11.4 Influencing Employee Performance and Motivation

Employee motivation is crucial for organizational success. It's about understanding what drives people to perform their best and creating an environment that nurtures those drivers. From pay-for-performance strategies to total rewards, companies have various tools to boost motivation.

Effective motivation taps into our core drives: acquiring, bonding, comprehending, and defending. By addressing these needs through fair compensation, team building, learning opportunities, and job security, organizations can create a motivated workforce that's engaged and productive.

Employee Motivation and Performance

Pay-for-performance strategies for motivation

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• Tie employee compensation directly to their performance or productivity (commissions, bonuses, merit-based pay increases)
• Create a clear link between effort and reward incentivizes employees to work harder and be more productive to earn higher compensation
• Improve employee engagement by recognizing and rewarding high performers
• Potential drawbacks include increased competition among employees and a focus on short-term results over long-term goals
• To be effective, base strategies on clear, measurable performance metrics and ensure they are perceived as fair by employees

Components of total rewards strategy

• Compensation includes base pay, variable pay, and equity
• Benefits such as health insurance, retirement plans, and paid time off
• Work-life balance through flexible schedules, telecommuting, and wellness programs
• Performance and recognition via performance reviews, bonuses, and awards
• Development and career opportunities including training, mentoring, and promotions
• Contributes to employee engagement by meeting diverse needs and preferences of employees
• Demonstrates the organization's investment in its workforce
• Creates a positive and supportive work environment
• Provides opportunities for growth and advancement
• Recognizes and rewards high performance and contributions

Four drives of employee motivation

• Drive to acquire obtains scarce goods, including intangibles like status
  • Offer competitive compensation, rewards, and recognition for performance
• Drive to bond forms connections with individuals and groups
  • Foster a positive organizational culture, encourage teamwork and collaboration, and provide opportunities for social interaction
• Drive to comprehend satisfies curiosity and masters the world around us
  • Provide challenging work, opportunities for learning and development, and clear communication about organizational goals and strategies
• Drive to defend protects against external threats and promotes justice
  • Ensure fair treatment of employees, provide job security, and promote a sense of justice and transparency in decision-making
• By understanding and addressing these four drives, organizations can create a more motivated and engaged workforce

Theories of Motivation

• Maslow's hierarchy of needs explains how employees are motivated by fulfilling different levels of needs, from basic physiological needs to self-actualization
• Goal-setting theory suggests that setting specific, challenging goals can lead to higher performance and motivation
• Expectancy theory proposes that motivation is based on the belief that effort will lead to performance and desired outcomes
• Equity theory focuses on employees' perceptions of fairness in relation to their inputs and outcomes compared to others
• Job design theory emphasizes how the structure and characteristics of jobs can impact employee motivation and satisfaction

Types of Motivation

• Intrinsic motivation comes from within an individual, driven by personal interest or enjoyment in the task itself
• Extrinsic motivation is derived from external factors such as rewards, recognition, or avoiding punishment