1001EHR Lecture Notes - Lecture 8: Equity Theory, Goal Setting, Expectancy Theory
30 May 2018
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Week 8 Work and Employability lecture notes
Rewards and Motivation
Reward management
• Is a process by which organizations distribute financial and non-financial rewards
• Monetary and/ or non-monetary exchange between employees
• Overall, appropriate rewards will determine whether your employees are motivated
to work hard, perform well and whether they stay with the organization
Framework for effective rewards
1. Competitive in order to attract and retain key employees
2. Convergent with business strategy and required values, skills and behaviors
3. Contribution should be rewarded, along with performance
4. Customized to the needs of different employees
5. Committed to engage and motivate employees
6. Communicated well and understood by employees
7. Cost effective, affordable and sustainable
8. Changes in response to different needs
9. Controlled, efficient to manage and administer
10. Compliant, legally, internally, equitable, fair
The three main motivation theory groups
• Are content, process and reinforcement theories
o Content theories of motivation emphasize nature of human needs and focus
on what factors motivate people
o Process theories focus on extrinsic needs. An extrinsic need includes factors
external to individual, such as monetary rewards
o Reinforcement theory focuses on rewarding behaviors where a stimulus is
used to influences behavior- i.e. promotion
Reward systems
• Time – employee input e.g. hourly rates, weekly or monthly wage, annual salary
o Applies to and easily understood by most employees
o Salary progression recognizes experience measured by length of service or
age
o Easy to administer
• Results- employee output e.g. piecework
o Provided strong incentive
o Relate to either whole or part of pay
o Expensive to install and maintain, standards often disputed
• Enterprise- employee effort and achievement of organization objectives e.g.
workplace wide bonus schemes
o Staff identify with organizations with both deriving direct financial success in
i-wi situatios
• Performance- objectives and indicators e.g. customer satisfaction levels and sales
targets
o not base on standard formula: based on individuals
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o links reward to achievement of specific organizational goals and competitive
edge
o individual focus undermined teamwork
• Skills
o Encourages skill development
o May recognize competencies (wider than knowledge-based) and incorporate
behavior and attributes
o Leads to productivity improvements
o Meets needs of employees for advancement
Flexible Benefits
• Flexible benefits plans allow employees to select benefits that best suit their lifestyle
and stage from those offered by the organization
• Workforce diversity required flexibility and choice
o Influenced by age, martial status, gender, etc. e.g. working mothers prefer
leave, more understanding and child-care
o Family friendly benefits are a current trend
Reward system issues
1. Managers need to decide how work is valued and whether people will be rewarded
for skills possessed or work done
2. Need to decide how will reward high performance- pay only, or pay + bonus?
3. Is status, length of service and experience to be rewarded?
4. Is pay to be at, above or below market rate?
5. Structure of organization needs to be taken into account
Motivation Styles by Marcia Conner
• If you are goal-oriented, you probably reach for your goals through a direct and
obvious route.
o This might lead you to be a reference book, your computer, or to call an
expert- whatever means is available
o You usually prefer meeting in-peso he its the ost effetie ethod
ad dot fid leaig, itself, uh fu
• If you are relationship-oriented, you take part in learning mainly for social contact
o When you meet, and interact with people, you learn things along the way
o You may not like working independently or focusing on topics (separately
fo the people) eause that doest gie ou the iteatiit ou ae
• If you are learning-oriented, the practice of learning, itself, drives you
o You search for knowledge because learning delights you and you may
become frustrated by anything that requires you to spend more time
following procedures than on actual learning
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find more resources at oneclass.com
Document Summary
The three main motivation theory groups: are content, process and reinforcement theories, content theories of motivation emphasize nature of human needs and focus on what factors motivate people, process theories focus on extrinsic needs. An extrinsic need includes factors external to individual, such as monetary rewards: reinforcement theory focuses on rewarding behaviors where a stimulus is used to influences behavior- i. e. promotion. Flexible benefits: flexible benefits plans allow employees to select benefits that best suit their lifestyle and stage from those offered by the organization, workforce diversity required flexibility and choice. Influenced by age, martial status, gender, etc. e. g. working mothers prefer leave, more understanding and child-care: family friendly benefits are a current trend. Modern content theories: focused on the nature of human needs, co(cid:374)(cid:272)e(cid:396)(cid:374)ed (cid:449)ith (cid:858)(cid:449)hat(cid:859) fa(cid:272)to(cid:396)s (cid:373)oti(cid:448)ate people, focused mainly on intrinsic needs, main theories, needs theory (maslow, two factor theory (herzberg)
