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Sunday, July 8, 2012

Motivation and Rewards

In this article I am heavily referencing a book called “Drive” by Daniel H. Pink, “The Surprising Truth About What Motivates Us”.  Pink, D., (2009), Drive, New York USA: Penguin Group; I would strongly recommend reading it.

In the next few paragraphs, I would like to look at individuals and their motivation as they need to be linked to the individual, the unique workplace and other workers within it, and the geographical location of the business as well as the individual’s cultural background. Hence, one size does not fit all.

If we go back centuries and even thousands of years, human behaviour and motivation was very much based on survival.  Over time humans have learnt to live in the more complex societies and to harness this purely biological drive.  We can look at the early modern way of motivation through award and punishment, however the basic pillars of ancient times still remain.

Many of today’s leaders and employees are being put through psych evaluations before commencing new roles.  A key area of these is to look how the individual is motivated.  Are they purely extrinsically (i.e. pay, working conditions and job security) motivated or are they more intrinsically (achievement, personal growth or even just enjoying work itself). 

I believe different cultures embrace these differently.  My understanding is that Japan embraced intrinsic motivation a long time ago, while the US at that point was very much extrinsically motivated through large bonuses and incentive schemes, and I don’t see that much has changed. 

As our company specialises in Lean Six Sigma business improvement, cultural change is on the forefront of increasing productivity and efficiency, and the culture is very much influenced by how the organisation rewards and retains their staff. 

I don’t think there is one solution that fits all, as some may work on occasions, others at other times, however, the key is to understanding and determining which parts to discard and which parts to keep.
When leaders design a program to achieve certain results they need to be very careful that these do not have the opposite effect (also known as the Sawyer Effect: practices than can either turn play into work or turn work into play) which can often be the case. Understanding the organisation, its values, vision and mission go a long way to establishing the basics, and may have to be re-visted to ensure we are not losing focus and what is important.

In the end of the day we want to achieve high performance from our staff and leaders.  We want them to remain creative while sticking to “good behaviour” such as honesty and integrity.  There are plenty of examples in recent times where major corporates have collapsed.  We often hear about the extravagant amounts of money the executives were paid, the lavish lifestyles etc.  And while they all seem to have set out trying to achieve high performance, the latter part of this paragraph was forgotten.  

Unethical behaviour crept into their every-day work life and it was as if they were getting addicted to the rewards.  Their thinking became short term, ignoring any long term consequences.
Earlier in our course (and this blog) I/we discussed whether leaders were born or made, and I remember some interesting comments from many of the other students.  

It seems to be a fact that in the long term, intrinsically motivated people will often outperform extrinsically motivated people. While in the short term extrinsically motivated people can often delivery better results faster, the trouble seems to be that this approach is difficult to sustain, which leads to the addictive problems discussed earlier. 

If you remember my earlier post (http://leanimprovement.blogspot.com.au/2012/05/leadership-and-three-levels-of.htmlwhich discussed EQ’s, CQ’s and SQ’s, I also mentioned that I felt it was important to include mind and body.  Intrinsically motivated people have been shown in many studies to generally lead healthier lifestyles, with greater physical and mental well-being.

In summary, every person is different, so is every workplace.  There will always be some people who are motivated in other ways than their co-workers.  A good leader needs to assess the situation and try and master the distribution of rewards based on the individuals.  Some of it will be by trial and error, but as long as the basics are adhered to with integrity (values, vision, mission), the outcome should be sustainable.

As for politics, whether we like it or not, they are part of every work place.  The aim is to minimise them and to lead with autonomy.  Warm and fuzzy does not work for me, it is as it is.  Although it may not always be appreciated, people know where they stand with me and hopefully respect the honesty.  Therefore I do agree with the statement by Prof. Lusk “No, there are a lot of places where no matter how hard you work, if you don’t play the politics, you lose! “, I am just glad that I work for a company where this is not the case, and in the end this is everyone’s choice to make!

Below are a couple more extracts from a presentation (Unit 1.1 - Motivation & Rewards, University of Cumbria & Robert Kennedy College, Prof. Lusk) which are interesting and fitting:

Defining Motivation
Motivation
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
Key Elements
1.  Intensity: how hard a person tries
2.  Direction: toward beneficial goal
3.  Persistence: how long a person tries




 Why is motivation so important to Employers?
•  Between 50% of our employees are not motivated
•  Employers want to improve efficiency and increase productivity.
•  Benefits and Rewards packages need to be designed to be motivators

Comparison of Satisfiers and Dissatisfiers


Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October 1987. Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.