EMPLOYEE MOTIVATION

LESSON 06
HUMAN RESOURCE MANAGEMENT
 INTRODUCTION
• Employee motivation implies the level of
energy, commitment and passion deployed by
employees to execute the job.
• Motivation is kind of drive full of direction
and persistence of action ( by Atikinson-1957)
• Motivation is in fact kind of goal oriented
behaviour, which can be intrinsic (from within)
or extrinsic (from outside)
 INTRODUCTION
• Motivation is will to work — Comes from
enjoyment of work itself and/or from desire to
achieve certain goals e.g. earn more money or
achieve promotion
• Methods available to motivate employees
— Financial methods (e.g. salary, bonus)
— Non-financial methods (passing on
responsibility or praise)
 Types of Motivation
• Intrinsic Motivation
– It signifies the drive for motivation in an individual
that comes from within self, and the individual does
not need to find any external reason to feel motivated
• Extrinsic Motivation
– It signifies that the source of drive is located outside .
For example good reward and recognition from
supervisors.
Advantages of a Well Motivated Workforce

• Better productivity (amount produced per

employee) =Output/input
• Better quality
• Lower levels of absenteeism
• Lower levels of staff turnover (number of
employees leaving business)
• Lower training and recruitment costs
Motivating and Hygiene factors
MOTIVATING FACTORS HYGIENE FACTORS
Achievement Company Policy
Recognition Supervision
Work Itself Relationship with boss
Responsibility Work Conditions
Advancement Good Salary
Growth Relationship with peers
Security
Best Approach/Style for Management?

• Depends on circumstances
— Whether workers are skilled or experienced
— Level of genuine motivation
— Whether quick decisions are needed etc
• Best managers are those that are versatile and
can call upon right style at right time
Measurement Of Employee Motivation
• It is difficult to know whether employees are motivated.
Each managers have an inflated guess-estimation about
the motivation level of their employees.
• HR mangers deploys a number of measures to gauge
the level of employee motivation. These are discussed
in the following subsections.
– Employee Satisfaction Survey
– Turnover rate
– Walk the Talk
– Incidence to counterproductive behaviour
 Employee Satisfaction

The HR department conducts employee satisfaction

surveys to estimate the level of job satisfaction
among employees. Depending on the feedback
received in the survey, the HR manger could identify
the critical insights about the source of
motivation/demotivation.
 Turnover Rate

If a good number of employees have left the

organization during a specific period it indicates that
the employee motivation is not necessarily high.
Low turnover rate indicates that the organizational
infrastructure is suitable for the employees.
 Walk the Talk

HR executives talk to the employees near their

workstations or any other public places other than
the HR manager’s office. This conversation provides
the employees informal opportunities to express
their thoughts and feedback to the managers about
the perceptions of the welfare initiatives
undertaken by the HR department.
Incidence of Counterproductive Behaviour

In many organizations, it has been found that the

employees engage in various counter productive
behaviours such as stealing, fighting, breaking and
damaging company's property. These indicate the
motivational level of employees appears to be low
and requires immediate attention and corrective
action.
 Reasons Why People Go To Work

• To earn money
• For a sense of achievement or job satisfaction
• To belong to a group
• For a sense of security
• To obtain a feeling of self-worth
 Fringe Benefits

• Known as 'perks'
• Items an employee receives in addition to
their normal wage or salary- E.g. company car,
private health insurance, free meals
• Often increases loyalty to company as these
benefits are not always taxed or are taxed at a
reduced rate
• More likely to recruit best people to company
 Wages and Salaries
• Wages
– Paid by hour with pay packet normally received at end of
each week
– Often paid to lower skilled workers or to temporary staff
– Any additional hours worked normally paid a higher rate on
an overtime basis
• Salaries
– Often set on an annual basis but payment is made at end of
each month
– Normally paid to managers or those higher up in a company
– A set number of hours is not normally agreed but
employment contract requires enough hours worked to get
job done
 Gross and Net Pay
• Gross pay:
– Pay each month or week before any deductions
have been removed
– E.g. before income tax, national insurance
contributions
• Net pay:
– Pay after deductions have been taken off
– Sometimes known as take-home pay
 Overtime and Bonus Pay
• Overtime
Additional hours worked over and above normal working hours
— E.g. at weekends or on bank holidays
— Paid at a higher rate - often 1.5 or 2 times normal hourly
wage
• Bonus pay
Given out when certain performance targets have been met
— Normally applicable at manager level in a company
• How bonuses are used:
— By motivating employees to work harder in order to meet a
realistic yet challenging target and therefore achieve a bonus
payment
— Would only be effective if bonus payments were a significant
sum
 Profit Sharing
• What it is:
– A system whereby employees receive a proportion of
business profits
• Advantages
– Creates a direct link between pay and performance
– Creates a sense of team spirit- helps remove 'them and
us' barrier between managers and workers if all
employees involved
– May improve employee's loyalty to company
– Employees more likely to accept changes in working
practices if can see that profits will increase overall
 Performance Related Pay
• Increasingly popular method of paying people
• Paid to those employees who meet certain targets
• Advantages
– Senior managers can easily monitor and assess individual
employee performance during appraisal process
– Setting of targets for employees can ensure they are all
closely focused to company objectives
• Disadvantages
– Discourages a team based approach- can create
unhealthy rivalry between managers
– Can be difficult to accurately measure performance of
some workers e.g. in service sector firms
– Incentives may not be larger enough to motivate
 Piece Rate Payment
• Relatively unusual and old-fashioned way of payment
• Pay per item produced in a certain period of time
• Advantages
– Requires low levels of manager supervision
– Encourages high speed production
– Provides good incentive for workers who are mainly
motivated by pay
• Disadvantages
– Workers are focused on quantity not quality
– It is repetitive for workers and can be de-motivating
– Workers are only used to one set method of production and
may resistant change
 Commission

• A financial incentive linked to achievement of sales

• Typical set-up
– % commission for value of sale achieved
– Basis commission rate set at low rate
– Higher rate offered once sales targets are achieved
• Advantage
– clear link between sales and remuneration
• Disadvantage
– sales may be influenced by factors outside of employee
control (e.g. mature product, customer service)
 Reasons for Pay Differentials

• Mainly due to supply and demand

• People with skills that are in demand, but are in
short supply, get paid more
• Cost of living varies between regions
• Some jobs require qualifications (e.g.
accountants, lawyers)
 Motivational Theorist Views on Pay

• Taylor was only theorist to emphasis pay, in

particular piece-rate, as best way of
motivating employees
• Mayo, Maslow and Herzberg all felt that non-
financial rewards, such as team working,
empowerment or job enrichment, acted as a
better incentive for employees to work harder
 Job Enrichment and Job Enlargement
• Job enrichment
– Giving workers more interesting and challenging tasks
– Seen as more motivating as it gives workers chance to further
themselves
– Herzberg in particular recommended this approach
• Job enlargement
– Giving workers more tasks to do of a similar nature or
complexity
– Job rotation is a part of this
• Job Rotation
– Employees get bored with similar type of work.
– Job rotation could be plausible way of motivating employees by
rotating them among different types of jobs within/similar skill
levels.
 CEO

Manger

Department Dputy
Assitant mgr
heads general magr
• Fair work process
– If employee perceive that their supervisor is biased
towards certain individuals without sufficient
reasons or merit they will feel demotivated. It is
important that the HR department maintains rules,
policies and procedures that are fair.
• Good Remuneration/Reward
– It is an acknowledgement of good work of the
employee and encouraging positive work attitude
and excellence in service industry.
• Employee recognition program
– Employees who display extraordinary service
attitude and deliver exceptional services to
customers should be recognized publicly. Many
organizations have dedicated display boards
where they acknowledge the excellent service
provided by employees. Herzberg in particular
recommended this approach
• Joy at work
– This involves a wide range of activities such as skit,
dance, musical activities which are potentially
designed for bringing happiness to the work place.
This is for the consumption of employees and is an
attempt to breed a sense of family. Herzberg in
particular recommended this approach
• Work life balance
– In most cases employees are connected with their
workplace virtually throughout the day.it destroys
balance between work and life. This can cause
demotivation. So the HR department needs to
create adequate space so that each employee can
spend time with their family and work optimally.
Herzberg in particular recommended this
approach
• Assurance of good supervision
– Employees working at supervisory levels should be
educated well. They should work in tandem with the
employee and ensure that both of them collectively
achieve the organizational goals and enhanced
transparency in the practices. In most cases
employees do not leave the company. Some times they
leave their supervisors. It implies that the influence of a
good supervisor is one of the factors for employee
motivation. Herzberg in particular recommended this
approach
• Employee training
– It contributes to enhance the confidence and skill level of
the employees which in turn motivates them. Herzberg in
particular recommended this approach
• Welfare initiatives
– Legal provisions mentioned in different labour legislations
recommend bare minimum welfare provisions. Every
organization should has legal mandate to undertake a
diverse range of welfare activities for their employees.
Herzberg in particular recommended this approach
• Positive organizational support
– When individual employees find that the contribution made to
their organization is well appreciated it generates a positive
sprit and motivates them for more contribution towards the
organization.
• Offsite fun activities
– Employees regularly interact in the workplace and their term of
interactions with each other always have work related flavour.
The HR department should organize employee interactions in
offsite fun activities which provides opportunity to employees
to deal with each other on non- work related issues. Herzberg
in particular recommended this approach
• Participative work process
– Goal setting theories suggest that fixation of goal should
not be considered as the prerogative of managers and
supervisors. Without involving the grass-root-level
employees is bound to have malnourished solutions. In
today’s knowledge economy , grass-root employees
have privilege knowledge of what is happening at the
service delivery point and supervisors and managers
have access to comprehensive and summary
perspective. Both these dimensions should be used to
frame the solution and goal. Thus collective goal setting
could be highly inspiring and motivating. Herzberg in
particular recommended this approach
Crafting an interesting job
• Oldham and Hackman (1980) provided insight to make any job
interesting. They argued that every job, no matter how small it
is, should have the following characteristics. The companies
should initiate a wide range of programmes to make work
interesting which motivate the employees to work harder.
Herzberg in particular recommended this approach
Task significance : Task should be perceived by the employee as
significant
Task identity: Task should have a distinct identity
Task variety: It signifies whether the task involves a number of different
types of work or repetitive task with monotonous experience.
Autonomy : The job should provide adequate autonomy in decision
making, designing, execution and improvement.
Feedback: The employee should receive timely feedback about the
work
Team working
Why Use Teams?
• Some production tasks appropriate for
individuals — high division of labour
• But many production processes are best
undertaken by people working together
Benefits of Team working
• Higher productivity
• More flexible workforce (team members tend
to be multi-skilled)
• Improved quality
• Reduced wastage
• More job satisfaction = better motivation
• Higher customer service
 Quick Review
• Write a short note on employee motivation.
• What is meant by job satisfaction?
• Explain the theory Y view of workers.
• Identify the major financial incentives used in Hospitality
organizations to motivate the employees.
• Assume you start a small hotel after earning your diploma. You
want to create a happy workforce there. Explain different
actions that you can take to create satisfied employees.
• What are the types of rewards applicable in hospitality
industry.
• Each managers have inflated guess estimation about the
motivation level of their employees. List down the ways used
to measure the employee motivation.
THANK YOU