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USING REWARDS TO

MOTIVATE EMPLOYEE
GROUP 2
Part I: Introduction to motivation

Action may not always bring happiness, but there is no


happiness without action.
William James

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Part I: Introduction to motivation
1. Definition of motivation

The processes that account for an individual’s intensity, direction, and


persistence of effort toward attaining a goal.

There are two types of motivation: Extrinsic motivation and


Intrinsic motivation

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Extrinsic Motivation

Self-Determination Theory (SDT) explains how external events like rewards or praise sometimes produce
positive effects on motivation, but at other times can be quite detrimental (Ryan & Deci, 2008)
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Extrinsic Motivation

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Extrinsic Motivation

There is a tradeoff between satisfying and undermining the need


for competence when we offer rewards (Reeve, 2018)

Praise is preferable to monetary rewards

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INTRINSIC MOTIVATION

1 Pure enjoyment or satisfaction.

Freely chosen (Deci, & Ryan, 1985)


2 and can be driven by curiosity
(Loewenstein, 1994).
3 Self-contained.

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WHY IS MOTIVATION
IMPORTANT?
I have learned from my mistakes, and I am sure I can repeat them exactly.
Peter Cook

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Part I: Benefit of motivation
1. To Individuals

Change behavior Change behavior

Setting goals Develop competencies

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Part II: Benefit of motivation
1. To our Relationships

Motivate employees

Counsel clients Core skills that


help us succeed
Raise children in life

Engage students

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The driving forces for development

As we are constantly responding to changes in our environment, we need


motivation to take corrective action in the face of fluctuating circumstances.

“Life is like riding a bicycle. To keep your balance, you must keep moving.”
Albert Einstein

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HEATH BENEFIT FROM HAVING A GOOD MOTIVATION

When our motivation is depleted, our functioning and wellbeing suffer.

Some studies show that when we feel helpless in exerting control for
example, we tend to give up quickly when challenged (Peterson, Maier, &
Seligman, 1993)
Others have proven than when we find ourselves coerced, we lose
access to our inner motivational resources (Deci, 1995)

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REWARDS

Thông
An incentive plan to reinforce the desirable
behaviour of workers or employers and in
return for their service to the organization.
THERE ARE
MANY
DEFINITIONS The achievement and benefit received by
employees for their job performance in an
organization.

All forms of financial return, tangible services


and benefits an employee receives as part of
an employment relationship

Thông
IN A
NUTSHELL
All forms of financial return, tangible services
and benefits an employee receives as part of
an employment relationship

Thông
REWARD Reward power is simply the power of a manager to give some
type of reward to an employee as a means to influence the
POWER employee to act.

Thông
Appreciate the
IMPORTANCE performance
OF REWARDS

Higher productivity

Failure
Thông
TYPES OF REWARD

Extrinsic

Money Time-off Advancement

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TYPES OF REWARD

Intrinsic

Being trusted Personal-growth Fulfilment

Thông
TYPES OF REWARD

Extrinsic Intrinsic
Going to the gym to lose weight Going to the gym to relax and find
balance
Studying to prepare for an exam Reading to learn about a new
subject or hobby
Being asked to complete overtime Taking extra responsibility at work
at work because a deadline is for the satisfaction of knowing you
approaching and a project is late are trusted to take on extra jobs

Thông
WHEN TO USE REWARDS

Extrinsic Intrinsic
Short-term Long-term, sustainable

Lower-level staffs Higher-level staffs

Work that are normally Individuals who enjoys their


unpleasant to do work

Thông
BENEFITS

Thông
1.
SAVE
MONEY

FORMS OF FINANCIAL
RETURN
Đình Công
THE ASSOCIATION
SALARY AND JOB
SATISFACTION

very weak

Đình Công
"Money doesn’t make
you happy. I now have
$50 million but I was just
as happy when I had $48
million."
2. MINIMUM
EFFICIENT
ADMINISTRATION EXPENDITURE OF
ENERGY, TIME,
MONEY,
PERSONNEL,
MATERIEL, ETC.

Đình Công
Đình Công

100 BOXES
NEED 100 PEOPLE ?

1 PERSON
1 BOX
3. Make employees
work more
productively. Motivated and happy
employees are productive

Xuân Ngân
The more positive
the reward the
more likely the
employee will be
highly motivated.

Xuân Ngân
Example: Google’s employees
are allowed greater discretion
on their hours of work

Googlers usually surpass


management expectations for
delivering brilliant work.

Xuân Ngân
4. Raise willingness to take
on challenging tasks

Using reward as a goal,


employees will be strongly
motivated and will try their
best to archive it
Xuân Ngân
"With a research sample comprising of thirty-six (36)
undergraduates, the authors experimented to see how
quick their respondents reacted to specific tasks when
given a range of monetary rewards ranging from low to
high rewards. The studies found out that giving relatively
high monetary rewards, led to ‘overall faster responses’
to the specific tasks given to respondents." - research of
Cynthia Eshun and Frank K.Duah from Blekinge Institute
Of Technology (2011)

The lower the rewards were given , the less


efficient the tasks were completed

Xuân Ngân
WHAT HAPPENS WHEN
REWARDS GO WRONG?

Anh Duy
1. temporary
disengaged
compliance
MONETARY
REWARDS
is seen to have certain
drawbacks which can
undermine the purpose
for its use increase pay costly
inequality

create intrinsic
frustration detriment

Anh Duy
2. INEQUITABLE
EMPLOYEE
REWARDS
UPPER-LEVEL
EMPLOYEES/LEADER

$1 Billion EMPLOYEES/WORKERS

$10
foster
elitism

divided
workforce

commitment
distractor
Anh Duy
PERFORMANCE-BASED
INCENTIVES OFTEN
ENCOURAGE COMPETITION
3. IN THE WORKPLACE, WHICH
EMPLOYEE MAY LEAD TO CONFLICTS.
INCENTIVES
If certain employees get all the praise, their
Inappropriate peers may think that you're playing favorites.
Structured incentives For this reason, it's wiser to offer group
result in perceived as
manipulative or unfair incentives rather than individual rewards, but
on the negative side, group rewards can
make it difficult for your employees to see
how far they got on their own.

Anh Duy
Foster

short-term

thinking

Degrade
creativity Employee e che ating,
ura g a v ior
o eh
rewards Enc al b
n ethic
u &
rtcuts
sho

Become
addictive

Anh Duy
EMPLOYEE REWARDS'
DIFFICULTIES IN
IMPLEMENTATION
Le Ngoc Thanh Ha
1. MISSING AN OPPORTUNITY TO BETTER UNDERSTAND WORKER PREFERENCES

Employees expect their jobs to bring


a significant sense of purpose to their
lives.

Employers need to help meet this


need or be prepared to lose talent to
company that will.

Thanh Ha
1. MISSING AN OPPORTUNITY TO BETTER UNDERSTAND WORKER PREFERENCES

1 Employees are looking for personalized rewards that meet


their needs.
2 Rising social pressures on organizations.
==> Rewards have to be adjusted to drive the desired outcomes.
Thanh Ha
2. MOST REWARDS PROGRAMS ARE NOT SEEN AS “FAIR.”

EMPLOYEES WHO DO NOT


WORKERS AT THE 10
FELT THEY WERE “FAIRLY UNDERSTAND THE PAY
BIGGEST TECHNOLOGY
PAID.” PROCESS LIKELY TO LEAVE
COMPANIES
THE ORGANIZATION

4000 + 45% 60%

The process for deciding pay is considered political or arbitrary.


Increase expectations for transparency and flexibility.
Greater access to information: such as Glassdoor, Fishbowl,
LinkedIn,... Source: Deloitte, 2019

Thanh Ha
3. THE IMPACT OF COVID - 19

Thanh Ha Source: Deloitte, 2021


RECOMMENDATIONS

Minh Tâm
An employee recognition program is a plan to
encourage specific behaviors by formally
1.
appreciating specific employee contributions.
EMPLOYEE
RECOGNITION
PROGRAM

Minh Tâm
2.
UNDERSTAND
THE
EMPLOYEES'
NEEDS

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3.
INVOLVEMENT
OF THE
EMPLOYEES

Minh Tâm
4.
OTHERS
CHARACTERISTICS
OF REWARDS

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Ensure employees' financial wellbeing
5.
MITIGATING
COVID-19'S
EFFECT Deliver a clear and transparent
message

Create new and hollistic reward systems


that fit the new normal

Opportunity for HR to reassess the


reward system

Minh Tâm
THANK YOU!

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