MOTIVATION BASIC CONCEPTS LESSON 4 MOTIVATION The processes

MOTIVATION: BASIC CONCEPTS LESSON 4

MOTIVATION �The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining goal

EARLY THEORIES OF MOTIVATION �Hierarchy of Needs Theory �Theory of X and Y �Two Factor Theory �Mc. Clelland's Theory of Needs

Two factor Theory

CONTEMPORARY THEORIES OF MOTIVATION

SELF DETEMINATION THEORY �Proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than freely chosen activity will undermine motivation.

GOAL SETTING THEORY �In general, managers should make goals specific and difficult- managers should set the highest goals to which employees will commit.

SELF EFFICACY THEORY �Refers to an individual’s belief that he or she is capable of performing task.

EXPECTANCY THEORY �Employees will be motivated to exert high level of effort when they believe it will lead to a good performance appraisal.

Components: �Effort-performance relationship �Performance reward relationship �Rewards-personal goals relationship

EMMPLOYEE INVOLVEMENT �Participative process that uses employees input to increase their commitment to the organizations success

EXAMPLES OF EMPLOYEE INVOLVEMENT PROGRAM

Participative Management �Joint decision making in which subordinates share significant degree of decision making power with their immediate superiors

Representative Participation �Letting workers be represented by a small group of employees that participate in decision making

USING REWARDS TO MOTIVATE EMPLOYEES �Through Variable –Pay Programs Types are as follows:

�Piece-rate pay- paying a fixed sum for each unit of production completed �Merit-based pay- pays for individual performance based on appraisal ratings �Bonuses- usually being provided annually, it is higher than merit pay

�Skill- based pay- pay levels on how many skills employees have or how many jobs they can do. �Profit-sharing plansdistributes compensation based on some established formula designed around

�Gainsharing- formula-based group incentive plan that uses improvements in group productivity from one period to another determine the total amount of money allocated. �Employee stock ownership planemployees acquire stock, often at below market price as part of their benefits