 Hi everyone, my name is Dr. Laura Portales and I'm going to be guiding you through our course Banaging People and specifically here we're going to talk about Unit 2. So let's get started. Our course unit structure as you can see is divided into 8 units and for our purposes of this video we will be addressing Unit 2 on motivation. As you probably already know it's always important to review the learning objectives for any unit that you're working on. This is because all of the content in the unit but also the practice exam and the final exam questions are tied to these learning objectives. So let's take a look at the learning objectives for Unit 2. The first is apply theories of motivation to inspire and motivate individual employees and groups in a variety of work situations to achieve high performance within organizations. We'll also be looking at use a system that includes performance appraisals and feedback as tools for employee development and to improve job performance. And finally we'll look at recommend incentives and rewards to inspire high performance in teams. Now let's take a look at our list of topics for this unit. The slide here lists the vocabulary that we will be discussing throughout this video and also words that you should know and be comfortable with to get yourself ready for the practice exam. Our list of topics for Unit 2 include a discussion of motivation theories. We're always also going to talk a little bit about performance appraisals and we'll also address some of the possible incentives and rewards you can provide to people to help motivate them at work. The first part of this unit ultimately addresses some of the theories of motivation and we have a few general concepts that I want you to consider as you think about what you've learned in this unit. The first is the idea of a needs-based theory and a needs-based motivation theory really focuses on the things that people so basic human needs and how we as leaders and as managers can help them meet those needs. It's important to remember that sometimes those needs might be physiological needs like food and shelter but also there are a lot of intrinsic needs that we have as well so that's things like sense of accomplishment and fulfillment of tasks. We'll also be looking at some of the cognitive-oriented theories that ultimately tell that people have a need for equitable compensation. So there are a couple of theories based and we'll take a look at those here in a little bit. Behavior-oriented theories ultimately focus on how people act in particular situations and how we can get them to act in the way that we want them to and sometimes this is also called reinforcement theories. Finally job-oriented theories refer to the idea that there are things that we can do as leaders and as managers to help individuals meet their goals and meet their needs based on how we design the job, the mix of skills that they have and how we can develop their skills in order to help make them a better employee. So here I'd like us to dig in a little bit deeper and talk about some of the needs-based theories that we mentioned in the last slide. So here we have two examples of need-based theories. The first is the ERG theory and the second is Maslow's Hierarchy of Needs. And if you recall, these theories ultimately focus on how can we as managers and people that lead individuals, how can we ultimately help them meet all of the needs that they have. So the ERG theory says that there are three main needs and those needs include existence needs, relatedness needs and also growth needs. So existence needs are those basic physiological needs like food, water, shelter, whereas relatedness needs refers to the social needs that we have, a sense of belonging, whereas growth needs refers to the type of need we have to continually develop ourselves and also to enhance our skills. So Maslow is very similar and actually the ERG theory is based off of this Maslow theory which says that there are these levels within the hierarchy. And the difference between the two theories is that Maslow said people need to have one need met before they can move up that hierarchy. Other later theories about needs and motivation ended up saying that you don't need to have one before you meet the next, that at any given point in time we're working on trying to meet all of these needs. So Maslow looks at needs in a hierarchy, physiological needs, which we've already talked about, us safety needs, belonging or love needs, esteem needs and self-actualization would be similar to the ERG theory in terms of growth needs. So when we look at these two theories we understand that as a leader and as a manager there are a lot of things that we could do to try to meet each of these. So for example we might meet existence needs by providing a reasonable salary and we may meet safety needs by providing benefits as well, healthcare benefits and so forth. As a manager we may try to meet relatedness needs by ensuring that people are working within teams and they have a lot of availability and time to be able to interact with other people within their organization. And finally growth needs, we can motivate people based on that by tuition reimbursement programs or ensuring that they're continually developing their skills to a higher level. So the idea here and what I'd really like you to take away from the idea of needs-based theories is that we don't as managers want to focus on one area, we want to try to focus on several areas of human needs to focus on in order to motivate people. For example if we only focus on physiological needs and provide a high salary, well then we're leaving out a lot of other needs that people still have despite a high salary. So that's our discussion on needs-based theories. Let's take a look at our next concept now. Now let's take a look at some cognitive oriented theories. There are two main ones we can discuss here, the expectancy theory and the equity theory. Expected expectancy theory is located here in this figure and you can see that expectancy refers to the amount of effort based on our performance which then is based on rewards. So in other words the amount of effort we put in, the amount of performance we can expect are based then on the rewards that we expect to get from it. So let's say for example you put in a lot of effort at work but everybody at work receives the exact same pay raise every year. Well this doesn't really meet this theory in that if you put in a lot of extra work you should be rewarded more handsomely than someone that didn't. So as managers we want to make sure that we think about the expectancy theory and that we are providing the appropriate and right amount of rewards based on the amount of effort that each individual on our team is putting in. The equity theory is another cognitive oriented theory and is focused on comparison of others. So if we think about we put in a lot of work but someone else calls in sick a lot or doesn't put in the same amount of effort we would be really disappointed to find out that they are getting paid more than us. So when we think of these cognitive oriented theories we really want to think about the amount of effort employees are putting in and how they're being rewarded for that but we also want to do that in terms of fairness compared to others within our organization. One of the behavior oriented theories that you learned about in this unit is called the reinforcement theory and it says that there are several things that we can do as managers to try to get the behavior that we want from our employees. So we can provide positive reinforcement we can provide negative reinforcement we can provide punishment and also we can provide something that's called extinction and distinction refers to if an employee has some kind of negative behavior essentially we just ignore that behavior hoping that that behavior goes away and they don't receive their positive consequences therefore the hope is that they'll change their behavior. When we look this there aren't necessarily there isn't necessarily one way that's better than others but from a general perspective we want to try to use positive reinforcement as much as possible and avoid negative reinforcement and punishment. Research has shown that positive reinforcement definitely is a better way to get people to do what we need them to do and punishment and negative reinforce can tend to demotivate people. So when we look at this theory there may be sometimes where we do need to have punishment or we need to have negative reinforcement especially if it's in an emergency situation like a report is due and someone does something all wrong but for the most part we want to try to use positive reinforcement in order to get the desired results or the desired behavior that we want our employees to meet. Job-oriented based theories are those theories that focus on the idea that people want to contribute to their organization they want to do a good job within their positions so if we assume this to be true there are certain things that we can do to help people achieve this and achieve growth within our organizations so we can do employee development we could provide tuition reimbursement we might consider training and other types of seminars and things that allow people to grow and ultimately get better in their jobs. We can also change job design we can look at enlarging jobs and tasks for example putting someone on a specific project that's outside of their regular duties in order to help meet the needs that are really ultimately come down to us wanting growth and development as employees and as managers we want that for our employees as well. Now we're moving from motivation theories and talking a little bit about performance appraisals and a performance appraisal is ultimately a formal review of an employee's performance and there's a lot of different methods we can use to someone's performance but I think the key point here that I'd like you to keep in mind is that performance appraisals are a formalized process but that doesn't mean we shouldn't be giving feedback throughout the year most of the time performance appraisals will happen about once a year and in terms of that it's a chance for you to sit down with your employee and discuss performance throughout the entire year but if someone's not meeting expectations they should know right away and not wait until their performance review to find out that they're not doing something correctly. As a manager this is good for you because then you'll get better performance throughout the year so we just want to think performance appraisals ultimately is a formalized process in order to give feedback but every good manager will give continual feedback as they go along throughout the year. Oftentimes we find that performance appraisals are tied to pay raises promotions and that thing so they're important from from that perspective as well. When we look at performance appraisals usually the company that we work for will have a method that they prefer to use but it's good for you as a manager to have an idea of some of the general types of performance appraisals like the graphic rating scale checklist scale and so forth that you read about within the unit. When we look at performance appraisals we also want to consider some of the errors that can happen within performance so the first one is the halo effect and this is when we really like an employee we think they do a great job so we end up right rating them a lot higher than ultimately what they've earned or what they deserve because overall we like them as a person so we definitely want to watch for a halo effect within our employees. When we look at reliability we want to make sure that the tool we use is reliable time after time in terms of us being able to get the same rating every single time we rate. When we look at fidelity we want to look at the fact that the tool that we use is valid and similar to reliability that every time we use it we're going to end up getting a similar result. Acceptability is important too because this relates to the employee and how acceptable the tool is to them as a method to be rated. If the employee doesn't really accept the rating method then it becomes a lot less valuable as a tool to help develop your employees and finally we want to make sure that the tool is specific so we want to relate it to specific jobs within our organization because many can be so very very different we want it to be specific to the job duties that ultimately that person is responsible. Let's take a look now at incentives and rewards so when we think about a reward system we think about the first step which is employees investing a variety of things in order to do their job well so those things can be the fact that the employees investing time they have skills that they bring to the table and they have knowledge that is beneficial to your organization so we can look at that but then we look at the organization itself and the organization wants to attract people that have certain skillset and certain abilities so we have to come up with a rewards or incentive system to ultimately meet that goal which is attracting and retaining people. When we look at retaining people we look at we don't want people to leave our organization once we've hired them so we want to keep the incentives and the rewards in a way that as someone goes along throughout their career with our organization that they're motivated to not only be hired to begin with but to stay within our organization. We also want to think about the fact that the organization invests has an investment in this too just like the employee so they're investing in the employee the paycheck they're paying the employee benefits status and recognition social opportunity but also job opportunities such as a promotion within the organization. So then we can look at this from the employee's perspective in that they want interesting work so everyone wants work that they enjoy and they want to be paid fairly. So when we look at this as a whole and we look at developing a system of incentives and rewards we want to heavily consider this kind of exchange that happened between between us as the organization and the employees and it is possible to meet all of these needs we just as managers want to make sure that we have a very set process and very developed way in order to offer the incentives and rewards that we have. So let's take a little bit deeper look at that. When we look at incentives and rewards there are two main types of rewards intrinsic and extrinsic rewards. Extrinsic rewards are those rewards that we provide to an employee for doing a good job so that could be pay that could be benefits that could be paid time off that could be promotions bonuses anything along those lines and these of course are important as part of the way that we want to motivate and incentivize our employees. However there are intrinsic rewards too that while we don't have a lot of control of them as a manager we definitely want to consider them. So intrinsic rewards are think of them more as feelings so it's the feeling of a job well done it's the feeling of satisfaction the feeling that you're contributing to something that's bigger than yourself. So when we look at intrinsic rewards we want to try to design jobs and make sure that we're hiring people with the right skills so that they can achieve these intrinsic rewards. So when we have extrinsic rewards that we're providing and we're hiring the right people with the right set of skills to be motivated intrinsically we have a winning combination. As we're considering incentives and rewards we want to think about some methods that we may use that can help us achieve pay fairness within our organization and that's related back to the theories that we talked about a little bit earlier in this video. So many organizations will have a system that is called pay grade levels and this is where everyone earns essentially the same salary based on the pay grade that they're within and then further the pay grades are established by things like job to levels of levels or years of experience and so forth. So we have a pay grade that may be between a one dollar amount and another dollar amount and then once someone is at say five years of service then they get to move up into the next pay grade or they get promoted and maybe so the advantage to this type of system allows it allows us to ensure that we're paying people fairly but one of the disadvantages is that it may not be as much of an incentive for people to take a lot of initiative within your organization simply because they know that their their pay grade isn't going to change just because they take on an extra project example but having said that that also speaks quite a bit to the idea that it's more than just about pay. So for using a pay grade type that's that's great at least there's fairness there but we want to try to do other things to develop our employees and help them try to meet those intrinsic rewards as well. Some companies use what's called the going rate model and the going rate model looks at research that's done on similar industries different industries within the country that the business is operating and that's how they set up their pay system is essentially the going rate in the United States some organizations will even pay differently for the same type of job if it's in a big city versus a more rural town where it's less expensive to live. So as you can imagine there are disadvantages to this method as well and that make things somewhat unfair but it does give a lot more leverage for the employee excuse me for the management to ultimately pay for for their employee. This now concludes our video review on unit two a couple of things to think about we're going to tie back what you've learned to the learning objectives that we discussed at the beginning of the video which include applying theories of motivation and within that you learn job oriented theories behavior oriented theories cognition oriented theories and needs or oriented theories. We also talked about system that includes performance appraisals and feedback which can be great tools for employee development and we also addressed how we can recommend incentives and rewards to try to get the best performance from our team. Let's take a look now at what's next to prepare you for the practice exam. I definitely recommend that you do another review of the material maybe especially some of the material that you had some challenges with. Once you review that material you should be all set to take the practice exam and I wish you the best of luck.