Since working in jobs concerned directly with supply and demand, I have engaged in the study of behavioral economics, particularly what motivates people to work more effectively and efficiently, and what motivates people to consume.
The need to motivate employees and customers is fundamental to any business. While management and marketing are concerned with different sectors of business, though they share the same aim of motivating people.
"We find that financial incentives... can result in a negative impact on overall performance"
Dr Bernd Irlenbusch, London School of Economics
The ideas in Drive by Daniel Pink, question the classic style of motivating people with external rewards (e.g. money – carrot and stick approach). Daniel Pink has researched studies in social science that prove the true motivators of people are intrinsic; Pink proposes people need the following in their work/life/consumer experience to be truly motivated:
- Mastery - to get better at, and perfect a skill.
- Autonomy – to be self directed.
- Purpose – to be part of something larger than ourselves.
Drive by Daniel Pink and 7 Habits of Highly Effective People by Stephen Covey have similar ideas relating to management and motivating people. The '7 Habits' seek to create personal independence in order to become interdependent – working effectively with others in the workplace:
Independence or Self-Mastery
1: Be Proactive2: Begin with the End in Mind3: Put First Things First
Interdependence – working with others
4: Think Win-Win5: Seek First to Understand, Then to be Understood6: Synergize
Self Renewal - retraining
7: Sharpen the Saw
These ideas are actually quite obvious, people want respect for what they do, they will work more efficiently, with more respect for quality, and have more focus - if they are happy, motivated, goal orientated, personally 'fulfilled', and integrated into their workplace or product purchasing experiences.
Why do we not base all our work/life/consumer experiences around these productivity and motivational ideas? One theory is, monetary reward for work, or discount for consumption, gains fast short term results, which is what investors want. There are however some great examples of companies (particularly Apple) who have utilised long term, user focused, motivational ideals in their management, product development, marketing and retail experiences - to increase productivity and profit margins, create long term 'evangelists' among their customers, and maintain a high standard for their brand, without using financial incentives.
Personally I have studied, worked unpaid over time, and as an unpaid intern, in order to learn and 'master' the skills I need to be independent and thus useful to a team or company. In each case there has been a personal overriding goal, that this gratis work would benefit the knowledge, efficiency, quality, character etc., of myself and my work and thus benefit others (a company or consumer) in the future.
As a manager and worker, the goals and motivation I propose for myself and others are:
- Train people effectively to 'Master' a certain vocation
- To understand the vocation so well, one can become 'Autonomous', and understand how to progress and surpass expectations
- Finally, understand what role one plays in supporting a team - to find 'Purpose' in work
The motivators of 'mastery', 'autonomy' and 'purpose' can also be integrated into product development and innovation adoption by consumers... To be continued.