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HOW MANAGERS
ENCOURAGE HIGH LEVELS OF
EMPLOYEE MOTIVATION
Dr. Bill Price
Dean UTPB College of
Business & Engineering
 Improved work
performance
 Reduced turnover
 Reduced sick leave
 Reduced accident rate
 Stronger company
culture
Employee Motivation Goals
Motivation is
 Inner power that
pushes to action
 Desire and ambition
WHAT MANAGERS AND EMPLOYEES THINK
WILL CAUSE MOTIVATION
EXPECTANCY, INSTRUMENTALITY, AND VALENCE
MOTIVATION APPROACHES
 Expectancy
 Hierarchy of needs
 Theory X and Y
 Needs - achievement, power,
affiliation
 Two factors – motivation/hygiene
 Goal setting
 Satisfaction
 Motivates
employees
 Dissatisfaction
 Hygiene or
avoidance factors
Dissatisfaction Satisfaction
MOTIVATION DEPENDS ON
 Industry culture
 Level within the company
 Personal ambition
 Experience
 Age, family, education
 Specific incentives
Expectancy: the association between
performance and outcomes, must be
high for motivation to be high.
Need Theory: pay is used to satisfy
many needs.
Equity Theory: pay is given in relation
to inputs.
Goal Setting : pay linked to
attainment of goals.
PAY & MOTIVATION
MERIT PAY AND PERFORMANCE
 Merit Pay Plan
Bases pay on individual, group or
organization performance.
Individual plan: when individual
performance can accurately measured.
 Sales
 Production
MERIT PAY AND PERFORMANCE
 Piece-rate Pay
 Employee’s pay is based on the number of units that
the employee produces.
 Commission Pay
 Employee’s pay is based on a percentage of sales
that the employee makes.
 Organization-based Plans
 Scanlon plan—focuses on reduced expenses or
cutting costs
 Profit sharing—employees receive a share of an
organization’s profits
OILFIELD INCENTIVES - HOURLY
 White truck & fuel card
 Meals on the road
 Uniform or clothing
 Overtime pay
EXECUTIVE INCENTIVES
 Country club
 Petroleum club
 Company car/truck
 No set hours
 Personal benefits at work
 Brokerage advice
 Personal benefits at work
UNUSUAL INCENTIVES
 Flexible work hours
 Day care for children
 On-site wellness
 Event tickets or trips
 Gift cards
 Gym time
SELF IMPROVEMENT
 Training programs in-house
 Formal training, skills, OJT
 Seminars
 Technical training – by specialists
 Cross-training
SELF IMPROVEMENT
 Training programs in-house
 Formal training, skills, OJT
 Seminars
 Technical training – by specialists
 Cross-training
 New degrees
 Motivational Value of Bonus Is Higher
When:
Salary levels are unrelated to current
performance.
Changes in other compensation items
(cost of living, seniority) are not having a
large effect in increasing compensation.
Salaries rarely change and performance
does.
STOCK PLANS
Option – entitled to buy
shares of company's stock
at a certain price at a later
date
Restricted - stock not fully
transferable until certain
conditions have been met
Grant – simply provided as a
result of past performance
GOAL SETTING
 Goal
What employee is trying to accomplish
through efforts and behaviors
Must be specific and difficult
 Goals point out
 What is important to the firm.
Workers encouraged to develop action plans
to attain goals.
GOAL SETTING STEPS
1. Establish goals
together
1. Specific
2. Measurable
3. Time frame
2. Monitor
performance
3. Provide feedback
HIGHER LEVELS OF MOTIVATION
WHAT IS THE GREATEST MOTIVATOR?
JOB EMBEDDEDNESS
 Links with other workers
 Social life is dependent
 Friends connected to work
 Workers depend on their presence
JOB EMBEDDEDNESS
 Links with other workers
 Social life is dependent
 Friends connected to work
 Workers depend on their presence
 Encourage other workers
 Won’t let others down
 Reduced turnover
ENGAGEMENT
Engaged
• Employees work with passion and feel a profound
connection to the company.
• They drive innovation and move the organization forward.
Not
Engaged
• Employees are “checked out”
• Sleepwalking through workday, putting in time
• No energy or passion in their work
Actively
Disengaged
• Employees acting out their unhappiness every day
• Undermine what their engaged co-workers accomplish
ENGAGEMENT
ENGAGEMENT
BOTTOM LINE
 Motivation and goals are
related
 Know your employee needs
 Incentives should be
relevant
 Compensation may not be
the key
 Engaged employees are
highly motivated
TWEET YOUR TAKEAWAY FROM THIS
EDUCATIONAL SESSION.
@MIDLANDENRGEXPO #MEEUTPB

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High Levels of Motivation

  • 1. HOW MANAGERS ENCOURAGE HIGH LEVELS OF EMPLOYEE MOTIVATION Dr. Bill Price Dean UTPB College of Business & Engineering
  • 2.  Improved work performance  Reduced turnover  Reduced sick leave  Reduced accident rate  Stronger company culture Employee Motivation Goals
  • 3. Motivation is  Inner power that pushes to action  Desire and ambition
  • 4. WHAT MANAGERS AND EMPLOYEES THINK WILL CAUSE MOTIVATION
  • 6. MOTIVATION APPROACHES  Expectancy  Hierarchy of needs  Theory X and Y  Needs - achievement, power, affiliation  Two factors – motivation/hygiene  Goal setting
  • 7.  Satisfaction  Motivates employees  Dissatisfaction  Hygiene or avoidance factors Dissatisfaction Satisfaction
  • 8. MOTIVATION DEPENDS ON  Industry culture  Level within the company  Personal ambition  Experience  Age, family, education  Specific incentives
  • 9. Expectancy: the association between performance and outcomes, must be high for motivation to be high. Need Theory: pay is used to satisfy many needs. Equity Theory: pay is given in relation to inputs. Goal Setting : pay linked to attainment of goals. PAY & MOTIVATION
  • 10. MERIT PAY AND PERFORMANCE  Merit Pay Plan Bases pay on individual, group or organization performance. Individual plan: when individual performance can accurately measured.  Sales  Production
  • 11. MERIT PAY AND PERFORMANCE  Piece-rate Pay  Employee’s pay is based on the number of units that the employee produces.  Commission Pay  Employee’s pay is based on a percentage of sales that the employee makes.  Organization-based Plans  Scanlon plan—focuses on reduced expenses or cutting costs  Profit sharing—employees receive a share of an organization’s profits
  • 12. OILFIELD INCENTIVES - HOURLY  White truck & fuel card  Meals on the road  Uniform or clothing  Overtime pay
  • 13. EXECUTIVE INCENTIVES  Country club  Petroleum club  Company car/truck  No set hours  Personal benefits at work  Brokerage advice  Personal benefits at work
  • 14. UNUSUAL INCENTIVES  Flexible work hours  Day care for children  On-site wellness  Event tickets or trips  Gift cards  Gym time
  • 15. SELF IMPROVEMENT  Training programs in-house  Formal training, skills, OJT  Seminars  Technical training – by specialists  Cross-training
  • 16. SELF IMPROVEMENT  Training programs in-house  Formal training, skills, OJT  Seminars  Technical training – by specialists  Cross-training  New degrees
  • 17.  Motivational Value of Bonus Is Higher When: Salary levels are unrelated to current performance. Changes in other compensation items (cost of living, seniority) are not having a large effect in increasing compensation. Salaries rarely change and performance does.
  • 18. STOCK PLANS Option – entitled to buy shares of company's stock at a certain price at a later date Restricted - stock not fully transferable until certain conditions have been met Grant – simply provided as a result of past performance
  • 19. GOAL SETTING  Goal What employee is trying to accomplish through efforts and behaviors Must be specific and difficult  Goals point out  What is important to the firm. Workers encouraged to develop action plans to attain goals.
  • 20. GOAL SETTING STEPS 1. Establish goals together 1. Specific 2. Measurable 3. Time frame 2. Monitor performance 3. Provide feedback
  • 21. HIGHER LEVELS OF MOTIVATION
  • 22. WHAT IS THE GREATEST MOTIVATOR?
  • 23. JOB EMBEDDEDNESS  Links with other workers  Social life is dependent  Friends connected to work  Workers depend on their presence
  • 24. JOB EMBEDDEDNESS  Links with other workers  Social life is dependent  Friends connected to work  Workers depend on their presence  Encourage other workers  Won’t let others down  Reduced turnover
  • 25. ENGAGEMENT Engaged • Employees work with passion and feel a profound connection to the company. • They drive innovation and move the organization forward. Not Engaged • Employees are “checked out” • Sleepwalking through workday, putting in time • No energy or passion in their work Actively Disengaged • Employees acting out their unhappiness every day • Undermine what their engaged co-workers accomplish
  • 28. BOTTOM LINE  Motivation and goals are related  Know your employee needs  Incentives should be relevant  Compensation may not be the key  Engaged employees are highly motivated
  • 29. TWEET YOUR TAKEAWAY FROM THIS EDUCATIONAL SESSION. @MIDLANDENRGEXPO #MEEUTPB