EXAMPLE. ILM Level 3 Leadership & Management. Understanding How to Motivate to Improve Performance. Unit

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1 ILM Level 3 Leadership & Management Understanding How to Motivate to Improve Performance Unit No part of this document may be reproduced without written permission

2 [Intentionally Blank]

3 Contents Contents 1 Unit Specification and Learning Outcomes 2 Introduction 3 Key Definitions 4 Drivers of Motivation 6 Leadership and Motivation 7 Hertzberg s 2-factor Theory 8 Delegating for Motivation and Performance 13 Job Characteristics Model 14 Motivating for High performance 16 Individual Motivations The Psychological Contract 17 Medal and Mission 19 Motivating with Appraisals 19 Employee Engagement Creating a Motivational Working Culture 20 Attitudes, Motivation and Performance 22 Connecting Values to Motivation 24 Monitoring Team Performance 25 Key Performance Methods 29 Record Keeping and Progress Chasing 31 Dealing with Underperformance 31 Conclusion 32 Bibliography/Further Reading 33 1

4 Understanding how to Motivate to Improve Performance Level: 3 Credit value: 2 Unit guided learning hours: 9 Learning outcomes (the learner will) Assessment criteria (the learner can) 1 Understand the factors that influence motivation levels in the workplace 2 Understand how a theory of motivation can be used to improve performance levels Unit purpose and aim(s) Indicative Content: Define the term motivation Describe the factors that may affect motivation levels in the workplace Explain how individual differences affect levels of motivation in the workplace Explain the potential impact on organisational performance if employee motivation levels are low Describe a recognised theory of motivation Describe ways in which knowledge of a theory of motivation can be used to improve performance in the workplace Explain how to use employee engagement to increase motivation levels The learner will be able to develop knowledge and understanding of motivation theory and how it can be applied in the workplace to improve performance as required by a practising or potential first line manager. Basic theories of motivation and their application to teams and individuals Overview of the factors influencing behaviour at work Styles and patterns of behaviour at work Range of techniques to motivate individuals and monitor performance Positive approaches to offset negative attitudes in the workplace Employee engagement policies and practice This table is extracted from the ILM Qualification Specifications 2

5 Introduction As a first line manager, or aspiring first line manager, one of your key responsibilities is, or will be, motivation of the team. This in itself sounds quite daunting. After all, most teams comprise people of varying abilities and motivations. That said, as team members, we each have a responsibility to the Team and to fellow team members to contribute to the Team s output which will invariably be greater and of higher quality if the team are motivated to perform. This workbook will allow you to explore motivation and performance, looking at the behavioural characteristics of well-motivated employees and to considering how to increase motivation. There will be opportunity for you to consider what demotivates people and how you might prevent or reduce de-motivators in the workplace. By the time you have completed this workbook and the various exercises within it, you will be able to do 2 things. First, you will be able to confidently tackle the workbased assignment. Second, and by far the most important thing, you will have a thorough understanding of how to motivate your team to improve performance. This workbook will help you to consider the things you have come across at work and give you the confidence to learn from that experience. 3

6 Key Definitions Motivation Activity: Create in your own words a definition of what you understand by the term motivation : Definitions of motivation: The willingness to exert high levels of effort to reach organizational goals, with satisfaction of some individual need After: Stephen (2000) Motivations are the factors that drive or energise the action and behaviour of an organisation or individual (Glendon et al 2006) Performance Activity: Create in your own words a definition of what performance means within a business or organisational context: Performance: The accomplishment of a given task measured against pre-set and known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfilment of an obligation in a manner that releases the performer from all liabilities under the contract. 4

7 (The Business Dictionary) Activity: Why motivate employees? Capture your thoughts below: Employees that are motivated to perform to required standards lead to success for organisations. Without motivation at some level, nothing really gets started or delivered. However, motivating people is not always easy. Motivation tends to be personal. Whilst one employee may value time off, the next may enjoy new challenges. Motivate people, who are committed to your organisation generally stay with the organisation and demotivated people can absorb disproportionate amounts of management time. 5

8 Drivers of Motivation Activity: Think of a person you regard as being highly motivated. What drives that individual? There are 3 key elements that seem to drive motivation. They are: 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries Activity: Thinking more generally about the workplace, what factors affect motivation levels at work? 6

9 Your thoughts in response to this question could have been many and varied but may have included: Exciting and challenging work Cultural Factors Meaningful work Having quality products A positive work environment The location Camaraderie Career prospects Growth, learning and development Being in an effective and harmonious team An approachable and effective boss Recognition for contribution made Fun Autonomy, sense of control over work Making a difference Feeling valued Flexible working Fair pay Inspiring leadership Realistic allowances Job security If an organisation's cultural atmosphere is plagued with negativity this can be disastrous as once a cultural mind-set is in place it is difficult to change. Leaders who invest time and effort into developing a positive working environment often find their employees are happier and this attitude becomes a part of the company's culture. Leadership and Motivation There are numerous definitions of leadership but one, which is a little different from many, allows us to focus on why leadership is so crucial in motivating others and ourselves: Leadership: the impact you have on yourself and the impact you have on people around you Adrian Gilpin,IHD The impact you have on yourself is largely about attitude and self-motivation. Attitudes are infectious! A negative attitude transfers to others and vice versa for a positive attitude. If you are not self-motivated, how can you expect others to be? The 7

10 impact you have on others is about motivating the team and conveys a need to inspire to get the best out of people. There is a causal link here that relates directly from leadership to motivation and productivity: Leadership Degree of Motivation Hertzberg s 2-factor Theory How people behave Motivational Linkage (AH Raymondson, 2013) One of the most prominent and accepted theories of motivation comes from Hertzberg, who made observations of motivation in workers at the Ford Motor Company over a period of some 5 years. He segregated motivational factors into 2 discrete sections which he called satisfiers (motivators) and hygiene factors (dissatisfiers/ de-motivators). Often this is referred to a 2-factor theory. His categorisation was: Hygiene Factors (Dis-satisfiers) Motivators (Satisfiers) Productivity & Effectiveness Company Policy and Admin Relationships with co-workers Physical Environment Supervision Status Job Security Salary Pay and Benefits Achievement Recognition Work Itself Responsibility Advancement Personal Growth 8

11 The 2 motivators that were most effective were Achievement and Recognition. Hertzberg s view was that Hygiene factors had very limited motivational substance. However, if they were not provided to expected and reasonable levels then they became strong de-motivators. The diagram below shows the factors with the motivators inside the racing car and the hygiene factors around the racing car: Salary Relationship with supervisor Personal life Work conditions Company policy & administration Hygiene Hygiene Factors Factors Relationship with peers Security Supervision Relationship with subordinates 6 Personal Growth 4 Responsibility 5 Advancement 3 Work itself Status 2 Recognition 1. Achievement 2-Factor Motivation Adapted from: Hertzberg Format: AH Raymondson 9

12 Herzberg s key findings were that: Understanding how to Motivate to Improve Performance Unit Activity: A bad physical environment may dissatisfy people, but a good environment rarely satisfies them. The prevention of dissatisfaction is just as important as encouragement of satisfaction. Hygiene factors operate independently of motivation factors. An individual can be highly motivated in his or her work and be dissatisfied with his or her work environment. All hygiene factors are equally important, although their frequency of occurrence differs considerably. Hygiene improvements have short-term effects. Any improvements result in a short-term removal or prevention of dissatisfaction. Hygiene needs are cyclical and come back to a starting point. This leads to the "What have you done for me lately?" syndrome. Record below, what you consider to be the implications of Hertzberg s observations and analysis for your team? You may have responded with specific observations relating to your own situation. However as a general application of Herzberg, line managers who ensure that they address Herzberg s top 2 motivational factors recognition and achievement will find that motivation noticeably improves. Achievement relates to objective setting and as people achieve the objectives opportunities arise to give people recognition and constructive feedback. There is a parallel here too with the old saying catch somebody doing something well and tell them about it 10

13 Interestingly rewards such as pay (ie the hygiene factors) are not supported as significant motivators as is popularly believed. Pay according to Herzberg has some but very limited motivational power. However it would be a big de-motivator if it were not received to an appropriate level for the job. It is often suggested for example by sales personnel that they are motivated by rewards such as bonuses. In 2-factor theory this would not be the motivator it would be the recognition that they get from being seen to have achieved their bonus. Activity: Take each of the Hygiene Factors outlined by Herzberg and allocate a score reflecting how well your organisation performs in each area. Remember these are de-motivators if they are not provided to satisfactory levels: Hygiene Factors Company Policy and Admin Relationships with co-workers Physical Environment Supervision Status Job Security Salary Pay and Benefits Activity: Score: 1 (poor) - 10 (excellent) Which of the Hygiene factors can you personally do something to improve (either by taking positive action or by influencing others)? What specifically could you do to improve 3 of them? 11

14 Activity: Now take each of the Motivators outlined by Herzberg and make notes as to what actions you as a manager could take to improve application of each element in your workplace: Motivators Achievement Actions Recognition Work Itself Responsibility Advancement Personal Growth 12

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