CHAPTER 7
MOTIVATIONAL INTERVENTIONS: SALARY, BONUS, OR THAT CORNER OFFICE
KEY POINTS
 Motivational interventions improve human performance by increasing the amount of commitment and persistence of
performers
 There both monetary and non-monetary motivational interventions
 Performance = Ability x Environment x Motivation
 Understanding different types of motivation helps you select, design, and implement the best type of motivation to achieve
different goals
 Both motivators and demotivators need to be considered
 Interventions should be designed and implemented in accordance with organizational budget, schedule and capacity in
terms of personnel and physical resources
 Select an appropriate mix of motivators
WHAT ARE MOTIVATIONAL INTERVENTIONS?

Motivational interventions improve human performance by increasing the amount of commitment and persistence of
performers
MONETARY INTERVENTIONS
NON-MONETARY INTERVENTIONS
Salary
Meaningfulness of work
Positive feedback
Feedback from end users
Merit pay
Sense of competence
Skill recognition
Removal of task barriers
Bonus
Availability of choices
Exciting vision
Mentoring
Allowances
Feeling of progress
Whole tasks
Training
Pension
Freedom to make mistakes
Collaborative climate
Promotion
Profit sharing
Clear purpose
Milestones
Job security
Expense accounts
Access to information
Celebrations
WHAT IS MOTIVATION?

Spurring someone to act in a certain way

The psychological process that gives purpose and direction to people’s behavior

A state of mind that drives people to achieve personal and organizational goals

Performance = Ability x Environment x Motivation
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CHAPTER 7
MOTIVATIONAL INTERVENTIONS: SALARY, BONUS, OR THAT CORNER OFFICE

Lack of motivation is the root cause for most HP problems
TYPES OF MOTIVATION: INTRINSIC AND EXTRINSIC

Intrinsic Motivation: occurs when the performance of a task becomes an end in itself

Extrinsic Motivation: comes from factors outside of the task you are performing

Internal Motivation: (self-motivation) comes from inside yourself

External Motivation: comes from the outside
o
Internal vs. External
Internal motivation is induced by…
Fantasies
Embarrassment
Daydreams
Potential effect on self-esteem
Ego gratification
External motivation is categorized into…
Monetary motivators
Non-monetary motivators
MOTIVATORS AND DEMOTIVATORS

2 approaches to develop effective motivation systems:
o
Adding and highlighting motivators that reinforce appropriate performance
o
Removing and reducing demotivators that punish appropriate performance
VARIATIONS IN PURPOSE: THE THREE Rs

The 3 Rs of motivational systems:
1. Recruitment Systems

Encourage competent people to work for the organization
2. Retention Systems

Discourage competent people from leaving the organization
3. Results Systems

Encourage competent people to accomplish more for the organization
HOW TO DESIGN AND IMPLEMENT A MOTIVATION SYSTEM


Analysis Activities
o
Analyze motivational characteristics and preferences of the target population
o
Analyze motivators and demotivators that influence current job performance
o
Conduct job/ task analysis
o
Specify performance goals and related rewards
Design Activities
o
Select an appropriate mix of motivators
o
Design a prototype motivation system
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CHAPTER 7
MOTIVATIONAL INTERVENTIONS: SALARY, BONUS, OR THAT CORNER OFFICE
o
Review the system for undesirable effects
THE ABC WAY



Balance


Consistency

Adequacy
o

Does motivation system provide an adequate level of rewards associated with the job performance required?
Are the rewards adequate when compared to alternative opportunities available to the performer?
Does the motivation system feature horizontal balance by providing equal rewards for equal levels of performance?
Does the system feature vertical balance by providing differentiated rewards for unequal levels of performance?
Does the motivation system directly reward the achievement of organization and job goals?
Is there a close fit between the rewards and job performance requirements?
Revise the motivation system
Implementation Activities
o
Keep employees involved and informed
o
Orient the employees to the new motivation system
o
Modify the system based on immediate feedback
o
Continuously monitor and upgrade the system
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