{"id":342,"date":"2017-08-14T22:10:47","date_gmt":"2017-08-14T22:10:47","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-principlesofmanagement\/?post_type=chapter&#038;p=342"},"modified":"2018-03-05T19:19:28","modified_gmt":"2018-03-05T19:19:28","slug":"the-importance-of-employee-motivation","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-mcc-supervision\/chapter\/the-importance-of-employee-motivation\/","title":{"raw":"The Importance of Employee Motivation","rendered":"The Importance of Employee Motivation"},"content":{"raw":"<h2>What you\u2019ll learn to do: explain the importance of employee motivation in an organization<\/h2>\r\nMotivation is one of the most frequently researched topics in management. One reason for its popularity is that only about 33 percent of US employees are engaged and thriving in their work. Gallup estimates that actively disengaged employees cost US businesses $483 billion to $605 billion each year in lost productivity.[footnote]\u201cState of the American Workplace: Employee Engagement Insights for US Business Leaders,\u201d Gallup, 2017[\/footnote]. Clearly, this suggests a problem. The good news is that a considerable amount of research now provides us with solid insights into how to improve motivation.\r\n\r\nIn this section, we will take a closer look at why motivation is so important in an organization, and we\u2019ll talk about the two major types of motivation.\r\n<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Explain the importance of employee motivation in an organization.<\/li>\r\n \t<li style=\"font-weight: 400;\">Distinguish between internal and external motivation.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"wp-image-1444 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1972\/2017\/07\/14220922\/We_Can_Do_It_3678696585-233x300.jpg\" alt=\"Poster of Rosie the Riveter\" width=\"371\" height=\"478\" \/>\r\n\r\n&nbsp;\r\n<h2>Introduction<\/h2>\r\nEmployee motivation is of great concern to any organization. Gallup's 2017 survey on employee engagement shows that \u201cthe ratio of disengaged to actively engaged employees is 2-to-1, meaning that the vast majority of U.S. workers (67%) are not reaching their full potential.\u201d[footnote]\u201cState of the American Workplace: Employee Engagement Insights for U.S. Business Leaders,\u201d Gallup, 2017[\/footnote] Research has shown that companies with higher ratios of engaged employees experience higher earnings per share (EPS) compared with their competition.[footnote]Gallup, 2017[\/footnote]\r\n\r\nThink about what motivates you to get your homework done. Maybe you want to get an A in the class so you can make the dean\u2019s list this term. Or maybe you want to learn all about management so you can start your own successful business one day. Because we are not all motivated by the same things, a manager\u2019s ability to motivate employees requires gaining an understanding of the different types of motivation. A better understanding will enable you to better identify the best ways to motivate others\u2014and possibly even yourself.\r\n<h2>Types of Motivation<\/h2>\r\nMotivation is the collection of factors that affect what people choose to do, and how much time and effort they put into doing it. There are two forms of motivation: <strong>intrinsic<\/strong> and <strong>extrinsic<\/strong>. These forms refer to the origin of the motivation. Intrinsic motivation exists within a person; extrinsic motivation comes from external or outside sources.\r\n<h3>Intrinsic Motivation<\/h3>\r\nIntrinsic motivation includes many internal sources of motivation. These might include:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">interests<\/li>\r\n \t<li style=\"font-weight: 400;\">beliefs<\/li>\r\n \t<li style=\"font-weight: 400;\">personal enjoyment and pleasure<\/li>\r\n \t<li style=\"font-weight: 400;\">sense of accomplishment<\/li>\r\n \t<li style=\"font-weight: 400;\">personal pride<\/li>\r\n \t<li style=\"font-weight: 400;\">skill development and competency<\/li>\r\n \t<li style=\"font-weight: 400;\">social status<\/li>\r\n \t<li style=\"font-weight: 400;\">power<\/li>\r\n<\/ul>\r\nYou should notice that these intrinsic rewards are not tangible, meaning that they can\u2019t be easily measured or quantified. Over time, however, the outgrowth may be tangible via promotions, better projects to work on, and the power to influence decisions.\r\n<h3>Extrinsic Motivation<\/h3>\r\nExtrinsic motivation includes motivational stimuli that come from outside the individual. These stimuli take the form of tangible rewards, such as commissions, bonuses, raises, promotions, and additional time off from work. For example, an employee who will take on extra work, provided there is a sufficient reward for this extra effort, is extrinsically motivated. Extrinsically motivated people may also value the intrinsic rewards, but only if the extrinsic reward is sufficient.\r\n\r\nSeldom is anyone exclusively intrinsically or extrinsically motivated. Even though someone may have strong preferences, they can overlap depending on the circumstances.\r\n<h2><strong>Check Your Understanding<\/strong><\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered in the previous section. This short quiz does\u00a0<strong>not<\/strong>\u00a0count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/6649","rendered":"<h2>What you\u2019ll learn to do: explain the importance of employee motivation in an organization<\/h2>\n<p>Motivation is one of the most frequently researched topics in management. One reason for its popularity is that only about 33 percent of US employees are engaged and thriving in their work. Gallup estimates that actively disengaged employees cost US businesses $483 billion to $605 billion each year in lost productivity.<a class=\"footnote\" title=\"\u201cState of the American Workplace: Employee Engagement Insights for US Business Leaders,\u201d Gallup, 2017\" id=\"return-footnote-342-1\" href=\"#footnote-342-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a>. Clearly, this suggests a problem. The good news is that a considerable amount of research now provides us with solid insights into how to improve motivation.<\/p>\n<p>In this section, we will take a closer look at why motivation is so important in an organization, and we\u2019ll talk about the two major types of motivation.<\/p>\n<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Explain the importance of employee motivation in an organization.<\/li>\n<li style=\"font-weight: 400;\">Distinguish between internal and external motivation.<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1444 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1972\/2017\/07\/14220922\/We_Can_Do_It_3678696585-233x300.jpg\" alt=\"Poster of Rosie the Riveter\" width=\"371\" height=\"478\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>Introduction<\/h2>\n<p>Employee motivation is of great concern to any organization. Gallup&#8217;s 2017 survey on employee engagement shows that \u201cthe ratio of disengaged to actively engaged employees is 2-to-1, meaning that the vast majority of U.S. workers (67%) are not reaching their full potential.\u201d<a class=\"footnote\" title=\"\u201cState of the American Workplace: Employee Engagement Insights for U.S. Business Leaders,\u201d Gallup, 2017\" id=\"return-footnote-342-2\" href=\"#footnote-342-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> Research has shown that companies with higher ratios of engaged employees experience higher earnings per share (EPS) compared with their competition.<a class=\"footnote\" title=\"Gallup, 2017\" id=\"return-footnote-342-3\" href=\"#footnote-342-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>Think about what motivates you to get your homework done. Maybe you want to get an A in the class so you can make the dean\u2019s list this term. Or maybe you want to learn all about management so you can start your own successful business one day. Because we are not all motivated by the same things, a manager\u2019s ability to motivate employees requires gaining an understanding of the different types of motivation. A better understanding will enable you to better identify the best ways to motivate others\u2014and possibly even yourself.<\/p>\n<h2>Types of Motivation<\/h2>\n<p>Motivation is the collection of factors that affect what people choose to do, and how much time and effort they put into doing it. There are two forms of motivation: <strong>intrinsic<\/strong> and <strong>extrinsic<\/strong>. These forms refer to the origin of the motivation. Intrinsic motivation exists within a person; extrinsic motivation comes from external or outside sources.<\/p>\n<h3>Intrinsic Motivation<\/h3>\n<p>Intrinsic motivation includes many internal sources of motivation. These might include:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">interests<\/li>\n<li style=\"font-weight: 400;\">beliefs<\/li>\n<li style=\"font-weight: 400;\">personal enjoyment and pleasure<\/li>\n<li style=\"font-weight: 400;\">sense of accomplishment<\/li>\n<li style=\"font-weight: 400;\">personal pride<\/li>\n<li style=\"font-weight: 400;\">skill development and competency<\/li>\n<li style=\"font-weight: 400;\">social status<\/li>\n<li style=\"font-weight: 400;\">power<\/li>\n<\/ul>\n<p>You should notice that these intrinsic rewards are not tangible, meaning that they can\u2019t be easily measured or quantified. Over time, however, the outgrowth may be tangible via promotions, better projects to work on, and the power to influence decisions.<\/p>\n<h3>Extrinsic Motivation<\/h3>\n<p>Extrinsic motivation includes motivational stimuli that come from outside the individual. These stimuli take the form of tangible rewards, such as commissions, bonuses, raises, promotions, and additional time off from work. For example, an employee who will take on extra work, provided there is a sufficient reward for this extra effort, is extrinsically motivated. Extrinsically motivated people may also value the intrinsic rewards, but only if the extrinsic reward is sufficient.<\/p>\n<p>Seldom is anyone exclusively intrinsically or extrinsically motivated. Even though someone may have strong preferences, they can overlap depending on the circumstances.<\/p>\n<h2><strong>Check Your Understanding<\/strong><\/h2>\n<p>Answer the question(s) below to see how well you understand the topics covered in the previous section. This short quiz does\u00a0<strong>not<\/strong>\u00a0count toward your grade in the class, and you can retake it an unlimited number of times.<\/p>\n<p>Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.<\/p>\n<p>\t<iframe id=\"lumen_assessment_6649\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=6649&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_6649\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-342\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Importance of Employee Motivation. <strong>Authored by<\/strong>: David J. Thompson and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Image: We Can Do It!. <strong>Authored by<\/strong>: Office for Emergency Management, War Production Board. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:We_Can_Do_It!_(3678696585).jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:We_Can_Do_It!_(3678696585).jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-342-1\">\u201cState of the American Workplace: Employee Engagement Insights for US Business Leaders,\u201d Gallup, 2017 <a href=\"#return-footnote-342-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-342-2\">\u201cState of the American Workplace: Employee Engagement Insights for U.S. Business Leaders,\u201d Gallup, 2017 <a href=\"#return-footnote-342-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-342-3\">Gallup, 2017 <a href=\"#return-footnote-342-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21046,"menu_order":2,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Importance of Employee Motivation\",\"author\":\"David J. 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