Motivation

An important role of management is to motivate the workforce to ensure that they are
efficient and productive. Motivation exists when people do something because they want to
do it, not because they have to do it. Motivation is therefore the desire to achieve
something; it influences people to behave in a certain way and has a direct impact on the
outcomes of that behaviour.

1) Taylor- Scientific Management:

Performance efficiency is imperative 

1. Develop "science" for every job - motions and working conditions
2.  Select workers with right abilities
3.  Train workers, incentives to cooperate with 'job science'
4.  Support workers by planning their work and smoothing the way as they do their jobs
(UPS; Factories; Shipping yards)

2) Maslow’s Hierarchy of needs:

Our current level of motivation can change significantly as time progresses.

We are motivated by the lowest levels first.  

Once a need is satisfied, it is no longer a motivator.  
We then move up the pyramid and are motivated by the next level.

Deficit Principle - A satisfied need is not a motivator.  

Progression Principle - Higher level needs do not motivate until the lower ones are satisfied.
 There are criticisms to this theory, but it still gives us insights as to how to motivate various
employees with various situations.

This can be applied to not only management theory but can be applied to marketers as well.
Think about the imagery in a minivan commercial vs as that of a luxury car. 

3) Herzberg– 2 Factor Theory:

 Hygiene Factors Motivators 

aka Maintenance Factors
These are factors that do not motivate -  Factors that can lead to psychological growth of workers
however they must be met in order to and hence increase satisfaction 
prevent dissatisfaction             
 Company policies, rules and  Job Enlargement - more variety in tasks to make
regulation job more interesting.  Not necessarily harder work
 Relationships with peers,  Job enrichment - More complex challenges and
subordinates and supervisors tasks which should contribute to a sense of
 Salary and wages achievement as they are able to exploit their
 Security potential
 Status  Job empowerment - delegating decision making
 Supervision and coordination power to workers which should boost morale
 Working conditions  Achievement
 Lack of resources  Advancement
 Interesting tasks
 Opportunities for promotion
 Personal growth
 Recognition
 Responsibility
 Work itself
 4) Adam’s Equity Theory:

A very simplistic yet logical theory of workplace motivation was developed by John
Stacey Adams, a workplace and behavioural psychologist, in 1963.  Equity
theory is based on the premise that employees will put forth a particular level of
effort that they feel compares to the reward potential. It comes down to a
straightforward formula of inputs must equal outputs.

 Inputs   Outputs 
 effort and enthusiasm  financial compensation
 skills and abilities  praise and recognition
 flexibility and adaptability  additional responsibility and autonomy

 loyalty and commitment to the organization  job security

   a sense of career advancement or personal growth

When a balance is achieved between inputs and outputs, it is believed that

employees will be more satisfied and willing to work toward higher levels of
productivity. Many would argue that fairness is something that we should expect out
of our employers. When it comes to fairness, employees rely heavily on perception;
namely, what do they perceive to be fair and equal? When a reward is perceived as
equitable to the level of effort that they must exert, positive outcomes and high
levels of motivation should be the expected result.

The Perception of Inequality

According to equity theory, employees expect to be adequately rewarded for their
efforts. They also expect to be rewarded in the same way that other employees are,
meaning if a potential reward is offered to one employee for a particular level of
productivity, that same reward should be offered to any other employee who puts
forth the level of effort required to earn that reward. Inequalities in rewards can
lead to lower levels of job satisfaction, deviant workplace behavior and low employee
morale and can cause performance problems that negatively impact the entire
organization.
When the perception is that one employee is being treated unequally when
compared to another worker, you might see the following behaviors:
–ask for more equitable treatment; –look for ways to make their efforts look greater
by comparison; –put in a lower level of effort; –look for a new position within the
company or even quit entirely to seek out employment at a more; –Act unethically in
order to restore perceived balance (steal from work, use company resources for
personal gain, etc)

5) Daniel Pink – Drive theory:

Autonomy
People want a sense of control over their work, their clients, the time they are at the
office, who they work with
There is more than 1 way to skin a cat

Mastery
People actually WANT to be REALLY GOOD at what they do.  When they are actually
good, this makes them happy.  

Purpose
People actually want to feel like they are making a difference.  People's careers are so
often linked to their own self identities.  People want to work for companies that are
doing good for the world.  

His other beliefs include:  Baseline financial rewards do matter, rewards need to be
fair, workers given autonomy are more productive.  Ultimately, he thinks financial
rewards should not be the main way of motivating people.  

Financial Rewards
Salary: Teachers get paid on salary... it doesn't matter how much time we put in and it is hard to
quantify our output.  Our pay is based on a predetermined amount.  
Managers, coaches, etc get paid on salary.

Wages (time and piece rate) - Money you get paid for the work you do.  Hourly wages are
common for part time workers.

Piece Rate -  Does the paperboy get paid for the amount of time it takes to deliver the papers?
Nope.
He/she gets paid based on the number of papers delivered.  Some are faster than others.  Would
paying them by the hour have any negative consequences.
Piece rate can be in factories (the number of pantaloons you sew per hours, etc)
I know a guy who changes over hydro meters.... he gets paid $75/unit

Commission - Pay based on a percentage of sales!! 

Auto, insurance, retail, phone... etc
Consumers don't like pushy sales people.  

Profit Related Pay - When the company makes more $$, you make more $$.
Often paid as an annual bonus.

Performance Related Pay

-The better you do (athletes and stats bonuses, customer feedback, etc), the more you
get paid
Pay Raise - Increase in your wage/salary
Performance Bonus - Reaching quotas
Gratuity - Loyalty bonus

Employee Share Ownership (stock options)

 Fringe Payments 

Non Financial Rewards

 Job Enrichment -  More complex challenges and tasks which should contribute to a sense of
achievement as they are able to exploit their potential
 Job Rotation
 Job Enlargement - more variety in tasks to make job more interesting.  Not necessarily harder
work
 Empowerment - delegating decision making power to workers which should boost morale
 Purpose
 Teamwork

Signs of Demotivated Workforce

Benefits of Increased Motivation

 High rates of absenteeism

 Higher morale and job satisfaction
 High labour turnover rate
 Improves corporate image
 High wastage level
 Better industrial relations 
 Low quality output
 Lower staff turnover - reduces recruit/training costs
 More customer complaints
 Lower absenteeism
 Poor punctuality
 Higher profits
 More disciplinary problem

Intrinsic Motivation
When people engage in an activity out of their own desire, such as enjoyment of pursuing a hobby or
an interest.  Activities are undertaken because the person finds them to be challenging, stimulating or
satisfying.

Extrinsic Motivation
Extrinsic Motivation occurs when people participate in an activity because of the benefits and rewards
associated with the activity.  They can be tangible (wages, salary, bonuses) or intangible (recognition,
praise).  Extrinsic motivation can even come about in an effort to avoid a negative consequence ( does
something to avoid punishment).
CUEGIS and Motivation (Coca-Cola)(CC)

The motivational system of the Coca Cola Company can best be explained as one that
recognise with Clayton Alderfer’s ERG theory. The workplace output within the CC company
is unmatched by various companies today. Three vital components make up Aldermen’s
theory:
1st: part: the existence needs within the company is the main focus.
2nd: part: focus is on the relatedness needs within the company.
3rd part: touches on the development requirements within the company.
 The existence requirements of the employees within the CC company can be
explained as those requirements that have a wanted physiological impact on the
employees within the company. In accession it could be the matter well-being of the
organisation itself. In order for there to be consistency within the company, the
employees must have an ability of adherence in their recent position, as well as a
power for growth within the company. Remembering that workers have the desire
to be amused within the organisation in which they work, The Coca-Cola Company
has various different programs in place in order to support with this process.
 The company offers cultural alertness programs and employee councils; these
forums reside of workers that share similar interest or backgrounds. The persons
within these councils provide both professional and personal development to one
another. The Coca-Cola Company motivates their workers with incentives and
employment occasions on a daily basis.
 The Coca-Cola Company’s material well-being is being attained each day. The
company uses innovative ideas in order to reach the younger breed of today. Their
nightclub-based programs which cater to America’s bloom are a very good example
of this. These programs give live amusement and custom-designed club furniture to
the club owners.

Some strategies used by Coca-Cola:

One strategy they use to motivate its employee is their high pay. Coca-Cola is one of the
highest paying companies in the Atlantic Area. Coca-Cola uses this strategy to not only
attract and keep employees, but it utilizes it to get the best performance out of their
employees.

To motivate employees the offer them benefits. One benefit that Coca-Cola offers is a 401K
plan, like most companies, CC offers 401K plan as a way for employees to invest some of
their money so that they have some savings later on. Coca-Cola also offers medical benefits
to employees.

Another strategy that CC uses to motivating its employees and boost their moral is
something that they call employee forum. The employee forum is a program allows
employees to form groups with the members of the group with similar interests. The groups
are allowed to meet once in a week and discuss their topics. The forum definitely a great
way for the employees to increase their interest in the company.