9.7 From Motivation Theory to Application

Job design and work scheduling are crucial tools for motivating employees. By expanding roles, offering autonomy, and providing flexible schedules, companies can boost engagement and satisfaction. These strategies help employees find meaning in their work and balance personal lives, leading to increased productivity.

Economic incentives also play a key role in employee motivation. From piece-rate pay to profit-sharing, these rewards align individual efforts with company goals. While extrinsic motivation can drive performance, it's important to balance it with intrinsic factors to create a well-rounded approach to employee engagement.

Motivating Employees through Job Design and Work Scheduling

Job enlargement and enrichment techniques

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• Job enlargement expands the scope of an employee's job by adding more tasks or responsibilities increases variety and reduces monotony leading to higher motivation may require additional training to ensure the employee is capable of handling the new tasks (data entry clerk also handling customer inquiries)
• Job enrichment provides employees with more autonomy decision-making power and control over their work increases intrinsic motivation by giving employees a sense of ownership and responsibility allows employees to use their skills and creativity leading to higher job satisfaction (software developer given the freedom to design and implement new features)
• Job rotation moves employees between different tasks or positions within the organization exposes employees to various aspects of the organization broadening their skills and knowledge reduces boredom and stagnation as employees face new challenges and learn new skills helps identify employees' strengths and potential for future roles within the company (retail associate rotating between sales floor stockroom and customer service)

Work-scheduling options for motivation

• Flexible working hours allow employees to choose their start and end times within a set range enables employees to balance work and personal life reducing stress and increasing motivation accommodates individual preferences and peak productivity times (employee starting at 7 AM to avoid rush hour traffic)
• Compressed workweeks condense the standard workweek into fewer longer days (four 10-hour days) provides employees with more days off allowing for better work-life balance reduces commuting time and costs which can increase employee satisfaction (employee working Monday through Thursday with Fridays off)
• Telecommuting allows employees to work remotely either part-time or full-time offers flexibility and autonomy which can boost motivation and productivity eliminates commuting stress and saves time leading to higher job satisfaction may require clear communication and performance metrics to ensure effectiveness (employee working from home two days a week)
• Job sharing splits a full-time position between two part-time employees accommodates employees who prefer part-time work due to personal commitments allows the organization to retain skilled employees who might otherwise leave requires effective communication and coordination between job-sharing partners (two employees each working 20 hours per week to cover a full-time role)

Motivating Employees through Economic Incentives

Economic incentives in employee motivation

• Piece-rate pay compensates employees based on the number of units produced or tasks completed encourages productivity and efficiency as employees are directly rewarded for their output may lead to a focus on quantity over quality if not properly managed suitable for jobs with easily measurable output and consistent tasks (factory worker paid per item assembled)
• Bonuses provide additional compensation for achieving specific goals or milestones aligns employee efforts with organizational objectives encouraging goal-oriented behavior can be tied to individual team or company performance may create a sense of competition and short-term focus if not balanced with long-term objectives (salesperson receiving a bonus for exceeding quarterly sales targets)
• Profit-sharing distributes a portion of the company's profits among employees fosters a sense of ownership and aligns employee interests with the organization's success encourages collaboration and teamwork as employees collectively benefit from the company's performance may not be as effective in motivating individual performance as the link between individual effort and reward is less direct (all employees receiving a percentage of the company's annual profits)
• Stock options grant employees the right to purchase company stock at a predetermined price aligns employee interests with long-term company growth and success attracts and retains top talent by offering a potentially valuable benefit may not be as motivating for employees who are risk-averse or have a shorter-term focus (executive receiving stock options as part of their compensation package)
  • These economic incentives are examples of extrinsic motivation, which comes from external rewards or consequences

Theories of Motivation

• Maslow's hierarchy of needs proposes that human needs are arranged in a hierarchy, from basic physiological needs to self-actualization
• Frederick Herzberg's two-factor theory distinguishes between hygiene factors (which prevent dissatisfaction) and motivators (which promote satisfaction)
• Equity theory suggests that employees are motivated when they perceive fairness in the workplace, comparing their inputs and outcomes to those of others
• Expectancy theory posits that motivation depends on the individual's belief that effort will lead to desired performance and rewards
• Goal-setting theory emphasizes the importance of setting specific, challenging, and attainable goals to motivate employees