BE-08-10

Need for Achievement (nAch) The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships People have varying levels of each of the three needs Hard to measure

2009 Prentice-Hall Inc. All rights reserved. 6-2

 People

with a high need for achievement are likely to:

Good

research support but it is not a very practical theory

Prefer to undertake activities with a 50/50 chance of success avoiding very low or high risk situations Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk Dont necessarily make good managers too personal a focus Most good general managers do NOT have a high nAch Need high level of nPow and low nAff for managerial success

6-3

Need for achievement; in a sense that if they have achieved a particular assigned goal they are given incentives, bonuses in their recognition.
Need for Power; this is also practiced. For example recently Mr. Imran Hashim got promoted from Market development office ( MDO) to Territory commercial manager (TCM). So as they gain high position they gain more power.

An individuals belief that he or she is capable of performing a task Higher efficacy is related to:

Greater confidence Greater persistence in the face of difficulties Better response to negative feedback (work harder)

Self-Efficacy complements Goal-Setting Theory

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Enactive mastery

Gaining relevant experience with task or job Practice makes Perfect Increasing confidence by watching others perform the task Most effective when observer sees the model to be similar to him- or herself Motivation through verbal conviction

Vicarious modeling

Verbal persuasion

Arousal

Getting psyched up emotionally aroused to complete task Can hurt performance if emotion is not a component of the task
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This theory is applicable in coca cola in a form that the Sales Man Office is given a target of achieving sales and this target is extended day by day If this target is not achieved, the target for the future is accumulated and sales man has to work a lot.

 Similar

to Goal-Setting Theory, but focused on a behavioral approach rather than a cognitive one

Behavior is environmentally caused Thought (internal cogitative event) is not important

Behavior is controlled by its consequences reinforcers Not a motivational theory but a means of analysis of behavior Reinforcement strongly influences behavior but not likely to be the sole cause

Feelings, attitudes, and expectations are ignored

6-9

 Here

the increment depends upon the sales of coke bottles. When this specific target is achieved, they are given incentive. (SMO) Basic pay 12000 18000 with incentive. ( MDO) Basic pay 17000 2800035000 with incentive.

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual.

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Effort performance relationship: The probability perceived by the individual that exerting a given amount of effort will lead to performance. Performance reward relationship: The degree to which individual believe that performing a particular level will lead to the attainment of a desired outcome Reward personnel goals relationship: The degree to which organizational reward satisfies an individual personal goals or need and the attractiveness of those rewards for the individual.

 This

theory is also applied, the employees have the satisfaction that their efforts are going to be rewarded. Example: Loader SMO MDO SM

BE-08-33

 Basic

Premise:

That specific and difficult goals, with selfgenerated feedback, lead to higher performance.

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Specificity Greater output and better performance. Challenging Goals Energize the person to work harder. Appropriate Feedback Higher performance Participative Decision Making High employee involvement. Goal setting theory has certain eventualities such as: Self-efficacy Goal Commitment
Goal

 MBO

is a systematic way to utilize goalsetting. Goals must be SMART: Specific Measurable Attainable Result based Time-bound.

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 Goal

Specificity Goal Acceptability Explicit time period Performance Feedback Challenging goals Participative decision making Rewards for goal accomplishment Coca colas culture

 Lack

of Appreciation Financial Issues Too much Work Lack of goals Lack of Clarity in Work Favoritism Mistrust Miscommunication

 Listen

and get involved Promote Teamwork Praise and Encourage Give Information Freely Appreciate and Acknowledge Show Concern Sort Financial Issues

 Lack

of acknowledgement at lower level: Failure to recognize the effort of sales men. Gap: There is a gap of communication between Head office head office and Multan plant.

Communication

Signs

of Demotivation: Increased absenteeism/sickness. Incomplete or careless work. Lack of concentration.

 Training

sessions (on the job training) On and off feedback Close interaction of human resource managers with employees Short term defining of tasks At the end of every task, feedback from employees

 It

is necessary to determine the internal equity and the external equity of the job

Pay Laggards

Paying less than the market rates

Increased turn over

 Both

internal and external equity are determined to design the pay structure for its employees. Employees are satisfied with their pay scale Competitive prices are paid to employees in coca cola as loader is paid RS 7000/ per month which is much higher than that paid by Pepsi to loader.

 Employees

'portion of the pay based on individual or organization performance measure. Reason of such pay program to increase the motivation level of employee through rewarding performance Advantage of such pay plan to encourage the performance based culture in organization.

Piece Rate

Skill Based

Variable Pay Program

Merit Based

Bonus

 Piece

Rate: workers are paid a fixed sum for each unit of production completed Example: door to door sales persons, the more they sell the more they earn. Limitation: it is not feasible for many jobs.

Pay plan based on performance appraisal ratings for the evaluation of the individual performance. For the retention and motivation of the top performers many organizations are increasing gap between average and top-performers. Merit based plans especially for the salaried employees

 Validity

of system is based on annual performance appraisals. Uncertain fluctuations in pay raise pool in response to economic conditions Labor unions strongly resist merit based pay structure

pay plan to reward the employees for recent performance rather than the historical performance. Limitation: employees consider is to be the part of pay.

 pay

based on skills or number of jobs an employee can perform. competency- or knowledge-based pay Outcome: flexibility in work force Problems: Acquisition of skills which are not immediately needed/paying for obsolete skills. Quality of performance is overlooked

 Profit

Sharing: Organization-wide programs that distribute compensation based on some established formula designed around a companys profitability Gain Sharing: Its group based incentive plan designed to make payment on basis of group productivity.

 Employee

Stock Ownership Plans: Its benefit plan under which employees are given the opportunity to purchase stocks at a price lower than the market rate It ensures the employee motivation and job satisfaction

 Base Salary= Rs-12000/ It can be increased up to 18000/ Base Salary= Rs-17000/ Variation up to 28000/35000/ Base Salary=40,000/ Variation up to 55,000/-

 Piece

Rate: Labor Force is paid on the basis of no. of tasks performed Merit Based Pay: Target sales are attained, Sales man is paid more. Sales Man of Month Award. Bonuses: yes bonuses are offered in Coca Cola Skill Based Pay: Route Settlement Officer, Sales Coordinator and Warehouse Executives can shift their Positions But no profit sharing, no gain sharing, no ESOP exists in Coca Cola.

 Modular

Plans

Predesigned benefits packages for specific groups of employees

Core-Plus

Plans

A core of essential benefits and a menu-like selection of other benefit options

Flexible

Spending Plans

Allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums

 Medical

expense or facilities in city hospital for all levels of employees. Insurance plan is also provided but it depends on the employee whether it takes or not. Flexible spending plans are not yet introduced.

Intrinsic Rewards: Stimulate Intrinsic Motivation Personal attention given to employee Approval and appreciation for a job well done Growing in popularity and usage Benefits of Programs Fulfill employees desire for recognition Inexpensive to implement Encourage repetition of desired behaviors Drawbacks of Programs Susceptible to manipulation by management

 Sales

man of month Annual dinners Monthly breakfasts

Job Characteristics Model Identifies five job characteristics and their relationship to personal and work outcomes.

Characteristics:
1.
2. 3. 4. 5.

Skill variety
Task identity Task significance Autonomy Feedback

Skill Variety
The degree to which a job requires a variety of different activities. Task Identity The degree to which the job requires completion of a whole and identifiable piece of work. Task Significance The degree to which the job has a substantial impact on the lives or work of other people.

Autonomy
The degree to which the job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. Feedback The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.

Skills variety

In coca cola, country head john steward, route settlement officer and territory commercial manager personally visit retail outlets to perform duty of RED (right execution daily) to check the share of visual image and availability of coke at point of purchase .It gives sense of skill variety because primarily they are not meant for this job.

Task Identity In coca cola the workers at plant who are part of making coke and putting in bottles present best picture of task identity.
Task Significance Receiving outcome of marketing activities through response of partners like hotels.

Autonomy Sale man officer (SMO) are autonomous in determining that at which retail outlet the sale of coke can be better than Pepsi. Territory commercial manager (TCM) at Multan plant is free to device marketing plan depending upon the nature of local market.
Feedback As Territory commercial manager(TCM) at Multan plant is free to device marketing plan depending upon the nature of local market and also get feedback about the effectiveness of the plan.

People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive.

 Flextime
Job

Sharing Telecommuting