Transcript Motivation

Public Management
Incentives and Motivations
Sunday, April 3, 2016
Hun Myoung Park, Ph.D.
Public Management & Policy Analysis Program
Graduate School of International Relations
Motivation More of a Craft
▪ A fundamental topic in social science. A trend
focusing on human capital is evidence of a
consensus of the topic’s importance.
▪ No conclusive evidence of a “science of
motivation.”
▪ Motivation is more of a craft; leaders draw on
techniques, ideas, and insights.
▪ The constraining character of government and
the political environment present challenges for
motivating in the public sector.
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Big Question (Behn 1995)
 Micromanagement
 Motivation: How can public managers motivate
public employees to work energetically and
intelligently towards achieving public purposes?
How can the legislature control the executive,
and how can political managers control civil
servants (principal-agent problem)?
 Measurement
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Personnel Administration
 Position classification
– Evaluating performance vs. dehumanizing
 Recruitment, selection, and promotion
– All segments of the population
– Open, competitive exam and ranking system:
performance exam, written exam, oral exam, and
assessment centers
– Merit-oriented promotion and seniority
 Performance appraisal
– Self-appraisals, peer ratings, group ratings, external
ratings; balanced scorecard
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How To Motivate?
 Organizations and their employees exchange
(contribution and rewards)
 Reward (carrot) and penalty (stick) based on fair
and accurate performance appraisal
 Need-incentive fit: What does he/she want to
get?
 Provide proper incentives/disincentives.
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Need, Motive, and Value
• Need is a resource or condition required for the
well-being of an individual
• Motive is a force acting within an individual that
causes him to see to obtain or avoid some
external object
• Value is an enduring belief that a specific mode
of conduct or end-state of existence is
personally or socially preferable to an opposite
or converse mode of conduct or end-state of
existence.
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Needs of Employees 1
 What do employees want to get from
organizations and society?
 Why do people want to work for government?
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Needs of Employees 2
Murray’s List of Basic
Needs (1938)
Abasement
Achievement
Affiliation
Aggression
Autonomy
Counteraction
Defendance
Dominance
Exhibition
Harm avoidance
Nurturance
Order
Play
Rejection
Sentience
Sex
Succorance
Understanding
Maslow’s Need
Hierarchy (1954)
Alderfer’s ERG
Model (1972)
Self-actualization needs
Esteem needs
Belongingness social needs
Safety needs
Physiological needs
Growth needs
Relatedness needs
Existence needs
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Incentive for Employees
 Which incentives do organizations provide
to their employees?
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Types of Incentives 1
Incentive Type
Barnard (1938)
Specific Incentives
Material inducements
Personal, nonmaterialistic inducements
Desirable physical conditions of work
Ideal benefactions
General incentives
Associational attractiveness
Customary working conditions
Opportunity for feeling of enlarged
participation in course of events
Condition of communion
Definitions and Examples
Incentives “specifically offered to an individual”
Money, things, physical conditions
Distinction, prestige, personal power, dominating
position
“Satisfaction of ideals about nonmaterial future or
altruistic relations” (pride of workmanship, sense
of adequacy, altruistic service for family or others,
loyalty to organization, esthetic and religious
feeling, satisfaction of hate and revenge)
Incentives that “cannot be specifically offered to
an individual”
Social compatibility, freedom from hostility due to
racial, religious differences
Conformity to habitual practices, avoidance of
strange methods and conditions
Association with large, useful, effective
organization
Personal comfort in social relations
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Types of Incentives 2
Incentive Type
Simon (1948)
Incentives for employee participation
Incentives for elites or controlling groups
Clark and Wilson (1961) and Wilson (1973)
Material incentives
Solidary incentives
Definitions and Examples
Salary or wage, status and prestige, relations with
working group, promotion opportunities
Prestige and power
Tangible rewards that can be easily priced (wages
and salaries, fringe benefits, tax reductions,
changes in tariff levels, improvement in property
values, discounts, services, gifts)
Intangible incentives without monetary value and
not easily translated into one, deriving primarily
from the act of associating
Specific solidary incentives
Incentives that can be given to or withheld from a
specific individual (offices, honors, deference)
Collective solidary incentives
Rewards created by act of associating and enjoyed
by all members if enjoyed at all (fun, conviviality,
sense of membership or exclusive-collective status
or esteem)
Purposive incentives
Intangible rewards that derive from satisfaction of
contributing to worthwhile cause (enactment of a
law, elimination of government corruption)
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Incentives by Employees
 Simon (1948)
 Incentives for employee participation
– Salary or wage
– Status and prestige
– Relations with working group
– Promotion opportunities
 Incentives for elites or controlling groups
– Prestige and power
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Incentive & Organization Type 1
 Clark and Wilson (1961)
 Material incentives: tangible rewards, often
monetary – wages, fringe benefits, patronage
 Solidary incentives: intangible rewards from the
act of association – sociability, status
 Purposive incentives: intangible rewards related
to the goals of the organization – e.g., working
on an election of a supported candidate
 Material, solidary, or purposive organization?
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Incentive & Organization Type 2
 Utilitarian organizations rely primarily on
material incentives (business firms, labor
unions).
– Clark and Wilson predict they will have fairly precisecost accounting machinery (Scott p. 172).
– Managers will focus on obtaining necessary material
incentives.
– Conflicts will be about distribution.
– Organizational goals will be secondary to incentives.
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Incentive & Organization Type 3
 Solidary organizations (service-oriented
voluntary organizations and social clubs) are
places where people make contributions in
return for sociability and status.
– Executive efforts at securing prestige, good fellowship
– Organizational goals are non-controversial and
socially acceptable.
– These organizations tend to be less flexible and more
public in actions and decisions.
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Incentive & Organization Type 4
 Purposive organizations rely on their stated
goals to attract and retain people (Clark and
Wilson, 1961).
– Executives need to maintain inducements, but when
goals are lofty this is difficult to sustain.
– Often their efforts fail initially or intermittently (don't
elect candidate, don't stop hunger, etc.).
– Sometimes the goals are too vague or only support a
minority of interests.
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Motivation 1
 Psychological forces that determine the
direction of behavior, level of effort, level of
persistence.
 Motivation is NOT unchangeable
 Preferences are not exogenous (given by
outside) but endogenous (socialization)
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Motivation 2
 Intrinsic motivation
– Comes from doing the work itself
 Extrinsic motivation
– To acquire materials or social rewards
– To avoid punishment
– Workers’ own personal characteristics;
– Nature of their job
– Nature of organizations
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Work Motivations 1
 A person’s desire to work hard and work
well--to the arousal, direction, and
persistence of effort in work settings.
 Motivation alone does not determine
performance.
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Work Motivations 2
 A general idea (umbrella concept) rather
than a precisely defined research target.
– Organizational commitment
– Job involvement
– Organizational climate
– Leadership practices
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Motives 1
 Perry & Wise (1990)
 Rational (instrumental) motives are grounded in
enlightened self-interest and are present in
individuals who believe that their interests
coincide with those of the larger community.
They personally identify with some programs
and express a commitment to public policy or
special interest advocacy.
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Motives 2
 Norm-based motives describe a desire to serve
the public interest, a duty and loyalty to the
government, and a concern for social equity.
 Affective motives, such as altruism, are
characterized by a willingness or desire to help
others.
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Push and Full Factors
 “Push” Factors
– Intrinsic and external impetuses that arouse
and direct effort, needs, motives and values
 “Pull” Factors
– Incentives, goals, and objectives pull.
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Content vs. Process Theory
 Content theories of motivation are concerned
with analyzing the particular needs, motives and
rewards that affect motivation.
 Process theories of motivation concentrate on
psychological and behavioral processes behind
motivation.
 Distinctions can overlap and need not be taken
as confining.
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Content Theories
Maslow’s hierarchy of needs (1954)
McGregor’s Theory X and Y (1960)
Herzberg’s two factor theory (1968)
McClelland’s 3 motivational needs (1961)
Alderfer (1972): growth, relatedness, and
existence needs.
 J. Stacy Adams’ equity theory (1965)
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Maslow: Hierarchy of Needs
 A theory in psychology proposed in his
1943 paper A Theory of Human Motivation.
– Often depicted as a pyramid consisting of five levels.
The first lower level is associated with the most basic
needs, physiological needs.
– Higher needs only motivate behavior when the lower
needs in the pyramid are met.
– Once an individual has moved upwards to the next
level, needs in the lower level will no longer be
prioritized and no longer motivate behavior.
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Maslow: Hierarchy of Needs
SelfActualization
Esteem Needs
Belongingness & Love
Needs
Safety Needs
Physiological Needs
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McGregor: Theory X and Y
• Theory X assumes workers lacking capacity for
self-motivation and self-direction and calls for
control
• Theory Y assumes workers having high-order
needs (growth, development, interesting work
and self-actualization)
• In theory Y, managers need participative
management techniques, decentralized decision
making, performance evaluation procedures, job
enrichment program.
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McGregor: Theory X and Y
supervisor
supervisor
employee
employee
Theory X – Top down;
manager is dictatorial,
controlling
Theory Y – Bottom up;
manager enables, gives
responsibility
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Herzberg: Two-Factor Theory
• Hygiene needs (physical and
psychological context--pay, job security,
etc.)
• Hygiene needs cause job dissatisfaction
when not satisfied, but they does not
stimulate job satisfaction.
• Motivator needs (work itself; intrinsic
needs) will result in high motivation once
satisfied.
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Herzberg: Two-Factor Theory
Hygiene Factors
Company policy and administration
Supervision
Relationship with supervisor
Working conditions
Salary
Relations with peers
Personal life
Relations with subordinates
Status
Security
Motivators
Achievement
Recognition
The work itself
Responsibility
Growth
Advancement
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Herzberg: Two-Factor Theory
high 10
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high on motivator scale,
low on hygiene scale
high on motivator scale,
high on hygiene scale
motivators
8 Employees are motivated. Job
fulfills higher order needs; but
7 extrinsic factors, such as pay, are
low so employee is dissatisfied.
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Best Case: Employees are
motivated and satisfied, find job
fulfilling; extrinsic factors are
satisfactory (e.g. pay, work
conditions)
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4
low on motivator scale,
low on hygiene scale
low on motivator scale high
on hygiene scale
3
Worst Case: Employees are
2 unmotivated, extrinsic factors
(e.g. pay and work conditions)
1 also unsatisfactory
low
0
1
2
3
4
Employees are not highly
motivated but are satisfied with
other factors of job (e.g. pay,
flexible hours, etc.).
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hygiene factors
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7
8
9
10
high32
Adams: Equity theory
 Perception of fairness of their work outcomes
relative to work inputs
 Compare his own outcome-input ratio
(outcome/income) with others’ (referents) ratios
 Equity, underpayment, overpayment
 Barnard’s exchange of incentives and
contributions in organizations
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Equity Theory Scale
Job
Inputs
Job
Outputs
Job, time,
effort, ability
flexible,
commitment
honest,
collegiality,
heart,
integrity,
respecting
Pay check,
benefits,
vacation time,
security,
recognition,
responsibility,
respect, sense
of purpose,
sense of
achievement
perceived balance
Input and motivation are reduced when perception of
fairness/ equity (outputs) is tipped, i.e. when employee
perceives effort is greater than reward
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Process Theories
• Vroom: Expectancy Theory
– Expectancies and dependent variables
– Expectancy theory in public organizations
• Skinner: Operant Conditioning and
Reinforcement
• Bandura: Social Learning (cognitive) Theory
• Locke: Goal-Setting Theory
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Vroom: Expectancy Theory 1
 An individual considering an outcome sums up
the values of all outcomes that will result from
the action, with each outcome weighted by the
probability of its occurrence.
 Theory draws on the classic utilitarian ideas
(maximizing pleasure and minimizing pain)
 Integrates elements of needs, equity and
reinforcement theories
 Individual workers differ in their preferences for
outcomes ire materials or social rewards
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Vroom: Expectancy Theory 2
F= ∑(E ij Vj)
V j = ∑(V k I jk )
F= The force acting under
individual to perform act i.
Eij=The expectancy or
perceived probability of
any effort will lead to an
outcome (act i will lead to
outcome j)
Vj= Valence of the outcome j
I= The instrumentality of the
outcome j for attainment
of outcome k
V= The valence of outcome
k
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Vroom: Expectancy Theory 3
 Valence refers to the emotional orientations people hold
with respect to outcomes/rewards. How desirable each
of the outcomes available from a job is to a person
 Expectancy: Employees have different expectations
and levels of confidence about their capabilities.
Perception that high levels of effort lead to high
performance.
 Instrumentality refers to the perception of employees
with respect to whether outcomes/rewards will actually
result. High performance leads to the attainment of
desired outcome.
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Vroom: Expectancy Theory 4
• Expectancies as Dependent Variables
– Expectancy type questions about relationships
between performance and pay, job security,
promotion, and incentives often show association
with reported work satisfaction and effort.
• Use in Public Organizations
– The underlying principles still underpin many civil
service reforms and government pay systems.
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Operant Conditional Theory 1
 Operant conditional theory by Skinner (1953)
 Operant conditioning, i.e. the use of
consequences to modify the occurrence and
form of behavior
 Relationship between observable behavior and
contingencies of reinforcements
 To link the performance of specific behavior to
the attainment of specific outcomes
 Punishment is less efficient and effective in
shaping behavior.
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Operant Conditional Theory 2
 Positive reinforcement (give desired outcome);
negative reinforcement (give undesired
outcome)
 Operant extinction (curtail the performance of
dysfunctional behaviors)
 Punishment (dangerous, illegal or unethical
behaviors to be eliminated immediately)
 Positive reinforcement provides the most
efficient means of influencing behavior.
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Operant Conditional Theory 3
• Low ratio reinforcement schedule produces
rapid acquisition of the behavior but more rapid
extinction when the reinforcement stops.
• Intermittent reinforcement, especially in highly
variable intervals or according to a variable ratio
schedule (reinforcement after long varying
periods or after varying numbers of
occurrences), requires more time for behavior
acquisition, but extinction occurs more slowly
when the reinforcement seasons.
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Social Learning Theory 1
 Developed by Albert Bandura (1978) et al.
 Reflects value and limitations of operant
conditioning and behavior modification.
 Draws from behavior modification, but puts
greater emphasis on internal cognitive
processes, like goals and a sense of self
efficacy.
 Gives attention to forms of learning and behavior
change that may not be tied to external
environment
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Social Learning Theory 2
 Individuals learn in ways other than
through extra reinforcement, including:
– modeling the behavior of others
– vicarious experiences
– mental rehearsal and imagery
– self-management through setting goals for
oneself
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Goal-setting Theory 1
 Theory simply states that difficult goals lead to
higher performance than easy goals, no goals,
or vague goals.
 Goals focus behavior and motivate individuals to
achieve desired and states.
 Goals may direct attention, intensify effort,
intensify persistence, spark creativity in problem
solving
 As the value of a goal increases, the
commitment to the goal increases.
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Goal-setting Theory 2
 Commitment to the goals and feedback are also
necessary to performance.
 Assignment of difficult (challenging; hard but not
impossible to attain) goals enhances
performance because goals appeal to motive
and desire to achieve (Locke and Latham,
1990).
– Goals provide a sense of purpose and create
standards for evaluating performance .
– Participation in goal setting is not clearly linked to
higher levels of motivation.
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Goal-setting Theory 3
 Goal setting works best with management
support and requires effective leadership.
 People should be committed to goals. The
manager should stress that the goals are
important (have personal value) and are
attainable.
 Empower employees to develop strategies and
tactics for achieving goals
 Beware of goal overload
 Mix qualitative and quantitative goals
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Goal-setting Theory 4
 Assign responsibility for achievement of goals
 Feedback stimulates the accomplishment of
goals.
 The greater the success, the greater the
satisfaction.
 Paradox: More difficult goals are less likely to be
achieved, leaving people unsatisfied; this, in
turn, fosters ambition, pushing people to strive to
achieve further.
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Job Satisfaction
 Concerns how an individual feels about her job
– One of most intensively researched areas with no
clear consensus on its meaning.
– Many ways to measure and thus to define
– One prominent approach (Hackman and Oldham,
1980) draws on Maslow’s Hierarchy of Needs.
 Consequences
– Inconsistent findings on the connection to
performance
– Fairly consistent (but not strong) findings that job
satisfaction ties to absenteeism and turnover
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Job Stress
• Role conflict: incompatibility of job requirements
• Role ambiguity: lack of information about a
position
• The characteristics of an individual’s role in an
organization determine the stress experienced in
that job.
– Role conflict and ambiguity have been measured.
– Research show relationship between role variables
and job satisfaction as well as other organizational
factors such as participation in decision making in
organization.
– Individual characteristics, such as need for clarity,
influence how much role conflict and ambiguity a
person experiences.
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Job Involvement
 The construct resembles intrinsic
motivation but is distinct from general
motivation and satisfaction
 It figures importantly in professional jobs.
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Job Commitment
 Relates to a sense of pride in work
 Calculative commitment is based on perceived
material awards the organization offers.
 Normative commitment is tied to perceived
relationship to values.
 Identification commitment derives from a sense
of pride of association.
 Affiliation commitment derives from a sense of
belonging.
 Exchange commitment is based on belief that
the organization appreciates effort.
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Profession of Public Mangers
 Has many related elements
– Expert body of knowledge
– Requirements for advanced education
– Belonging to a professional organization
 Personal values and organizational objectives.
– Need for autonomy
– Feeling of ethical obligation
– Identification with profession may dilute need for
intrinsic awards.
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Lessons from Motivation Study
• Given diversity of individual preferences, there is
no one best incentive that fits all cases
• Examine individual preferences and find out
more salient ones in an institutional setting
• Try to measure performance although
acknowledging its difficulty and danger
• Try to link performance and incentives
• As individual preferences change (country,
generation…), incentives need to change as well
• Subordinates’ acceptance is an important factor
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