OB Assignment 1 Essay

INDEXPAGE NO.INTRODUCTION.2MOTIVATION DEFINATION2MOTIVATION THEORIES.2EXPECTANCY THEORY…3REWARD PERFORMANCE DIAGRAM…3EXAMPLE….4CONCLUSION5REFERENCEMOTIVATIONThe topic of employee motivation plays a central role in the field of management”both practically and theoretically. Managers see motivation as an integral part of the performance equation at all levels, while organizational researchers see it as a fundamental building block in the development of useful theories of effective management practice. Indeed, the topic of motivation permeates many of the subfields that compose the study of management, including leadership, teams, performance management, managerial ethics, decision making, and organizational change.

. It is not surprising, therefore, that this topic has received so much attention over the past several decades in both research journals and management periodicals. Whereas several recent articles have examined how far we have come in researching work motivation, this special forum focuses on where we are going.1Engagement and motivation are often mentioned together and interchanged. Engagement is considered to be long-term and is associated with emotional commitment and loyalty.

Motivation has been associated more with satisfaction and productivity. There are many ideas and renowned theories on motivation, for example, Maslow’s hierarchy of needs, Herzberg’s motivating and hygiene factors, McGregor’s Theory X and Theory Y, Adams’ Equity theory, as we will as ideas and theories by McLelland, Vroom, Alderfers, and others.The common theme underpinning almost all the ways rewards contribute to organisational strategy is the use of pay and other forms of reward to change, shape or otherwise influence individual employee behaviour. Managers want individual employees to work harder, work smarter, reach higher levels of performance and productivity, generate better results and provide a better service to customers. Managers also want individuals to cooperate with each other in teams, to develop their skills and apply these to their work, and so on. The focus is on behaviour change ” people doing something different from what they have done before and would not have done otherwise without a reward for doing so.The theoretical basis for using rewards to change employee behaviour and reinforce job performance falls generally within the academic study of human motivation. Over the years, numerous theories have been proposed to explain motivation in organisational contexts with some ” notably goal setting, equity theory, expectancy theory, and reinforcement theory ” being more successful than others. All contemporary textbooks on organisational behaviour, and many on human resource management, provide an overview and critique of these theories.3Integrating and simplifying these theories, the basic model that links rewards with individual behaviour or job performance, and then to organisational performance, is explained below and summarised in Figure below There have been many versions of this basic model but most have the same essential features.4Figure: The reward-performance link5The relationship between pay and motivation is very complex. It is based on employees’ perception of what their pay level should be. Such perception is influenced by comparison with others and by assessment by the employee of the value of the work. The outcomes of work must be valued by the employee before they become useful as a motivational tool. The theory covering this relationship is often referred to as the expectancy theory. Employees behave in such a way as to achieve a desired outcome, such as rewards or social approval. Wage and salary setting is likely to have the greatest impact on people with a strong need for money. Expectancy theory assumes that the reward structure in an organisation is directly related to work performance. If employees perceive that this is the case, and if pay is of sufficient importance to them, it is likely that they will try harder to gain the extra reward. In such cases, the reward would need to closely follow the action. Another aspect of the expectancy theory is that if employees think a set goal is unattainable, or if the reward is not worth the effort, then they may not be motivated to lift performance in the hope of achieving the reward. When setting bonuses, piece rates, incentives and other potential increases, this attitude should be considered. Goals should be realistically achievable. Motivation may also be affected by the level of job satisfaction an employee experiences. Job satisfaction is the sense of gratification that a person derives from the job they are performing. It usually arises from the person’s relationship to their work, supervisors, and/or the general work environment. Pay is an integral component of all three relationships.For example in the organisation I worked, to build motivation in employees and gain profit an incentive scheme was introduced by the managers in coordination with authorities. The scheme was so luring that it motivated many employees to work smarter than harder. The main point was incentive scheme was first introduced at first month and then quarterly basis. Recruiters were given reward based on their target achieved and in accordance their respective managers were also rewarded. The managers to get their rewards arranged meeting with recruiters on hoe to accomplish work and achieve target rather than wasting time on fossils. A motivational lecture was arranged before the start of the work so that employees can work accordingly. And after one month the dedicated employees were rewarded and that incentive plan was a motivation booster for all and employees responding to it aimed a great success ratio which was observed after one year when the profit graph increased and the company head visited us to greet them on a large function.You will get what you reward! Just make sure what you are rewarding is what you want, and what the strategy requires.Behavioural psychology would also point to the desirability of employees receiving their rewards as soon as possible after their having performed the behaviours required of them and/or having achieved their performance goals. The ease of achieving this will be largely dependent on the administrative and technological support available, combined with the performance/productivity measure used and how often it is measured. However, it is possible for rewards to be delayed if employees know exactly when they have obtained eligibility to receive a reward (the knowledge of both achievement and a future reward is also rewarding), as well as when they will receive it. Remuneration or any other reward system that offers an incentive for agreed actions or results by an employee creates a psychological contract ” and in many cases a common law contract ” with that employee. The failure by management to fulfil a reward contract breaks trust that is fundamental to any exchange relationship, with the inevitable long-term and destructive consequences. References:Adams, S. J. 1963. Towards an understanding of inequity. Journal of Abnormal and Social Psychology, 67: 422″436.Williams, D., Van Hooser, P., Dieken, C. and Papp, E. (n.d.). Leaders at work.Recommended examples include J Shields Managing Employee Performance and Reward: Concepts, Practices, Strategies(Cambridge University Press, New York, 2007) and F Luthans and AD Stajkovic Reinforce for Performance: The Need to Go beyond Pay and Even Rewards (1999) 13(2) Academy of Management Executive 49″57For examples, see J Shields Managing Employee Performance and Reward: Concepts, Practices, Strategies (Cambridge University Press, New York, 2007), EE Lawler Pay and Organization Development (Addison-Wesley Publishing Company, 1981) and M Beer, B Spector, PR Lawrence, DQ Mills and RE Walton Managing Human Assets (The Free Press, New York, 1984)K Macky Chapter 11: Remuneration. In K Macky (ed) Managing Human Resources: Contemporary Perspectives in New Zealand(McGraw-Hill, Australia, 2008) at 344.left198120000