motivation and performance appraisal

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M O T I V A T I O N

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Page 1: Motivation and Performance Appraisal

M O T I V A T I O N

Page 2: Motivation and Performance Appraisal

INTRODUCTION

Management is the art of getting things done by others. Getting work done is a difficult task. It is related to human behaviour.

The success of any organisation depends upon the behaviour and the interest of the employees.

Human behaviour is the outcome of motives.

It is needs and desires that cause and bring about motivation which becomes apparent in observed behaviour.

In order to motivate his subordinates, a manager has to find answers to several questions, e.g., What makes people work? Why some persons perform better than others? Why does the same individual act differently at different times?

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MOTIVATION- Meaning

The term motivation has been derived from the word motive.

Motive is anything that initiates or sustains activity.

Motivation may be defined as the work a manager performs in order to induce subordinates to act in the desired manner by satisfying their needs and desires. Thus, motivation is concerned with how behaviour gets started, is energised, sustained and directed.

Motivation is a general inspirational process which gets the members of the team to pull their weight effectively, to give their loyalty to the group, to carry out properly the tasks that they have accepted and generally to play an effective part in the job that the group has undertaken.

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DEFINITIONS OF MOTIVATION

There are many definitions of motivation. Some of which are as follows:

Eduir B. Flippo, “ Motivation is the process of attempting to influence others to do your will through the possibility of gain reward.”

Koontz and O’Donnell, “Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces that induce an individual or a group of people to work.”

Stanley Vance defines motivation as, “any emotion or desire which so conditions one’s will that the individual is propelled into action.”

“ Motivation refers to the degree of readiness of an organism to pursue some destinated goal, and implies the determination of the nature and locus of the forces inducing the degree of readiness.”

-The Encyclopedia of Management

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Unending processA psychological conceptThe whole individual is motivatedMotivation may be financial or non-financialFrustrated man cannot be motivatedGoals are motivatorsUnifying forcesMotivation can be positive or negativeMotivation and job satisfaction are different

NATURE OF MOTIVATION

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IMPORTANCE OF MOTIVATION

Higher efficiencyOptimum utilisation of resourcesReduction in labour turnoverBetter industrial relationsEasier selectionFacilitates change

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TECHNIQUES OF MOTIVATION

Carrot and Stick Approach to Motivation This approach is based upon the old belief that the

best way to get work from a person is to put a reward (carrot) before him or to hold out the threat of punishment (stick). Carrot is the reward for working and stick is the punishment for not working.

Motivation Through Job Enrichment Job enrichment may be defined as an attempt to

design jobs in such a way as to build in the opportunity for achievement, recognition, responsibility and personal growth. Job enrichment involves designing jobs with variety of work content that requires a high level of knowledge and skill.

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Other Techniques:

Monetary incentivesJob-based techniquesMBO techniqueLeadership techniqueSensitivity

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THEORIES OF MOTIVATION

Some of the popular theories of motivation are Maslow’s Need Priority ModelHerzberg’s Two-Factor TheoryMcGregor’s Theory X and Theory YOuchi’s Theory ZAchievement Motivation ModelAdam’s Equity TheoryVroom’s Expectancy TheoryTransactional Analysis

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1. Maslow’s Need Priority Model

Abraham H. Maslow, an eminent American psychologist, developed general theory of motivation, also called “ Need hierarchy theory”.

Salient features are:

The urge to fulfill needs is a prime factor in motivation.

Human needs form a particular structure or hierarchy.

A higher level need does not become an active motivating force until the preceding lower-order needs are satisfied.

As soon as one need is satisfied, another need emerges.

A satisfied need is not a motivator.

Various need levels are interdependent and overlapping.

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Page 12: Motivation and Performance Appraisal

2. Herzberg’s Two-Factor TheoryAccording to Herzberg, maintenance or hygiene factors are necessary to maintain a reasonable level of satisfaction among employees. These are not intrinsic parts of a job but they are related to conditions under which a job is performed.

These factors do not provide satisfaction to the employees but their absence will dissatisfy them.

On the other hand, motivational factors are intrinsic parts of the job. Any increase in these factors will satisfy the employees and help to improve performance. But a decrease in these factors will not cause dissatisfaction.

Herzberg noted that two sets of factors are uni-dimensional.

It is also related to the personality of the individual who may be either a ‘motivation seeker’ or a ‘maintenance seeker’.

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3. McGregor’s Theory X and Theory Y Prof. Douglas McGregor has developed a theory of

motivation on the basis of hypothesis relating to human behavior. There are two sets of assumptions which McGregor has described as Theory X and Theory Y.

Theory X Theory Y

Inherent dislike for work

Unambitious and prefer to be directed by others

Lack creativity and resist change

Focus on lower level ( physiological and safety) needs to motivate workers.

Work is natural like rest and play

Ambitious and capable of directing their own behavior

Creativity widely spread

Both lower level and higher order needs like social, esteem and self- actualization are sources of motivation

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Contd..

Theory X Theory Y

External control and close supervision required to achieve organizational objectives Centralization of authority and autocratic leadership

People lack self- motivation.

Self-direction and self control

Decentralization and participation in decision-making. Democratic leadership.

People are self-motivated.

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4. Theory Z

William Ouchi developed Theory Z after making comparative study of Japanese and American management practices.

Theory Z is an integrated model of motivation.

A type Z organization has three major features- trust, subtlety and intimacy.

The distinguishing features of Theory Z are :

Trust

Strong Bond between Organization and Employees

Employee Involvement

Integrated Organization

Coordination

Informal Control system

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5.Achievement Motivation Model

McClelland has identified three types of human needs, namely, the need for achievement (n Ach), the need for affiliation (n Aff) and the need for power (n P).

Achievement Motive

Some people have an intensive desire to achieve for the sake of achievement.

Power Motive

It refers to the need to influence and control people. People with high need for power seek positions of leadership.

Affiliation Motive

The need for affiliation reflects a desire to interact socially with people.

Persons with a high need for affiliation usually desire pleasure from being loved and tend to avoid the pain of being rejected.

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6. Adam’s Equity theory

The theory is based on the assumption that members of an organization expect justice, balance and fairness in treatment by their employers.

Inputs are the contributions which an individual perceives that he puts into his job.

Outcomes are the rewards which an individual receives from the organization and from his job.

When the individual feels that outcomes he receives from the organization are fair in terms of his inputs, he is satisfied and motivated.

Equity = Person’s outcomes = Others outcomes

Person’s inputs Others inputs.

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Page 21: Motivation and Performance Appraisal

Merits and demerits

Merits It tells managers that equity motive is one of the important motives of employee.

Perceptions and feelings are as important in motivation as facts.

While determining a wage and salary structure in the organization managers must pay attention to equity considerations.

Demerits This theory is easily understood but its application is difficult.

The process by which individuals decide whom to compare themselves with is not clear.

Equity theory is not a complete theory of motivation but deals only with one particular aspect (equity) of motivation.

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7. Vroom’s Expectancy Theory

Valence

Valence implies the strength of a person’s desire or preference or a particular outcome.

It is importance or value that an individual places on the potential outcome or reward.

Expectancy

It implies the extent to which a person believes that his effort will lead to high performance.

Managers can improve expectancy by matching jobs to people.

Instrumentality

It implies the degree to which a first level outcome will lead to a desired second level outcome.

It is simply the relationship between first level outcome and second level outcome.

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8. Transactional Analysis

Transactional Analysis refers to the examination or study of the transactions which take place between two individuals.

Transactional analysis is a method of analyzing and understanding interpersonal behavior.

TA is based on the hypothesis that a person has a multiple nature.

In order to understand TA Ego states, life positions and types of transactions should be considered.

A. Ego States

This refers to individual behavioral make-up. They are of 3 types .

1. Parental ego state

― the values and behavior of parents are recorded in the mind of the child and these become the parental ego state of the personality.

― tend to be over-protective, authoritative, impatient and upright.

― gives sermons, clichés, judgments.

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Contd..

2. Adult ego state

― reflected in behavior which is rational, analytical and logically weighing the pros and cons of a decision making situation.

3. Child ego state

― characterized by emotion, impulsiveness, anxiety, fear and conformity.

B. Life positions

They refer to the dominant philosophy of an individual.

It is tied to an individual’s identity, sense of worth and his perceptions of other people.

I am O.K. You Are O.K.

I am Not O.K. You Are O.K.

I am O.K You Are Not O.K.

I am Not O.K. You Are Not O.K.

You are O.K.

You Are not O.K.

I am O.K.

I am not O.K.

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Contd..

I am O.K. You Are O.K

This is the ideal life position as it is rational based on adult ego state.

People with this life position show confidence and competence and feel that life is worth living.

Managers with this life position tend to be effective and tend to delegate authority.

I am O.K. You Are Not O.K.

This position is found among people who feel victimised or persecuted.

Look upon the whole world as their enemies.

Managers operating with this life position are too much task- oriented.

They do not care for the feelings and emotions of others.

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Contd..

I am Not O.K. You Are O.K.

This position is found among persons who feel powerless in comparison to others.

Managers with this position tend to be too much relations- oriented.

Their feelings and emotions guide their actions. They tend to be unpredictable and erratic.

I am Not O.K. You Are Not O.K.

This is a desperate life position found in persons who are seriously neglected by their parents and are brought up by servants.

They are indifferent towards people and feel that life is not worth living at all.

Managers having this life position tend to be indecisive and provocative

They are neither results oriented not task oriented.

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Page 28: Motivation and Performance Appraisal

C. Types of transactions

Depending on the ego states of the persons involved in a transaction, there are two main types:

1. Complementary transactions.

When the stimulus and response patterns from one ego state to another are parallel, a transaction is known as complementary.

The transaction is said to be complementary because the stimulus (S) gets the expected response(R).

In such a case, both persons are usually satisfied and communication is complete.

Out of the nine complementary transactions, adult-adult and parent-child transactions are most desirable.

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Contd..

2. Cross transactions

In a cross transaction stimulus –response lines are not parallel.

This happens when stimulus does not get the expected result.

A cross transaction is not desirable because the line of communication is blocked and further interaction does not take place.

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Advantages of Transactional Analysis

Developing positive thinking.Interpersonal EffectivenessMotivationOrganizational development.

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Page 32: Motivation and Performance Appraisal

PERFORMANCE APPRAISAL

MEANING

Performance appraisal means the systematic evaluation of the performance of an employee by an expert or his immediate subordinate

DEFINITION

Edwin B. Flippo, “ Performance appraisal is a systematic, periodic and so far as humanly possible, an important rating of an employee excellence in matters pertaining to his present job and to his potentialities for a better job.”

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IMPORTANCE OF PERFORMANCE APPRAISAL

Helps the manager to take decision about the salary increase of an employee.

Improving quality of an employee in job performance.

Minimizes communication gap.

Training needs can be identified.

Decision for discharging an employee from job can also be taken.

Grievances of an employee are eliminated.

Job satisfaction is achieved through performance appraisal.

Improves employer and employee relationship.

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METHODS OF PERFORMANCE APPRAISAL

1.Ranking method

Very old and simple form.

Am employee is ranked against each other in the working group.

2. Paired comparison method

Each employee is compared with other taking only one at a time.

The evaluator compares two employees and puts a tick mark against an employee whom he considers a better employee.

An employee who gets maximum ticks for being a better employee is considered the best employee.

The number of comparison is calculated by a formula n(n-1) / 2, where ‘n’ stands for the number of persons to be compared.

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Contd..

3. Forced Distribution Method.

A method which forces the rater to distribute the ratings of the overall performance of an employee is forced distribution method.

Groupwise rating is done under this method.

4. Grading.

Certain categories of abilities or performance of employees are defined well in advance to fall in certain grades under this method.

Such grades are very good, good, average, poor, very poor.

5. Check list.

The appraisal of the ability of an employee through getting answers for a number of questions is called the method of check list.

These questions are related to the behavior of an employee .

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Contd..

6. Forced Choice Method.

A series of groups of statements are prepared positively or negatively under this method.

The rater is forced to tick any one of the statements either out of positive statements or negative statements.

The final raring is done on the basis of all such statements.

But the rater doesn’t know the statements which are for final rating.

7.Critical Incident Method.

The performance of an employee is done on the basis of the incidents occurred really to the concerned employee.

Some incidents may occurred due to the inability of the employee.

But the rating is done on all the events occurred in particular period.

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Contd..

8. Graphic Rating Scales

Graphic rating scale is a chart that presents the list of qualities and the range of degree for each quality.

Numerical qualities are assigned to each quality on the scale.

Discrete Scale ― in which two or more categories representing discrete

degrees of ability are given.

Continuous Scale ― wherein an uninterrupted line is given and the rater

can tick at any point along its length.

9.Field Review Method

An employee’s performance is appraised through an interview between the rater and the immediate superior or supervisor of a concerned employee.

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MODERN METHODS

1. Assessment Centers

Many organizations use assessment centers to predict the future performance more accurately.

In an assessment centre, individuals from different departments are brought together. They are given assignments similar to the ones they will be handling after promotion.

A number of persons observe them working.

The probed judgment of observers leads to an order of merit ranking for each participant.

The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc.

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Contd..

2. Behaviorally Anchored Rating Scale

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method.

It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad.

These statements are developed from critical incidents.

Developing and practicing BARS requires expert knowledge.

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DEVELOPING BARS

Examples of effective and ineffective behaviour related to job are collected from people with knowledge of job using the critical incident technique.

These data are then converted into performance dimensions.

A group of subject matter experts (SMEs) are asked to re-translate the behavioural examples back into their respective performance dimensions.

The retained behaviours are then scaled by having SMEs rate the effectiveness of each behaviour. These ratings are usually done on a 5- to 9-point scale.

Behaviours with a low standard deviation are retained while behaviours with a higher standard deviation are discarded.

Finally, behaviours for each performance dimensions, all meeting re-translation and criteria, will be used as scale anchors.

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Contd..

3. Human Resource Accounting Method

Human resource accounting may be defined as the measurement and reporting of the costs incurred to recruit, hire, train and develop employees and their present economic value to the organization.

Main methods of measuring the value of human resources are:

A. Historical or Actual Costs Methods

B. Replacement Cost Method

C. Standard cost Method

D. Current Purchasing Power Method

E. Present Value Method.

The difference between the cost and the contribution will be the performance of the employees.

Ideally, the contribution of the employees should be greater than the cost incurred on them.

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Contd..

4. 360 ˚ Performance Appraisal

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.

360 degree appraisal has four integral components:

A) Self appraisalB) Superior’s appraisalC) Subordinate’s appraisalD) Peer appraisal.

It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

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Pros and Cons of 360-Degree Appraisal PROS

◦ The system is more comprehensive in that responses are gathered from multiple perspectives.

◦ Quality of information is better.

◦ It may lessen bias/prejudice since feedback comes from more people, not one individual.

◦ Feedback from peers and others may increase employee self-development.

CONS The system is complex in combining all the responses. There may be conflicting opinions, though they may all

be accurate from the respective standpoints. The system requires training to work effectively. Appraisers may not be accountable if their evaluations

are anonymous.

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Contd..

5. Management By Objective

It is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.

The term "management by objectives" was first popularized by Peter Drucker in his 1954 book The Practice of Management.

The essence of MBO is participative goal setting, choosing course of actions and decision making.

Features of MBO

Motivation 

Better communication and coordination

Clarity of goals

Higher commitment to objectives

Common goal for whole organization

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JOB DESIGN- JOB DESCRIPTION – JOB ANALYSIS- JOB EVALUATION

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Job design

Definition:

Process of deciding

―on the content of a job in terms of its duties and responsibilities;

―on the methods to be used in carrying out the job, in terms of techniques, systems and procedures;

―on the relationships that should exist between the job holder and his superiors, subordinates and colleagues.

Goals of Job Design

to meet the organizational requirements

To satisfy the needs of the individual employees

To integrate the needs of the individual with the organizational requirements.

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Job Analysis

Job analysis deals with the contents and characteristics of each job.

Job analysis points out the duties and responsibilities involved in each job.

Jo analysis discloses the conditions under which each job is performed and the element of risk involved in them.

Procedure of job analysis

All job holders are requested to fill up the questionnaire supplied by the management

The job holders are requested to keep a diary.

A direct interview with job holders is held.

A separate person is appointed to observe the behavior of job holders

Finally a detailed report is prepared.

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Job Description

Job description is an important document which is basically descriptive in nature and contains a statement of job analysis.

Characteristics of Good Job Description:

Earnest Dale developed following hints for writing the job description

It should indicate the scope and nature of the work.

It should be clear regarding the work of the position, duties etc.

More specific words should be selected.

Brief and accurate statements should be used.

Utility of description should be checked from the extent of understanding the job description by a new employee.

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Job Evaluation

Job evaluation is a systematic procedure which measure the relative importance and values of each job on the basis of skills, duties responsibilities and the like.

It is otherwise called job rating.

Job evaluation is the expression of each job in terms of money.

The very purpose of job evaluation is to fix wage rates according to the job done by a worker.

Procedure of Job Evaluation

A detailed study of the job

Identification of physical and mental efforts.

A job description.

Consider the characteristics of a job in terms of points, experience and training.

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Contd…

Job analysis

Comparison of one job with another

Determine number of points to be given for each characteristic of a job.

Add the points for each job.

Rank the jobs on the basis of points.

Expression of the value of the jobs in terms of money according to the points obtained.

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References

Harold Koontz and Heinz Weihrich. 2010. Essentials Of Management-

An International Perspective. Tata McGraw Hill Education Private Ltd.

New Delhi, India.

Ramasamy, T. 2006. Principles Of Management. Himalya Publishing House,

Mumbai, India.

Saul W. Gellerman. 1963. Motivation and Productivity. D.B. Taraporewala Sons

Co Private Ltd, Bombay, India.

Sudhir Dawra. 2003. Human Resource Development. Rajat Publications,

New Delhi, India.

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