Unit -4

Motivating Employees-
Motivational Strategies, Incentive
Schemes, Empowerment- Job
Satisfaction, Morale, Personnel
Turnover

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Motivation
According to Fred Luthans –
Motivation is a process which
begins with a physiological or
psychological need or deficiency
which triggers behavior or a drive
that is aimed at a goal or an
incentive.

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Employee Compensation
 Laying down a fair & equitable compensation
system is common problem area to all the
organization.
 The objective of employee compensation is
simple, the process is complex.
 In comparison to other aspects of HRM
( training, career management.. etc.)
compensation is considered important and
crucial for all employees.
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Motivational Strategies for
Employees
 Monetary Incentives
 Non Monetary Incentives
Under this there are two types of
programmes-
 Employee Recognition Programmes
 Employee Involvement Programmes

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Monetary Incentives
 Variable Pay( Piece Rate, Bonus, Gain
Sharing)
 Flexible Benefits ( Medical, Petrol, Uniform
Allowances etc.)
 Skill Base Pay

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 Motivational Strategies for
Employees
Monetary Incentives-
Variable Pay
These are awards linked to some applicable
criterion rather than seniority or job title.
 Piece Rate (remuneration@ unit produce)
 Bonus (Bonus on the basis of good company
performances)
 Gain Sharing (increase in productivity is a
measure to distribute compensation)
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 Motivational Strategies for
Employees
Monetary Incentives-
Flexible Benefits
It is the need of current business environment to
customize motivation plans. Under the flexible
benefit plan, an employer allow the employees to
pick from a basket of benefit options. (eg. Petrol
allowance , Medical benefits etc.)

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 Motivational Strategies for
Employees
Monetary Incentives-
Skill Based Pay
This involves using an employee’s skill set to
determine his /her valued contribution to the
company, and then they are paid accordingly.
eg.- if a mechanic acquires the skills of an
electrician, he will be rewarded extra for his
additional skills used by the firm.
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Non Monetary Incentives
There are two types of programmes-
 Employee Recognition Programmes

 Employee Involvement Programmes

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Non Monetary Motivation
Programmes
Employee Recognition Programmes
 Congratulate an employee by writing a mail /
letter / complimenting him in a formal meeting
 Install an award / certificate

 Group good performance recognition –

T- shirts, Calendar etc.

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 Employee Involvement
Programmes

Employee Participation:
An employee participative management programme
makes use of joint decision making to ensure
employee involvement. In this subordinates ( or
representative participation ) along with their
superiors share an important degree of decision
making power.
Limitation-
Only a symbolic form of representation

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Quality Circles
Work group of nearly 8-10 people, shared
area of work responsibility, mainly to discuss
quality problem and to boost productivity .

Eg. Tata International Ltd.(Dewas)

Hindustan Motors Ltd.( Pithampur)
TVS Electronics (Chennai)
Limitations-
The concept of quality circles will work only if
top management is committed.
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Empowerment
Empowerment means giving subordinates
enough autonomy for crucial decision making
and the freedom to redefine work priorities.
Employers invite employees to suggest ways
and means of improving their businesses and
help in the organizational growth process.
Empowerment = Accountability with Power
Limitations-
Care is to be exercised to ensure that
employees do not super cede each other’s
pre –defined work limits.
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Job Redesign
Job Design is a process of deciding on the
content of a job in terms of technique ,systems
and procedures, and on the relationships
between the job –holder and his superiors.

Job Redesign is a technique for enriching the job

characteristics with a improving the QWL .

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Job Design
Job design involves
 Deciding what task will be performed by the
workforce
 Deciding how these tasks will grouped together
and assigned to individuals
 Deciding how individuals will relate to each other

(co-ordination)
 Deciding how they will be rewarded.

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Job Rotation
Job Rotation involves periodic assignment of an
employee to completely different sets of job
activities.
Basically to make the job more challenging,
creating greater job interest for the employees
and reducing boredom thru diversifying the
employee activities, more flexibility in scheduling
work ,adapting to changes.
Limitation-
Training cost is increased
Job rotation creates disruptions. 17
Job Enlargement
The assumptions behind the concept of Job
Rotation are –
Output will increase if- the workers abilities are
fully utilized, the worker has more control over
work and the workers interest in the work and
the workplace is simulated.
Jobs can be enlarged both horizontal dimension
(additional responsibilities) and vertical
dimension (additional responsibilities and self
control)
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Job Enlargement
Job Enlargement broadly means
adding more and different tasks to a
specialized job. It aims to making job
more interesting , reducing monotony
and boredom.

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Job Enrichment
Job Enrichment is defined as “ The
design of a job to provide a worker
with greater responsibility ,closure (a
complete job) and more timely
feedback about the performance.

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 Five core dimensions of Job Enrichment-
 Task Variety- Optimum variety of tasks within
the job, allowing employees to perform
different operations that require different skills.
 Task Identity- Task identity allows employees
to perform a complete piece of work.
 Task significance-Imparting that workers
believe that they are doing something
important in their organization.
 Autonomy-Control over their own work.
Workers accept responsibility , if they have
some freedom in setting of standard of quality
and quantity of production.
 Feedback

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The End

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