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What Is Motivation?


Intensity Persistence
Why Rewards Often Fail to Motivate
 Too much emphasis on monetary rewards
 Rewards lack an “appreciation effect”
 Extensive benefits become entitlements
 Counterproductive behavior is rewarded
 Too long a delay between performance and
 Too many one-size-fits-all rewards
 Use of one-shot rewards with a short-lived
motivational impact
 Continued use of demotivating practices
such as layoffs, across-the-board
raises and cuts, and excessive
executive compensation
Goal-Setting Theory

• Specificity • Commitment
• Challenge • Self-efficacy
• Feedback • Characteristics
• Participation • Culture
Insights from Goal-Setting Research
 Difficult Goals Lead to Higher Performance.
- Easy goals produce low effort because the goal is too easy to
- Impossible goals ultimately lead to lower performance
because people begin to experience failure.
 Specific Difficult Goals Lead to Higher Performance for
Simple Rather Than Complex Tasks.
- Goal specificity pertains to the quantifiability of a goal.
- Specific difficult goals impair performance on novel, complex
tasks when employees do not have clear strategies for
solving these types of problems.
 Feedback Enhances The Effect of Specific, Difficult Goals.
- Goals and feedback should be used together.
Insights from Goal-Setting Research
 Participative Goals, Assigned Goals, and Self-
Set Goals Are Equally Effective.
- Managers should set goals by using a contingency
Different methods work in different situations.
 Goal Commitment and Monetary Incentives
Affect Goal-Setting Outcomes.
- Difficult goals lead to higher performance when
are committed to their goals.
- Difficult goals lead to lower performance when
are not committed to their goals.
- Goal based incentives can lead to negative outcomes
for employees in complex, interdependent jobs
requiring cooperation.
Guidelines for Writing “SMART”

Results oriented
Time bound
Managerial Implications of
Expectancy Theory
• Determine the outcomes employees value.
• Identify good performance so appropriate
behaviors can be rewarded.
• Make sure employees can achieve targeted
performance levels.
• Link desired outcomes to targeted levels of
• Make sure changes in outcomes are large
enough to motivate high effort.
• Monitor the reward system for inequities.
Organizational Implications of
Expectancy Theory
• Reward people for desired performance, and do not
keep pay decisions secret.
• Design challenging jobs.
• Tie some rewards to group accomplishments to build
teamwork and encourage cooperation.
• Reward managers for creating, monitoring, and
maintaining expectancies, instrumentalities, and
outcomes that lead to high effort and goal
• Monitor employee motivation through interviews or
anonymous questionnaires.
• Accommodate individual differences by building
flexibility into the motivation program.
Cognitive Evaluation

Intrinsic Extrinsic
Motivators Motivators
The Job Characteristics Model

Core job Critical

characteristics psychological Outcomes

*Skill variety *Experienced *High internal

*Task identity meaningfulness of the work
*Task work motivation
significance *Experienced *High growth
responsibility for satisfaction
*Autonomy outcomes of the work *High general
*Feedback *Knowledge of the job
from actual satisfaction
job results of the work *High work
activities effectiveness

1. Knowledge and skill
2. Growth need strength
3. Context satisfactions
Approaches to Job Design
1. The Mechanistic Approach focuses on
identifying the most efficient way to perform a job.
Employees are trained and rewarded to perform their
jobs accordingly. Approaches these techniques (job
2. Motivational
enlargement, job rotation, job enrichment, and job
characteristics) attempt to improve employees’
affective and attitudinal reactions and behavioral
3. Biological and Perceptual- Motor Approaches
Biological techniques focus on reducing employees’
physical strain, effort, fatigue, and health complaints.
The Perceptual-Motor Approach emphasizes the
reliability of work outcomes by examining error rates,
accidents, and workers’ feedback about facilities and
Skills and Best Practices: Applying
the Job Characteristics Model
1. Diagnose the level of employee motivation and
job. satisfaction and consider redesigning jobs
when motivation ranges from low to moderate.
2. Determine whether job redesign is appropriate
in a given context.
3. Redesign jobs by including employees’ input.
Equity Theory
Ratio Employee’s
Comparison* Perception
Outcomes A < Outcomes B Inequity (Under-Rewarded)
Inputs A Inputs B
Outcomes A = Outcomes B Equity
Inputs A Inputs B
Outcomes A > Outcomes B Inequity (Over-Rewarded)
Inputs A Inputs B

Where A is the employee, and B is a relevant other or referent.
Negative and Positive Inequity
A. An Equitable
Situation Other

$2 $4
= $2 per hour = $2 per hour
1 2
hour hours
Negative and Positive Inequity (cont)
B. Negative Inequity

Self Other

$2 $3
= $2 per hour = $3 per hour
1 1 hour
Negative and Positive Inequity (cont)

C. Positive Inequity

$3 $2
= $3 per hour = $1 per hour
1 1
hour hours
Organizational Justice
Distributive Justice: The perceived fairness of
how resources and rewards are distributed.
Procedural Justice: The perceived fairness of the
process and procedures used to make allocation
Interactional Justice:
The perceived fairness of the decision maker’s
behavior in the process of decision making.
Research into Equity

Distributive Procedural
Justice Justice

Amount and Perceived

Allocation Fairness of the
of Rewards Distribution Process
• Biggest retailer in the world

• It was established by Walton in 1962

• Biggest customer for many multi nationals

• 2008- revenue= 6.9% of the US gross domestic product

• Raised the standard of living of people by making goods cheap and


• store managers not allowed to overburden employees

Motivational techniques

• Profit sharing plan

• 2002- launched new program in the U.S. – ‘Critical

Need Trust’.
• committed to improving the career prospects of its
• leading employer of disabled people in the country.

• Unique cultural element was the ‘Wal –Mart cheer’,

The wal- mart cheer
Give me a W!
Give me an A!
Give me an L!
Give me a Squiggly!
Give me an M!
Give me an A!
Give me an R!
Give me a T!
What does that spell?
Whose Wal-mart is it?
My Wal-Mart!
Who’s Number one?
The customer ! Always!
Non Executive board members where,
• Ratan Tata- Chairman along with 6 more

Executive board members

• S. Ramadorai- CEO & M.D
• N.Chandrashekaran- COO & E.D
• S.Mahalingham-CFO & E.D
• Phiroz. A- E.D
• TCS Culture
• Training And Education: Induction
Training Programmes And Continuing
Education Programme
• Exposure To Business Excellence And Evolving Technologies
• Careers Across Business And Technology Areas
• Being at forefront of E-revolution
• Global Exposure – With Projects In Over 50 Countries And
800 Clients,many Of Them Fortune 500 Standouts
• Worldclass Training And The Oppurtunity To Learn
• An Open Door, Energetic Environment With Worldclass
• Google founded in the year in 1998.
• No. of employees - >10000 all over the

Eric Schmidt Larry Page Sergey Brin

Chairman of the Board & Co-Founder & Co-Founder &
Chief Executive Officer President, Products President, Technology
• Motivating Organisational Culture
• Informal work culture at googleplex
• Googlers were allowed to bring their
• pets into their workplace
• They are provided with free snacks and ,
lunch and dinner prepared by star chef
like charlie ayers
• Recreational Facilities Such As Gym,
Assorted Video Games, Pool Table, Ping
Pong And Roller Skater Hockey
• Googlers Are Allowed To Spend Atleast
20% Of Their Time In Self-directed
• Open Communication Across The
• Lunch Hour Discussion
• Complete Freedom Regarding The
• Projects
• Friday Afternoon Brief Meetings
• WAYNE ROSING,VP once said
• “ We have Management in engineering. And
• Structure was tending to tell people, ” No
• You can’t do that.’ so Google fired all the

• Infosys Technologies Ltd. (NASDAQ: INFY) provides

consulting and IT services to clients globally.

• Over 72,000 employees worldwide

• N. R. Narayana Murthy is the Chairman of the Board and

Chief Mentor of Infosys Technologies Limited

• He founded Infosys in 1981 along with six other software

professionals and served as the CEO for 21 years
Groupism was not encouraged in the
Narayan Murthy explained, “Everything is judged on
merit .Ego doesn’t come into the picture. Our
transactions are zero-based so there is no history sheet,
Different people compete, then they have a discussion,
one solution is accepted, one person wins, they smile
and go out to lunch. Because the group of people is very
smart, there has to be a uniform distribution of wins.
There are no overt or covert prejudices”
Motivational techniques of Infosys

• An annual excellence reward system
• Sharing of ideas
• Facilities provided to employees