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For example, when you got your first job repossessing cars, you were motivated by the need for money to buy food. As a state senator, by contrast, you may prefer public recognition of work well done say, election to higher office to a pay raise. Another psychologist, Frederick Herzberg, set out to determine which work factors such as wages, job security, or advancement made people feel good about their jobs and which factors made them feel bad about their jobs. He surveyed workers, analyzed the results, and concluded that to understand employee satisfaction or dissatisfaction , he had to divide work factors into two categories:.

Figure 7. Note that motivation factors such as promotion opportunities relate to the nature of the work itself and the way the employee performs it. Are salaries reasonable? What about working conditions? Does each accountant have his or her own workspace, or are they crammed into tiny workrooms? Are they being properly supervised or are they left on their own to sink or swim?

As you can see in Figure 7. To increase satisfaction and motivate someone to perform better , you must address motivation factors. Is the work itself challenging and stimulating? Do employees receive recognition for jobs well done? Will the work that an accountant has been assigned help him or her to advance in the firm?

According to Herzberg, motivation requires a twofold approach: eliminating dissatisfiers and enhancing satisfiers. These are the issues considered by psychologist Victor Vroom in his expectancy theory Theory of motivation that proposes that employees will work hard to earn rewards they value and consider obtainable. As you can see from Figure 7. In terms of expectancy theory, under what conditions would an agent be motivated to sell more than ten policies a month? Say that the company raises prices, thus making it harder to sell the policies.

According to expectancy theory, motivation will suffer. Because agents may be less confident that their efforts will lead to satisfactory performance. How will this policy affect motivation? Motivation will decrease because the link between performance and reward has been weakened. Obviously, the reward would be of less value to agents, and, again, motivation will suffer. The message of expectancy theory, then, is fairly clear: managers should offer rewards that employees value, set performance levels that they can reach, and ensure a strong link between performance and reward.

What if you spent thirty hours working on a class report, did everything you were supposed to do, and handed in an excellent assignment in your opinion. Your roommate, on the other hand, spent about five hours and put everything together at the last minute. You know, moreover, that he ignored half the requirements and never even ran his assignment through a spell-checker.

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A week later, your teacher returns the reports. Applied to the work environment, this theory proposes that employees analyze their contributions or job inputs hours worked, education, experience, work performance and their rewards or job outcomes salary, benefits, recognition. The basis of comparison can be any one of the following:.


More often, however, they conclude that others are being treated better and that they themselves are being treated worse. This is what you concluded when you saw your grade.

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Risky Rewards: How Company Bonuses Affect Safety, by Andrew Hopkins and Sarah Maslen

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