Chapter 6 Process Motivation Theories

Expectancy according to Vroom

Expectancy - expanded Outcome 1 High Effort Performance Goal Outcome 2 “What are my chances of reaching my performance goal if I work hard?” Expectancy “What are my chances of reaching my performance goal if I work hard?” Outcome 3 Instrumentality “What are my chances of getting various outcomes if I achieve my performance goal?” Valence “How much do I value these outcomes?” Decision to Exert Effort Expectancy “What are my chances of reaching my performance goal if I slack off?” Expectancy “What are my chances of reaching my performance goal if I slack off?” Outcome 1 Low Effort Performance Goal Outcome 2 Outcome 3

Expectancy exemplified Outcome 1 (1.0) Make $3,600 in commission (+2) Outcome 2 High Effort Performance Gain respect from peers and recognition from boss (.80) (.75) (+1) Work hard for 10 hours a day Work hard for 10 hours a day Work hard for 10 hours a day Sell nine cars a month Outcome 3 (-.9) Have more time to spend with boyfriend (+2) Instrumentality Expectancy Expectancy Valence Outcome 1 (1.0) Make $1,200 in commission (+.5) Low Effort Performance Outcome 2 (.80) (.75) Work hard for 5 hours a day Sell three cars a month Lose respect from peers and recognition from boss (-1) Outcome 3 (.60) Get fired (-2)

Porter and Lawler’s version

Equity Theory of Motivation Definition: Equity theory: Motivation is a function of fairness in social exchanges

The equity theory model

The individual – organisation exchange relationship Factors considered when making equity comparisons Inputs Outcomes Time Pay/bonusses Education/training Fringe benefits Experience Challenging assignments Skills Job security Creativity Career advancement/promotions Seniority Status symbols Loyalty to organisation Pleasant/safe working environment Age Opportunity for personal growth/development Personality traits Supportive supervision Effort expended Recognition Personal appearance Participation in important decisions

Negative and Positive Inequity An Equitable Situation - Comparison in which another person’s ratio of outcomes to inputs is equal to your outcome to input ratio - Example: Self = €2 = €2 per hour vs. Other = €4 = €2 per hour 1 hour 2 hours Negative Inequity - Comparison in which another person receives greater outcomes for similar inputs - Example: Self = €2 = €2 per hour vs. Other = €3 = €3 per hour 1 hour 1 hour Positive Inequity - Comparison in which another person receives lesser outcomes for similar inputs - Example: Self = €3 = €3 per hour vs. Other = €2 = €2 per hour 1 hour 1 hour

Tresholds of inequity Negative inequity is less tolerable than positive inequity Inequity can be reduced

Eight ways to reduce inequity Methods Examples Increase inputs Work harder; attend school or training Decrease inputs Don’t work as hard; Take longer breaks Increase outcomes Ask for a raise; Ask for a new title; Seek outside intervention Decrease outcomes Ask for less pay Leaving Absenteeism and turnover Psychological distortion of inputs and outcomes ‘Certain inputs are not important’; ‘Boring and monotonous job’ Psychological distortion of inputs or outcomes of comparison other ‘Other has more experience or works harder’ Change comparison other Pick an new comparison person; Compare to previous job

Practical Lessons from Equity Theory Employees’ beliefs and attitudes affect job performance. Employees’ perceptions of distributive and procedural justice are important because they affect many different employee outcomes. Managers benefit by allowing employees to participate in making decisions about important work outcomes. Perceptions of fairness are increased by giving employees the opportunity to appeal decisions that affect them. Employees are more likely to accept change when they believe the organisation is treating them fairly and equitably. Managers can promote cooperation and teamwork among work group members by treating them equitably.

Locke’s model of goals-setting Goal: What an individual is trying to accomplish.

Evidence from Goal-Setting Research Difficult Goals Lead to Higher Performance. Easy goals produce low effort because the goal is too easy to achieve. Impossible goals ultimately lead to lower performance because people begin to experience failure. Specific Difficult Goals May or May Not Lead to Higher Performance Goal specificity pertains to the quantifiability of a goal. Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. Feedback Enhances The Effect of Specific, Difficult Goals. Goals and feedback should be used together.

Difficulty and performance

Evidence from Goal-Setting Research Participative, assigned, and self-set goals are equally effective. Managers should set goals by using a contingency approach. Different methods work in different situations. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. Difficult goals lead to higher performance when employees are committed to their goals. Difficult goals lead to lower performance when employees are not committed to their goals. Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation. Employees may not help each other. Quality may suffer as employees pursue quantity goals. Commitment to difficult goals may suffer.

Feedback Feedback Objective information about individual or collective performance. Functions of Feedback Instructional Motivational

A cognitive-processing model of feedback

Sources of feedback – and outcomes Sources of Feedback: - Others - Task - Self Behavioural Outcomes: - Direction - Effort - Persistence - Resistance

The Recipient of Feedback Recipient’s Characteristics Self-esteem Self-efficacy Needs and goals Desire for performance feedback Recipient’s Perception Sign and content of feedback message Recipient’s Cognitive Evaluations Feedback accuracy Source credibility System fairness Expectancies Behavioural standards

Signs of Trouble Feedback Systems Feedback is used to punish, embarrass, or put down employees Those receiving the feedback see it as irrelevant to their work Feedback information is provided too late to do any good People receiving feedback believe it relates to matters beyond their control Employees complain about wasting too much time collecting and recording feedback data Feedback recipients complain about feedback being too complex or difficult to understand

Giving Good Feedback Relate feedback to existing performance goals and clear expectations. Give specific feedback tied to observable behaviour or measurable results. Channel feedback toward key result areas. Give feedback as soon as possible. Give positive feedback for improvement, not just final results. Focus feedback on performance, not personalities. Base feedback on accurate and credible information.

Non-traditional feedback Traditional performance appraisal systems have created widespread dissatisfaction. Team-based organisation structures are replacing traditional hierarchies. This trend requires professionals to have good interpersonal skills that are best evaluated by team members. Systems using ‘multiple-raters’ are said to make for more valid feedback than single-source rating. Advanced computer network technology (the Internet and company Intranets) now facilitates multiple-rater systems. Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment. Co-workers and subordinates are said to know more about a professional’s strengths and limitations than the boss

360-degree feedback Comparison of anonymous feedback from one’s superior, subordinates and peers, with one’s self-perceptions.

Conditions for feedback to work Top management should be involved, both in the role of rater and in the role of focal person. Complement the results of peer and self-appraisals with additional data from assessment centre methods. Involve the users in the design of the 360-degree process. Involve the users in the choice of peers and others who will be rating their skills, behaviour and outcomes. Anonymity and confidence of the feedback must be guaranteed, so the focal person remains the final owner of the data. Be careful in coupling multi-rater feedback systems with regular appraisal systems. Make sure the instrument is tested for coherence, and that it is scored, interpreted and reported following a research based procedure.

Organisational reward systems

Types of rewards Extrinsic rewards: financial, material and social rewards from the environment Intrinsic rewards: self-granted, psychic rewards Extrinsic motivation: being motivated by extrinsic rewards, like monetary incentives Intrinsic motivation: being motivated by intrinsic rewards, like self-determination or need of competence

Organisational reward norms Profit maximisation: maximising net gain Equity: allocation in proportion to contributions Equality: rewarding all parties equally Need: distributing rewards according to needs

Reward distribution criteria Performance: results Performance: actions and behaviours Non-performance considerations: customary or contractual

Why do rewards fail to motivate? Too much emphasis on monetary rewards. Rewards lack an ‘appreciation effect’. Extensive benefits become entitlements. Counter-productive behaviour is rewarded Too long a delay between performance and rewards. Too many one-size-fits-all rewards. Use of one-shot rewards with a short-lived motivational impact. Continued use of demotivating practices such as lay-offs, across-the-board pay rises and cuts and excessive executive compensation.

Evidence about rewards Interesting work and recognition more valued than money Extrinsic rewards lose their motivation over time Mixed results as to the performance-enhancing effect of Monetary rewards must be large enough to motivate Pay  goal achievement: Performance goals are under the employees’ control Goals are quantitative and measurable Frequent, relatively large payments are made for performance achievement

Stimulate a performance culture with.. Mission and Goals A well-articulated and clear mission and operating vision that is understood and accepted. Organisational goals that are credible, measurable and verifiable. Department, work unit and team goals that have a clear line of sight (connection) to the success of the organisation. Individual goals or work measures that are intuitively related to good performance.

Stimulate a performance culture with.. Communication and Feedback A pay philosophy that is clearly specified and communicated to employees. Regular communication that keeps employees informed of performance results. Regular feedback to employees to guide and encourage their growth and career progression. Regular communication to recognise the importance of employee efforts and to make clear how their efforts contribute to the organisation’s

Stimulate a performance culture with.. Organisational Culture An organisational climate that encourages people to look for new and better ways to accomplish goals. An organisational climate that stimulates people to pursue challenging goals. An organisational climate that encourages people to tackle new problems and new tasks to accomplish organisational goals. An organisational climate that emphasises the importance of the individual, his/her needs and aspirations. Training and development that is seen as an investment in people. An organisational climate where people have the opportunity to participate in the development of performance measures.

Stimulate a performance culture with.. Reward System A reward system that reinforces the importance of good performance at all levels, including both monetary and non-monetary rewards. A reward system that is implemented in a fair and objective way, including an appeal process for people who believe they have been treated unjustly. A reward system that encourages people to work together and cooperate, and that also creates opportunities to celebrate people’s accomplishments.