Chapter 10 Motivating and Rewarding Employees Robbins et

Chapter 10 Motivating and Rewarding Employees Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 1

Motivation and Individual Needs Willingness n High level of effort n Satisfaction of individual need n Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 2

The Motivation Process (Exhibit 10 -1) Unsatisfied Need Search Behaviour Reduction of Tension Drives Satisfied Need Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 3

Equity Theory Perceived Ratio Comparison* Outcomes A < Inputs A Outcomes A Inputs A *Where Inequity (Under-Rewarded) Inputs B = Inputs A Outcomes B Employee’s Assessment Outcomes B Equity Inputs B > Outcomes B Inequity (Over-Rewarded) Inputs B A is the employee, and B is a relevant other or referent. Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 4

Equity Theory Propositions n n Given payment by time, over-rewarded employees will produce more than equitably-paid employees Given payment by quantity of production, over-rewarded employees will produce fewer but higher quality units than equitably paid employees Given payment by time, underrewarded employees will produce less or poorer quality output Given payment by quantity or production, underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 5

Skill Variety Task Identity JOB DESIGN Task Significance INFLUENCES MOTIVATION Autonomy Feedback Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 6

Expectancy Theory Individual Effort 1 Individual Performance 2 Organizational Rewards 3 1. Effort-performance relationship 2. Performance-rewards relationship 3. Attractiveness relationship Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Individual Goals 7

Integrating Contemporary Theories of Motivation High n. Ach Ability Task Complexity Individual Effort Performance Evaluation Criteria Equity Comparison Task Complexity Individual Performance Organization Rewards Individual Goals Performance Criteria Reinforcement Dominant Needs Goals Direct Behaviour Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 8

Motivating Minimum-Wage Employees n Employee recognition n Praise n Empowerment Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 9

Motivating Professional and Technical Employees n n n New assignments Challenges Autonomy Training and educational opportunities Recognition Simplify non-work life Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 10

Additional Suggestions for Motivating Employees _ Recognize individuals _ Match people to jobs _ Use goals _ Make goals attainable Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 11

Further Suggestions for Motivating Employees _ Individualize rewards _ Link rewards to performance _ Check the system for equity _ Don’t ignore money Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 12

Entrepreneurs and Motivation n n Motivation for entrepreneurs is critical Employee empowerment is key motivational tool n n n Gradual process Delegation Job redesign Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 13