Motivation Techniques

GCSE Business Studies

Project Option E

PROJECT OPTION E:

Amy Chan

Johanna Ferreira

Laura Giuliano

Lejla Radoncic

Miyer Levy

Introduction

Motivation is defined as the desire within a person causing that person to act. It provokes a person to behave in a way that ensures the accomplishment of some goal. Since productivity is a result of the behavior of organization members, motivating them is key to reaching organizational goals. According to a 1998 survey conducted by Sibson & Company, 55% of employees plan to quit or think of quitting. There are many different factors that motivate and retain employees. It is important to understand why some are more effective than others. Though it is not easy, managers and human resource professionals must attempt to recognize what motivates employees in order to become successful.

Theories of Motivation: Maslow and Herzberg

There are multiple theories that attempt to explain the essence of what motivates people. The most commonly noted theories were developed by Abraham Maslow and Frederick Herzberg. Their ideas have been studied and critiqued for decades.

In 1943, after extensive research, Abraham Maslow developed his Hierarchy of Needs motivation theory. He tried to explain the needs that must be fulfilled before a person can become motivated at a higher level. The basis of Maslow's theory is that human beings are motivated by unsatisfied needs, and that certain lower needs need to be met before higher needs can be satisfied.

Maslow classified the levels of need in five ascending categories. The most basic needs are the physiological needs, which consist of water, food, shelter, and clothing. These fundamental necessities are essential to any human being to feel comfortable and in a state of equilibrium. The next level is safety and security needs, such as being in a safe environment and having job security. This need alleviates the threat of physical and emotional harm. The third level is the need for love and belonging. This includes relationships with family and friends, basically a societal fit. Afterwards, the esteem needs is next to be fulfilled, like self-respect and reputation. It is the way people look at you and how you look at yourself. The highest level of needs is self-actualization. It is the quest of reaching one's full potential as a person.

In 1959, another well-known theorist, Frederick Herzberg, introduced his Motivation-Hygiene Theory to help understand what motivates people in a work environment. Motivators accounts for high levels of job satisfaction and motivation, which include achievement, recognition, work itself, responsibility, and advancement. However, hygiene factors can cause dissatisfaction with work, such as interpersonal relationships, company policy/administration, supervision, salary, and working conditions. Though hygiene factors do not help to motivate, they are necessary to avoid employee dissatisfaction.

Types of Motivation

Employees can be motivated in two ways: intrinsically and extrinsically. The word intrinsic means from within or internal. This is the form of motivation you have within yourself that comes from a passion or interest in doing a job well done. Extrinsic motivation comes from the external and relies on recognition and rewards. At times, extrinsic motivational tools can help increase intrinsic motivation within the individual. Managers have the difficult task of developing effective techniques to increase both types of motivation.

Benefits

As an extrinsic motivational tool, indirect compensation includes benefits distributed to an employee or a group of employees as a part of organizational membership. Benefits come in great variety, some required by law and others voluntary by the employer. Regardless of type, benefits have great influence on a person when choosing an employer they wish to work for or when an employee might be considering retirement.

Within a wide range of benefits accessible, mandated benefits are required by law. These benefits include social security and worker’s compensation. Proposals for reforms have been introduced however, no modifications have been made. This proposition includes universal health care benefits for all workers, child care assistance, pension plan coverage that can be transferred by workers who change jobs, and core benefits for part-time employees working at least 500 hours per year. An employer has no alternative, obeying the law is the only option.

Another form is referred to as voluntary benefits, consisting of benefits such as severance pay and pension plans. Voluntary benefits are an enormous form of competition with employers in keeping their staff and obtaining new employees. In this case, quality is the main factor of each benefit, customizing each one to satisfy personal needs is essential. Severance pay is offered voluntarily by the employer, it ensures safety and security for their employees. Severed employees receive certain services that are very helpful while being unemployed. These services include medical insurance, Employee Assistance Program (EAP), life insurance etc. For employees, being assured of at least some form of compensation is comforting. Other general benefits include retirement security, health care, and financial benefits.

Retirement security benefits are aimed at individuals who do not preserve an adequate amount of money for when they retire. This is a resourceful benefit for employees considering a long-term commitment with an organization. Under the Age Discrimination in Employment Act (ADEA), the majority of employees can not be forced to retire. However, early retirement provisions have been made to pension plans if desired by the employee. An employee under these provisions is able to retire after working 25 to 30 years. Another form of retirement security, the retiree benefits which may be paid for by the retiree, the company, or both. The availability of this assistance usually lasts until the retiree is eligible for Medicare.

Another form of retirement benefits as stated above are pension plans, this benefit is not required and if provided by an organization it is funded by the employer and the employee, also known as a contributory plan. Non-contributory plans are funded only by the employer. A supplement for this benefit is the individual retirement options with accounts such as Individual Retirement Account (IRA), 401(k) and 403(k) plans, and Koegh plans. The purpose of these options is to help the individual’s pension plan more flexible, while making the pension plan benefit more complex.

Health care benefits are provided by employees including medical benefits through insurance coverage. Because these benefits are extremely expensive managing their costs has become vital. To reduce health-care costs managed care was developed which contains approaches that monitor and reduce medical costs through restrictions and market system alternatives.

Employers can present their staff with many different benefits from financial to recreational benefits. Financial planning assistance and tuition aid are some of the financial benefits. These assistance programs are very appealing for employees.

As appealing as the above stated may sound, family related benefits are extremely important to the ...

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As appealing as the above stated may sound, family related benefits are extremely important to the staff members and highly valued by employees with children. In case of having to leave work do to serious health conditions or giving birth, the Family and Medical Leave Act (FMLA) of 1993 insures employees the right to return to the same job with the same pay. Some employers offer child-care and elder care assistance.

Another item that is very common is time-off benefits known as holiday pay and vacation pay. This benefit can be useful for every employee, because it is particularly common, it is expected.

Because of different options employers have a responsibility to make each benefit significant to each of their employees. Each benefit provides an image for an organization, some better than others. Individualizing each benefit that would actually benefit an employee is essential. When employees feel like they are treated fairly, their environment is more pleasant, which motivates them to achieve the goals of the organization successfully.

Training

Training can also help employees accomplish organizational goals. It has become a significant aspect of employee motivation in today’s organizations. Currently, U.S. employers spend at least $60 billion annually on training. The challenge at work is to create an environment in which people are motivated about work priorities. The quality and variety of training one provides is key for motivation. As defined by Mathis and Jackson in Human Resource Management, training is “a process whereby people acquire capabilities to aid in the achievement of organizational goals.” The integration of learning, training, and job performance enhances organizational competitiveness. Without continual training, organizations may not have employees with the knowledge, skills, and abilities needed to compete effectively.

Reasons for training may include new hire training about operations, introducing a new concept to a workgroup, or bringing in a new computer system. Whatever the reason for conducting a training program, an organization must develop a comprehensive, continuous, and reliable curriculum. Such quality training is essential for keeping a staff motivated about learning new concepts and keeping the organization profitable.

Strategic training links organizational strategies and human resource planning to training efforts. It supports the development of competencies, value, and competitive advantages for a company. Furthermore, it facilitates the involvement of human resource and training professionals with the organization. It also prevents them from chasing trends and training gimmicks, as well as reduces the tendency to believe training to be the answer to most employee or organizational dilemmas.

A strategic approach to training is most effective when implemented in the four phase training process of assessment, design, delivery, and evaluation. Assessment can be achieved using organizational, job/task, and individual analyses to determine training objectives. Training design must consider learner readiness, the learning environment, legal issues, and training transfer. Employees must have necessary skills and motivation to learn. Ultimately, trainees should use what they have learned throughout the training process while on the job. Training may be delivered internally within the organization, either informally or formally, in which training occurs through interaction and feedback among employees. External training delivery may involve the use of outside sources, including government training programs. However, it is imperative to never outsource a core competency of an organization, for it will never be achieved effectively.

Multiple ways of delivering training are available to meet the needs and preferences of any employee. Orientation is typically used in new-hire training programs, in which new employees are introduced to their jobs, co-workers, and the organization. Other common training methods include cooperative programs such as internships or apprenticeships, classroom and conference training, and distance learning via the Web. Many organizations are taking advantage of training that uses technology such as multimedia, video streaming, simulation, and virtual reality. E-learning is a particular training method that has been increasing in popularity in recent years. It involves the employment of the Internet or an organization intranet to conduct training on-line. It proves to be convenient, consistent, and self-paced. On the other hand, it is sometimes difficult for companies to keep up with the rapid changes in technological innovation, knowing when and how much to invest, and dealing with employee or manager resistance to change.

Immediately applying the new information learned in a training experience allows the employee to practice new behaviors. It also permits an organization to evaluate the training used, which is crucial for the future success of the company. Evaluation of training can be accomplished at four levels: reaction, whereby trainees are interviewed or complete questionnaires; learning through testing; behavior by observing job performance; and results by measuring the effect of training on the achievement of the organization’s objectives. Methods of training evaluation may include benchmarking, cost-benefit analyses, or return on investments. Evaluation designs may be employed in the internal evaluation of training programs. These include post-measure, which occurs after the training and determines if the trainees can perform at the expected level, and pre/post-measure, which involves testing prior to training, as well as after to compare the effectiveness of the program. A control group is sometimes used, in which certain individuals are not trained and the value of the training process used may be appraised.

Too often, organizations fail to take into consideration employee relations, recognition, communication, and involvement issues that are most important to people. Training and learning opportunities can reinforce such issues and emphasize necessary work priorities that will improve both the employees’ and organization’s performance.

Feedback

Improvement in work performance is a fundamental objective employers have for their workforce. Communicating to employees is an integral part that aids in this progress. Feedback is the amount of information received about how well or how poorly one has performed. The main benefit of it is that it helps employees to understand the effectiveness of their performance and contributes to their overall knowledge about the work.

There are two types of feedback; positive and negative. Positive feedback establishes one's social identity. It reinforces an individual’s perception of his or her competencies, denotes peer acceptance and belongingness, and establishes feelings of worth and status. Negative feedback is interpreted as invalidating elements of the individual's self concept. The extent to which feedback is positive rather than negative has a great impact on satisfaction. Based on the survey and personal experience, one of the most effective ways to encourage a person is to provide frequent, positive feedback during assigned tasks or while he/she strives toward goals. Positive feedback is a great "morale booster" that removes doubt and builds self-esteem and results in a sense of accomplishment. Even according to Maslow’s Hierarchy of Needs, two of the higher-level needs are social needs (the need to feel the sense of belonging), and esteem needs (the need for a sense of self-worth and integrity). Therefore, because of its potentially high value, managers should encourage feedback whenever possible and evaluate it very carefully.

Feedback is part of interpersonal communication, and just like communication feedback can be either verbal or nonverbal. It is not surprising that when verbal feedback is experienced, the effect on motivation can be similar to that of payment. The study of corporate employees showed, that those who were told, "Good, you're doing as you /should/" were "significantly less motivated than those who received feedback informational." To gather verbal feedback, the source can simply ask the destination pertinent message-related questions. However, to gather nonverbal feedback, the source can observe the destination’s nonverbal response to a message. In other words, nonverbal feedback is communicating through facial expressions, physical gestures, or body language. Most of the time nonverbal feedback can be easily interpreted.

A major benefit of feedback is the ability to see someone’s strengths and weaknesses through the eyes of others. That makes it easier for a person to get a clearly defined path for improvement, and continued improvement will lead him/her to success. The best way to move from the bottom to the top is through continual improvement. Since success depends on providing value to others it is important to know exactly how other people recognize the value that person offers. Every day he/she has the opportunity to make improvements in his/her work. Therefore, a good, honest feedback from those who are affected by that work will show the person how to do that. It's a valuable resource that can move him/her to success.

Reward and Recognition Program

As positive feedback is a means of communicating to employees that they have performed well, reward and recognition programs have essentially the same message. These programs have been applied for many years and are still widely used. The Role of Recognition survey by WorldatWork and the National Association for Employee Recognition (NAER) shows that 86% of companies have an employee recognition program. These programs should offer a broad range of positive consequences, encourage recognition by management and peers, and include selective rewards that are easy to administer. It should be consistent, evident, and fair. By implementing this program, employees can feel appreciated and motivated to do their job well.

It is important to create a reward and recognition program that is based on performance and corresponds to the goals of the company. In order for it to work effectively, it is essential to clearly establish what should be rewarded or recognized. The criteria that signify rewardable behavior or actions should be achievable yet challenging. Often, employees tend to stick to simpler tasks in order to receive a reward; therefore the standards should be significant. Also, it is important for all employees to be able to receive the recognition, not just a select few. To avoid confusion, it should be clear to the employer and employee what behaviors or actions are being rewarded. Using positive reinforcement techniques, the rewards should be given within ample time so that employees know that they are being recognized for actions or behaviors that management would like to encourage. Both the achievable behavior and the rewards should be meaningful for the program to hold esteem.

Questions arise as to what should be rewarded and recognized. One common reason for rewarding an employee is length of service, especially in this day and age when employees tend to change their jobs more often. Another reason might be improved customer service or satisfaction, which communicates to other employees that what they do makes a difference in how outsiders see the company and its products or services. Saving the company money through efficiency or finding a way to decrease costs is also a good reason for rewarding employees. If an employee goes “above and beyond” normal expectations, employers should recognize their efforts. This may include exceptional performance on a special project or continued performance over a period of time.

According to HR.com, the most effective way to formulate a rewards and recognition program is to establish it in two levels: monetary and non-monetary. As it offers a range of recognition possibilities, monetary rewards should be relative to the value of the job done. They consist of cash rewards such as bonuses, profit sharing, and stock options. On the other hand, non-monetary rewards are more varied and distinctive. They help employees feel recognized and are moderately inexpensive. These rewards may consist of time-off, parking privileges, certificates of recognition, “employee-of-the-month”, pizza parties, and so on. There are countless ways to motivate employees through non-monetary means. The important thing is that these rewards should hold value to the employee because each person is motivated differently.

It is necessary to keep up with the status of the program. Periodically reviewing and evaluating it is crucial to keeping it fresh, credible, and innovative. Most recognition programs tend to run their course in 12 to 18 weeks. Employers should add variety to it so that employees can feel excited about the program. Workforce opinions are vital to understanding what motivates them and what they think about the program. They should feel honored about receiving recognition for a job well done. In order for it to be effective, top managers need to get involved and show that they stand behind it. By paying attention to individual employee interests and desires, a manager can help customize almost any incentive program to produce more lasting, personal results with each and every employee. In turn, employees feel appreciated, valued, and motivated with their job and in the company.

However, critics have noted that reward and recognition programs only result in temporary increases in performance, rather than long term positive outcomes. They do not create an enduring commitment to any value or action; they merely, and temporarily, change what we do. Also, these programs have been accused of creating a negative competitive environment between organization members. Regardless of whether rewards are dispersed on an individual or team basis, competition can still ensue. Therefore, overall cooperation in the organization may diminish. Reward and recognition programs have also been charged with taking away the intrinsic motivation from employees. They motivate people to get the rewards rather than motivate them for the job they are doing.

Though there are various shortcomings with using this technique, a reward and recognition program is an effective motivational tool to use in an organization as long as it is implemented properly. There can be many drawbacks that result from establishing this program if not done fairly, consistently, and clearly. Also, it is important to note that money is not the only motivator when it comes to reward and recognition programs. Non-monetary means seem to be more important than just financial rewards. Managers have the difficult task of examining what it is that employees want. The workforce of today has different, more individualized needs and desires, and organizations have to identify and offer programs to satisfy those needs if they want to be successful in recruiting and retaining employees.

Employee Assistance Programs

With all the changes in the workforce and economy recently, many individuals seek help to combat their personal troubles. An employee assistance program (EAP) is a worksite-based program designed to assist in the identification and resolution of productivity problems associated with employees impaired by personal concerns. EAPs are very important within a company because it can help a worker release stress and become more motivated in their job.

Many of the employee assistance programs focus on substance abuse problems and others have a general approach that ranges from employee and family problems. Others include proactive prevention, health and wellness activities; also problem identification and referral that are linked to the employee heath benefit package.

Counseling is one of the services offered in employee assistance programs that can help employees cope with personal and work related issues in their lives. The program is also available to the employee’s family members. EAPs furnish professional counselors who provide confidential assessment and short-term counseling to employees. This helps people deal with their personal issues. EAPs can be the key to retaining good employees that are experiencing some kind of stress in their jobs or at home. This is another way to help the employee to continue being motivated because of the great assistance the company offers to them and their family members.

According to Greg Banks of pro behavioral health in Denver, employee assistance programs were developed from Alcoholics Anonymous and similar programs in the manufacturing sector after World War II. The number of companies starting EAP programs has increased substantially. Many corporations have recognized how daily stress can negatively affect employee attendance and coordination, morale, and overall job performance.

Today, many companies provide EAP services for their employees; several of which are at no cost to the employees. According to the U.S. Department of Health and Human Services, the average cost per year is twenty eight dollars for in house programs and about twenty two dollars for the outside programs for employers. These costs favor the cost of recruitment and training replacements. The cost of the program is favorable to the company and the employees because they both benefit from it. The company encourages a stress free environment as well as motivation to the employees. Not only do employees benefit from this, but family members also can use these services at no cost.

Unfortunately, according to Dean R. Spitzer, seventy percent of employees are less motivated today that then they used to be, eighty percent of employees could perform significantly better if they wanted to, and fifty percent of employees only put enough effort into their work to keep their job. Motivation does not only come from salary, benefits, vacation pay, and 401k retirement plan. The key to motivation is the morale of the employees, which employee assistance programs aim to boost.

Conclusion

In order to motivate an employee, managers must understand that what can motivate one employee might not motivate another. Motivating employees can be one of the most difficult tasks a manager must face, but it is necessary for the success of the business. The key factor is to figure out what stimulates each employee to keep them motivated and happy. Employees that are motivated exert more effort and are more productive in the workplace. Therefore, managers should make every effort possible to keep their employees motivated and happy in order for their workforce to perform their best and to stay in the company.

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