It is quite true that man lives by bread

alone-when there is no bread. But what

happens to man’s desires when there is
plenty of bread and when his belly is
chronically filled?
Abraham Maslow (1954)
• Motivation is the cornerstone for managing employee performance
• Managers must be able to motivate their subordinates all the time
• A person can understand what goals are and why are they important,
but must be motivated to achieve them
• Hours spent on employees’ annual appraisal would be wasted if they
are not motivated to improve
Does Money Really Affect
Motivation?
• How much should people earn?
• The link between compensation, motivation and performance is
complex
• Does money make our job more enjoyable?
• The correlation coefficient (r) between salary and job satisfaction
(n=15,000) is 0.14.
• People’s satisfaction with their salary is mostly independent of their
actual salary (r=0.22)
• No significant difference in employee engagement by employee pay
level (n=1.4 million employees from 192 organisations across 49
industries and 34 nations).
• If we want an engaged workforce, money is clearly not the answer.
Does money demotivate?

• There is a natural tension between extrinsic and intrinsic motives.

• The financial rewards can ultimately depress or “crowd out” intrinsic goals
(enjoyment, curiosity, learning or personal challenge)
• Employees who are intrinsically motivated are three times more engaged than
employees who are extrinsically motivated (such as by money).
• You are more likely to like your job if your focus is on work itself, and less likely to
enjoy it if you are focused on money.
• Intrinsic motivation is a stronger predictor of job performance than extrinsic
motivation.
• The more people focus on their salaries, the less they will focus on satisfying their
intellectual curiosity, learning new skills or having fun, and these are very things
that make people perform best.
• Management at the Polo Ralph Lauren distribution centre in North Carolina
decided to let employees determine for themselves when to take their
breaks and lunch hours. Productivity increased by 20%
• Management of Dana Corporation, an automotive parts maker allowed
employees to spend $500 per project without authorization to improve
efficiencies. More than 80% of the improvements were made without the
plant managers knowledge.
• Bar-Nunn Transportation of Iowa provided employees with two monthly
publications: a newsletter and a cassette tape with industry and company
news, music, information on company benefits and personalized messages
such as birthday greetings. Shortly after starting this program, employee
turnover decreased by 35%
• The manager of a Holiday Inn with a low (67%) occupancy rate began to
communicate the rate to the hotel’s employees everyday. Within 18 months,
the rate had gone up to 85%
• McCormick and Co. opened its plants one Saturdays each year for Charity Day.
Employees voluntarily worked their shifts for no pay and McCormick donated
twice the employees daily wage to the charity of his or her choice. During one
year the company raised over $0.7 million for charities
• “Doesn’t really care how and when employees get their work done, but if
they don’t meet their goals, and deadlines, they have got some explanation to
do . On the other hand..if they get their work done by Thursday, they can take
Friday off and go to the beach”The CEO of Medical Health Outsourcing
(87/500)
• R&D employees of 3M were allowed to use 15% of their time to
pursue any individual project they want. The same was 10% for R&D
employees of HP
Not just carrot versus stick
• Share context and provide relevance
• Employees are motivated when their work has relevance.
• Start by sharing the context about the work you are asking them to
do.
• What are we doing as an organisation and as a team
• Why are we doing this
• Who benefit from our work and how
• What does success look like for our team and each employee
• What role each employee play in delivering on that promise?
• Anticipate roadblocks to enable progress
• Employees are motivated when they can make progress without
unnecessary interruptions and undue burdens.
• Be proactive in identifying and addressing roadblocks and challenges
• What might make an employee’s work difficult or cumbersome?
• What roadblocks might surface?
• What can you do to ease the burden?
• Recognise contribution and show appreciation
• Employees are motivated when they feel appreciated and recognized for
their contributions
• Employees feel appreciated and valued when leaders recognise and
acknowledge their contributions.
• What milestones have been achieved?
• What unexpected or exceptional results have been realised?
• Who has gone beyond the call of duty to help a colleague or meet
deadline?
• Who has provided great service or support to customer in crisis?
• Assess your own motivation
• If leaders are not engaged and enthusiastic about their organisation,
its unlikely that you will be a great motivator for others.
• Employees feel motivated when their leaders are motivated.
Practical tips for motivating
• Demonstrate trust
• Make jobs more complete
• Introduce challenges
• Encourage some people to become experts
• Drive out fear
• Preserve your subordinates’ dignity
• Sack the slackers
• Empower, don’t micromanage
• Hire self-motivated people
• Be a good boss
Maslow’s hierarchy of need
Criticisms of Need Hierarchy theory
• Lack of empirical evidence
• Cultural bias
• Over-simplification
• Subjectivity
• Static nature
• Neglect of emotional and social factors
Herzberg's Two-Factor Theory
• Also known as the Motivation-Hygiene Theory.
• Distinguishes between two types of factors that influence employee
satisfaction and motivation
• Hygiene Factors: These are extrinsic to the job and include elements like
salary, company policies, working conditions, and job security.
• Their presence does not motivate, but their absence can lead to
dissatisfaction.
• Motivators: These are intrinsic to the job and include factors like
achievement, recognition, the nature of the work itself, responsibility, and
opportunities for advancement.
• These factors can enhance job satisfaction and motivation.
Criticisms of Herzberg’s theory
• Methodological Issues
• Cultural Bias
• Simplification of Factors
• Neglect of Individual Differences
• Static Nature
Vroom's Expectancy Theory
• Proposed by Victor Vroom in 1964.
• It explains how individuals make decisions based on their
expectations of the outcomes of their actions.
• The theory emphasizes the role of individual perceptions in
motivation and outlines three key components: Expectancy,
Instrumentality, and Valence.
Expectancy

• The belief that effort will lead to the desired performance level.
• In other words, if an individual believes that their effort will result in
successful performance, their motivation to exert that effort
increases.
• Factors Influencing Expectancy: Previous experiences, self-efficacy
(confidence in one’s abilities), and the availability of resources.
Instrumentality

• This is the belief that successful performance will lead to specific

outcomes or rewards.
• If an individual believes that achieving a certain performance level will
result in rewards (such as promotions, bonuses, or recognition), their
motivation is enhanced.
• Factors Influencing Instrumentality: Trust in the reward system,
clarity of reward structures, and past experiences with rewards.
Valence
• Valence refers to the value an individual places on the rewards or
outcomes of their performance.
• If the rewards are perceived as desirable or valuable, motivation
increases.
• Factors Influencing Valence: Individual needs, values, and goals—
different people may value the same reward differently.
Criticisms of Vroom’s theory
• Overly rational
• Complexity of human behaviour
• Cultural differences