BUSINESS QUOTE OF THE DAY “Be brave enough to live life creatively. The creative is the place where no one else has ever been. You have to leave the city of your comfort and go into the wilderness of your intuition. You can’t get there by bus, only by hard work and risk and by not quite knowing what you’re doing. Carla Harris is a Vice Chairman, Managing Director and Senior Client Advisor at Morgan Stanley What you’ll discover will be wonderful. What you’ll discover will be yourself” © 2012 South-Western, a part of Cengage Learning 1–1 © 2012 South-Western, a part of Cengage Learning All rights reserved. Prepared by Charlie Cook The University of West Alabama MOTIVATION IN ORGANIZATION Herzberg Theory of Motivation “Motivation Through Work” © 2012South-Western, a part of Cengage Learning 12–3 © 2012South-Western, a part of Cengage Learning 12–4 • Intrinsic and Extrinsic Motivators • Locus of Control and Self-Esteem • Employee Needs © 2012South-Western, a part of Cengage Learning 12–5 MOTIVATION THROUGH INVOLVEMENT Extending job design to include: • Participation • Giving employees a voice in making decisions • Open door policy • Transparency and team culture • Empowerment • Enabling workers to set their own work goals, make decisions about their work design, and solve problems within the sphere of their responsibility and authority © 2012 South-Western, a part of Cengage Learning 5–6 MOTIVATION THROUGH WORK DESIGN • Job Design • Organizations will give you duties and responsibilities that best suits your skills, qualifications and interest. • Job Specialization • Organizations will try to make you a specialist in a particular role or task. It will help you in increasing efficiency and effective. • Adversely, your job can be monotonous and you may be dissatisfied. © 2012 South-Western, a part of Cengage Learning 5–7 MOTIVATION THROUGH WORK DESIGN Job Rotation To minimize boredom and monotony, organizations sometimes rotates you. Either through different departments or through different territory. Job Enlargement (horizontal job loading) Adding duties. (E.g.: The Front Desk Associate is given additional responsibility to manage records) Job Enrichment (vertical job loading) Adding responsibilities. (E.g.: The HR Assistant will now serve as Assistant of HR and Accounting Department) © 2012 South-Western, a part of Cengage Learning 5–8 FLEXIBLE WORK ARRANGEMENTS • Variable Work Schedules • Compressed work schedule • • Employees work a full forty-hour week in fewer than the traditional five days (e.g.: Nurses) Flexible work schedules (flextime) • Employees gain more personal control over the hours they work each day (exempt and non-exempt employees) • Job Sharing • Two or more part-time employees share one full-time job • Telecommuting • Employees spend part of their time working off-site © 2012 South-Western, a part of Cengage Learning 5–9 MOTIVATION IN ORGANIZATION “THROUGH REWARD” © 2012South-Western, a part of Cengage Learning 12–10 TYPES OF INDIVIDUAL REWARDS • Compensation Package • The total array of money (wages, salary, commission), incentives, benefits, perquisites and awards provided by the organization. • Base Pay • The minimum hourly / weekly / bi-weekly or monthly earning that an employee earns. • This is before tax and other deduction. © 2012 South-Western, a part of Cengage Learning 6–11 TYPES OF INDIVIDUAL REWARDS (CONT’D) 1. Piecework programs 2. Gain-sharing programs • Incentive Pay Systems • Plans in which employees can earn additional compensation in return for certain types of performance 3. Bonus systems 4. Long-term compensation 5. Merit pay plans 6. Profit-sharing plans 7. Employee stock option plans © 2012 South-Western, a part of Cengage Learning 6–12 INDIVIDUAL REWARDS (CONT’D) Indirect Compensation (Employee Benefits) 1. Paid Holidays or Vacations 2. Social Security contributions 3. Unemployment compensation 4. Disability and workers’ compensation benefits 5. Life and health insurance programs 6. Pensions or retirement plans 7. 401 K Contributions Other Awards • Rewards for seniority, perfect attendance, anniversaries and other milestones. © 2012 South-Western, a part of Cengage Learning 6–13 © 2012 South-Western, a part of Cengage Learning 6–14 INDIVIDUAL REWARDS (CONT’D) Motivation is key to success. Without the motivation to set an action into motion, we have no effort, no performance, no outcomes, no organization, and no reward. © 2012 South-Western, a part of Cengage Learning 6–15