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charlotte kelly

on 10 September 2013

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Transcript of MOTIVATION

Let's get Motivated with Jade Farquharson, Bethany Gibson, Holly Goldsack and Charlotte Kelly
After this workshop, you should understand the following:
- Define and conceptualise motivation generally and in a business context
- Distinguish between extrinsic and intrinsic motivation highlighting the importance of satisfying intrinsic needs
- Define incentive pay and its influence on motivation in the workforce
- Incentive pay and the overall negative impacts
- Relate motivation theories (Expectancy, Reinforcement, Goal Setting, Maslow, Herzberg, Mcclelland)
‘Is incentive pay a good motivator for an individual worker?’
Herzberg's Two Factor Theory
"The ability to change behavior. It is a drive that compels one to act because human behavior is directed toward some goal"
(Encyclopedia of Business and Finance, 2013)
- More determined and productive (Robbins, et al. 2011)
- Satisfies basic human needs (Steers, Porter and Bigley 1996)
- Associated with power and freedom
- Security and ability to pay for their lifestyle (Will 2008)

1. Control from outside (Deci et al,1985)
2. Narrow focus on task (Jenkins 1998)

3. Lack of creativity/desire
4. Overjustification- reduce self-motivation- Violin (Baumeister, 2007)

Most important- detrimental effect on intrinsic motivation (Jenkins 1998)

Are organisations wasting Money?

Accept difficult tasks therefore increases performance
Goal-Setting Theory
- Reinforces performance
- Will repeat performance that is positively rewarded

Reinforcement Theory
Expectancy Theory
+ $50 000
(Johnston and Hudson, 2012)
Still used as one of the best tools to motivate
Economics: people are motivated by money (Scott 2000)

Money as a motivator: why pay incentives work
Intrinsic and Extrinsic Motivation
Intrinsic Motivation: When a person is motivated to perform a task if there is no apparent reward for the performance except the activity itself and the feeling of satisfaction or enjoyment, which is derived from doing the activity.
1. Monetary reward
2. Based on performance
3. Increase productivity

Workshop Lesson Plan
1. Motivational Video
2. Discussion on Motivational Concepts
3. What is Incentive Pay?
4. Pros and Cons (example: Obama)
5. Herzberg, Maslow and Mcclellands Theories (includes activity)
6. Case Study Experiment (reflection on questionairre)
Extrinsic Motivation: Someone who is motivated to perform the tasks if he/she does it primarily for some external reward.
"compensation schemes which create congruence within an organisation: incentive pay can contribute to ensuring that the pursuit of individual objectives or interests is canalized towards the achievement of the organisation’s goals and objectives”
(Bayer, 2011)
(Vroom 1964)
Type of Work

Type of Work

Using both tangible and nontangible rewards to keep employees enthusiastic, loyal and interested in continual improvement (Meyer, et al. 2004)
Conclusion... what did we learn from today?
- One example of how executive pay affected employees is the Obama Administration US executive bonus pay issue in 2009

- Obama administration believed that incentive pay led to the financial crises among large banks and finance groups

- The reasons for this crisis was closely linked to bonus pay as individual workers acted in short term gain for a reward (extrinsic) which ultimately led to short-term behaviour and excessive risk taking

Obama Executive Bonus Pay

Pursure Inner Talent - Creativity - Fulfillment
Achievement - Mastery - Recognition - Respect
Friends - Family - Spouse - Lovers
Security - Stability - Freedom From Fear
Food - Water - Shelter - Warmth
(Jurgensen. C.E, 1978)

(Ryan and Deci, 2000)

(Jurgensen. C.E, 1978)

(Business Directory, 2013)
McClelland’s Achievement Need Theory
(Tan and Waheed, 2011)
(Jones and Lloyd, 2005)
(Smith, 2010)
(Van Wagner, 2009)
Cook, F (2009)
(Luthans et al. 2006)
(Jenkins et al, 1998)
Journal Articles and Books

Baumeister, Roy F. 2007, "Over justification Effect" in Encyclopaedia of social psychology (1-4129-1670-4, 978-1-4129-1670-7).

Broedling, Laurie A. 1977, The Uses of the Intrinsic-Extrinsic Distinction in Explaining Motivation and Organizational Behaviour. The Academy of Management Review, Vol. 2, No. 2, pp. 267-276.

Dartey-Baah, K., & Amoako, G. K. 2011, Application of Frederick Herzberg's Two-Factor theory in assessing and understanding employee motivation at work: a Ghanaian Perspective. European Journal of Business and Management, Vol 3, No 9, pp. 1-8.

Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behaviour. New York: Plenum.

Deci, Edward L., Ryan, Richard M. 2000, Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions, Journal of Contemporary Educational Psychology, Vol 25, No 1, pp. 54-67.

Jenkins, G. D., Mitra, A., Gupta, N., & Shaw, J. D. 1998, Are financial incentives related to performance? A meta-analytic review of empirical research. Journal of Applied Psychology, Vol 83, No 5, pp. 777-787.

Johnston, M., & Hudson, P. 2012, Tony Abbot defends increase in MP salary, saying he's working hard for every Australian. Herald Sun.

Jones, N. B. & Lloyd G. C. 2005, Does Herzberg’s motivation theory have staying power? Journal of Management Development, Vol 24, No 10, pp. 929-943.

Jurgensen, C.E. 1978, Job Preferences (What Makes a Job Good or Bad?). Journal of Applied Psychology, Vol 63, No 3, pp. 267-276.

Luthans, F., Youssef, C., & Luthans, B. (2006). Reinforcement theory. In J. Greenhaus, & G. Callanan (Eds.), Encyclopaedia of career development. (pp. 683-687). Thousand Oaks, CA: SAGE Publications

Meyer, John P., Becker, Thomas E., & Vandenberghe, Christian. 2004, Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model, Journal of Applied Psychology, Vol 89, No 6, pp. 991-1007.

Mottaz, C. J. 1985, The relative importance of intrinsic and extrinsic rewards as determinants of work satisfaction. The Sociological Quarterly, Vol 26, No 3, pp. 365-385.

Robbins, S. P., Judge, T.A., Millett, B., & Boyle, M. 2011, Organisational Behaviour. (6th Ed), Frenchs Forest, NSW: Pearson Australia.

Scott, J. 2000, Rational Choice Theory, Understanding Contemporary Society: Theories of the Present. London: Sage Publications.

Smith, Katherine T. 2010, Work-Life Balance Perspectives of Marketing Professionals in Generation Y, Services Marketing Quarterly, Vol 31, No 4.

Steers, R. M., Porter, L. W., & Bigley, G. A. 1996, Motivation and Leadership at Work, New York: McGraw-Hill.

Tan, T. H., & Waheed, A. 2011, Herzberg's motivation-hygiene theory and job satisfaction in the Malaysian retail sector: The mediating effect of love of money. Asian Academy of Management Journal, Vol 16, No 1, pp. 73–94.

Vroom, V. 1964, Work and motivation. New York: Wiley.

Will, K. 2008, Money as a Motivator. Australasian Law Management Journal, Vol 37, No 1

Web pages

Bayer, M. (2011). Revue d’Economie Politique, (3), 285-306. Retrieved from: http://search.proquest.com.ezproxy.library.uq.edu.au/docview/1282085296

BusinessDirectory.com. (2013). Incentive Pay. Retrieved from: http://www.businessdictionary.com/definition/incentive-pay.html

Cook, F (2009). Obama Administration Releases Executive Compensation Principles and Proposals for U.S. Public Companies. Retrieved from: http://www.fwcook.com/alert_letters/06-12-09_Obama_Administration_Releases_Executive_Compensation.PDF

Encyclopaedia of Business and Finance. 2013. Retrieved from: http://www.enotes.com/motivation-reference/motivation

Motivation. (2013). Retrieved from:


Van Wagner, Kendra. 2009, Self-Actualization and the Hierarchy of Needs. Retrieved from: http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds_2.htm


Pink, D. (2009). The Puzzle of Motivation. Retrieved from: http://www.ted.com/talks/dan_pink_on_motivation.html

Unknown. (2012). “Inspiration at its Best”. Retrieved from:
Pink, 2009)
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