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Centre for Management Development STAFF MOTIVATION AND REWARD SYSTEM KABIR KABO USMAN, (BSc, MSc, Centre for Management Development STAFF MOTIVATION AND REWARD SYSTEM KABIR KABO USMAN, (BSc, MSc, Ph. D, Cert Ed. TDLB, PGCE, FABS, FCIA) THE DIRECTOR GENERAL CENTRE FOR MANAGEMENT DEVELOPMENT (CMD) Presented to CMD Directors at Abuja Corporate Head Quarters DG’s Conference Room Date: Friday 24 th May 2013

Centre for Management Development Motivation 2 The force within us that activates our behavior. Centre for Management Development Motivation 2 The force within us that activates our behavior. It is a function of three distinct components, Intensity, Direction, and Persistence. Motivation Intensity Direction Persistence HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Motivation - Intensity 3 Intensity refers to the amount of Centre for Management Development Motivation - Intensity 3 Intensity refers to the amount of mental and physical effort put forth by the person. Motivation Intensity Direction Persistence HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Motivation - Direction 4 The extent to which an individual Centre for Management Development Motivation - Direction 4 The extent to which an individual determines and chooses efforts focused on a particular goal. Motivation Intensity Direction Persistence HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Motivation - Persistence 5 The extent to which the goal-directed Centre for Management Development Motivation - Persistence 5 The extent to which the goal-directed effort is put forth over time. Motivation Intensity Direction Persistence HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Two Types of Motivation: Intrinsic vs. Extrinsic 6 • Intrinsic Centre for Management Development Two Types of Motivation: Intrinsic vs. Extrinsic 6 • Intrinsic When doing the job is inherently motivating • Extrinsic When rewards such as pay and formal recognition act as motivators HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Types of Rewards 7 Intrinsic Sense of Accomplishment Personal Growth Centre for Management Development Types of Rewards 7 Intrinsic Sense of Accomplishment Personal Growth Opportunities Motivation Extrinsic Pay Job security Promotion Recognition HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development Two Basic Categories of Rewards 8 Compensation Rewards: Those given Centre for Management Development Two Basic Categories of Rewards 8 Compensation Rewards: Those given in return for acceptable performance or effort. They can include nonfinancial compensation. Non-Compensation Rewards: Those beneficial factors related to the work situation and well-being of each person. HRD Strategies for Socio-Economic Transformation – 2 nd April, 2013

Centre for Management Development MOTIVATION THEORIES INTRODUCTION • Motivation is one of the key Centre for Management Development MOTIVATION THEORIES INTRODUCTION • Motivation is one of the key factors driving us towards achieving something. Without motivation, we will do nothing. • Therefore, motivation is one of the key aspects when it comes to corporate management. In order to achieve the best business results, the organization needs to keep employees motivated.

Centre for Management Development Following are 20 main motivational theories practiced in the modern Centre for Management Development Following are 20 main motivational theories practiced in the modern world Theories: (1) Acquired Needs Theory: According to this theory, people are motivated by the greed for power, achievement and affiliation. By offering empowerment, titles and other related tokens, people can be motivated for doing their work.

Centre for Management Development [2] Activation Theory: Humans can be aroused by their nature, Centre for Management Development [2] Activation Theory: Humans can be aroused by their nature, In this motivation theory, the arousal is used for keeping the people motivated. Take an army as an example. The arousal for eliminating the enemy is a good motivation factor. [3] Affect Perseverance: Let’s take an example. An employee is attracted to a company due to its reputation. Once the employee starts working, he/she develops loyalty towards the company. Later, due to some issue, the company loses its reputation, but employee’s loyalty remains.

Centre for Management Development [4] [5] Attitude-Behaviour Consistency: In this motivation theory, the allignment Centre for Management Development [4] [5] Attitude-Behaviour Consistency: In this motivation theory, the allignment of attitude and behaviour is used for motivating people. Attribution Theory: The urge people have to attribute is used as a motivational factor. Usually, people like to attribute oneself as well as others in different context. This need is used for motivation in this theory. As an example, getting one’s name published in a magazine is a good motivation for the same person to engage further in writing.

Centre for Management Development [6] Cognitive Dissonance: This theory emphasizes the fact that the Centre for Management Development [6] Cognitive Dissonance: This theory emphasizes the fact that the nonallignment to something could make people uncomfortable and eventually motivate them to do the right thing.

Centre for Management Development • [7] Cognitive Evolution Theory: This could be considered as Centre for Management Development • [7] Cognitive Evolution Theory: This could be considered as the most widely use motivation theory across many domains. When we select tasks to complete, we chunk them down to be doable tasks. The person is motivated to do the tasks as they as simply doable. • [8] Consistency Theory: This theory uses our internal values for keeping us motivated. As an example, if we promise to do something, we will feel bad about not doing it.

Centre for Management Development [9] Control Theory: Giving the control to someone is one Centre for Management Development [9] Control Theory: Giving the control to someone is one of the best ways to motivate them. People are thrilled to have control over things. [10] Disconfirmation Bias: People can be motivated by keeping them in an environment which is in allignment with what they believe. [11] Drive Theory: People’s need to satisfy their needs is used in this theory. As an example, imagine a case where a person is hungry in an unknown house and find some food under the staircase. When the same person feels hungry at some other unknown issue house, the person may look under the staircase.

Centre for Management Development [12] Endowed Progress Effect: This motivation theory uses the progress Centre for Management Development [12] Endowed Progress Effect: This motivation theory uses the progress as the motivation factor. [13] Escape Theory: Keeping the person in the wrong place may motivate that person to escape from that Place. This is sometimes used in corporate environments for employees to find where they really belong. [14] Extrinsic Motivation: This is also one of the most used theories in the corporate world. The employee is motivated through rewards. [15] Goal Setting Theory: Desire to achieve goals is the driving force behind this motivation theory.

Centre for Management Development • [16]Investment Model: The organization gets the employees to invest Centre for Management Development • [16]Investment Model: The organization gets the employees to invest on certain things. If you have invested on something, you will be motivated to enhance and improve it. • [17]Positive Psychology: This way, employees are motivated by making them happy when it comes to environment, rewards, personal space etc. • [18]Reactance Theory: reducing the salary of a low performer and later setting goals to get the salary back is one of the examples for this type of motivation.

Learn How to Motivate Your Team Centre for Management Development 19 Moslow’s Motivation Theory Learn How to Motivate Your Team Centre for Management Development 19 Moslow’s Motivation Theory

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Centre for Management Development 20 Herzberg's Motivators and Hygiene Factors Learn How to Motivate Centre for Management Development 20 Herzberg's Motivators and Hygiene Factors Learn How to Motivate Your Team

Herzberg's main theory and its significance Centre for Management Development • • • Herzberg Herzberg's main theory and its significance Centre for Management Development • • • Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose from different factors, and were not simply opposing reactions to the same factors, as had always previously been (and still now by the unenlightened) believed. In 1959 Herzberg wrote the following useful little phrase, which helps explain this fundamental part of his theory, i. e. , that the factors which motivate people at work are different to and not simply the opposite of the factors which cause dissatisfaction: "We can expand. . . by stating that the job satisfiers deal with the factors involved in doing the job, whereas the job dissatisfiers deal with the factors which define the job context. "

Motivation-Hygiene Theory Centre for Management Development Herzberg's findings revealed that certain characteristics of a Motivation-Hygiene Theory Centre for Management Development Herzberg's findings revealed that certain characteristics of a job are consistently related to job satisfaction, while different factors are associated with job dissatisfaction. These are: Factors for Satisfaction Factors for Dissatisfaction Achievement Company Policies Recognition Supervision The work itself Relationship with Supervisor and Peers Responsibility Work conditions Advancement Salary Growth Status Security

Centre for Management Development Herzberg's 'hygiene' needs Examples of Herzberg's 'hygiene' needs maintenance factors) Centre for Management Development Herzberg's 'hygiene' needs Examples of Herzberg's 'hygiene' needs maintenance factors) in the workplace are: 1. policy 2. relationship with supervisor 3. work conditions 4. salary 5. company car 6. status 7. security 8. relationship with subordinates 9. personal life (or

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Centre for Management Development Herzberg’s Motivators and Hygiene Factors Centre for Management Development Herzberg’s Motivators and Hygiene Factors

Centre for Management Development FREDERICK HERZBERG’S MOTIVATION THEORY Traditional view: - Less Money = Centre for Management Development FREDERICK HERZBERG’S MOTIVATION THEORY Traditional view: - Less Money = dissatisfaction - More Money = improved motivation Herzberg's theory: - Less Money = dissatisfaction - More Money = satisfaction, but not improved motivation

Centre for Management Development CONCLUSION Motivation Theories suggest many ways of keeping the employees Centre for Management Development CONCLUSION Motivation Theories suggest many ways of keeping the employees motivated on what they do. Although, a manager is not required to learn all these motivation theories, having an idea of certain theories may be an advantage for day-to day activities. These theories give the managers a set of techniques that they can try out in the corporate environments. Some of these theories have been used in business for decades, although we do not know them Explicitly. Please use them to motivate your staff for greater productivity through enhanced performance

Centre for Management Development Thanks for Listening 28 2012 CMD Performance Report Centre for Management Development Thanks for Listening 28 2012 CMD Performance Report