The Motivation of Employees in Public Sector - Essay Example

How Motivation of Employees May Be Different in the Public Sector – A Literature Review Table of Contents Page I Introduction 2 II Literature and Findings on Financial Incentives 4 III Literature and Findings on Job Design 6 IV Literature and Findings on Participation 7 V Literature and Findings on Goal Setting 8 VI Literature and Findings on Health Benefits 10 VII Literature and Findings on Soft Benefits 12 VIII Literature and Findings on Pension Benefits 13 IX Conclusion 14 X Recommendations 18 XI References 21 I. Introduction Numerous studies were already conducted on employee motivation in the public sector. Cash incentives and high salaries were always considered as motivating factors that encouraged employees to perform well in their respective jobs. However, high wages and cash incentives are just some factors that could be conceived why public sector employees do their jobs well (Ken Gay, 2000). In connection to the foregoing, motivation among employees imply reason or inducement that causes a person to achieve an ultimate goal (PLS 500, page 6). So, when an individual is motivated, he is driven by want to accomplish something in order to satisfy himself and make him stand out among his contemporary and peers. Maslow’s Hierarchy of Needs Theory emphasize that each person has five (5) basic needs, which are (PLS 500, page 6): 1)Physiological needs (hunger, thirst, shelter and other bodily needs); 2) safety needs that includes security and protection; 3) social needs which encompasses affection, acceptance and a sense of belongingness; 4) esteem needs which are self-respect, recognition and achievement and; 5) self actualization where an individual becomes his ultimate self through his own capabilities. Each need within the hierarchy should be satisfied before being able to say that he or she is actually contented with what he or she became. To relate motivation of employees with the preceding statements, it is essential to remember that the hierarchy of needs is not sufficient to drive a certain individual to reach his goals in life. Often, most motivating factors stem out of one’s culture and beliefs, which when taken generally is not the same baseline for everybody. Taking this into consideration, motivation in the workplace is affected by several variables which cannot be controlled by the individual to suit his wants and goals. These variables or outside factors are: 1) Ability, 2) leadership, 3) organizational culture, 4) technologies and 5) institutional constraints (PLS 500, page 6). As in any workplace or company that employs a number of people who may have similar or dissimilar goals, it is significant to note that these external factors may cause complication that would hinder or limit one’s ability to actually accomplish a desired objective. In connection to the above, McGregors Theory X and Y view of the nature of human beings is should be taken into account to better understand how behaviour is related employee motivation (PLS 500, page 7). Theory X assumes: - Employees dislike work and attempt to avoid it - People prefer to be directed and have little desire for responsibility. Employees shirk responsibility and seek formal direction wherever possible. - Most people have little capacity for creativity in work or in developing values and norms to guide behaviour - Most workers place security above all other factors and will display little ambition. - Motivation occurs mostly through stimulus-response level. Taking the above theory X assumptions in context, people or employees who fall within this segment are not interested in working. These kinds of employees must be controlled or forced to work in order to achieve desired goals. Managers who deal with this type of employees must find resources and ways to encourage them in taking particular active interest in their work and in the organizations goals. Theory Y assumes: - Employees view work as being natural as play. - Most people prefer to be self-controlling in the pursuit of organizational objectives. - Creativity is widely dispersed throughout the population and is not necessarily only held by those in management. -The average person can learn to accept and even seek responsibility. - Motivation often occurs in response to opportunities for personal and group development. The theory Y assumptions could be construed that people who are given proper initiatives can take on responsibility, know what they would like to accomplish and that they could exercise self-control in the work place. If an employee exhibits such personal traits, managers may feel confident to present those difficult tasks for accomplishment. II. Literature and Findings on Financial Incentives Reinforcement theory is the balance between performance and pay. In a review done by James Perry, et al. an organization’s desire to increase productivity and outcome will depend greatly on the monetary rewards that are to be given to an employee who has exhibited above-level performance in the acquisition of a desired out put (PAR, page 3). Although financial incentives tend to improve performance, it is affected by certain conditions that are within the organization (PAR, page 4). These conditions may come in the form of policies and regulations that must be adhered to in the accomplishment of company goals. Or it may also be the personal skill level of the employee who will try to accomplish said goals. Whatever factors that may surround the employee’s performance, it is best to consider giving every a fair opportunity to excel in the work place. Other studies also show that monetary incentives combined with social recognition produces better performance from employees rather than giving financial incentives solely or by providing social awards without the benefit of equal remuneration. The fact that both incentives when combined produce better work output indicates that employees need to be recognized for their hard work socially, to be able to stand out among their peers also need the monetary equivalent of their hard work to be fully satisfied. Basing this on the Maslow’s theory of needs, an individual’s physiologic and psychological desires need to be fulfilled to be fully satisfied (self-actualization). In correlation with financial incentives, the failure of government organizations to provide payment incentives for “a job well done” is due to findings that adequate funding is necessary to enforce pay-for-performance due to traditional government settings of having to conform to judicial budget appropriations (PAR, page 4). Some studies showed that a financial incentive for group performance within the public sector depends primarily on: 1) the characteristic of the regard system, 2) the organization, 3) the team and 4) the individual team members. Primarily, government sector employees are aware that the reward system for public employees is different from the private sector because it is not based on profitability but based on public service. Second, the policies of the organization regarding financial incentives may show particular coteries that cannot be easily met. Third, where team effort is concerned – the working relationship must be addressed because it could affect team effort as a whole. And fourth, the individual team members may have their own different agenda which is a disadvantage in trying to achieve a common goal (Ken Gay, 2000). To top it off, salary ands other financial incentives for public sector employees could cause discontent making overall performance poor (PLS 500, page 7). So it is imperative for managers and HR officials to ascertain whether the compensation package and monetary rewards are equal to the job output they expect from their employees in to require maximum performance and productivity. III. Literature and Findings on Job Design Taken into a broad context, a previous review of job design (PLS 500, page 7) states that it pertains to company policies, work relationships, work conditions and job security. An individual is often motivated to do well at work because he or she is contented with the overall job package. The job package comprise of factors that motivate good working habits and relationships which could be attributed to good company regulations and a healthy working atmosphere. The policies of a public sector organization in relation to work output must be clearly outlined. The compensation or rewards to be given must be attractive enough for the employees to motivate them properly. If the reward is adequately attractive, the employees must be conscious of the needed performing level or effort they need to infuse to gain the reward that is due them (PLS 500, page 10). According to previous reviews done by James Perry et. al., jobs which have an important impact on the psychological state of the employees will increase the desire for extra effort for better job output (James Perry, 2006). Two motivational techniques were studied and found to be effective in increasing production, these are: 1) Job redesign and 2) alternative work schedules. Job redesign which points to improving the work and benefit package of the organization. Said techniques were likewise found to reduce employee turnover and absenteeism that increases job satisfaction, commitment, productivity and quality of work. A successful job redesign is a very meticulous process because it requires problem identification, job remodelling and solution implementation, all of which affects overall employee motivation to a certain degree (James Perry, page 6). IV. Literature and Findings on Participation Employee participation is joint decision making between managers and employees. Rank and file are given the opportunity to partake in decision-making regarding organizational policies and its implementation. Participation as per other conducted studies positively motivates employees in such a way that they are more satisfied with their jobs and committed to their respective works. This insight have something to do with being able to voice out the concerns of the employees and making sure that issues which are paramount to them are given notice and assured solutions (James Perry, 2006). Even if participation may influence performance it is relatively limited due to working relations, leadership skills, complexity of tasks, etc. (James Perry, 2006). Participation at some point may also improve information and knowledge sharing between managers and employees. However, sharing of knowledge could be restricted especially at the top of the corporate ladder. But taking it as a whole, employees who actively participate in the organization’s decision making are more likely to produce quality results and high levels of work performance (James Perry, 2006). V. Literature and Findings on Goal Setting In a study made on goal setting by James Perry et. al. (2006), goal setting is attaining a particular standard in the pursuit of conscious and well defined goals. Goal setting positively enhances the worker’s action for better job output. Equity Theory is based on the fact that employees tend to make comparisons with regards their job output and outcome with their co-workers. The level of comparison is based on how much effort was put in and the output that came about. This is where the personally based their achievements whether they have been over rewarded our under rewarded. Specifically, employees notice that when an inequity or inequality exists they correct this by doing the following (PLS 500, page 9): 1. Distort either their own or other’s inputs or outcomes. 2. Behave in manner that induces others to change their inputs or outcomes. 3. Behave in a manner that causes them to change inputs/outcomes. 4. Choose different referent comparisons 5. Quit their jobs. The above actions or deeds which employees do within their workplaces prove that their satisfactions with their work outputs are based on the success or failure of others. Therefore, it supports the following premises (PLS 500, page 9): 1. Over rewarded employees will produce more that equitably paid employees. 2. Over rewarded employees in terms of quantity production will produce fewer but higher quality units than equitably paid employees. 3. Under rewarded employees will produce less or poorer quality units. 4. Under rewarded employees in terms of quantity will produce a large number of low quality units in comparison with equitably paid employees. Managers must see to it that goals given to employees would suit their capabilities. Giving a low skilled employee difficult tasks to accomplish will only undermine his self confidence and will continually perform poorly. Review and researches done in the field of goal setting affirmed the following (James Perry, 2006): 1) Specific and challenging goals encourage higher levels of performance; 2) multiple or potentially conflicting goals decreases employee performance; 3) goal setting and performance is offset by factors (example: employee characteristics). Specific and challenging goals generally pave way to attain high performance that leads to rewards, greater satisfaction and a stronger commitment to the organization (James Perry, 2006). Studies have show that when an employee is given a hard task to accomplish, normally, the employee rises up to the challenge by putting all his abilities and effort to accomplish the task or goal within record time. Upon doing so, the benefit or incentive that the employee up to the challenge will be given, making him more confident in his abilities and providing a sense of trust and security in the organization. Managers and human resources officials must be very particular in setting goals for the organization. Because observation by past researches viewed that multiple or potentially conflicting goals decrease employee performance. In setting any objective for accomplishment, managers should deem that they could relatively be accomplished by the employees despite being difficult. The manager must also be definite about time frames and what the goal really is to avoid confusion. Setting of goals must be done one at a time to do away with overlapping. All efforts should be concentrated in one direction so that the organization is able to accomplish the desired objectives and still maintain a smooth flow of operation. While review of the literature suggests that goals and productivity go hand-in-hand (James Perry, 2006), goal setting and performance is affected by factors such as employee characteristics. Although employees are given equal chances and opportunity to undertake organizational goals, the accomplishment of anything is influenced by first and foremost, the employee’s ability and knowledge of the task he is about to tackle, and the drive that would propel him to take on the task. Hence, if managers wish their employees to be committed to their goals, then they must equip them with adequate self-confidence to begin and finish any difficult task. Successful implementation of goal setting plans is influenced by individual sense of efficacy, job experience and desire for performance feedback. Other factors to be considered lies on the fact that public sector organizations are budget constrained and may not be able to provide any incentive; and a loop of procedures that may hinder an employee’s ability to accomplish set goals. VI. Literature and Findings of Health Benefits Review of other related literature regarding motivation of employees in the public sector revealed that one of the motivating factors which encourage government employees to perform well in their work is the presence of health insurances and other benefits. According to Stephen Ling et al. (1997), employees in the public sector are more likely to receive more health insurance benefits than their counterparts in the private sector due to several aspects that are expounded as follows: 6.1 Likelihood of Coverage - Most government and private sector employees at present possess health insurance plans. The differentiating factor is attributed to the fact that most private employees work for small private employers who offers a wide variety of health insurances. While public sector employees are given several options from several insurance companies. 6.2 Choice of Plans Public sector employees are more likely to have a choice of plan types, while private Employees have a limited choice because they are restricted to one (1) type of managed care plan that is given by their employer. 6.3 Types of Plans Selected - Despite a huge difference in the types of plans offered, the plan/s subscribed to by the public employees and the private employees are typically the same, but private firms and companies generally subscribe health plans for their employees from a sing HMO, thereby making private employees select plans without any alternatives. 6.4 Managed Competition - The federal governments policy for health insurance benefits is to pay a fixed dollar contribution to any plan an enrollee subscribes to. That is the government pays an equal contribution irregardless of the plan that was selected. So, the employee has always the option of choosing a more expensive plan for better benefits. 6.5 Information on Quality - Federal workers are given comparative information on the quality of plans they choose that differentiates it from other health plans that they could enroll in. However, employees are not often given information that would aid them in the proper evaluation as to the quality or standard of their health plan options. 6.6 Premiums Public sector employees pay lower premiums. But said premiums do not differ greatly from those working in private organizations who have enrolled in the same health plan. Nevertheless, they are assured that the government pays an equivalent premium share regardless of what type of plan they have chosen. 6.7 Contribution Share - The decision for an employee to subscribe in a certain health plan is often related to the amount the employer contributes. Most employees opt for family coverage than single coverage due to the fact that the contribution is more or less of the same amount with little or no difference. Providing health insurance benefits to public sector employees encourages them to be more productive in their respective jobs. Health benefits are motivating factors that gives an employee security during times of sickness or death when the financial cost could be burdensome. In order for these benefits to continue, most employees in the public sector stay with their jobs until retirement to profoundly benefit from their health insurances. VII. Literature and Findings on “Soft Benefits” In a related literature by Ken Gay (2000), soft benefits are secondary benefits given to employees when all other benefits given have been considered equal. These types of benefits simplify the life of the employee so that more time can be dedicated to work. Said benefits are in general routine errands that individuals have to do on a daily basis which caters to their personal needs. Some employers provide these routinely errands within the companys compound or area to help their employees beat traffic and the time consuming travel to areas where such services could be found. Some soft benefits are as follows: 1. On-site flu shots 2. Take-home meals 3. Facilities for nursing mothers 4. Legal assistance benefits 5. Floral shop 6. Dry cleaning service 7. Credit union 8. Convenience store VIII. Literature and Findings on Pension Benefits Every bit as important as pay incentives and health plans is the pension benefits a government or public sector employee is given when retirement time comes. This is a very important fact that every employee considers when seeking employment. It is also a factor that makes them stay long and work hard during their stay in the public organization. Based on the review done by the Legislatives Analyst Office (2006), a public sector employee receives a set of pension based on a formula that includes age, salary at retirement and the number of years in service. Contributions of employees for their retirement plans are fixed, but employers contribution varies from year to year. Some key issues regarding retirement plans within the public sector organizations: 8.1 Benefits are “Locked In” - Public agencies cannot readily "undo" past decisions regarding retirement benefits of employees. The way that the pension or benefit was computed based on an existing formula at the time the employee was employed will not be affected by succeeding decisions concerning such benefit. The formulas used to determine the benefit when retirement day comes and the employee contributions that were made “tend to be locked in place.” 8.2 Income Needs Are Usually Less in Retirement - Retirees will have less income during retirement since they do not maintain the same standard of living they once had during the time when they were working because clothing and daily travel expense are reduced. The retirement income usually comes from three (3) sources which are: 1) Social Security, 2) employer based pensions and private savings. Other long term mortgages, like home mortgage are paid off during this time too, so the amount of expense in paying off loans during their years of work will be drastically reduced. 8.3 Formulas Can Be Particularly Generous - Some government sector employees who have worked for a longer term than other or for those who were covered with a generous formula upon employment will receive a bigger annual income during retirement than when they were working. IX. Conclusion Primarily, demotivators must be identified within the workplace because it is an important factor to improve the quality of t work performance. Employee feedback will help identify these problems for elimination that will help standardize production quality (Ken Gay, 2000). In order to improve motivation (PLS 500, page 6) managers must consider that all their workers or employees: 1) Have their own individual differences as to how they approach and perform their respective jobs. 2. They have their own personal innate abilities and skills. 3. Have different career and personal goals. The preceding factors must be weighed thoroughly before or whenever promotions and incentives are offered for a job well done. It is also important that people match their jobs and responsibilities as to their knowledge, skills and experience. Goals given to employees for achievement must be identical in nature and should be realistic with regards to how and when it is expected to be accomplished. There must be a set of guidelines for goal achievement, wherein everyone must conform to ensure equality. Rewards are often used to influence performance and motivation because these are expected to raise employee satisfaction that also increases and encourages confidence in their ability to undertake more challenging tasks. In motivating employees, the manager must find out what each employee does best and rewards him or her accordingly. To rate success in achieving organization goals, the overall picture must be considered, instead of constantly pointing out little mistakes or errors that were committed during the work phase (Karen Rutzick, 2007). The following are some key factors that usually instigate motivation among public sector employees in the workplace (Ken Gay 2000): !. Full appreciation of work done 2. Feeling of being in on things 3 Sympathetic help with personal problems 4 Job securities 5. Good wages 6. Interesting work 7. Promotion and growth in the organization 8. Personal loyalty to employees 9. Good working conditions 10. Tactful discipline Everybody needs to be appreciated once in a while, when work is done satisfactorily. And supervisors or managers must be very vocal about this. Employees need to hear that they are appreciated since this gesture logically boosts their morale and psychic to continually do well in their work. The feeling of being in on things pertains to being able to take part in the decision making of the organization. Feedbacks should regularly be taken from employees who in one way or the other have various concerns that need to be addressed. Although there might be a limit on how much knowledge can be given and acquired, being part of policy decision making that may affect ones future may make him or her feel more confident and safe within the organization. Job security means that an employee is assured of a long tenure with the organization where he or she has the chance of acquiring regular status, this naturally motivates an employee to keep interest in work because this may be the source of the familys bread and butter. Good wages may be a very influential factor to motivate some employees to perform well at work. However, salary is just one of the few motivators that could continually extract good outputs from workers in the public sector. Not all high paying jobs are congruent with the responsibilities that are attached with the position. A concrete example is an employee who may be getting a high salary but who is constantly bugged with worry over the responsibilities of the job, may quit sooner or later. This goes to show that if the employee does not feel that the pay he is receiving is commensurate to the job requirements, then his interest in working for that particular organization will diminish and will eventually resign. When employees find their work interesting, then chances are they may be motivated to achieve and produce quality work outputs. For most employees in the public sector, service is vital in their quest for self-fulfilment. Even if the pay is not that big and they hardly receive recognition for their efforts. As long as the job is appealing and exciting then probably that is motivation enough. Promotion and growth within the organization usually comes in good time. A new employee who is bent in climbing the corporate ladder may have to wait for his or her turn before being promoted to a high position. For most public sector employees the chance for growth in the organization is quite big, since there are those who will be retiring and qualified individuals assume their place. People working for the same sector often bond with each other making a healthy relationship that makes the working ambience wholesome. At the same time, a certain amount of fondness or loyalty develops in employees for their co-workers who in one way or the other are concerned with each others welfare. The support that is given generally motivates employees to give their best at work, because they are confident that their colleagues will support them in whatever tasks that needs to be accomplished. Good working conditions certainly influences employees to look forward in going to the office everyday. If the environment is conducive to providing a healthy place of work, it will sufficiently motivate employees or workers to maximize their hours in the office. This may lead to a decrease in absenteeism and tardiness, which are signs that an employee is losing interest in reporting for work everyday Tactful discipline encourages employees to behave properly when they are in their workplace. Managers or supervisors should set good examples as to what is good office decorum. And employees must be aware of the need to conduct themselves properly and professionally while at work. Aside from this, the worker must know their responsibilities and must continually do their best to produce quality service outputs. It is significant to note that respect for each other within the office is a catalyst for better working relationship. Based on the all the above findings, it is safe to conclude that motivated employees always take pride in their work, that is why they finished goals on time efficiently by maximizing their resources (Martin Gosling, page 1). All employees may be considered assets of the organization or company because the collective effort that is required in order to run a successful work place takes more than just one individual. Since this is the usual case, managers and HR officials must come up with better ways on how to come up with better and attractive work packages that may not only satisfy an individual temporarily but which must also constantly help him or her in becoming a good public servant. X. Recommendations To improve motivation (PLS 500, page 6): 10.1 Managers should recognize the individual differences of their employees. Individuals possess different skill levels and abilities aside from their own personal characteristics, which enable them to pursue and achieve goals that could either, be personal or work related. It is essential to consider that since people have different personalities the way they handle their responsibilities and work in general is diverse from each other even if they come up with same work output. 10.2 Human resources officials must match people to jobs and responsibilities. The various jobs within an organization require different skill, abilities, experience and personality. Managers or HR personnel must see to it that an employee fits his or her job requirements accordingly. The responsibilities which come with the job must also be taken into great consideration if the person in-charge of such a position can handle it satisfactorily. Employees must be counselled earlier on that any consequences which may happen due to any decision that was made in connection with their functions must be anticipated at all times. 10.3 Individualize rewards whenever possible Each employee must be recognized for his own personal exemplary performance. Although group or team rewards have been proven to increases performance and motivation, it is reasonable to assume that not every team member has put forth the same time and effort which made the team successful in its accomplishment of a certain goal. Individualizing rewards or incentives will make employees work harder based on their own assets and abilities. It would help them build more self-confidence and producing high quality service. 10.4 Check the system for equity The policies in relation to motivation and rewards of a certain organization must be upgraded and screened regularly based on what the organization currently needs. Said policies must be properly scaled and related in terms of how to achieve goals that are directed to service since the public sector should be service oriented in their missions. Although monetary rewards in the public sector are based on judicial budget, it would probably be best if said monetary rewards are considered as an addition to a salary increase for higher pay grade. All employees in the public sector must be given the chance to achieve organization goals, irrespective of factors like age, culture, educational background, etc. that which be streamlined by the policies that should be followed in the achievement of such. Therefore, HR professionals need to consider that 90% of employees want to be rewarded and want to do a good job. Thus, the development of new ways to enhance good working conditions must be thought of. Issues which have an impact on service delivery and overall working conditions should be dealt with in the most expedient manner possible, by providing short and long termed solutions. Needless to say, managers need to actively participate in all aspects of their jurisdiction to be able to qualitatively and quantitatively realize all desired objectives (Karen Rutzick, 2007). XI. References CIPD (2008). Available from: http://www.cipd.co.uk/pressoffice/_articles/fit4_210907pr.htm [Accessed 27 March 2008] Gay, Ken (2000). Work Motivation Factors of the Public Sector and Private Sector Convention Centre Employees. Available from: http://www.wwstout.edu./lib/thesis/2000/2000gayk.pdf [Accessed 27 March 2008] Gosling, Martin (n.d.) Employee Motivation. Available from: http://www.d-q-e.com/motivation.pdf [Accessed 27 March 2008] Legislative Analysts Office (February 2006). Analysis of the 2005-06 Budget Bill. Available from: http//www.lao.ca.gov.\/analysis_2005/2005_pandi/pi_part_5_2_Public_Pension_ Benefits.htm [Accessed 27 March 2008] Perry, James., Mesch, Debra., Paarlberg, Laurie. PAR (Public Administration Review). Motivating Employees in a New Governance Era: The Performance paradigm Revisited*. Available from: http:www.aspanet.org/scriptcontent/custom/staticcontent/ t2pdownloads/PerryArticle.htm [Accessed 27 March 2008] PLS 500 – Public Administrative Theory. Topic – Motivation. Available from: http://people.umcw.edu/imperialm/uncw/PLS_500/PLS_500_Lecture%20Notes_Motivation.pdf [Accessed 27 March 2008] Rutzick, Karen (2007). Gov’t. Executive.Com Features: Building a Better Carrot. Available from: http://www.govexec.com/features/0407-15/0407-1552.htm,page8 [Accessed 27 March 2008] Read More