Managing Social and Human Capital
Introduction
Module 1. Motivation and Reward
Before We Get Started...
* We should recognize something about employment
* It is about "people", different from other factors of production
- They have legal rights including unionization, which limit what management can do
- Social norms also matter - including "issues of fairness"
Motivation
* You could try to manage people by having somebody stand over and watch them, but that doesn't work very well.
* HOW DO YOU MOTIVATE PEOPLE to work in the way you want them to work?
[Google / 3M]
- Giving their employees TEN HOURS A WEEK to work on whatever they want to
= Giving discretion and autonomy and not supervising them = "TRUST"
What is motivation?
* Motivation and Mothers Restaurant
* Agency theory: Automated Travel Systems
- Engineers threatening to quit and the company was on a very short deadline & having not enough money
- Model which is ALL ABOUT MONEY (more money, stay. less money, leave.) regardless of the missions / jobs
- [Solution] INCENTIVES
- Rewarding people for doing the right things
"Efficiency Wages"
= If you pay more to employees a little bit than your competitors do,
benefit 1> best ones come to you because you pay a little premium over the others.
benefit 2> folks are less likely to quit
benefit 3> folks are likely to behave better not to get fired
"Tournaments"
= Big prizes for winning
benefit > all people playing in the tournament motivated by one prize = Efficient!
downside > this works great in a tournament/company where nobody's gotta work together and everybody's literally competing against each other
*IF YOU WANT FOLKS TO COOPERATE AND WORK TOGETHER, 'tournaments' cuts against it.
* Employees will tend to choose the weakest tournaments in the company
Usually real case = "promotion system"
"Rewarding A While Hoping for B"
* Australia (prison ship)
- Incentive for prisoners onboard at departure --- less food, bad conditions, bad support ... --- HIGH DEATH RATE
- Incentive for prisoners alive at arrival --- more food, good conditions, good support --- MANY ALIVE PRISONERS
* The Mir Space Station
- Incentive for docking successfully --- NEVER TAKE RISKS FOR DECREASING COSTS DRASTICALLY
- Incentive for taking risks --- VOLUNTARILY TAKE RISKS AND IT RESULTS TO COST DOWN
Designing Incentive Systems
Here's the trade-off
- Is the performance outcome within my control?
If not, there is no incentive.
- IN MANY JOBS, IT'S VERY DIFFICULT TO MEASURE MY OUTPUT
[SUB OPTIMIZE]
- Get my goal at the expense of the overall business
- Similar to "Rewarding A while hoping for B" case
BEST SOLUTION about most incentive based pay
= not rely on incentives too much
= have incentives that are pretty simple (NOT COMPLICATED)
Exception: Executives whose pay is tied to overall business outcomes
- Even here, we could get sub-optimization (short-term obj vs. long-term obj.)
Psychology Theories - complicated view
Expectancy theory
- what do I actually expect from employees?
- If you believe that something might happen(change in ownership/goals/incentives/etc), your motivation falls to zero.
Path-Goal
- Even if you know all the clear goals for incentives, it is NO USE when you don't know how to get there!
- Remind us of the importance of people having the skills, having the training, understanding what to do.
Behavior Modification
- Begins with a series of cognitive models (the way your brain processes information)
- You, a supervisor goes to the store and give bonus to an employee for doing right things
- Employee will think that "if I keep doing like this, I will get more bonuses!"
- The beauty of behavior modification is...
- "You don't have to get those bonuses all the time"
- STRONGEST MOTIVATION/LEARNING about how to behave comes from
when you get them almost RANDOMLY for doing the right things
- It teaches people to behave in a particular way "UNCONSCIOUSLY"
Notion of Conformity
- People nearby conform to WHAT THAT GROUP IS APPARENTLY DOING
- When you hire people into an organization, they don't know how it works and what the rules are
- You put them into a group of high performing people and they'll copy these people
Imitation
- We copy an attractive role model
- Good example > Attractive supervisor do the right things
- Bad example > Attractive supervisor do not the right things
Compliance
- Idea that we really react to formal authority very powerfully
- We want our authority figures in organizations to be DOING THE RIGHT STUFF
Cognitive Dissonance
- In our heads, it's difficult for us to hold conflicting pieces of evidence at the same time
= BEING UNCOMFORTABLE = MAKE ACTIONS TO RESOLVE IT
[How to Resolve Cognitive Dissonance]
> Goal Setting
- Quitting smoke / you make a promise to people you care about (i.e. children)
- I understand smoking is killing me / I promise you I'm quitting
- You could sneak away and do it, BUT THERE COMES COGNITIVE DISSONANCE - "I promised and I don't want to be a liar, I will not smoke."
> Pygmalion Effect
- Supervisor expects more than what I think I can do
- The expectations push me a little bit harder and make me put more efforts, time, resources - and make the job done!
> Equity Theory
- It has to do with UNFAIRNESS ISSUES
- When we perceive something unfair, we try to create equity BY CHANGING THE BALANCE OF OUR CONTRIBUTIONS
- by saying "I am not working as hard"
본 내용은 아래 MooC 강의의 학습내용을 바탕으로 작성했습니다.
https://www.coursera.org/specializations/wharton-business-foundations
'HOW START UP? > MOOC' 카테고리의 다른 글
| 사회자본 및 인적자본 관리 개요 (Managing Social and Human Capital) (0) | 2019.03.15 |
|---|---|
| 고객중심전략의 장벽과 응용사례 (0) | 2019.03.10 |
| 5개 핵심 요소로 효과적인 브랜드 구축하기 (0) | 2019.03.10 |
| 잠재고객의 인식과 행동을 바꾸는 브랜드 커뮤니케이션 (0) | 2019.03.08 |
| 성공적인 마케팅 커뮤니케이션을 위한 7M 프레임워크 (0) | 2019.03.06 |
