Management Practices Lecture-17 1

Recap Training & Development Types of Training Types of Development Performance Appraisal 2

Today’s Lecture Motivation The Nature of Motivation The Motivation Equation Expectancy Theory Need Theory 3

The Nature of Motivation Motivation – The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence – Explains why people behave the way they do in organizations

Motivation Defined as the psychological forces within a person that determine: 1) direction of behavior in an organization; 2) the effort or how hard people work; 3) the persistence displayed in meeting goals. – Intrinsic Motivation: behavior performed for its own sake. Motivation comes from performing the work. – Extrinsic Motivation: behavior performed to acquire rewards. Motivation source is the consequence of an action.

Outcomes & Inputs – Regardless of the source of motivation, people seek outcomes. Outcome: anything a person gets from a job. – Examples include pay, autonomy, accomplishment. – Organizations hire workers to obtain inputs: Input: anything a person contributes to their job. – Examples include skills, knowledge, work behavior. – Managers thus use outcomes to motivate workers to provide inputs.

The Motivation Equation

Expectancy, Instrumentality, and Valence 13-8

Expectancy Theory 13-9

Need Theories – Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs. Need – A requirement or necessity for survival and well- being. Managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well

Maslow’s Hierarchy of Needs 13-11

Alderfer’s ERG Theory 13-12

Motivation-Hygiene Theory Focuses on outcomes that can lead to high motivation, job satisfaction, & those that can prevent dissatisfaction. Motivator needs: related to nature of the work and how challenging it is. – Outcomes are autonomy, responsibility, interesting work. Hygiene needs: relate to the physical & psychological context of the work. – Refers to a good work environment, pay, job security. – When hygiene needs not met, workers are dissatisfied. Note: when met, they will NOT lead to higher motivation, just will prevent low motivation.

McClelland’s Needs for Achievement, Affiliation, and Power Need for Achievement – The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence

McClelland’s Needs for Achievement, Affiliation, and Power Need for Affiliation – Concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other Need for Power – A desire to control or influence others 13-15

Equity Theory There are two types of inequity: underpayment inequity and overpayment inequity. Underpayment inequity exists when a person’s own outcome– input ratio is perceived to be less than that of a referent. In comparing yourself to a referent, you think you are not receiving the outcomes you should be, given your inputs. Overpayment inequity exists when a person perceives that his or her own outcome– input ratio is greater than that of a referent. In comparing yourself to a referent, you think you are receiving more outcomes than you should be, given your inputs.

Operant Conditioning Theory Operant Conditioning – People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. Linking specific behaviors to the attainment of specific outcomes can motivate high performance and prevent behaviors that detract from organizational effectiveness

Social Learning Theory – A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior 13-18

Merit Pay and Performance Merit Pay Plan – A compensation plan that bases pay on based on individual, group and/or organization performance. – Individual plan: when individual performance (sales) can accurately measured

Summary Motivation The Nature of Motivation The Motivation Equation Expectancy Theory Need Theory 20

Next Lecture Personality Traits The Big Five Traits Traits and Managers – Values – Moods 21