Motivation,

Incentive &
Performance
Motivation – Some components

 Inclination – what I feel I want to do – active/passive,

conscious/sub-conscious
 Direction – what I am trying to do
 Action – what I do do
 Effort – how hard I try
 Persistence – how long I keep trying
 How we construe expectations, needs, drives, efforts and results
(actual & 'rationalised'/felt) - self & others
 The
all"
employment concerns? How to "motivate people to give their

 Effort, performance, retention, loyalty, membership, commitment, trust,

empowerment, participation, work design
 Extrinsic & intrinsic rewards
 Expectancy & equity
 Rhetoric vs. reality of management practice
 Self-awareness & delusion – "Mirror, mirror on the wall".
 Motivation & "normal" behaviour vs. the well-motivated criminal.
Who wants what from motivation?

 The person
 Health & well-being, safety/order, social affiliation/acceptance,
recognition & rewards (extrinsic/intrinsic, stimulus & incentive.
Feelings of self-worth/value, command of destiny, realisation of
personal aspirations/expectations. Equity. Power. Affiliation
 The employer
 Trusted, reliable employees who give their all,
 Ability to construe employee motivation, needs & drives + relate to:
effort, economic efficiency, performance, retention, loyalty &
commitment, membership culture, empowerment, obligation-duty,
participation & contribution, work design, better teams
 Others
 Interpersonal confidence, liking and rapport, mutual confidence and
collaboration, shared values, not to be let down.

 What is the problem?

Idiosyncrasies and patterns

 Idiosyncracies & perceptions of work, personal position and

entitlements
 Individual differences - the unique self - my construction
 Common patterns of cognition, behaviour, attitude
 Group and cultural influences
 Me - myself, you ……
"you scheming, conniving, persistent, grabbing, selfish,
resentful person ….. you …. and ….. you are a capitalist to
boot...... one of 'them' .….. a typical Lilliputian ...... I've read
all about you in Cosmopolitan."
Pay-offs in the Employer-Employee Relationship
(after Mumford 1972)

 Task structure
Work within firm’s policy, procedure & technical constraints. Job
roles, work arrangements & relationships
 Knowledge & skill
Employer wants know-how, competence, experience. Employee
wants to be put to good use & be developed
 Psychological
Management & co-workers want committed, loyal, motivated staff.
Individual wants satisfaction
 Efficiency/rewards
Employer wants performance & output to a quality standard.
Employee wants equitable, felt-fair rewards & opportunity
 Ethical
Values & ambiguities/inconsistencies in right/wrong behaviour
 Evaluate the following propositions:

 Good pay helps to diminish problems of high absenteeism.

 The buzz of high morale & emphasis on teamwork means that
there is moral pressure not to let workmates down. This is
reinforced by prominently displaying
 costs of absenteeism
 discussing reasons for absence with absentees
 saying how fellow team members are hurt by absenteeism.
 There is no direct way motivation can be measured. Indicators
can be obtained thru
 observation, conversation and the stories people tell
 attitude surveys
 productivity data
 absenteeism, retention
 moans & gripes
 analysis of performance reviews
 Role modelling theory – Maier 1959

 RoleHow
ambiguity may result from uncertainty about
 one's work is evaluated
 Scope for advancement
 Scope of responsibility
 Others expectations of one's performance
 It can cause
 Insecurity, lack of confidence,tension, irritation and even anger amongst
members of a role set
 These will be communicated more often than satisfaction / feelings of being
well motivated.
 Natural critical/evaluative tendencies, blaming others, disgruntlement
 Also consider
 role underload/overload
 capacity & stress
 demands, choices & constraints
 conflict & ambiguity
 Examination Question

 Evaluate the truth of the following proposition. How well does it

point the way to robust, theoretically sound principles that guide
our understanding of employee motivation?

Proposition
"The acquisition and development of employee skills through
sophisticated and systematic selection, induction, training and
appraisal has a positive impact on quality & productivity. It will
lead to better motivation within the company"
Would I really work for you without reward?

 fundamental to employee contract

 traditional economic exchange model. Pay-effort
determinism
 "rate for the job"
 occupational norms, expectations and choices
 expediency - "suitable for my life package at the moment"
 Etzioni & organisational membership
 Systems employers use
Coercive - Remunerative - Normative
 Employee responses
Alienated - Instrumental - Moral involvement
The person-as-economist expects........

 ROI - time, effort, commitment

 "What's in it for me?" calculation
 Conscious ↔ subconscious (self image and comparisons)
 Fairness (equitable socio-economic exchange)
 interpret rewards/pay-offs of others
 judge what is fair/unfair
 satisfaction if each party achieves a balance (relative equality)
 Psychological extension to neutral, economic model
 Construing the value & importance of input-output
 Social, psychological - individual & group
 Validation of personal perceptions & comparisons
 clear/distorted
 internal/external
Design Features of Reward Systems

 Monetary
 Time-based (not directly related to performance)
 Performance-linked
 Output, %, PRP, merit pay, commission, skill-based
 collective-output schemes
 Corporate performance-related bonuses + profit sharing
 Monetary-equivalent
 Car, phone, holidays, loans, accommodation, fees, vouchers
 Deferred (promotion, pension)
 Non-monetary / intrinsic benefits - safety, status, recognition,
plaques, contribution and empowerment
 Negatives pressure, penalties, harassment, side-lining, dismissal
Pay by time schemes - Components

 simple to administer
 defined time – F/T, P/T, mixed-time, casual
 no attendance, no pay? Hourly, weekly, monthly
 premiums – 1.5T, 2T, nights
 Flexi-time schemes
 “Door knob syndrome”
 job grading/evaluation - evaluate the job not the person doing it
 control mechanisms & tools – clocks, supervision, time sheets?
 performance assumptions
 trust, competence, diligence, fidelity, care, good-will, cooperation
 work for Er in Er time ……vs ……...in your time?
 supervision & monitoring - “When the cats away”?
 Is actual presence necessary? Off-site working.
 life increments - pay & career progression, security?
PRP, merit pay, skill-based schemes

 Requires
 targeting, information & measurement
 manager appraisal & judgement
 problems of "big scheme" rules and controls
 Pay linked to
 individual merit (behaviours, traits & competencies:
flexibility, cooperation, punctuality, effort, skills/abilities).
 concrete individual or group targets
 Staff appraisal criteria, rating, and exchange/intervention
process
Performance-Related Pay (PRP)

 extensive but partial & sectoral

 little research data on effectiveness
 pay linked to specific aspect of performance
 intensity of MbO approach
 problem of defining the group + outputs
 what if key results not achieved?
 how is control and consistency achieved?
 fairness + validation of "the manager's judgment"
 merit pay or bonus addition to salary for this appraisal round
only?
 The neurosis of "targetitis"
 "Fat cat bonuses" – envy + "global market for stars" +
formulae + intervention?
Defining jobs

 how can a manager operate effectively if he/she does not

understand & cannot define staff jobs?
 shared understanding about what the job is
 reliable, factual definition of scope of job & responsibilities
 useful for organisational design & analysis of change?
 help to clarify role & provide a reference point for induction,
recruitment, performance assessment & grading?
 a basis for the job advert & recruitment literature?
 indicates competence required - generic + job specific
 confining, time consuming, out-of-date in a flexible organisation

Contractual?
"Job descriptions - - Burn the lot of 'em"
Robert Townsend, Up the Organisation
Job definition elements

 Job definition
 Title, reporting relationships (up, down, sideways, external)
 job summary, responsibilities, duties, scope of authority
 MbO/R: key result areas, yardsticks of performance, evaluation data
 contractual provisions
 Competence specification
 levels, range of situations, performance indicators,
knowledge/wisdom, experience, skills (psycho-motor, technical,
analytical, literary, spoken, numeric, social & emotional)
 The competences this organisation values
 Role & performance analysis
 Personnel specification (person profile)
 characteristics of ideal candidate
 Essentials - desirables - disqualifiers. Motivators
 Psychometric-objective selection - fit person to job
 Biodata, interviews, various tests, references
 MbO Record

Name Job/Role Date

Key Job Area Objective/Target to be Data for Training/Learning
Achieved Monitoring Needs

1.

2.

3.

4.

Progress Review Dates

Notes on Achievements/Progress

Signed: (Post-holder) Signed: (Manager)

Emotional & social dynamics & expectations

 Important for employee belief & commitment

 Impact of rules-of the-scheme (formal contract) on
individual sensitivity (psychological contract).
 personal expectations
 + formal/informal exchange Er  Ee
 my manager as
 employer (by proxy)
 as a person I like/dislike, respect?
 How I "see" what others are getting - internally & externally
Organisational "Culture" Problems

 conscious calculation & instrumentality?

 Take-it or leave it + "9-5" sub-optimisation
 rangible over non-tangible rewards
 organisational rationalisation of effort-reward
relationship
 structural inflexibility of reward packages
 constructing & controlling the performance review and
PRP system
 genuine involvement & participation
 delegation, reliance & confidence
 How well has work-motivation theory dealt with this?
Maslow, Alderfer, McClelland - Herzberg
- hygiene & motivators, job redesign
Concern with individual needs/goals
emphasis on what motivates
general, universal
Needs & satisfactions
Content (What it is & its elements)
Behavioural
Focus on behaviour
Responses to stimuli - external
Avoidance learning & punishment
reinforcement & behaviour modification theory
(operant conditioning)
Attribution theory
Adams - Equity theory
Vroom, Lawler - Expectancy theory
Hackman & Oldham - job characteristics
McGregor: Theory X and Theory Y
"on managing …. this approach is better"
dynamic, emphasis on process - how it occurs
prescriptive responses
Process
Cognitive
Consciousness/rationality
Goals & behaviour e.g. Locke - goal setting
Known & calculable
e.g. homo economicus
Learning
Abraham Maslow 1954 - Need Satisfaction

teleology
goal-orientation
Behaviour/
Action

drive achieve

Needs Goals
satisfy
 Abraham Maslow - Hierarchy of Needs

 Influential
 Content of motivation (needs that
motivate) theory - not personality
 Classified needs
 lower needs must be satisfied
before higher needs are activated
 Chronic need deficiency (neurosis?)
motivations action
 gratified needs - equilibrium
 snakes and ladders or
 lower needs mediated by higher
order consciousness?
 simple descriptive, partial
 nb: Alderfer ERG - existence,
relatedness, growth)
 cognitive & developmental
 What is Self Actualisation?
 difficult to define
 uniquely human motive?
 a way of life > a goal.
 not a need but on-going
growth/development process.
Becoming Self-Actualised?
 Be willing to change.
 Take responsibility.
 Examine your motives.
 Experience honestly & directly.
 Use positive experiences.
 Be prepared to be different.
Example characteristics
 accurate perception of reality.
 accept selves & others.
 spontaneous, open & natural
 problem centred > self centred
 pacific calm, serene in nasty situations.
 don’t take things for granted.
 peak experiences.
 affection & regard for others
 capable of deep satisfying relationships
 democratic, ethical
 creative, sense of humour.
 independent of enculturisation
Self-actualised? Human… like everyone else…..

 displays frailty & failings, ups & downs.

 emotional, critical attitudes towards others
 urge to decide for themselves
 may say "NO" & be unpredictable - own destiny.
 wants reasons without always wishing to conform.
 accepts need for conformity most of the time to serve
their interests
 avoids being selfish & ego-centred (denying space to
others).
 Much to live up to

 wholeness (unity, tendency to oneness,  beauty (rightness, form, wholeness,

perfection, honesty)
interconnectedness)
 perfection (just-right-ness, suitability)  goodness (rightness, ought-ness,
benevolence)
 completion (fulfilment, finis & telos)
 uniqueness (individuality)
 justice (fair, orderly,ought-to-be-ness)
 effortlessness (ease, at-one-ness graceful)
 alive (process, self-regulation, full-
 playfulness (joy, humour, exuberance)
functioning)
 richness (differentiation, complexity,
 truth, honesty, reality (open, clean,
unadulterated, essential)
intricacy)
 self-sufficiency (autonomous, self-
 simplicity (honesty, openness, essentials) determining, transcendence)

Maslow on (B)eing values - qualities of "ethical, virtuous person”

Toward a Psychology of Being (1968)
Critique of Maslow

 simple, plausible, general

 useful descriptive value?
 fudgey, vague, naïve, nice but untestable concepts
 hydraulic assumption : satisfy needs to boost bigger &
better "motivated" tendencies
 pressures on people to
 Limit scope for self-actualisation
 Be self-actualised (self-development movement)
 can’t predict behaviour in given situations.
 self actualisation : a positive, attractive, humanist concept
 We would all like to see ourselves as self-actualised.
 Eric Trist - what people want from their jobs
 Reasonably demanding
work with some variety
 Opportunity to learn
 Some decision making
 Social support and
recognition
 Significance & meaning
 Some desirable future
Job design principles
At the level of the individual
 Respect
 Contribution to product
 Quantity & quality - feedback results
quickly
 Meaningful whole task
 A whole job - plan, do, evaluate
 Variety
 Optimum cycle times
At the level of the group?
 Whole, meaningful task
 Set standards, feedback on results
 Ways of discussing jobs
 Attractive future possibilities
 Work restructuring

empowerment place out sourcing

membership
commitments
role of service
functions?
job enrichment
as enlargement matrix
Work information
role of supervisor
Core - peripheral
group systems
technology

consultation unionisation?
reward
systems
organisation
management culture
style organisation
structure
 Job restructuring

Implications
Opportunities Benefits
Tasks Flexible rewards Disadvantages
Add new & different tasks Further skills/learning
Increase cycle time Outsourcing?
Challenge
Add ancillary & preparatory tasks Self supervision Call centres?
Networking Virtual teams?
Teleworking?
Work organisation Social impact
Job enrichment
Work/job attributes
Empowerment
Own work method Work variety
Planning/organising Use of skills/abilities
Problem-solving Meaningful/worthwhile
Goal setting Contribution
Flexible pace and hours Advancement prospects
Flexible location Accountability &
Information feedback responsibility
Discretion & decisions
Autonomy
 Expectancy theory (the process of motivation)

assoc.. with Vroom & Lawler/Porter

Motivated to perform because of
expectations relating to perceived
payoffs from the performance. • expectancy - If I tried could I do
it? Get away with it?
______
Desirability of payoffs (valence), • Instrumentality
attain the outcome?
- if I did it will I
perception of expectancy + force of
expression - intrinsic to the person. • valence (subjective valuation) -
do I really value what's
______
Personal view of what is challenging available?
or interesting, important to self +
valuation of extrinsic payoffs - pay & Expressed as probabilities.
material rewards Path-goal relationships which
“explain” motivation 
performance.
 Expectancy Theory - Vroom et al

valence

A robust explanatory, predictive model?

How the individual construes it all?
Adams & Equity - an impossible ideal?

 “Felt-fairness” - how I am treated in relation to others

 Equity balance sheet & "the last straw”
 "What you gain on the swings….." Trust/good-will
 “No more … that’s it for me!”
 Internal & external comparisons (groups & individuals)
 Feelings & perceptions - not synonymous with equality
 Proposition
… better motivated if treated equitably & consistently
 distributive equity
how I perceive I am treated & rewarded in comparison to others
 procedural equity
how I see organisational procedures being applied
Equity and Justice

 Distributive justice
how rewards are distributed in accordance with
 “my contribution” & need
 what was promised.
 Procedural equity
how reward decisions are made & managed
 adequate consideration of employee’s viewpoint
 no personal bias
 consistent application of criteria
 early feedback on outcome of decisions
 adequate explanation of decisions made
 Organisational initiatives

 job design & flexibility - matching people to jobs

 MbO - defining expectations and feedback
 teams & semi-autonomous groups, empowerment
 concern for staff development, competencies and accreditation
 effort to refine & deliver “reward packages” that "motivate" -
PRP
 managerial behaviours
 constant organisational vigilance & sensitivity
 a rewarding, supportive climate and cultures that foster
 confidence & identification (one-ness with the firm)
 meaningful, practical commitment?