WHAT IS: – SELF-DETERMINATION THEORY
The history of this theory can be traced to a set of early experiments done by Deci showing that extrinsic rewards such as monetary payments can undermine people’s intrinsic motivation for the rewarded activity.
This finding was important as it was the first evidence that desired outcomes such as rewards can have the unintended consequence of decreasing intrinsic motivation because they limit people’s sense of self-determination–that is, because people come to feel controlled by the rewards.
Over the past 20 years, nearly 100 published experiments have provided additional support for the initial finding of tangible extrinsic rewards undermining intrinsic motivation.
The finding was very controversial when it first appeared because it seemed to contradict the prevailing behaviourist wisdom of that time, which maintained that the careful use of rewards (or reinforcements) was the most effective approach to motivation.
This is not to say that tangibles do not have a role in motivating behaviour. There is a massive amount of research in the judicious use of reinforcement methods to increase performance. However a balance between their use and intrinsic motivation is essential in optimising a person’s performance.
HYGIENE AND MOTIVATION THEORY
Frederick Herzberg proposed two part theory of motivation – the first part is the Hygiene Theory and the second concerns the Motivation Theory. Hygiene is the first part of the theory – it includes the company, policies and administration, supervision, working conditions, interpersonal relationships and salary, status and job security.
These factors alone do not lead to higher motivation. But without them there will be dissatisfaction.
The second part of the theory relates to motivation. This concerns what motivates people with regards to what they actually do on the job.These include achievement, recognition, growth/advancement and interest in the job.
Therefore, all of the factors included by Herzberg are important in their entirety, i.e. without the hygiene factors there will be dissatisfaction which will also reduce motivation.This lesson will consider tangible rewards and lesson 4 will consider intangible rewards.
Tangible rewards can be important motivators. If a member of staff knows that if they do their job well, they will receive certain rewards; it can act as a powerful reinforcer. Tangible rewards include money, benefits, services and goods.
However, money is not the only important factor, so intangible rewards will be considered in the next lesson. Between 1945 and 1965 The Minneapolis Gas Company carried out a survey on what their potential employees desired most from a job.
The ratings varied slightly between men and women, but the highest factors for both groups were –
- Security
- Advancement
- Type of Work
- Company – proud to work for.
Factors such as pay, benefits and working conditions were given low ratings by both groups.
Kovach (1987) found that as an employee’s income increases, money becomes less of a motivator. This is contrary to the belief that pay is the prime motivator.
However, this should not be regarded as an opportunity to pay employees poorly.
Money is however a factor in motivating people. Reward systems and payments do get results.
“Money is important”!
Some have argued that monetary incentives have lost their force. Peter Drucker (1974) denies this. He argues that anti-materialism is a myth, that in fact, money is taking so much for granted, that is actually acting as a de-motivator.
“Economic incentives are becoming rights rather than rewards”.
We do live in a monetary motivated world. If the reward is sufficient, good human relations will improve a team/individual to produce their best efforts.
If the financial reward is insufficient, monetary reward cannot be compensated by good human relations. Consider professional athletes, many will now play for the highest bidder and the pride of playing for their own country is not often enough.
Professional tennis players are refusing to play Wimbledon as the rewards are not high enough, so money is obviously a motivating factor in sport and business.
Monetary rewards can take the form of wages, bonuses, discounts and rewards. At the end of each week or month, the member of staff will receive their wages. However, it is important to consider how their wages are organized.
Overtime – For example, if a person receives the same wages each month, no matter how well he/she has performed, or how many hours they have worked, this can be particularly de-motivating. Let us say that person A works 50 hours a week, but receives the same wages as person B who works 40 hours a week.
Why bother with the extra ten hours? In this example, some consideration should be given to whether overtime is to be paid to staff. It is important to bear in mind, though, that some staff will do overtime to gain more money, but not necessarily produce better or more work.
Bonuses – Another additional payment/reward can be in the form of bonuses. Staff may be rewarded for hard work in the form of bonuses at the end of the year, month, week, quarter, etc.
Bonuses may be awarded individually to staff. For example, persons A and B worked the hardest so they received 50% of the bonus allowance; persons C and D worked hard, but not so hard, so they received 30% of the allowance; persons E and F received 20%; and the remainder did not receive a bonus.
Commission payments – Many sales people will receive commission payments on the amount of sales they make. This can be a real financial motivator as staff members are aware that certain sales targets are required to receive certain commission payments.
Tiered commission structures are particularly useful in motivating staff, for example, if they reach $10,000 sales in a month, their commission may increase by an additional 5% above the usual amount.
Pension contributions, Health care and Childcare contributions – Many companies make contributions to their employees’ pensions, health care and childcare.
Some companies will provide free healthcare for their employees in health care organizations. Others will offer childcare within the organization, for example a crèche, or offer vouchers towards child care costs.
Whilst these may not be a direct reward, they are a reward for their continued work and employment.
Goods – Goods may be offered as motivating rewards. For example, goods such as holidays may be offered if targets are met.
Services – Services can be offered for staff achieving targets and working hard, including those mentioned above, such as childcare support.
This level 3 course is accredited by ACCPH and allows you to join as a professional member after completion. Membership allows you to add the letters MACCPH after your name (post-nominals).
