How to motivate employees? - Chapter 9

The previous chapter discussed how motivation is related to work performance. In this chapter, the topic of motivation is extended by discussing concrete motivation applications. Leaders may, for example, use the reinforcement theory by adding pleasant events (positive reinforcement) or removing unpleasant events (negative reinforcement). Both intrinsic and extrinsic rewards can be used. These may even be combined via mechanisms such as extrinsic in service of intrinsic or motivation-work cycle math. Money may be used as a reward, but only if the following guidelines are followed:

• Define and measure performance accurately.
• Make rewards contingent on performance.
• Reward employees in a time manner.
• Maintain justice in the reward system.
• Use monetary rewards.

What are the characteristics of the reinforcement theory?

The reinforcement theory (also known as operant conditioning) is based upon the law of effect: past actions that led to positive outcomes tend to be repeated, while past actions that led to negative outcomes tend to diminish. This law of effect led to the development of the reinforcement theory, in which individual personality, thoughts, and attitudes do not motivate behavior. Instead, the psychologist B.F. Skinner found two kinds of reinforcers that increase behavior. First, positive reinforcement is a favorable event or outcome presented after the behavior. For example, praise or a bonus. Second, negative reinforcement is the removal of an unpleasant event or outcome after the display of a behavior. For example, ending the daily criticism when an employee shows up for work on time.

In contrast, punishment is the presentation of an adverse event or outcome that causes a decrease (instead of an increase) in the behavior. There are two kinds of punishment. First, punishment by application is the presentation of an unpleasant event or outcome to weaken the response it follows. For example, writing a letter to an employee's file for failing to meet a deadline. Second, punishment by removal is when a pleasant event or outcome is removed after certain behavior occurs. For example, withholding praise when an employee underperforms. 

To sum up:

• Positive reinforcement = pleasant event + event is added.
• Punishment by removal (extinction) = pleasant event + event is removed.
• Punishment by application = unpleasant event + event is added.
• Negative reinforcement = unpleasant event + event is removed.

The schedules of partial reinforcement refer to how often an applied reward (or punishment) predicts learning and motivation. The schedules are based on time (interval) or the number of times the response is given by the worker (ratio). In addition, the schedule can be fixed or variable (random). These two dimensions result in the following four possible outcomes:

• Fixed + interval = reinforced after a certain amount of time has passed.
• Fixed + ratio = reinforced after a certain number of responses have occurred.
• Variable + interval = reinforced after an average amount of time has passed.
• Variable + ratio = reinforced after an average number of responses have occurred.

Organizational behavior modification using the reinforcement theory can be used as follows:

1. Pinpoint the specific behavior that needs to be changed.
2. Measure the baseline. For example, how many days per month is the worker on time?
3. Perform an A-B-C analysis.
   • Antecedents: what is causing the behavior? Consider both internal and external factors.
   • Behavior: what is the current behavior? What is the desired behavior?
   • Consequences: What is currently reinforcing the behavior? What needs to be changed?
4. Make action plan and strategies.
5. Plan implementation and evaluation of critical behavior.
6. Feedback to make adjustments. 

What are the characteristics of the social learning theory?

A second theory of learning, perhaps the most influential one today, is the social learning theory of Albert Bandura. According to Bandura, operant conditioning (reinforcement) is useful, yet it does not explain all ways in which a person can learn. He introduced the social element into how people acquire new skills and described the various ways in which people learn by watching other people. This is also called observational learning (or modeling). In addition, external reinforcements are not the only factors that influence motivation. Internal reinforcements, related to pride, satisfaction and a sense of achievement, also are important.

The modeling process has four steps.

1. Attention: in order to learn, you have to pay attention to the behavior of other people.
2. Retention: the information must be stored for access in the future.
3. Reproduction: once information is noted and retained, one must imitate (perform) the behavior he or she recalls.
4. Motivation: for observational learning to work, one needs motivation to imitate.

Intrinsic motivation is when someone works on a task because they find it interesting and gain satisfaction from the task itself. Intrinsic motivation is a function of a person's needs for autonomy and competence in the theory of self-determination (also known as cognitive evaluation theory). Autonomy is the need to work alone without constant surveillance. Extrinsic motivation involves the performance to outcome instrumentality between the task and a tangible reward. 

Two synergistic effects between intrinsic and extrinsic motivation are described. First, extrinsic in service of intrinsic refers to how extrinsic rewards may support an employee's sense of competence if they do not undermine autonomy. This has been implemented in Google, where workers are given twenty percent of their work time to work on something that they are passionate about, even if it falls outside the scope of their job or is unrelated to the mission of the company itself. Second, the motivation-work cycle math refers to the understanding that innovation occurs in phases and intrinsic motivation may be more important during the idea-generation phase. However, when the project is being implemented, extrinsic rewards may be needed to ensure that deliverables are produced on time and within the budget.

Should money be used as a motivational tool?

There are pros and cons to using money as a motivational tool.

• Pro: organizations that appropriately tie pay to performance and pay more have higher rates of return.
• Con: tying pay directly to performance can have dysfunctional or even unethical consequences. 

Paying employees different levels of rewards for individual efforts can result in pay diversion, which may lead to jealousy among employees or harm team performance. 

There are five evidence-based guidelines for money as a motivator:

1. Define and measure performance accurately.
2. Make rewards contingent on performance.
3. Reward employees in a time manner.
4. Maintain justice in the reward system.
5. Use monetary rewards.

For determination of compensation and other outcomes (such as promotion), performance management is essential. Typically, this appraisal involves the immediate supervisor only. Often, the appraisal is reviewed by the human resource department. However, in a 360-degree performance appraisal, the input from a number of sources is included to provide a more comprehensive view of one's performance. In doing so, both individual benefits and organizational benefits are considered. Another method is to use behaviorally anchored rating scales (BARS) in which a vertical scale is presented with specific examples of performance provided. The performance dimension that are included here are: outstanding, exceeds expectations, meets expectations, below expectations, and unsatisfactory. 

Common criticism to these performance reviews is that the process is unfair and shows favoritism. Others fear that the process is punitive. There may be perceptual biases, such as the central tendency error, in which they rate all dimensions of performance as average. These perceptual biases may be avoided by rewarding for results rather than behaviors. For example, via profit-sharing plans, stock options, and gain-sharing plans. Other forms of compensation are: flexible working hours, job sharing, remote working, sabbaticals.

What prevents someone from seeking feedback?

The situation affects the person's motives for feedback seeking. People may want to defend either their self-perception or image. The frequency, method, timing, target and topic of feedback seeking are five important patterns that matter. Consequences of feedback-seeking are: accuracy in self view, instrumental goal attainment and image maintenance and enhancement.