Motivating Employees –Theory and application

Presentation by G. Ananthakrishnan, FM, RTC, NABARD

Business Per Employee (2005-06) Rs. lakh

201 to 300 10 Banks

300 to 400 10 Banks400 to 500 5 Banks500 2 Banks

Profit Per Employee (2005-06)

< Rs.1 lakh 5 BanksRs. 1 to 2 lakhs 10 BanksRs.2 to 3 lakhs 5 BanksRs.3 to 4 lakhs 5 BanksRs.4 to 5 lakhs 1 Bank> Rs. 5 lakhs 1 Bank

Salary as % of total expr. (2005-06)

< 15% 1 Bank15 to 20% 6 Banks20 to 25% 12 Banks25 to 30% 7 Banks> 30% 1 Bank

Structure

Structure

Employees

Employees

Providing flexi, friendly and familiar banking

Providing flexi, friendly and familiar banking

Purpose

Purpose

…. Bank …. Bank

• What is the differentiator ?

Structure

Structure

Employees

Employees

Providing flexi, friendly and familiar banking

Providing flexi, friendly and familiar banking

Purpose

Purpose

…. Bank …. Bank

MiddleLevel Executives

First/Second Line Managers

Front-Line Employees

TopExecutives

Responsibility vs. work pyramid

Supervision

WorkPressure

What is motivation?

• It is something which propels one to act

• Motive for action • Igniting the spark for

action• Force that can literally

change our life. • To motivate means to

encourage and inspire

Importance of Motivating Employees

• Motivated employees become more productive – personally and professionally

– Our relationships improve at home and at work place

– Life becomes more meaningful and fulfilling.

TCS, Cuddalore

Drives

Change inBehaviour

TensionIndividual and Organisation

Benefits

SatisfiedNeed

The Motivation Process

UnsatisfiedNeed

- Peter J. Davies

Mobile

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Self Actualisation (Doing the Best)Self Actualisation (Doing the Best)

Self Esteem (Confidence, respect)Self Esteem (Confidence, respect)

Social (Friendship,Family,Intimacy)Social (Friendship,Family,Intimacy)

Safety (Job,Health,Property)Safety (Job,Health,Property)

Survival (Food,water,sex, sleep)Survival (Food,water,sex, sleep)

Frederick Herzberg’s Two-factor TheoryFrederick Herzberg’s Two-factor Theory

Motivators (INTRINSIC) Motivators (INTRINSIC) (content) •Determinants of Job Satisfaction Challenging work, recognition, responsibility

Maintenance Factors Maintenance Factors (Hygiene/EXTRINSIC) (Hygiene/EXTRINSIC) (context) •Determinants of Job Dissatisfaction Pay, job security, working conditions, relationships, fringe benefits

ERG Theory ERG Theory RelatednessRelatedness

GrowthGrowth

ExistenceExistence

Clayton Alderfer’s Theory

Vroom’s Expectancy Theory

3. Attractiveness relationship

1. Effort-performance relationship

2. Performance-rewards relationship

IndividualIndividualEffortEffort

IndividualIndividualPerformancePerformance

IndividualIndividualGoalsGoals

OrganizationalOrganizationalRewardsRewards

1 2

3

McClelland’sNeeds Theory

AffiliationAchievement

Power

Goal setting Theory

Having a definite goal itself is motivating. Reaching the goal is the reward. Goal must be SMART.

PARETO’s 80:20 Principle

Motivation-Combo of personal development objectives aligning with Corporate objectives

IndividualMotivational

level

IndividualMotivational

level

Corporate ObjectivesCorporate Objectives

Personal ObjectivesPersonal Objectives

To reach personal goal employees need to ask themselves:

How can I improve?

What is the time frame ?

Why do I need to improve?

To achieve orgn’s. goals, each employee must have:

An understanding of what is expected

The competency (KSAs)

The motivation

Conducive culture

How Do we Get There?How Do we Get There?

Entry levelEntry level

High High motivationmotivation

levellevel

Getting there …Getting there …

Application of Theories

Recognize individuals’ needs

Match people to jobs

Set attainable goals

Link Rewards to performance VPP (Variable Pay for

performance)

Management attitude has an impact

If management assumes that its employees will succeed,

they usually will live up to this expectation.

How can we motivate existing staff to accept additional workload without creating stress and other IR problems?

“The goal of delegation is to pass along skills and opportunities that help develop your subordinates.” Paul Falcone

Why employees want to leave their current job:

• There’s no room to grow• “I’m not learning anything new”• “I’ve been doing the same thing for

years”

What Motivates Employees?What Motivates Employees?

• Clear Expectations & Goals• Materials and Resources• Accurate/timely feedback• Interesting work• Challenges• Responsibility• Recognition• Respect

• Being Informed• Being Listened to• Being Treated fairly• Opportunities for

growth/advancement• Autonomy• Participation in decision-making• Being a Member of team

What Motivates Employees?What Motivates Employees?

Step One• Accept that Everyone is motivated

by different needs and wants

• Find out which of the following is most important for each member of your team

• Climbing the Career Ladder

• Additional Responsibility

• Acquiring New Skills

• Enhancing Managerial and People Skills

• Work / Life Balance

• Compensation - Money

Step Two Meet individually with

each of your team members and learn more about their wants and needs.

Step Three

• Decide what to delegate to whom.

• Match assignments to motivational needs.

CEMA 1: Keep stock of Pre-printed birthday greeting cards signed by the Chairman in all branches. Issue to employees on birthdays along with a rose or chocolate.

CEMA 2:

‘Praises are wages’ -

Appreciate all good work in public and reprimand in private.

CEMA 3: Develop team spirit by inviting ideas, feedback on the working environ, productivity etc.

CEMA 4: Identify strengths and weaknesses of team members and allocate responsibilities accordingly

CEMA 5: Display prominently in branches / offices best performer’s name as the “Star of the month”

CEMA 6: Superiors to show their superiority in terms of K S & A – “You can’t give to others what you don’t have”

CEMA 7: Employees manning the front office are the only interface for customers – Give them more freedom

1.Great idea; it will work

2.I like the idea

3.Why don’t you make a presentation

4.Cost is worth trying

5.Job well done

6.Can we sit down and discuss?

1.Prepare a list of 6 tasks

2.Review daily before going to bed

3.Replace those already accomplished with new ones

4.Very good tool for planning, prioritising and performing

5.Tasks get accomplished without much effort.

6.This motivates us further

Organisational Devt. Initiative - ODI

• Systematic process involving all sections of employees

• Starting with SWOT, STEP, Preparation of MISSION, VISION statements

• Ends with an SMART Action Plan• Having been involved in the process,

employees own up the plan• Hence motivated to achieve the plan.

1.Let us be liberal in praising / recognising good work

2.Let us set well defined goals

3.Let us provide opportunities for growth

4.Make jobs more challenging

5.Be a good role model

6.Develop sense of belongingness among peers and subordinates.

Any questions?

Could I motivate you all ?

? ? ? ? ? ?? ? ? ? ? ?

Ph: 09448953471Email: g_ananthakirishnan@hotmail.com