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Motivation
Motivation refers to the desire, effort, and passion to achieve something. It is the willingness to complete a task or job with intent and purpose
Demotivation
Demotivation refers to a lack of interest and enthusiasm about work
Generic benefits of increased workers’ motivation
Better industrial relations (reduce the chance of conflict in the workplace)
Lower absenteeism (more incentive for workers to go to work)
Lower staff turnover (reduce the cost for business in replacing those people)
Taylor's scientific management theory of motivation
advocated the use of piece-rate payment systems suggesting that “what the workmen want from employers beyond anything else is higher wages.”
Differentiated piece rate- workers are paid a standard level of output and receive a higher rate if they exceed that level
Criticism/ Limitation on Taylor’s theory
Ignores non-fiancial factors
Does not recognize that people can be independent thinkers
Difficult to measure the output of professionals that focus on mental output, rather than physical output
can lead to repetitive and monotonous
Maslow’s hierarchy of needs
Maslow focused on the psychological needs of workers as he believed people are motivated than just their pay
he suggested that people would need to be satisfied with their lower level needs before they could progress to higher-level needs.
Criticisms of Maslow's Hierarchy of Needs
Identification of workers needs is difficult
Not everyone have the same five needs
Self actualization are rarely permanently achieved
Herzberg two factor theory
Herzberg focused on the sociological and psychological aspect of work
He investigated the factors that caused satisfaction and dissatisfaction at work
Hygiene factors (mainly physical aspects)
Motivators (mainly sociological aspects)
Criticisms of Herzberg
Hygiene factos can be taken for granted
Does not apply to low skilled jobs (the study was limited to engineers and accountants)
Employees may not want the extra responsibility and stress from having enriched/more demanding jobs
McClelland’s acquired needs theory
Suggests that there are three types of needs that must be satisfied to boost motivation and productivity
Need for achievementt, power, affiliation
Deci and Ryan’s self-determination theory
Suggests that the drive to flourish relies on three requirements:
Autonomy - means having control over our own lives and decision
Competence - having the knowledge and confidence to learn and do things well
Relatedness - is about our connections with other people in society
Equity Theory by Adams
Equity theory and expectance theory are both examples of process theories of motivation. This category of motivation theory considers how motivation occurs, rather than what motivates people
Suggests what motivates employees is whether they feel outputs are equal or relative to their input and/or remuneration equitable.
Expectancy theory by Vroom
Suggests that people only put in the effort to do a task if they expect they will achieve the required results
Vroom suggests when faced with options, people choose the one with the greatest motivation consisting of three parts:
1.expectance
2.instrumentality
3.valence
Labor turnover
Labor turnover measures the percentage of the workforce that leaves the organization in a given time period (usually one year)
amount of number of people in an organization
Cost of high labor turnover
Negative corporate image
Negative impact on remaining workforce ex. poor morale, lower productivity and overburdening exisitng staff
Lost productivity during the time between the loss of employees and hiring replacement workers
Types of appraisal
An appraisal is the formal assessment of an employee’s performance in fulfilling a job based on the tasks and responsibilities set out in the job description.
Performance management using Appraisal are conducted in order to…
Help the employee improve their performance at work
Hold employees accountable
Improve the employee’s motivation and job satisfaction
Identify specific training and develop needs to support the employee
Methods of appraisal
formative appraisal
summative appraisal
360-degree feedback
self-appraisal
advantages of appraisal
lead to professional development with goal-setting
allows for objective praise of staff
provide constructive feedback
identify common strength
managers can use the appraisal to think about numeration and salary
disadvantages of appraisal
time-consuming and costly
appraisers may lack skills, experience and confidence in carrying out appraisals effectively
employees can experience unnecessary anxiety if appraisals are linked to pay
may cause anxiety or stress
Recruitment and selection process
Vacancies become available
Advertise the vacant pst
check applications and create a shortlist
conduct interviews
perform aptitude testing
conduct interviews
check references
offer jobs to the best candidates
issue and sign employment contract
Carry out new employee induction
External recruitment
hiring people from outside the business
methods used to recruit externally include
-Newspaper advertising
-headhunting
-job centers
advantages and disadvantages of external recruitment
advantages
new blood from people hired to bring in new ideas
a wider range of experience
larger pools of applicants
disadvantages
time-consuming
expensive
greater degree of uncertainty
Types of financial rewards
Salaries
wages (time and piece rates)
Commission
profit related pay
Performance related pay
Employee share ownership schemes
Fringe benefits
Salaries
are financial rewards set at a fixed annual rate but paid on a regular basis
Wages
wages are the rewards for labor services usually expressed as an hourly rate (time) or as a measurable quantity of output (piece rate).
Wages earners are often paid an overtime rate for the hours they work over and above their contracted hours
Wages (piece rate)
Piece rate is a payment system that can get around the problem of time based wages by rewarding more productive workers
Payment systems reward workers based on their output or productivity
Commissions
Pays workers based on a proportion (percentage) of sales or output contributed by a worker
For example, real estate agents might get paid 1% (the commissions) a $500,000 property would earn $5000 in commission.
Performance-related pay (PRP)
rewards employees (as individuals, teams, or as a whole workforce) who meet certain goals
PRP can be paid in various ways:
Pay rise - an increase in a person’s remuneration due to meeting or exceeding pre-determined and pre-agreed performance targets
Performance bonus - paid as a one-off reward to workers who have reached or exceeded output or quality targets
Gratuity - paid to staff who complete their employment contracts
Profit-related pay (PRP)
is a type of financial reward system which remunerates workers a certain percentage of the annual profits that the business earns. It is rewarded on top of an employee’s normal pay (wages or salaries)
Profit-related pay is usually paid as an annual bonus
Employee share ownership scheme
An employee share ownership scheme is a type of financial payment system that involves giving workers shares in the company they work for.
This comes in two main forms:
The company gives employees a number of shares, freely without any charge
Employees are offered the opportunity to purchase shares at a discounted price
Fringe payments
(also known as financial perks) are the monetary benefits to employees in addition to their wages or salaries.
TYPES OF NON FINANCIAL REWARDS
▪Job enrichment
▪Job rotation
▪Job enlargement
▪Empowerment
▪Purpose/the opportunity to make a difference ▪Teamwork
Job enrichment
About enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work
Job rotation
Workers switching between jobs (tasks) for a period of time
Job enlargement
When more tasks or activities are added to a worker’s job description.
Empowerment
Is the delegation of decision-making power to workers, thereby helping to boost their morale. It involves granting workers the autonomy and authority to be in charge of their own jobs and to execute their own ideas.
Teamwork
refers to the combined efforts of a group of workers to achieve of an organizational goal.
Purpose/ the opportunity to make a difference
Is an intrinsic, non-financial type of motivation because people believe what they do genuinely meaningful work. non-financial motivation often involves to having opportunities to make a difference, be it on a personal, professional or social level.
Induction training
▪is a type of training aimed at introducing new employees to the organization.
▪the purpose of induction training is to help new recruits to settle in quicker so they feel self-assured and supported in their new job
On the job training
refers to training carried out whilst at the workplace.
Off the job training
refers to training conducted offsite, such as at a tertiary college or hotel conference center.
Organizational culture
Corporate culture (or organizational culture) refers to an organization’s set of core values and beliefs. It shapes the firm’s attitudes and norms.
3 main aspecs Organizational culture
Attitude
Beliefs
Values
Benefits of strong organizational structure
Reduce mistakes and misunderstandings
Minimizes problems when conflict occurs
Create sense of belonging and security for staff
Promote cohesion so people do the right thing
Zeus (Power)
Power radiates from just a few individuals
Few rules and little bureaucracy
Flat structure with quick decision-making
Advantage - fast decision-making and less bureaucracy
Disadvantages - more negative to employees, they have the freedom to make their own decisions
Apollo (Role)
People have clearly delegated authority within a highly defined structure.
A tall bureaucratic structure with slow decision-making
More bureaucracy (more administrative work)
Advantage: employees have a clear direction of their roles
Disadvantages: they might not be ready in terms of radical changes or external changes outside the organization
Athene (Task)
Emphasizes the achievement of goals
Team-based organization with no single power source
Employees are highly empowered
Disadvantage: hard to maintain, managers have to make sure they have a team with people with its own ability and talent
Dionysian (Person)
These cultures exist in firms where staff are in similar positions with similar expertise (e.g accountants or doctors)
They only exist for the benefit of the individuals involved.
Cultural Clash
Culture clash exists when there is conflict between two or more cultures within an organization
Cultural gap
Cultural gap happens when there are differences between the desired culture of a business and the culture that actually exists
Common causes of cultural clash
Growth of firm - more employees may lead to a formal structure and hierarchy that can lead to bureaucracy (long process) and cause power power-oriented culture
Mergers and acquisition - two companies combine but with different culture, and those who cannot adapt leaves the company
Changes in leadership
Consequences of cultural clash
Misunderstanding and miscommunication
Discontented staff
Resistance to change
Compromises need to be reached
High cost implementing change
National culture clashes
Hofstede’s cultural dimension
Power distance
Collectivism vs individualism
Femininity vs masculinity
Uncertainty avoidance
Short term vs long term orientation
Restrain vs indulgence
Power distance
Power distance refers to the extent to which a culture accepts and respects authority and status. A high degree of power distance exists if an organizaton has centralized decision-making, hierarchical structures, and high regard for position or ranking within the organization, such as in the military (the Army, Navy, Air Force, Marines, and Coast Guard).
Collectivism vs individualism
This cultural dimension refers to the degree to which people are integrated into groups in society. Individualism vs collectivism is about whether a society values the individual over a team or collective group of individuals in a specific community. Hence, this cultural dimension is sometimes referred to as the “I” vs “we” cultural dimension.
Femininity vs Masculinity
Masculinity refers to societies or cultures defined by a focus on achievement, competition, status, power, and wealth. Society is generally more competitive and driven by material rewards. Such cultures are highly competitive and may come across as overly aggressive by others.
Uncertainty avoidance
The uncertainty avoidance cultural dimension of Hofstede's model refers to the rating or index of a society’s tolerance for ambiguity, i.e. whether the community is generally comfortable with uncertainty and ambiguity. It is about whether a society feels its should try to control the future or just let it happen. Essentially, uncertainty avoidance measures society’s tolerance for uncertainty or vagueness
Short term vs long term orientation
Long-term vs. short-term orientation is the cultural dimension that connects the past with attitudes towards the future. All society maintain some links with their past in reference to dealing with the challenges of the present as well as the future. Different societies prioritize these two approaches in different ways.
indulgence vs Restrain
An indulgent culture refers to a society or organization that fosters the natural human drive to be free, to have fun, and to generally enjoy life. By contrast, a restraining culture means there is a tendency for society to suppress people's personal needs and desires by a system of strict social norms and self-regulation. As this sixth element of the model was only included by Hofstede in 2010,there are less data about the indulgence vs restraint cultural dimension of different nations.