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Learning Outcomes –
Motivation in
Organizations
Relate motivational programs for organizations to the relevant motivational theory
Describe MBO
Explain the significance of recognition programs
Sight the merits of quality circles
Discuss the various variable pay programs
Differentiate between profit sharing with gain sharing
Motivation in
Organizations
If you want to motivate
people, first think about
their needs.
Knowing this, how would
one go about finding out
what your people’s needs
are? (Hint: Go back to chapter 5.)
Management by
Objectives
MBO is a motivational program based
on goal setting. The goal(s) should:
be mutually agreed upon.
be difficult, but achievable (realistic).
have a defined time frame
be measurable (objective and
budgeted).
provide means for feedback.
Linking MBO and Goal-Setting
Theory
Goal-setting theory demonstrates that: hard goals result in a higher level of individual performance. specific hard goals result in a higher level of performance than do no goals or generalized goals. feedback, positive or negative, on one’s performance leads to higher productivity.
Motivation in
Organizations
Recognition programs –
recognition is one of the
most powerful workplace
motivators.
Recognition Programs
Employee recognition programs are
consistent with the reinforcement
theory, rewarding a behavior with
recognition immediately following
that behavior is likely to encourage
its repetition. “People tend to do
that which they get rewarded for
doing.”
Motivation in
Organizations
Quality circles or employee
involvement programs are
forms of participative
management and are good
ways to get people involved.
Motivation in
Organizations
Variable pay programs:
piece work plans.
commission sales.
gain-sharing programs.
profit-sharing programs.
Key Point: Variable pay programs
convert fixed costs into variable
costs.
Motivating Contingent
Workers
There is no simple solution to motivating
contingent workers.
The greatest motivating factor is the
opportunity to gain permanent employment.
Motivation is also increased if the employee
sees that the job he or she is doing for the
organization can develop salable skills.
Some are motivated by the freedom and
work variety that temporary employment
provides.
Motivating the
Professional
The evidence shows professionals being
motivated by the work itself. The
challenge and problem-solving of the job
provide the incentive to perform at a
higher level.
Professionals like the autonomy to follow
their interests and to structure their own
work.
Reward with educational opportunities.
Recognize their contributions.
Summary
Recognition programs provide strong
motivational reinforcement in the
workplace.
Quality circles are a form of participative
management based on the theory that
workers are more motivated if they can
participate in the decisions of the
organization.
Variable pay programs such as piece work,
gain-sharing and profit-sharing offer
incentives as a means to motivate workers.
