Motivation

Herzberg’s 2 factor or motivation-hygiene

theory

Relates intrinsic factors to job satisfaction and extrinsic to dissatisfaction

Satisfaction parameters: Dissatisfaction parameters:

Achievement/ recognition/ Policy / supervision/
work / responsibility / relationship with supervisor/
advancement / growth work conditions/ salary/
relationship with peers

Opposite of satisfaction is ………………………..

Motivation versus hygiene
 Distributive justice
Perceived fairness of outcome

Organizational justice

Overall perception of what is fair in

the workplace
Procedural justice
Perceived fairness of process used to determine the
outcome

Interactional justice
Perceived degree to which one is treated with dignity and
respect

Model of Organizational justice

Alderfer’s ERG theory

 Existence needs – basic needs

 Relatedness needs – satisfactory relation with others
 Growth needs – self development
Goal setting theory of motivation

 Setting objectives – clear, attainable, verifiable

 Planning actions
 Implementation
 Control and appraisal
Drive and expectancy theory
Leadership and motivation … the Ricardo
case
Rewards
Nobody refuses it, nobody returns it, and people who have
more than they could ever use do dreadful things to get more

What are we talking about?

Reward considerations

 Intrinsic – accomplishment or self-actualization

 Extrinsic – money, benefits, perks, status symbol, money (vouchers)
 Participation – feeling included and recognized
 Quality of working life
What to pay

 Balancing internal equity (worth of the job to the organization) and external
equity (competitiveness of the organization with respect to others)
 Although paying higher yields better talent, it may make the product more
expensive
 Trade-offs need to be kept in mind
Fixed + variable + deductions +
entitlements = salary
How to pay

 Variable pay plan: bases a portion of the employee’s pay on some individual or
organizational measure of performance
 Piece-rate pay plan: paid a fixed sum for each unit of production completed
 Base pay: hourly, weekly, monthly
 Merit-based pay: based on performance appraisal rating
 Bonus: based on recent than historical performance
 Individual and group incentive: depends on individual or group performance, pay for
performance
 Profit sharing plan: compensation based on some established formula designed around a
company’s profitability
 Employee stock ownership plan: company established benefit plan in which employees
acquire stock often at below market price as part of their benefits
Creative recognition

 Feedback chit accumulations and dinner

 Wellness programs: free gym , health care services
 Family benefits
 Life-cycle related: child care; elder care; employee assistance program (EAP-
drug abuse etc.)
 Concierge service: movie tickets, home repairs etc.
 Tuition assistance for higher education
 Medicines at a discount for low-wage workers
 Surprise offers
 Cafeteria-style benefits: flexi-time; choice among listed benefits
Traditional benefits

 Government mandated benefits: EPF / social security; pregnancy discrimination;

mandated insurances
 Health and life insurances
 Pension benefits
 Time-offs: Sabbaticals, ELs, LTAs