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Employee Motivation Techniques - PowerPoint

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					Employee Motivation in the
          New Economy

               Richard M. Steers
             University of Oregon

              22 September 2006
Today’s talk:
1.   The new employment realities at work.
2.   Impact of new realities on employee
     motivation and commitment.
3.   Strategies for enhancing employee
     motivation.
4.   What is missing? Future directions for
     theories of work motivation.



                                              2
 Today’s business environment
Characterized by:
    Increased globalization (“smaller”)
    Increased competition (“faster”)
HR challenges:
    Taking care of employees while
     remaining competitive in the global
     economy.
    Using employees as a competitive asset
     in the global economy.

                                              3
Some examples of workplace changes
1.   Significant downward pressure on wages.
2.   Simultaneous downsizing and expansion in the same firms.
3.   Increased workforce diversity, with differing needs.
4.   IT has changed the manner and location of work activities.
5.   New organizational forms (e.g., e-business) are now
     commonplace.
6.   Teams are redefining the notion of hierarchy and power.
7.   Use of contingent workers is increasing significantly.
8.   New influx of knowledge workers, who often require a
     different approach to management and motivation.
9.   The challenges of managing across borders has increased
     significantly.

                                                                  4
The new employment realities at
work: Two paradoxes

Paradox #1: Korea and the U.S. are major
economic powerhouses, yet both are in
jeopardy of losing ground to other nations in
the new global economy.




                                                5
Paradox #2: At a time when employers need a
highly motivated and committed workforce more
than ever to compete, market forces are
working to reduce their capacity to achieve this.




                                                    6
Old days . . .

“Let’s build a company that will
last a thousand years.”

                     -- Konesuke Matsushita




                                              7
Now . . .


       “Faster, better, cheaper.”
                             -- Intel



                 Implications for HRM?



                                         8
Some consequences of the new
employment realities:
1.   Psychological contract between employers
     and employees has become irrevocably
     broken.
2.   Devaluation of employees at all levels--but
     particularly at the lower levels.
3.   Increasingly short-term focus in HRM policies.
4.   Increased use (and misuse) of part-time and
     contingent workers.



                                                  9
 Impact of new employment
 realities on job performance

Employee performance is influenced by:
  1. Employee motivation

  2. Employee abilities and skills

  3. Work environment characteristics



     The new employment realities affect
     all three!

                                           10
Impact of new employment realities
on job performance
1. Employee motivation:
   Reduced pay-off for effort.
   Reduced attention to quality.
   Reduced trust.
   Dysfunctional behavior at work.
   Higher absenteeism and turnover.
Employee abilities and skills
Work environment characteristics


                                       11
Impact of new employment realities
on job performance
Employee motivation
2. Employee abilities and skills:
   Job routinization or simplification.
   Reduced investments in training.
   Loss of critical skills.
Work environment characteristics




                                           12
Impact of new employment realities
on job performance
Employee motivation
3. Work environment characteristics:
  Reduced investments in employees have
  caused employees to focus more on extrinsic
  rewards, not intrinsic rewards.
  Increasing employee focus on being free
  agents, not members of a company.



                                                13
 Impact of new employment realities
 on job performance
Results:
 Lower employee motivation.
 Lower employee skills and abilities.
 Poor work environment.
Final result: Reduced employee motivation, job
  performance, and employee commitment.




                                                 14
Question:

How can contemporary work motivation
theories help resolve the challenges of
the new workplace realities?




                                          15
A brief review of
popular motivation theories

Content theories:            Process theories:
   Need hierarchy theory    Reinforcement   models
   Achievement motivation   Goal-setting theory
    theory                   Equity theory
                             Expectancy theory
                             Social learning theory




                                                       16
Six strategies for enhancing
employee motivation
1.   Create a common sense of purpose.
        Provides employees with sense of purpose.
        Provides employees with self-esteem through
         identification with firm.
        Triggers calculative commitment--a belief
         in future returns on personal investments (e.g.,
         stock options).




                                                            17
Six strategies for enhancing
employee motivation
2. Invest in employees:
     Show company’s commitment to employees;
      invites reciprocity.
     Techniques: in-house training, support for
      outside training, paid sabbaticals, open book
      management.




                                                      18
Six strategies for enhancing
employee motivation
3. Insure equitable treatment for all
   employees:
     Show employees at all levels that their
      contributions will be recognized and rewarded.
     Minimize divisive non-performance-based
      personnel policies.
     Increase access to upper management where
      possible.
     Tie cost of benefits to employee income.



                                                       19
Six strategies for enhancing
employee motivation
4. Create expectations of employee
   involvement.
     Techniques: Suggestion systems, self-managing
      teams, employee involvement in leader
      selection.




                                                      20
Six strategies for enhancing
employee motivation
5. Build emotional ties in the workplace and
   beyond.
     Offer work and non-work benefits to employees
      (e.g, health clubs, special awards).
     Build bridges to employee’s outside interests
      (e.g., time off for volunteer activities).
     Build ties to families (e.g., eldercare, club
      memberships, on-site health clinics, on-site
      childcare).



                                                      21
Six strategies for enhancing
employee motivation
6. Share the risks--and the rewards.
     Question: Why should senior executives get all
      the rewards?
     Make risks and rewards transparent.
     Educate employees about business conditions.
     Tie bonuses and incentives to desired outcomes
      (e.g., customer satisfaction, attendance,
      performance).




                                                       22
What do we conclude from this?

   Building employee motivation is no easy
    task, nor is it accomplished quickly.
   But if companies are going to compete
    based on the quality of their human capital,
    building employee motivation becomes
    critically important for corporate success.




                                                   23
Recently, however . . .
   Academic interest in motivation theory has
    declined significantly.
   Most recent work based on 1960s theories (e.g.,
    textbooks).
   Some discredited theories continue to be used.
   Recent studies are technically well done, but
    trivial (e.g., AMR special issue).
   Too much recent research influenced by political
    correctness.

                                                       24
Currently used theories of
work motivation
Content theories:                  Process theories:
   Need hierarchy theory (1943)      Reinforcement models (1911,
                                       1938)
   Achievement motivation
                                      Goal-setting theory (1968)
    theory (1938, 1965)
                                      Equity theory (1961)
                                      Expectancy theory (1964)
                                      Social learning theory (1966)




                                                                   25
The challenge for motivation theories
    The world has changed; our theories have
     not.
    New variables have emerged that were not
     foreseen or understood in 1970s and 1980s
     (gender differences, emergence of new
     technologies, distance workers, etc.).




                                                 26
So, what do we need in future theories
of work motivation?
1. Some general questions:
   Why has theory development on work motivation theory
    deceased so significantly? Are we no longer interested
    in this topic or have we solved all of the problems?
   Where is the good systematic research on work
    motivation theory, not the small studies?
   Why is theory development (in all areas of
    management research) so heavily influenced by
    political correctness? Where is the science?
   Who are our work motivation theories aimed at:
    scholars or managers? Why not both?



                                                             27
So, what do we need in future theories
of work motivation? (cont’d)
2. Some specific questions:
    How can we better motivate distance employees?
    How does equity theory work in the Internet age?
    How can we manage motivational strategies across
     increasingly diverse employees (e.g., gender, age,
     nationality)?
    Has the reward mix in expectancy theory changed?
     Variations by level?
    Is there a need to modify motivation theories for
     knowledge workers?
    How can we better motivate contingent workers?


                                                          28
So, what do we need in future theories
of work motivation? (cont’d)
3. Role of culture in work motivation:
   What is the role of cultural differences in current work
    motivation theories?
   Do we need different theories or different applications to
    account for cultural differences?
   Are Western theories of work motivation culture-specific
    (e.g., U.S.A.) or generalizable?
   Where are the “Eastern” theories (or European, African,
    or Latin theories) of work motivation?




                                                                 29
A final thought . . .

 “In the future, companies will compete
 based on the quality of their technology and
 their human resources, not based on cheap
 labor, capital, or access to raw materials.”

                            -- Lester Thurow




                                                30
  If this is true, we need the best work
motivation theories available to meet the
challenges of the new globalized society.

How are we going to accomplish this?




                                            31
If we are going to address these critical
    issues, all of us--managers and
   researchers--must get involved in
    developing better theories-in-use.




                                            32
Thank you




            33

				
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