Employee Productivity Motivation & Incentives Rachel Waldo Brett Corday Abby Martin Our Goal: Productivity Measures How Technology Measures Employee Productivity Role of Motivation and Incentives on Productivity Potential Issues of Motivation and Incentives Case Studies Cube, Incorporated Help Wanted! We are hiring 3 Block handlers • No experience necessary • Great Incentives and rewards • To apply, raise your hand! Work Hard! Be Safe! Incentive for Cube, Inc Employees Performance Evaluation! Which shift was most successful? What was the best motivator? Productivity Measures The types of Measures and how Technology helps Single Factor Productivity This is the easiest and most simple type of productivity measure. A Ratio That Equals 1=1 One Input = One Output Labor Productivity Measure A ratio that is single factor, but only involving inputs and outputs associated with labor For Example: Input = Output Hours Worked = Products Produced 6 Hrs Worked = 6 Products Produced, A ratio of 1=1 Multi-Factor Productivity Output equals the approximation of different inputs For example: 3 hrs worked + ≈3 machine hours = 6 products produced M.H. approximated to test productivity A Word of Caution Because some inputs are ≈, final decisions are sometimes inaccurate. Inputs like prices, are sensitive and should be accounted for Productivity measures are served best when in comparison of a hypothetical scenario, (or company.) This tests efficiency Technology and Production Measures How time and activities are allocated is important to improve employee or manufacturing productivity, Need to measure the information accurately A time study for process improvement can help streamline production Time and Activity Allocation How are time and activities allocated? Traditional methods of gathering time are awkward The question is: How can we monitor production times accurately? The Answer: The Time Corder Advantages of Time Corder Gets employees involved in the productivity study It is easy to use Easy to analyze data collected Helps with overall process improvement Improves time management The Results of Motivation and Incentives The effect Motivation and Incentives has on Productivity Why study and apply motivation? Human capital is your most important capital Treat colleagues as human beings Well motivated employees are more productive and creative. Effects on Productivity • The goal of a manager is to get their employees to produce effectively and efficiently • Motivation is the key to performance improvement • This can be done through incentives • Motivation is intangible, it drives all human action, and it is the energy source for employees. Why it works! Issues of Motivation and Incentives The Potential issues of Motivation and Incentive Potential Issues with Incentives Alfie Kohn Dehumanizing Competition not Cooperation Best for “Mindless” tasks Short-term benefits Pay-for-Performance Automotive Industry Alignment with Goals U.S. Healthcare Fictional Fires Potential Issues with Performance Measures Culture of Distrust “Gut Reactions” to Normal Variations Unclear Communications Unsupportive of Organizational Objectives Innovation: The Role of Motivation &Incentives Theory of Motivation Hygiene Factor Motivation Factor The Innovation Factor Sense of Control Autonomy Credit for the Outcome Case Study Innovation and “The soul of Google is rapid innovation” - David A. Vise, The Google Story Google’s Culture Pajama Day, 2005 Google's European headquarters in Dublin Google Founder’s Award Google’s Finances $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $2002 2003 Net Income 2004 2005 Revenue 2006 Google’s Stock Value Similarities: Control Data & Google Culture Lack of Bureaucracy Strong Customer Focus Knowledge Workers Needs Acute Knowledge Supportive Infrastructure Risks/Failures Case Study Motivating People to Volunteer at the Baltimore National Aquarium What makes you Volunteer? To Learn Satisfaction 98% of adults believe that a great deal of satisfaction is gained by volunteering Be an example for family and friends Time is one of their most valued commodities. Relationships are highly valued Interact with others Volunteers prefer to be creative as they solve problems. Does it match up? Learn Trained and tested for each specific job Satisfaction Weekly distributions showing the difference being done Be an example Live the mission of the Aquarium Relationship Eat together, have dinner and celebrate as groups solve problems. Input is important, treated as staff How good are they? Designed in 1977 600 active volunteers Model that many other organizations copy Clear mission and goals Making a difference on the environment “Running a world-class volunteer program demands the same standards of excellence as any well-run corporate business,” says Audrey Suhr, director of volunteer services and staff development at the National Aquarium in Baltimore. Questions? Thank you for your participation and for listening.