MANAGERIAL APPROACHES TO MOTIVATION

SCIENTIFIC MANAGEMENT (1890 1930)

ECONOMIC INCENTIVES

HUMAN RELATIONS MANAGEMENT (1930 1965)

SOCIAL RELATIONSHIPS

HUMAN RESOURCES MANAGEMENT (1965 +)

MEANINGFUL WORK EXPERIENCES

PSYCHOLOGICAL APPROACHES TO MOTIVATION HEDONISM (pre 1890)

RATIONAL CHOICES

INSTINCT (UNCONSCIOUS) (1890 1920)

UNCONSCIOUS HEDONISM

DRIVE (REINFORCEMENT) (1920 +)

HEDONISM OF THE PAST

COGNITIVE (1940 +)
HEDONISM OF THE FUTURE

WHAT IS MOTIVATION?
HEDONISM??

3 WAYS OF LOOKING AT MOTIVATION: 1. WHAT INITIATES OR ACTIVATES BEHAVIOR? NEEDS 2. WHAT DIRECTS BEHAVIOR TOWARD A PARTICULAR GOAL? RATIONAL PROCESSES 3. HOW IS GOOD BEHAVIOR SUSTAINED OVER TIME? REINFORCEMENT

MOTIVATION THEORIES
CONTENT (NEED) THEORIES HIERARCHY OF NEEDS (Maslow) ERG THEORY (Alderfer) MANIFEST NEEDS (Murray, McClelland) TWO-FACTOR THEORY (Herzberg) JOB DESIGN THEORY (Hackman) PROCESS THEORIES EQUITY THEORY (Adams) EXPECTANCY THEORY (Vroom) COGNITIVE EVALUATION THEORY (Deci) GOAL-SETTING THEORY (Locke) REINFORCEMENT THEORIES OPERANT CONDITIONING (Skinner) BEHAVIOR MODIFICATION

CONTENT THEORIES
WHAT INITIATES OR ACTIVATES BEHAVIOR?

Models of motivation that try to answer the questionWhat factors in the workplace motivate people? Focuses on needs and deficiencies of individuals.

Maslows Hierarchy of Needs

Source: Adopted from Abraham H. Maslow, A Theory of Human Motivation, Psychology Review, 1943, Vol. 50, pp. 370-396.

HIERARCHY OF NEEDS
MASLOW (43)

ASSUMPTIONS
A 5-LEVEL HIERARCHY OF NEEDS EXISTS UNIVERSALLY ONLY UNSATISFIED NEEDS MOTIVATE US AS LOWER-LEVEL NEEDS ARE SATISFIED, HIGHER-LEVEL NEEDS BECOME MORE IMPORTANT DETERMINANTS OF BEHAVIOR

THE HIERARCHY
5. 4. 3. 2. 1. SELF-ACTUALIZATION ESTEEM OR EGO NEEDS BELONGINGNESS OR SOCIAL NEEDS SECURITY OR SAFETY NEEDS PHYSIOLOGICAL NEEDS

RESEARCH FINDINGS
NO DISTINCT PROGRESSION UP THROUGH THE 5 LEVELS PEOPLE PURSUE SEVERAL NEEDS SIMULTANEOUSLY PEOPLE CAN REGRESS (MOVE BACK DOWN) THE HIERARCHY

ERG THEORY
ALDERFER (69)

ASSUMPTIONS
A THREE-LEVEL HIERARCHY MORE THAN ONE NEED CAN BE SIMULTANEOUSLY PURSUED PEOPLE CAN REGRESS (MOVE BACK DOWN) THE HIERARCHY

THE HIERARCHY 3. GROWTH NEEDS 2. RELATEDNESS NEEDS 1. EXISTENCE NEEDS RESEARCH FINDINGS
FITS THE EMPIRICAL RESEARCH BETTER THAN MASLOW ALL OTHER ASPECTS OF THIS MODEL ARE ESSENTIALLY SIMILAR TO MASLOWS NEED HIERARCHY

MANIFEST NEEDS
MURRAY (38), McCLELLAND (65)

ASSUMPTIONS
THERE IS NO HIERARCHY AMONG THE NEEDS NEEDS ARE LEARNED, NOT INSTINCTIVE NEEDS ARE NEVER COMPLETELY SATISFIED

(N ACH) ACHIEVEMENT
ASSUMES PERSONAL RESPONSIBILITY SETS MODERATELY DIFFICULT GOALS, TAKES RISKS DESIRES IMMEDIATE, CONCRETE FEEDBACK PREOCCUPIED WITH TASKS & ACCOMPLISHMENTS

(N AFF) AFFILIATION
DESIRES APPROVAL AND REASSURANCE FROM OTHERS WANTS TO HAVE CONTACTS WITH OTHERS CONFORMS TO WISHES AND NORMS OF OTHERS CONCERNED WITH FEELINGS AND SOCIAL RELATIONSHIPS

(N POW) POWER (DOMINANCE)

DESIRES INFLUENCE & ADVISE OTHERS AROUND THEM DESIRES TO CONTROL ONES OWN ENVIRONMENT HAS A STRONG SENSE OF ORDER

TWO-FACTOR THEORY
HERZBERG (59)

ASSUMPTIONS
TWO DIFFERENT TYPES OF FACTORS INFLUENCE USHYGIENES & MOTIVATORS THE OPPOSITE OF SATISFACTION IS NO SATISFACTION THE OPPOSITE OF DISSATISFACTION IS NO DISSATISFACTION ONLY MOTIVATING FACTORS LEAD TO SATISFACTION HYGIENES AT BEST LEAD TO NO DISSATISFACTION

HYGIENES

(EXTRINSIC)

MOTIVATORS

(INTRINSIC)

WORKING CONDITIONS COMPANY POLICIES SUPERVISIOR COWORKERS SALARY & BENEFITS STATUS SYMBOLS

RESPONSIBILITY CHALLENGE OF WORK MEANINGFUL WORK ACHIEVEMENT ACCOMPLISHMENT GROWTH OPPORTUNITIES

IMPLICATIONS
ABUNDANT HYGIENES DO NOT MOTIVATE WORKERS, THEY ONLY PREVENT DISSATISFACTION ENRICH JOBS TO PROVIDE MOTIVATING, CHALLENGING WORK AND HIGH SATISFACTION

WEAKNESSES
RESEARCH METHODOLOGY IS FLAWED DOESNT RECOGNIZE INDIVIDUAL NEED DIFFERENCESNOT EVERYONE WANTS ENRICHED JOBS OVEREMPHASIZES JOB SATISFACTION

JOB DESIGN THEORY

HACKMAN & OLDHAM (76)

JOB CHARACTERISTICS MODEL

FIVE JOB DIMENSIONS PSYCHOLOGICAL STATES

SKILL VARIETY TASK IDENTITY TASK SIGNIFICANCE AUTONOMY

MEANINGFULNESS (Leads to high internal work motivation) PERSONAL RESPONSIBILITY (Leads to high quality work & satisfaction)

FEEDBACK

KNOWLEDGE OF RESULTS (Leads to high satisfaction & low turnover) ---------------------------------------------------------EFFECTIVENESS IS MODERATED BY EMPLOYEE GROWTH-NEED STRENGTH CALCULATE THE MOTIVATING POTENTIAL SCORE TO DETERMINE IF THE JOB NEEDS TO BE REDESIGNED ARE YOUR WORKERS MOTIVATED BY INTRINSIC WORK FACTORS AND A STRONG NEED FOR ACHIEVEMENT (AN ENRICHED JOB)?

PROCESS THEORIES
WHAT DIRECTS BEHAVIOR TOWARD A PARTICULAR GOAL? What is the rational thinking process that we go through to decide whether to do something or not? Focuses on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.

EQUITY THEORY

(ADAMS 65)

I compare my work outcomes (Om) with my perception of what others outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io). If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be fair. (Om/Im) = (Oo/Io)
I feel fairly treated (content)

POSITIVE & NEGATIVE INEQUITY

If I believe my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and over-rewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action. (Om/Im) > (Oo/Io)
I feel over-rewarded (guilty)

If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and underrewarded. This is NEGATIVE INEQUITY, and this perception usually motivates one to act to resolve this unfair situation. (Om/Im) < (Oo/Io)
I feel under-rewarded (frustrated)

LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED

CHANGE MY OUTCOMES CHANGE MY INPUTS RECONSIDER (OR DISTORT) THE PERCEIVED RATIOS CHANGE OTHERS INPUTS OR OUTCOMES CHANGE COMPARISON OTHER LEAVE THE ORGANIZATION OR WITHDRAW

EXPECTANCY-VALENCE THEORY
THREE PERCEPTIONS

EXPECTANCY (E P) If I put forth effort (E), whats the probability that I can achieve the performance objective (P)? INSTRUMENTALITY (P O) If I achieve the performance objective (P), whats the probability that a specific outcome (O) or reward will be given to me? VALENCE (V) How much value (positive or negative) do I attach to receiving this outcome? MOTIVATION (EFFORT) = (E P) x sum of [(P O)i(V)i]

COGNITIVE EVALUATION THEORY

DECI (95)

(The Deci Argument or the Insufficient Justification Thesis) MORE REWARDS ARE NOT NECESSARILY BETTER FOR MOTIVATION: THE EFFECTS OF INTRINSIC AND EXTRINSIC REWARDS IS NOT ADDITIVE.
WHEN MONEY IS STRESSED AS A WORK REWARD, PEOPLE LOSE SIGHT OF THE INTRINSIC REWARDS THAT ARE INHERENT IN THE WORK ITSELF. THIS IS PARTICULARLY PRONOUNCED WHEN YOU TANGIBLY REWARD VOLUNTEERS OR PAY MUCH MORE FOR WORK THAN WAS EXPECTED. MAYBE WE SHOULDNT LINK PAY OR REWARDS TO WORK PERFORMANCESO THE INTRINSIC REWARDS OF THE JOB WILL CONTINUE TO BE PERCEIVED WEAKNESSES
ORIGINAL STUDIES DONE MOSTLY WITH STUDENTS HIGH LEVELS ON INTRINSIC MOTIVATION ARE NOT DIMINISHED BY EXTRINSIC REWARDS MOST WORKERS IN THE REAL WORLD EXPECT TO BE PAID FOR THEIR EFFORTS SENSITIZATION SEEMS TO MAINTAIN AWARENESS OF INTRINSIC MOTIVATORS

GOALSETTING THEORY
LOCKE (68)

ASSUMPTIONS
* WORKERS WANT CLEAR CRITERIA FOR WORK EVALUATION SPECIFIC GOALS INCREASE PERFORMANCE DIFFICULT GOALS (WHEN ACCEPTED) RESULT IN MORE PERFORMANCE THAN EASY GOALS FEEDBACK LEADS TO HIGHER PERFORMANCE THAN DOES NONFEEDBACK

FINDINGS
PARTICIPATION INCREASES ACCEPTANCE OF CHALLENGING GOALS PEOPLE WILL WORK TOWARD MEETING GOALS IF THEY FEEL THEY HAVE CONTROL OVER GOAL ACCOMPLISHMENT SELF-GENERATED (as opposed to externally-provided) FEEDBACK LEADS TO THE HIGHEST GOAL ACHIEVEMENT NOT ALL CULTURES RESPOND WELL TO GOALSETTING (where worker independence and the expectation of individual evaluation is assumed) QUANTITATIVE, SHORT-TERM GOALS MAY NOT APPROPRIATELY CAPTURE THE ESSENTIAL QUALITIES WHICH SHOULD BE ACHIEVED IN A GIVEN JOB

USING GOALSETTING
MANAGEMENT BY OBJECTIVES (MBO) FOUR ELEMENTS
GOAL SPECIFICITY PARTICIPATIVE DECISION-MAKING EXPLICIT TIME PERIOD FEEDBACK

Are the objectives reasonable? are they accepted? More difficult goals can be accomplished if participatively set Are significant rewards given for accomplished objectives? Are significant portions of the job ignored because objectives cannot be set and measured? Does the culture accept the idea of individual evaluation and reward?

REINFORCEMENT THEORIES HOW IS GOOD BEHAVIOR SUSTAINED OVER TIME?

The role of rewards as they cause behavior to change or remain the same over time. Assumes that:
Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.

LEARNING
LEARNING A RELATIVELY PERMANENT CHANGE IN BEHAVIOR OR POTENTIAL BEHAVIOR THAT RESULTS FROM DIRECT OR INDIRECT EXPERIENCE.

KEY POINTS CHANGES IN BEHAVIOR LONG-LASTING EFFECTS AFFECTS POTENTIAL AND ACTUAL BEHAVIOR CAUSED BY DIRECT OR INDIRECT EXPERIENCE (Vicarious Learning) CLASSICAL CONDITIONING (Reflexive Behavior) PAVLOVS DOG INVOLUNTARY RESPONSE (No Choice) OPERANT CONDITIONING (Reinforcement) DRAWS ON EXPERIENCES OF THE PAST PEOPLE CAN MAKE CHOICES ABOUT THEIR BEHAVIOR RECOGNIZES THAT CHOICES HAVE CONSEQUENCES CONSEQUENCES EXPERIENCED WILL AFFECT FUTURE CHOICES

REINFORCEMENT THEORY
(SKINNER 72)

ASSUMPTIONS: The consequences of past actions will influence our future actions We repeat behaviors which lead to rewards that are satisfying We reduce behaviors which go unrewarded or lead to punishment Thus, tie valued rewards to desired behaviors in the workplace It is better to positively reinforce behavior than to use punishment TYPES OF REINFORCEMENT POSITIVE AVOIDANCE (NEGATIVE) EXTINCTION PUNISHMENT

SCHEDULES OF REINFORCEMENT
CONTINUOUS (every time)
New behaviors are quickly learned, but also stop quickly when unrewarded

INTERMITTENT (not every time) Fixed-Ratio Fixed-Interval Variable-Ratio Variable-Interval

Takes longer to learn new behaviors, but behavior is sustained over a longer period of time

5 MOST EFFECTIVE REINFORCERS

WARREN

MONEY (Tangible Compensation) RECOGNITION (Publicity, Praise) FREEDOM (Autonomy, Discretion) OPPORTUNITIES TO IMPROVE (Grow, Develop, Train) INFLUENCE & POWER (Promotion)

CONCERNS WITH REINFORCERS

ARE REWARDS PERCEIVED AS IMPORTANT AND DESIRABLE? CAN REWARDS BE GIVEN INCREMENTALLY AND FLEXIBLY? CAN REWARDS BE GIVEN FREQUENTLY, OR DO THEY WEAR OUT? ARE WORKERS LIKELY TO FEEL MANIPULATED? WILL GIVING EXTRINSIC REWARDS ERODE INTRINSIC VALUES?

HOW TO ENCOURAGE EXCELLENCE?

ARE WE TAKING FULL ADVANTAGE OF THE REWARDS WE CONTROL? HAVE WE THOUGHT THROUGH THE FULL IMPACT THAT OUR REWARD SYSTEM HAS ON THE ORGANIZATION? DO EMPLOYEES HIGHLY VALUE THE REWARDS WE MAKE AVAILABLE TO THEM? DO EMPLOYEES KNOW WHAT THEY MUST DO TO OBTAIN THESE REWARDS? IN SHORT, DO WE REWARD EXCELLENCE OR MEDOCRITY?

WHAT ARE YOU REWARDING WITH YOUR PAY SYSTEM?

TIME SPENT ON-THE JOB LONGEVITY (SENIORITY) WITH THE FIRM DEMONSTRATED SKILLS & COMPETENCIES PAST ACHIEVEMENTS & ACCOMPLISHMENTS CURRENT PERFORMANCE & PRODUCTIVITY

REMEMBER, YOU GET WHAT YOU REWARD!! HOW MUCH OF EACH COMPENSATION DOLLAR SHOULD BE PAID CONTINGENT ON PERFORMANCE? 5 % 10% 15% 25% 50% 100% ????

INCENTIVES AND PERFORMANCE-BASED REWARDS

FOR INCENTIVES TO BE SUCCESSFUL
1. 2. 3. 4. 5. 6. 7. PERFORMANCE INDICATORS MUST BE CLEARLY DEFINED STANDARDS MUST BE CLEARLY COMMUNICATED TO WORKERS WORKERS MUST BE ABLE TO INFLUENCE PERFORMANCE LEVELS PERFORMANCE MUST BE ACCURATELY EVALUATED REWARDS MUST BE BASED ON PERFORMANCE ACHIEVEMENT REWARDS OFFERED MUST BE HIGHLY VALUED BY WORKERS WORKERS AND MANAGEMENT MUST TRUST EACH OTHER

HOW TO ADMINISTER INCENTIVE PAY

A. ADD IT TO THE REGULAR PAYCHECK
ONCE ACQUIREDFOREVER PAIDNEVER IS EARNED AGAIN INCENTIVE PAY MIXED WITH BASE PAYWORKERS LOSE MOTIVATION

B.

PAY IT ALL OUT AS A LUMP-SUM AT ONE TIME

LARGE CASH OUTFLOWS ARE DIFFICULT FOR THE FIRM TO MANAGE OPPOSED BY UNIONS BECAUSE ANNUAL WAGES DONT GROW

INCENTIVE PLANS AND PERFORMANCE-BASED REWARDS -- 1

1. SENIORITY & LONGEVITY SYSTEMS Rewards loyalty to the firmnot productivity or performance Workforce more likely to possess obsolete skills Increments must be granted each year (no limit or cap) 2. ACQUIRED SKILLS & KNOWLEDGE INCENTIVES The size of pay increments for each added skill Labor costs go upbut does productivity improve? Once all skills are masteredwhat motivates the worker? There really arent any rewards for work performance

INCENTIVE PLANS AND PERFORMANCE-BASED REWARDS -- 2

3. PIECE RATES & COMMISSIONS Setting fair standards Changing standards and rates Who controls work outcomes? Are there rewards for all the essential duties of the job?

WHEN IS IT FEASIBLE TO USE PIECE RATES?

1. 2. 3. 4. 5. 6. 7. 8. UNITS OF WORK ARE EASY TO DISTINGUISH AND MEASURE QUALITY IS OF LESSER IMPORTANCE THAN QUANTITY WORKER INVOLVEMENT IS A MAJOR DETERMINANT OF PRODUCTIVITY THE WORKER CONTROLS WORK SPEEDNOT MACHINE-PACED CLOSE SUPERVISION IS IMPRACTICAL CHANGES IN WORK PROCESSES ARE INFREQUENT YOU HAVE EXPERTS TO SET AND EVALUATE YOUR WORK STANDARDS COMPETITION REQUIRES THAT UNIT LABOR COSTS BE PREDICTABLE

INCENTIVE PLANS AND PERFORMANCE-BASED REWARDS -- 3

4. MERIT REVIEW PLANS
(HAMNER, 75)

WHY DO MERIT PLANS FAIL?

Appraisal ratings seem invalid or biased

APPROPRIATE MEASURES? OBJECTIVITY OR RATERS?

Pay adjustments not seen as being related to performance Supervisors more concerned about satisfaction than performance Incentives offered (type and size) arent motivating
ARE THESE REWARDS HIGHLY DESIRED? SMALL INCREMENTS DO NOT MOTIVATE

Usually added to base pay as a percentage

EARNED ONCEKEPT FOREVER

Trust and openness about pay and merit increases is very low

INCENTIVE PLANS AND PERFORMANCE-BASED REWARDS -- 4

5. 6.

SUGGESTION SYSTEMS Origin of the ideawho should get the credit? Some workers cant write their ideas down Does management follow up on the ideas submitted? Supervisors criticizedsuggests theyre incompetent COST-REDUCTION (GAINSHARING) PLANS
SCANLON, KAISER, RUCKER, IMPROSHARE

Sensitive cost data must be revealed to workers Middle management is left out Unions use the system to criticize management Usually a complex formula for distributing rewards Weakened link between rewards & individual performance

INCENTIVE PLANS AND PERFORMANCE-BASED REWARDS -- 5

7. 8. 9. PROFIT-SHARING PLANS Is there a real link to worker performance? Impact of economic declinewhat happens to motivation? Determining the formula for distribution STOCK OWNERSHIP PLANS Dilution of control over the company Impact of changes in the tax laws and economic cycles Any real link to worker performance? SPECIAL CONTESTS AND AWARDS
ABSENTEEISM, SALES PROMOTIONS, OUTSTANDING SERVICE AWARDS

Are the consequences of the spirit of competition anticipated?

JEALOUSY, UNCOOPERATIVENESS, COMPETITION WITHIN TEAMS AND GROUPS

Only the Best receives a rewardwhat about # 2? Awards are often seen as rights (I earned it!), not as gifts

EMPLOYEE RECOGNITION PROGRAMS EMPLOYEE OF THE MONTH AWARDS

VOTED BY PEERS / CUSTOMERS or PICKED BY THE SUPERVISOR? INFORMALLY ACKNOWLEDGED or PUBLICLY CELEBRATED? PRAISED or TANGIBLY REWARDED?

TYPES OF RECOGNITION
INSTANT, SPONTANEOUS VERBAL COMPLIMENT PERSONALIZED WRITTEN NOTE / LETTER OF APPRECIATION PLAQUE OR CERTIFICATE OF OUTSTANDING PERFORMANCE POST PICTURE OF WINNER / GET SPECIAL PARKING SPOT ARTICLE IN COMPANY NEWSLETTER CASH AWARD OR VALUABLE GIFT

CAUTIONS
WAS THIS RECOGNITION LEGITIMATELY EARNED, OR IS IT FAVORITISM? IF COLLABORATION WAS INVOLVED, HOW TO RECOGNIZE THE CONTRIBUTION OF THE GROUP (ALL THE OTHERS) WHO HELPED YOU? IS THERE A RULE THAT PREVENTS YOU FROM EARNING IT AGAIN?

EMPOWERMENT & PARTICIPATION Empowerment

The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.

Participation
The process of giving employees a voice in making decisions about their work. Areas of Participation for Employees
Making decisions about their jobs (what to do and when) Making decisions about administrative matters. Participating in decision making about broader issues of product quality.

EMPLOYEE INVOLVEMENT PLANS

PARTICIPATIVE MANAGEMENT QUALITY CIRCLES EMPLOYEE STOCK OWNERSHIP SUGGESTION PLANS* ALL OF THESE APPROACHES TRY TO EMPOWER THE WORKER THIS MAY NOT FIT WELL WITH THE CULTURE & WORKER EXPECTATIONS WHILE WORKERS MAY DESIRE TO BE INVOLVED IN DECISION-MAKING, THEY MAY ALSO EXPECT THAT THEY SHOULD RECEIVE A REWARD FOR DOING THIS FOR THE COMPANYMANY PLANS DO NOT PROVIDE TANGIBLE REWARDS FOR THESE SUGGESTIONS, ETC.

FLEXIBILITY & WORKER CONTROL

WORK SCHEDULE FLEXIBILITY 1. COMPRESSED WORK WEEK
WORKER FATIGUE ISSUE OF OVERTIME DIFFICULTIES IN WORK SCHEDULING

2.

FLEXTIME
SUPERVISION & COORDINATION IS MORE DIFFICULT ADEQUATE COVERATE OF WORK---HOW TO SCHEDULE? JOBS THAT REQUIRE ALL TO BE PRESENT

3.

JOB SHARING / PART-TIME WORK

COORDINATING WITH OTHER WORKERS INCREASED COST OF BENEFITS

4.

TELECOMMUTING
NO CONTACTS WITH OTHER WORKERSNO COORDINATION NO SUPERVISIONNOT EASY TO GET HELP WHEN NEEDED HOW PRODUCTIVE ARE YOU WHEN WORKING AT HOME? ISSUE OF LIABILITY WHEN WORK IS DONE AT HOME

FLEXIBLE BENEFIT PLANS

(CAFETERIA BENEFIT PLANS)

TYPES OF FLEXIBLE PLANS

CORE MODULAR ( BASE + PACKAGES) FLEXIBLE SPENDING ACCOUNTS HEALTH SAVINGS ACCOUNTS

ADVANTAGES
CAPS OR CONTAINS BENEFIT COSTS RAISES CONSCIOUSNESS RE: BENEFIT COSTS PROVIDES WORKERS ONLY THE BENEFITS THEY DESIRE

LIMITATIONS
COST OF BENEFITS FLUCTUATES (ADVERSE SELECTION) PEOPLE MAKE IRRESPONSIBLE DECISIONS IRS RULINGS & TAX LIABILITY ISSUES BOOKKEEPING & ADMINISTRATIVE ISSUES

IMPLICATIONS OF THESE APPLICATIONS OF MOTIVATION THEORY

Recognize Individual Differences
EVERYONE ISNT MOTIVATED BY THE SAME THING

Use Objectives and Feedback

HELP WORKERS TO KNOW WHAT TO DO & HOW THEYRE DOING

Employee Participation in Decisions that Affect Them

GIVES THE WORKERS A VOICEEMPOWER THEM

Link Rewards to Performance

YOU ONLY GET WHAT YOU REWARD, SO BE CAREFUL

Check the Systems for Equity and Fairness

ADMINISTER REWARDS ON A FAIR & CONSISTENT BASIS