Designing a Motivating Work

Environment
Chapter 6
 Learning Objectives
• Understand how to
increase the motivating
potential of a job
• Understand why goals
should be SMART
• Set SMART goals
• Describe individual,
Photo by Debby Hudson on Unsplash
team, and organization-
based incentives that can
be used to motivate the
workforce
Motivating employees
Motivating employees
All these wonderful comforts may attract me to
the company.

But will they make me stay at the company?

Good salary, perks , benefits but ……….
 “What are your
feelings about
money?”
Use link that I am now posting in the chat box
Unintended Consequences of Rewards
 Transit bus drivers in Santiago, Chile,
were paid by the number of
passengers.
• Motivated attendance, shorter breaks,
efficient driving, passengers pay fares
 Unintended results
• Reckless driving to next passenger stop
• Cut off competing buses
• Passenger injuries/deaths because doors left
open and busses departed before everyone
was on board
• Drove past stops where only one person was
waiting.
• Caused many traffic accidents.
 We will study three ways to motivate employees

Motivate Employees Through

1
Job Design
Motivating Employee Through
2
Goal Setting

3 Motivating Employees Through

Performance Incentives
 Motivate Employees Through
1
Job Design

Motivating Employee Through

2
Goal Setting

Motivating
3 Employees Through Performance
Incentives
 Motivating Employee Through
Job Design
• Studies say that job design is
the most important
influencer of employee
motivation, job satisfaction,
organizational commitment,
absenteeism and turnover
• To motivate employees jobs
should be designed to
Photo by skeeze on pixabay include:
– Job specialization
– Job rotation
– Job enlargement
– Job enrichment
Job Specialization

Job Rotation

A chef who specializes

in French cooking can
be given an
opportunity to learn
Chinese cooking
 Job Enlargement
More tasks but same level of responsibility

Video journalist
• Operates camera
• Operates sound
• Reports story

Job enlargement is an increase in job tasks and responsibilities to make

a position more challenging.

It is a horizontal expansion, which means that the tasks added are at the
same level as those in the current position.

After performing the same position for a while, employees can get bored.

Typically used by small companies that may not be able to afford large
staff sizes. It may require teaching employees multiple tasks.
 Job Enrichment

Job enrichment is that motivational tool which

allows more decision-making power and work
related authority to the employees.
 Secretary to 2 executives + Report preparation
Secretary +Photocopying Secretary +Photocopying+ Receptionist +Photocopying
 Motivating Employee Through
Job Design
• Job Characteristics Model

Two employees may be given the same job.

But the psychological state of each may differ.
What motivates each employee most is “job meaningfulness”.
 Research shows that there are five job components that increase the motivating
potential of a job

A product manager should understand

finance, IT, analytics, people management

An instructor who is told that only a predetermined text book can be used versus giving the
instructor the freedom to create lessons.

A supervisor telling an employee how well or how better

a job can be done can enhance job performance and motivation

Two workers are given a task. One is only given a part of the task and the
other given the complete task. The second person is more motivated. The greater the “ identity “ of the job , the higher the motivation.
 Improving Task Significance Through
Voice of the Customer
Rolls Royce Engine Services improved task
significance through their “Voice of the
Customer” program, in which customers talk
to production staff about how the quality of
their engine maintenance work is important
to customers.
These talks give employees with repetitive
jobs the sense that they are not just working
on a part but are key to keeping people safe.
Task significance is said to be the “degree to which the job has a
substantial impact on the lives of other people, whether those people
are in the immediate organization or in the world at large”. The task –
and the job – is significant if it can affect other people’s lives. And it
should not just be the people within the organization, but even those
outside.
 Motivating Employee Through
Job Design
• Empowerment
– Defined as the removal of conditions
that make a person powerless by
giving employees the ability to make
decisions and perform their jobs
effectively by removing certain
barriers.
– Employees who feel empowered
believe that their work is meaningful
– Empowerment relates to outcomes
such as employee innovativeness,
managerial effectiveness, employee
Benefits

commitment to the organization,

customer satisfaction, job
performance, and behaviours that
benefit the company and other
employees
 Empowerment

Structural Empowerment Psychological Empowerment

provide employees with: provide employees with:

 access to information,(policies and  feelings of competence,

procedures)  autonomy,( freedom to do good)
 resources,  job meaningfulness, and
 support, and  an ability to impact the
 the opportunity to learn and organization.
develop

Both these are vital pillars for an organization to excel

Remember in chapter 4: Employment Contract versus Psychological contract
Job Enrichment leads to Empowerment
 Steve Jobs talks about managing people

https://www.youtube.com/watch?v=f60dheI4ARg
 We have seen different methods by which we can

Motivate Employees Through

Job Design
Job specialization, rotation, enlargement, enrichment, 5 job characteristics, Empowerment

We will now learn how to use Goal setting

Motivating Employee Through

Goal Setting
 We will study three ways to motivate employees

Motivate Employees Through

1
Job Design

Motivating Employee Through

2
Goal Setting

Motivating
3 Employees Through Performance
Incentives
 Motivating Employee
Through
Goal Setting
• Goal-Setting Theory
– Goal setting is one of the most
influential and practical theories
of motivation
– Supported in over 1,000 studies
with employees ranging from
blue-collar workers to research-
and-development employees,
and there is strong support that
setting goals is related to
performance improvements
– According to one estimate, goal
setting improves performance
at least 10%–25%

Photo by gabrielle_cc on pixabay

 Motivating Employee Through
Goal Setting
• Setting SMART Goals
– Framework for goal setting to
ensure that the correct goals are set
– Goals need to be specific and
measurable to ensure that you
know when you reach them
– Goals need to be aggressive to
ensure the significantly competitive ble
va
and push the employee to increase
Ac hie
their performance
– Goals need to be realistic so that
they are not too difficult or
impossible
– Goals need to be time-bound to
create a sense of urgency
 Is this a Goal ?
I will work hard to improve my test performance
Is it a SMART Goal?

Achievable ( If I did study I would have done well)

I did not study well for my last test.

So I will work hard to improve my performance
From grade B to A in the next test on October 10th.My grades will improve

Measurable
Time bound Result oriented
Specific
 Ensuring Goal Alignment Through
Management by Objectives (MBO)
• It is crucial for individual goals to
support team goals and team
goals to support company goals
• MBO involves the following
process:
– Setting companywide goals
derived from corporate strategy
– Determining team- and
department-level goals
– Collaboratively setting individual-
level goals that are aligned with Photo by rawpixel on pixabay
corporate strategy
– Developing an action plan
– Periodically reviewing
performance and revising goals
 Motivate Employees Through
Job Design

Motivating Employee Through

Goal Setting

Motivating
3 Employees Through Performance
Incentives
Motivating Employees Through Performance
Incentives
• Incentives are reward systems
that tie pay to performance
• Many incentives are used by
firms
– Individual and companywide
performance
• Pay-for-performance or merit pay
• Closely tied to higher
productivity, profits, and
Photo by Rick on flickr customer service
• However, incentives may create a
risk-averse and reduce
organization citizenship behavior
Motivating Employees Through Performance
Incentives

1. Piece rate incentives

2. Individual bonuses
3. Merit Pay
4. Sales Commissions
5. Awards
6. Gain sharing
7. Profit sharing
8. Stock Options
Motivating Employees Through Performance
Incentives
• Piece rate incentives-
employees are paid on the
basis of individual output
they produce
• Suitable when employee
output is easily observable or
quantifiable and when output
Photo by rawpixel.com from Pexels
is directly correlated with
employee effort
• Encourage speed in
completing tasks however
accuracy
How many coffees can you serve might
in one hour ? suffer as a
result
Motivating Employees Through Performance
Incentives
• Individual Bonuses are
one-time rewards that
follow specific
accomplishments of
employees
• May be given inline
with quarter results or
Photo by Marc Schäfer on Unsplash a lump sum at the end
of the year
This is a practice with most organisations – large ones typically like a Bank
Motivating Employees Through Performance
Incentives
• Merit pay involves
giving employees a
permanent pay raise
based on past
performance.
• One potential problem
Photo by Ben White on Unsplash with merit pay is that
employees come to
expect pay increases
Above bonus which is one timer, merit pay can be an a special increase on salary
Motivating Employees Through Performance
Incentives
• Sales commissions
involve rewarding sales
employees with a
percentage of sales
volume or profits
generated
• Sales commissions
Photo by Blake Wisz on Unsplash should be designed
carefully to be consistent
Need to balance volume of sales
with customer management with company objectives
 Motivating Employees Through Performance
Incentives
• Awards: An effective
incentive system on a
small budget used to
motivate employees
through awards,
plaques, or other
symbolic methods of
recognition. The
purpose is to convey
Photo by Manuel Cosentino on Unsplash
sincere appreciation for
Sometimes a small token is the biggest motivator
employee contributions
Motivating Employees Through Performance
Incentives
• Gainsharing (from benefits gained rom an
initiative – cost cutting) is a companywide
program in which employees are
rewarded for performance gains
compared to past performance.

• Profit sharing programs involve sharing a

percentage of company profits with all
employees.
– These programs are companywide
incentives and are not very effective in
tying employee pay to individual effort,
because each employee will have a limited
role in influencing company profitability.

Photo by Roman Synkevych on Unsplash • A stock option gives an employee the

right, but not the obligation, to purchase
company stocks at a predetermined price.
 • Complete Online Modules 5 and Module 6

• Complete Quizziz ( There is one Quiz for Chapter 5

and one Quiz for Chapter 6)

Note:
1. You must make reference to the concepts in the chapter when answering
questions. This will help you earn more marks.
2. One line answers get you poor marks
3.Follow the Rubric
 Homework for the week

Plan Action Due date Due Time Where to find

Tuesday Sections NII

Monday Section NKK and NJJ Wednesday Section NLL

1 Group Assignment Group Saturday, 20th February Sunday, 21st February Monday, 22nd February 11:59pm Use "Assignment Calculator" to plan your team work.
Start early to do well.

2 Weekly Module Individual Saturday, 13th February Sunday, 14th February Monday, 15th February 11:59pm On Blackboard " Applied Weekly Learning"
Chapter 5
Chapter 6
3 Quizziz : Individual Saturday, 13th February Sunday, 14th February Monday, 15th February 11:45pm See my powerpoint end of presentation for your class code
Chapter 5
Chapter 6

Note : This week you have two chapters ( Chapters 5 and 6) for Weekly Modules AND two Quizzes

The Quizzes codes are at the end of the Chapter 6 Powerpoint presentation
 Chapter 5 codes
2 Attempts for every Quizziz
Use this link

Monday
Section NKK Due: Saturday: 11:45pm

Tuesday Due: Sunday: 11:45pm

Section NII

Tuesday Due: Sunday: 11:45pm

Section NJJ

Wednesday Due: Monday: 11:45pm

Section NLL
 Chapter 6 codes
2 Attempts for every Quizziz
Use this link

Monday
Section NKK Due: Saturday: 11:45pm

Tuesday Due: Sunday: 11:45pm

Section NII

Tuesday Due: Sunday: 11:45pm

Section NJJ

Wednesday Due: Monday: 11:45pm

Section NLL
 #1
You now have completed Chapters 1, 2, 3, 4 and 5

Keep working on the assignment

 Group Assignment #1 – Due date

Monday : Sections NKK : Due on Saturday, February 20 th, 2021, 11:59pm

The Group leader uploads

Assignment + his/her own
Tuesday : Sections NII and NJJ : Due on Sunday, February 21 st, 2021, 11:59pm
Peer assessment.

The other two team members

only upload the peer assessment. Wednesday: Sections NLL : Due on Monday, February 22 nd, 2021, 11:59pm

Peer assessment is confidential. It is your assessment of your team member and

of yourself. Do not share your peer assessment with your teammate.
No Peer Assessment = No grades for you
Delayed submission = less 15% of marks for everyday delayed
Please do not send me the assignment or the peer assessment by email
 An inspiring story of an immigrant.
Self motivated, right attitude.

When you love and care for yourself –

you will be surprised at how many doors of opportunity open
 BTS performs : Dynamite

Enjoy !!!

https://www.youtube.com/watch?v=qEaVfcBP9M0