1. Definition of Motivation
In Motivation to Learn, Huitt (2001) defines motivation as an “internal state or condition (a need, desire, or want), which serves to activate or energize behavior and give it direction.” In detail, the motivation, therefore, composes of three acts as following:
Internal state or condition, which encourage the activation of behavior and gives it direction
Desire or want, which encourages directs goal-oriented behavior
Influence of needs and desires on the intensity and direction of behavior
2. Motivating Others
2.1. Compensation and Motivation
In many cases, often, managements fail to recognize their employees’ needs and later found them when a conflict and decreasing of employees’ motivation already exists. Finding out what motivates employees turn out to be easier said than done. When dealing with the word ‘motivation’, most management thinks of its relation to dollars ant other currencies. As discussed earlier, money is one determinant of employees’ motivation.
According to a research, money turns out to motivate people for a very short window of time. However, employees who feel they are underpaid will also feel they are undervalued and are more open to potential offers from outside firms.
Therefore, compensation has a significant effect on how employees feel about their jobs, so ensure that it remains attractive over time and keep up with the market. Offering fair and competitive compensation will help us reduce turnover and the costs associated with it. According to Equal Opportunities Commission, 5% reduction in turnover can result in profit increases of between 30% – 85%. In addition, estimation reveals that the cost of replacing staff costs companies between £4,300 and £6,800 per employee (Business Case, 2004).
For women, equal payment becomes an issue for reducing turnovers. According to a research, women expect to receive equal pay and there is increasing evidence that women are beginning to vote with their feet from jobs that do not meet their expectations or in which they get different rewards from their men counterparts.
Any damage to a firm’s reputation can have severe consequences both for its ability to recruit and retain staff and for shareholder confidence. Conducting a pay review will clearly demonstrate to shareholders that you reward staff fairly and will help you become an employer of choice to prospective employees.
Other factors that influence employees’ motivation include career development, appreciation, rewards, recognition, and good communication. Often, managements overlook the role of their employees by excluding them in decision-making process. In fact, employees feel valued when they are included in decisions and made to feel like an integral part of an organization. For this reason, some management has also involved their employees in various profit sharing programs, a different means to achieve the same end.
Appreciation is other factor that influences employees’ motivation. It works when employees do something well, the worst thing management can do is to simply assume they realize they have done so. A few simple words of praise can go a long way.
2.2. Performance-Related Pay
By definition, performance is the way an individual, a group, or an organization conducts or accomplishes critical functions or processes. In other words, performance explains the situation to which an individual or an organization conduct a task according to specific criteria, standards or guidelines or achieves results in compliance with predetermined goals or plans.
Considering the situation, then we witness that performance is the result of a multi-dimensional aspects. There are at least three main contributors to performance variability: situational factors, task characteristics, and individual differences.
The objective of conducting Performance-related pay (PRP) scheme is to provide a financial reward to employees who perform in the following manner:
The Employees are considered to have reached a required standard, and/or
Their performance are above average
(“Performance Related Pay”)
Performance related pay (PRP) is therefore usually used in a remuneration system that cannot appropriately measure employees’ performance in terms of output products or sales achieved. Like other forms of commissions, performance related pay is a form of incentive pay.
In conclusion, managing people is not an easy task since it takes a lot of energy and time to think of what the best methods to increase employees’ motivation. Unfortunately, for general managers, there are concrete methods, processes and tools they can employ to overcome the motivation matters. However, keep in minds, that there is no single panacea for dealing with different people. Hence, what motivates one, may not work so well with another. The good thing is once you motivate yourself, you may then find it easier to motivate others.
Huitt, W. “Motivation to Learn.” 2001. Retrieved September 9, 2008 from http://chiron.valdosta.edu/whuitt/col/motivation/motivate.html
Litwin, Robin. “Motivating Employees: A Manager’s Greatest Challenge.” 1997. Retrieved September 9, 2008 from http://boxboard.com/ar/boxboard_motivating_employees_managers/
“Motivation in practice – performance related pay.” Retrieved September 9, 2008 from http://www.tutor2u.net/business/people/motivation_financial_performancepay.asp
Tjosvold, Dean, and Mary M. Tjosvold. Psychology for Leaders: Using Motivation, Conflict, and Power to Manage More Effectively. John Wiley and Sons. Inc. 1995.