Motivating
Employees
Theory and
applications

The Power of a Smile
She smiled at the sorrowful stranger.
The smiling seemed to make him feel better.
He remembered past kindnesses of a friend
And wrote him a thank you letter.
The friend was so pleased with the thank you
That he left a large tip after lunch.
The waitress, surprised by the size of the tip,
Bet the whole thing on a hunch.
The next day she picked up her winnings,
And gave part to a man on the street.
The man on the street was grateful;
For two days he'd had nothing to eat.
After he finished his dinner,
He left for his small dingy room.
He didn't know at that moment
That he might be facing his doom.
On the way he picked up a shivering puppy
And took him home to get warm.
The puppy was very grateful
To be in out of the storm.
That night the house caught on fire.
The puppy barked the alarm.
He barked till he woke the whole household
And saved everybody from harm.
One of the boys that he rescued
Grew up to be President.
All this because of a simple smile
That hadn't cost a cent.

MOTIVATION
What is motivation?
MOTIVATION = Value of outcome x expectation of
achieving it
Motivation is a desire to achieve a goal, combined
with the energy to work towards that goal.

Motivation is everything. You can do the work of
two people, but you can't be two people. Instead,
you have to inspire the next guy down the line and
get him to inspire his people.
Motivation is the art of getting people to do what
you want them to do because they want to do it.

WHAT MOTIVATES PEOPLE
External Rewards
• Salary
• Working conditions
• Benefits
• Environment
Internal Rewards
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth

WHAT MOTIVATES PEOPLE
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth
• Recognize achievements through programs
that showcase performers.

WHAT MOTIVATES PEOPLE
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth
• Have volunteer programs and other
programs that enable employees to
showcase their responsibility towards each
other and the society at large.

• Recognize winners through awards like
Service Quality Awards, Best Operations
Awards, Best Trainer Awards, etc.
WHAT MOTIVATES PEOPLE
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth

WHAT MOTIVATES PEOPLE
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth
• Follow a system of feedback and
performance appraisal i.e the 360o
system
in which both the boss and subordinate
participate.

WHAT MOTIVATES PEOPLE
• Achievement
• Responsibility
• Recognition
• Feedback
• Learning and growth • Give a lot of importance to training and
development and have various training
academies to cater to various sections of
employees.
• Analyze training needs to recognize
competency gaps and impart knowledge
through customized training programs.

WHAT MOTIVATES PEOPLE
• Employee engagement
• Challenging job profiles
• Keep them self-motivated
• Good projects
• Job rotation
• Job security / stability
• Good team, co-workers, bosses
In addition to the external and internal awards, have:

But what happens when there is
not enough motivation among the
employees?
LESS or NO MOTIVATION =
DEMOTIVATION

WHY PEOPLE LEAVE
Top Reasons why people leave their jobs
- Harvard Business Review
 Learning Opportunities
to learn new skills
 Feedback, especially for stars
Coaching and feedback by
managers
 Bad Bosses
conflict with the boss as one of
the top most reasons for the
departure of top performing
employees
In addition to:
• Job content
• Level of responsibility
• Company culture
• Caliber of Colleagues
• Low growth potential
• Lack of challenge
• Lack of autonomy
• Not enough money
• Work environment issues

THEORIES ON
MOTIVATION
 Maslow’s
 McGregor’s
 McClelland’s

MASLOW’S HIERARCHY OF NEEDS
Physiological needs
(air, water, food, rest, exercise,etc)
Safety needs
(shelter, job security,
retirement plan, insurance)
Love and belonging
(children, friends,
partners)
Self esteem
(fame, recognition,
reputation, dignity)
Self
actualization
(Confidence,
achievements,
freedom)

MCGREGOR’S XY THEORY

MCCLELLAND’S MOTIVATIONAL NEEDS THEORY
ACHIEVEMENT AFFILIATION POWER

The belief that it is important to meet or exceed a standard of
excellence.
MCCLELLAND’S: ACHIEVEMENT
Focus upon:
 Out-performing others
 Performing against internal standards of excellence
 Achieving unique or innovative accomplishments
 Long-range career planning
If you scored highest in Achievement:
 You place importance on doing things better, faster or
in new ways
 You want to use time well and get frustrated by time-
wasting
 You can see organizational politics as a waste of time
 Given the choice of doing something yourself or
delegating, you would probably choose to do it yourself

Focus upon:
 Being liked, accepted and popular
 Concern about separation or disruption of relationships
 Seeing group tasks as primarily social activities
MCCLELLAND’S: AFFILIATION
The belief that establishing and maintaining close, friendly
relationships is important
If you scored highest in Affiliation:
 You place highest priority on avoiding conflict and
maintaining good relations
 You are concerned about people’s feelings
 You take time to socialize at work and are in touch
the ‘grapevine’
 If you had to delegate to someone who might resent
the extra work, you would most likely do it yourself

The value for Power can take 2 forms:
1. Personalized Power – used for self-benefit
2. Socialized Power – used for the benefit of others
MCCLELLAND’S: POWER
The belief that having an impact matters.
Focus upon:
 Feeling – or being perceived as – strong, effective and influential
 Taking forceful actions that affect people
 Giving unsolicited support or advice
 Influencing, persuading or making a point
If you scored highest in Power:
 You are most concerned with having impact on events
and people
 You make a point of understanding organizational
politics and influential relationships
 When used as socialized power and given the choice of
doing something yourself or delegating, you would prefer
to let the other person complete the task so that they
can learn and develop.

JOB TENSION
Achievement Affiliation Power
Personal
Values
Job Requirement
Job
Requirement
Personal Values

Low
JOBREQUIREMENTS
PERSONAL VALUES
Low in Imp.
Not important to you
+
Not necessary
in your job
=
No Tension
Not important to you
+
Necessary in your
job
=
Tension
Important to you
+
Necessary in your
job
=
No Tension
Important to you
+
Not necessary in
your job
=
Tension
High in Imp
High
JOB TENSION

 A change in your personal or material desires
 Exposure to new influences
 The recognition of the negative results of your
current values
 Immersion in a new environment
DEALING WITH TENSION

HOW YOU CAN
DO IT IN YOUR
ORGANIZATION

MOTIVATING
 TRUST Respect, communication, credibility
 PRIDE Work related to the person
 CAMARADERIE Team building exercises, promoting
team work, contests, create
communities

PERFORMANCE APPRAISAL
How to evaluate your people?
Performance Appraisal Systems contain two basic systems:
Evaluation System Feedback System
• To identify the performance gap
(if any).
• This gap is the shortfall that
occurs when performance does
not meet the standard set by the
organization as acceptable.
• To inform the employee about the
quality of his or her performance.
• The appraisers also receives
feedback from the employee
about job problems, etc.

STRATEGIES FOR MOTIVATION
• Positive reinforcement
• Effective discipline
• Treating people fairly
• Satisfying employees needs
• Setting work related goals
• Restructuring jobs
• Base rewards on job performance

Five basic elements of executive compensation:
• Salary
• Short-term incentives
• Long-term incentives
• Employee benefits
• Perks
EXECUTIVE COMPENSATION

What it is
• Partnering
• Involvement
• Respect
• Individualism
EMPLOYEE ENGAGEMENT
What it is not
• Praise
• Merchandise
• Money
• Pat on the back
X 

EMPLOYEE ENGAGEMENT
• Customized training programs
• Help people build trust, pride and camaraderie
• Develop high degrees of credibility in everything that we say and do
• Play hard, party hard
• Encourage community building
• Follow a good feedback and appraisal system
• Give everyone clear goals
• Maintain mentor-mentee relationships
• Follow shared responsibilities towards each other, client and the
franchisee

Why is employee engagement important?
• Engaged Employees  Loyal Customers  Bigger Profits.
• If the staff are motivated then the customers will be happy
• The shareholders will then benefit through the company's success.
EMPLOYEE ENGAGEMENT

• Notice each individual
• Say Thank-you, even a smile can make a big difference.
• Make staff feel respected and valued
• Share your experience and knowledge
• Be confidence about people.
• Be honest and trustworthy
• Don’t take personal credit for their success
• Create a blame-free culture
• Set developmental goals
• Make work fun!!
TOP 10 TIPS

Thank you