs
 Employee Involvement Programs
 Variable Pay Programs
 Skill-Based Pay Plans
 Special Issues in Motivation

MANAGEMENT BY OBJECTIVES
Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The
Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this
organization management method, when he said: "It's just another tool. It is not the great cure for
management inefficiency...
Management by Objectives works if you know the objectives, 90% of the time you don't."
Management by objectives (MBO) is a systematic and organized approach that allows management to
focus on achievable goals and to attain the best possible results from available resources. It aims to
increase organizational performance by aligning goals and subordinate objectives throughout the
organization. Ideally, employees get strong input to identify their objectives, time lines for
completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. The
principle behind Management by Objectives (MBO) is to make sure that everybody within the
organization has a clear understanding of the aims, or objectives, of that organization, as well as
awareness of their own roles and responsibilities in achieving those aims.
MBO Principles
Principles of MBO include the following:

 Cascading of organizational goals and objectives

 Specific objectives for each member
 Participative decision making
 Explicit time period
 Performance evaluation and feedback

Linking MBO and Goal-Setting Theory

• Goal Setting Theory exhibits that:

 hard goals result in a higher level of individual performance,

 specific hard goals result in higher levels of performance than do no goals or generalized goals
 feedback on one’s performance leads to higher performance
 MBO directly believes in
o specific goals and feedback
o MBO would be most effective when the goals are difficult enough to require the person to do
some stretching.
o

EMPLOYEE RECOGNITION PROGRAMS

Employee Recognition Programs are the programs that use multiple sources and recognize both
individual and group accomplishments. A recognition program does not have to be expensive. The
structure of a recognition program is limited only by your imagination. An effective program has the
following components:
 Fairness
 High visibility and consistency

Linking Employee Recognition Programs and Reinforcement Theory

• In accordance with the reinforcement theory, rewarding a behavior with recognition immediately
following that behavior is likely to encourage its repetition.
EMPLOYEE INVOLVEMENT PROGRAMS
Employee involvement is creating an environment in which people have an impact on decisions and
actions that affect their jobs. Employee involvement is not the goal nor is it a tool, as practiced in
many organizations. Rather, employee involvement is a management and leadership philosophy
about how people are most enabled to contribute. It is a participative process that uses the entire
capacity of employees and is designed to encourage increased commitment to the organization’s
success.
Ways of Employee Involvement

 Participative Management -A process where subordinates share a significant degree of decision-

making power with their immediate superiors.
 Representative Participation -Workers participate in organizational decision making through a
small group of representative employees.
 Work Councils -Groups of elected or nominated employees who must be consulted when
management makes decisions involving personnel.
 Board Representatives -A form of representative participation; employees sit on a company’s
board of directors and represent the interests of the firm’s employees.
 Quality Circles -A work group of employees, who meet regularly to discuss their quality
problems, investigate causes, recommend solutions, and take corrective actions.
 Employee Stock Ownership Plans -Company established benefit plans in which employees
acquire stock as part of their benefits.

Linking Skill Based Pay Plans and Motivational Theories

There is a link between equity theory and skill based pay. Employees whose lower order needs are
substantially satisfied, the opportunity to experience growth can be a motivator. Paying people to
expand their skill levels is also consistent with research on the achievement need. High achievers
have a compelling drive to do things better or more efficiently.
SPECIAL ISSUES IN MOTIVATION
MOTIVATING PROFESSIONALS
• How are “Professionals” different?

 Receive a great deal of “intrinsic” satisfaction from their work.

 Strong and long-term commitment to their field of expertise
 Well paid/ Chief reward is work itself.
 Value support
 More focused on work as central life interest.
 How do we motivate professionals?
o Provide challenging projects
o Give them autonomy in follow interests and structure work.
o Reward with educational opportunities
o Recognize their contributions.

MOTIVATING CONTINGENT WORKERS

• No simple solutions to motivating contingent workers.

 Contingent or temporary workers have little or no job security/stability, therefore they don’t
identify with the organization or display the commitment of permanent employees.
 Contingent or temporary workers are typically provided with little or no health care, pensions, or
similar benefits.
 Greatest motivating factor is the opportunity to gain permanent employment.
 Motivation is also increased if the employee sees that the job he or she is doing for the firm can
develop salable skills.

MOTIVATING THE DIVERSIFIED WORK FORCE

 Not all employees are motivated by money.

 Flexibility is the key to maximizing your employees’ motivation by understanding and
responding to the diversity of needs.
o specially designed work schedules
o flexible compensation plans
o flexible benefits plans
o physical work settings
o child care
o elderly care
o flexible work hours
o job sharing
o flexible leave
o work teams

MOTIVATING THE LOW-SKILLED SERVICE WORKER

• One of the most challenging problems in industry today.

 Many “plans” have been tried, almost all unsuccessfully

 flexible work schedules
 broader responsibility for inventory, scheduling, and hiring
 creation of a “family” atmosphere among employees
 Unless pay and benefits rise significantly, continued high turnover can be expected.

MOTIVATING PEOPLE DOING HIGHLY REPETITIVE TASKS

• Motivating individuals in these jobs can be made through careful selection:

 People vary in their tolerance for ambiguity.

 Many individuals prefer jobs that have a minimal amount of discretion and variety.
 High pay and careful selection can reduce:
o Recruitment problems and high turnover, however, this
o Doesn’t necessarily lead to highly motivated workers.