Rewards – A motivating factor at Microsoft corporation – A motivating factor at Microsoft corporation Page | 1 Rewards – A motivating factor at Microsoft corporation 1.Introduction: Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the people’s behaviour can be - desire for money,rewards,success,jobsatisfaction,team work etc. Managing reward is largely about managing expectations what employees expect from their employers in return for their contribution and what employers expect from their employees in return for their pay and the opportunity to work and develop their skills. Expectorations are built into the employment relationship, the starting point of which, from the rewards point of view, is an undertaking by an employee to provide effort and skill to the employer, in return for which the employer provides the employee with a salary or a wage. The purpose of managing the system of rewards within the organisation is to attract and retain the human resources the organisation needs to achieve its objectives. To retain the services of employees and maintain a high level of performance, it is necessary to increase their motivation and commitment. In effect the organisation is aiming to bring about an alignment of organizational and individual objectives when the spotlight is on reward management. Page | 2 Rewards – A motivating factor at Microsoft corporation 2.Meaning and definition of Motivation: Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the people’s behaviour can be - desire for money rewards success recognition job-satisfaction team work, etc One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of employees in their jobs. The process of motivation consists of three stages:- A felt need or drive A stimulus in which needs have to be aroused When needs are satisfied, the satisfaction or accomplishment of goals. Therefore, we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan. Page | 3 Rewards – A motivating factor at Microsoft corporation 3.Characteristics Or Features of Motivation Some important features of motivation may be brought out as follows: 1. Personal and Internal Feeling Motivation is a psychological phenomenon, which is generated within an individual in the form of an energetic force that drives him to behave or not to behave in certain ways. These are some environmental and other forces that trigger these drives. 2. Art of Stimulating Someone Or Oneself A manager can use motivation to inspire not only his subordinates, but to motivate himself also. For self-motivation, he has to take following steps He should set a goal for himself and should not close sight of it. He should supplement his long term objectives with short-term goals. He should learn a challenging task every year. Page | 4 Rewards – A motivating factor at Microsoft corporation He should make his job a different one with a view to improving objectives for his position and increasing his productivity. He should develop an area of expertise by building on his strengths and developing his weaknesses into strengths. He should give himself the feedback and reward himself by celebrating his accomplishment. 3. Produces Goal – Directed Behaviour Motivation is closely intertwined with behaviour. As a Behavioural concept, it directs human behaviour toward certain goals. 4. Motivation can be either Positive or Negative Positive motivation is also known as Carrot Approach and includes use of additional pays, incentives, praise possibility of becoming a permanent employee etc. Negative motivation is also called Stick Approach and implies punishment, such as reprimands, threat of demotion, threat of termination, etc. 5. The Central Problem of Motivation is HOW Motivation is necessary for successful achievement of goals. However, it is a complex process because different employees have different needs, their motives are varied and needs and motivates change from time to time. Moreover, motivation is partly logical and partly emotional. Further, people satisfy their needs in many different ways. Hence, the central problem of motivation is how to inspire such a typical group of individuals towards attainment of goals in a concerned manner. 6. Motivation is System Oriented Motivation is the result of interplay among three sets of different factors: Influences operating within an individual, for example, his needs, tensions, motives, values, goals etc. Influences operating within the organisation for example, its structure, technology, physical facilities, various processes, the nature of job, advancement avenues etc. Page | 5 Rewards – A motivating factor at Microsoft corporation Forces operating in the external environment, for example, society is culture, norms, values, customs, government policy regarding the business of the enterprise etc. 7. Motivation is a Sort of Bargaining Inducements from the side of the enterprise and contributions from the side of the employees. 8. Motivation is a complex phenomenon: Motivation being an internal feeling cannot be observed directly. Since motives themselves are dynamic, it further adds to complexity. 9. Motivation is different from Satisfaction Motivation refers to the drive and effort to satisfy a want or goal. Satisfaction refers to the contentment experienced when a want is fulfilled. In other words, motivation implies a drive toward an outcome and satisfaction is the outcome already experienced. Page | 6 Rewards – A motivating factor at Microsoft corporation 4. Importance of Motivation in Modern Organisations 1. Productive use of resources: Modem organisation work through physical, financial and human resources. The utilisation of physical and financial resources depends on the willingness of people to work. Motivation enables people to convert physical and financial resources into useful products. It helps management to get the best out of human as well as non-human resources. 2. Increased efficiency and output: Motivation enables people to work enthusiastically. Performance is a product of not merely ability to do a task but the willingness to do the same with zeal and enthusiasm. Motivation bridges the gap between the overall efficiency and output. This, ultimately, helps in reducing the cost of operation. 3. Achievement of goals: Motivation causes goal directed behaviour. It helps people to move in a desired direction and earn rewards. In organisations where managers try to understand the needs of employees and institute appropriate incentive systems, accomplishment of goals in fairly easy. If people are not properly motivated, no useful purpose can be served be planning, organising and staffing functions. 4. Development of friendly relationships: Motivation brings employees closer to organisation. The needs of employees are met through attractive rewards, promotional opportunities, etc. employees begin to take more interest in organsiational work. Their morals are high. They begin to think that the enterprise belongs to them and the interests of the enterprise are their interests and there is no difference between them. This helps in developing cordial relations between management and workers. 5. Stability in workforce: Page | 7 Rewards – A motivating factor at Microsoft corporation Attractive motivational schemes satisfy the needs of employees. As a result, their commitment to organisational work increases. Employees do their tasks loyally and enthusiastically, they are not tempted to leave the organisation. This means reduced employee turnover. Further, satisfaction on the job means reduced absenteeism. Page | 8 Rewards – A motivating factor at Microsoft corporation 5. Theories of Motivation: 1. Locke's Goal Setting Theory Goal setting is a powerful way of motivating people, and of motivating yourself. The value of goal setting is so well recognized that entire management systems, like Management by Objectives, have goal setting basics incorporated within them. In fact, goal setting theory is generally accepted as among the most valid and useful motivation theories in industrial and organizational psychology, human resource management, and organizational behaviour.Dr Edwin Locke's pioneering research on goal setting and motivation in the late 1960s. In his 1968 article "Toward a Theory of Task Motivation and Incentives," he stated that employees were motivated by clear goals and appropriate feedback. Locke went on to say that working toward a goal provided a major source of motivation to actually reach the goal – which, in turn, improved performance. This information does not seem revolutionary to us some 40 years later. This shows the impact his theory has had on professional and personal performance. In this article, we look at what Locke had to say about goal setting, and how we can apply his theory to our own performance goals.Locke's research showed that there was a relationship between how difficult and specific