Valparaiso University Core Concepts of Organizational Behavior Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

Core Concepts of Organizational Behavior: Chapter 6 COPYRIGHT Copyright 2004 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Core Concepts of Organizational Behavior: Chapter 6

Chapter 6 Motivation and Reinforcement Study questions. What is motivation to work? What are reinforcement theories, and how are they linked to motivation? What do the content theories suggest about individual needs and motivation? Core Concepts of Organizational Behavior: Chapter 6

Chapter 6 Motivation and Reinforcement Study questions — cont. What do the process theories suggest about individual motivation? How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? The individual forces that account for the direction, level, and persistence of a person’s effort expended at work. Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? Direction. An individual’s choice when presented with a number of possible alternatives. Level. The amount of effort a person puts forth. Persistence. The length of time a person stays with a given action. Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? Reinforcement theories. Emphasize the linkage between individual behavior and specific outcomes. Focus on observable behavior and outcomes. Managers can alter the outcomes to influence direction, level, and persistence of motivation. Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? Content theories. Focus on individual physiological and psychological needs. Manager’s job is to create a work environment that responds positively to individual needs. Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? Process theories. Focus on the cognitive processes that influence behavior. Examines why a person behaves in particular ways relative to available outcomes. Core Concepts of Organizational Behavior: Chapter 6

What is motivation to work? Motivation across cultures. North American motivation theories are subject to cultural limitations. Motivation determinants and responses are likely to vary considerably throughout the world. Sensitivity to motivational variations is important. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Reinforcement. The administration of a consequence as a result of a behavior. Proper management of reinforcement can change the direction, level, and persistence of an individual’s behavior. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Classical conditioning. A form of leaning through association that involves the manipulation of stimuli to influence behavior. Involves an initial stimulus (unconditioned stimulus) and a conditioned stimulus in the learning of behavior. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? The classical conditioning process. Behavior is caused by an unconditioned stimulus. A conditioned stimulus is paired with the unconditioned stimulus. The conditioned stimulus is able to evoke the behavior. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Operant conditioning. The process of controlling behavior by manipulating its consequences. Focuses on the interplay of antecedents, behavior, and consequences. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Antecedents. The condition leading up to or cueing behavior. Behavior. The action taken by the person. Consequences. The outcome received by the person. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Law of effect. Theoretical basis for manipulating consequences. Behavior that results in a pleasant outcome is likely to be repeated while behavior that results in an unpleasant outcome is not likely to be repeated. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Reinforcement emphasizes consequences that can be manipulated. Extrinsic rewards: Positively valued work outcomes that are give to the individual by some other person. Contrived rewards have direct costs and budgetary implications. Natural rewards have costs only in terms of the manager’s time and efforts. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Organizational behavior modification (OB Mod). The systematic reinforcement of desirable work behavior and the nonreinforcement or punishment of unwanted work behavior. Uses four basic strategies: Positive reinforcement. Negative reinforcement. Punishment. Extinction. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Positive reinforcement. The administration of positive consequences to increase the likelihood of repeating the desired behavior in similar settings. Rewards are not necessarily positive reinforcers. A reward is a positive reinforcer only if the behavior improves. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Principles governing reinforcement. Law of contingent reinforcement. The reward must be delivered only if the desired behavior is exhibited. Law of immediate reinforcement. The reward must be given as soon as possible after the desired behavior is exhibited. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Shaping behavior. The creation of a new behavior by the positive reinforcement of successive approximations leading to the desired behavior. Behavior is shaped gradually rather than changed all at once. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Scheduling reinforcement. Continuous reinforcement. Administers a reward each time the desired behavior occurs. Intermittent reinforcement. Rewards behavior periodically — either on the basis of time elapsed or the number of desired behaviors exhibited. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Schedules of intermittent reinforcement. Variable schedules typically result in more consistent patterns of behavior than do fixed schedules. Types of intermittent schedules: Fixed interval. Fixed ratio. Variable interval. Variable ratio. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Negative reinforcement. Also known as avoidance. The withdrawal of negative consequences to increase the likelihood of repeating the desired behavior in similar settings. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Punishment. The administration of negative consequences or the withdrawal of positive consequences to reduce the likelihood of repeating the behavior in similar settings. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Implications of using punishment. Punishing poor performance enhances performance without affecting satisfaction. Arbitrary and capricious punishment leads to poor performance and dissatisfaction. Punishment may be offset by positive reinforcement from another source. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Extinction. The withdrawal of the reinforcing consequences for a given behavior. The behavior is not “unlearned”; it simply is not exhibited. The behavior will reappear if it is reinforced again. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Summary of OB Mod strategies. Positive and negative reinforcement. Used for strengthening desirable behavior. Punishment and extinction. Used to weaken undesirable behavior. Extinction may inadvertently weaken desirable behavior. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What are reinforcement theories, and how are they linked to motivation? Ethical issues with reinforcement usage. Is improved performance really due to reinforcement? Is the use of reinforcement demeaning and dehumanizing? Will managers abuse their power by exerting external control over behavior? How can we ensure that the manipulation of consequences is done in a positive and constructive fashion? Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Content theories. Motivation results from the individual’s attempts to satisfy needs. Major content theories. Hierarchy of needs theory. ERG theory. Acquired needs theory. Two-factor theory. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Hierarchy of needs theory. Developed by Abraham Maslow. Five distinct levels of individual needs. Physiological. Safety. Social. Esteem. Self-actualization. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Hierarchy of needs theory — cont. Five need levels occur in a hierarchy of importance. Assumes that a given need level must be satisfied before the next higher level need can be activated. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Research evidence on hierarchy of needs theory. Actually may be a more flexible hierarchy of lower order needs and higher order needs. Needs vary according to: A person’s career stage. Organizational size. Geographic location. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Research evidence on hierarchy of needs theory — cont. Satisfaction of one need level may not decrease it importance and increase importance of next need level. Hierarchy of needs differs across cultures. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? ERG theory. Developed by Clayton Alderfer. Collapses Maslow’s five categories into three categories: existence needs, relatedness needs, and growth needs. Adds a frustration-regression hypothesis. More than one need category may be activated at the same time. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? ERG theory — cont. Existence needs. Desire for physiological and material well-being. Relatedness needs. Desire for satisfying interpersonal relationships. Growth needs. Desire for continued personal growth and development. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Research evidence on ERG theory. Supporting evidence is encouraging. Addition of frustration/regression hypothesis is a valuable contribution. Offers a more flexible approach to understanding human needs. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Acquired needs theory. Developed by David McClelland. Three needs — achievement, affiliation, and power — are acquired over time, as a result of experiences. Managers should learn to identify these needs and then create work environments that are responsive to them. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Need for achievement. The desire to do something better or more efficiently, to solve problems, or to master complex tasks. High need for achievement people: Prefer individual responsibilities. Prefer challenging goals. Prefer performance feedback. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Need for affiliation. The desire to establish and maintain friendly and warm relations with others. High need for affiliation people: Are drawn to interpersonal relationships. Seek opportunities for communication. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Need for power. The desire to control others, to influence their behavior, or to be responsible for others. High need for for power people: Seek influence over others. Like attention. Like recognition. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Research evidence on acquired needs theory. Identification of the the need profiles that are required for success in different types of jobs. People can be trained to develop the need for achievement, particularly in developing nations. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Two-factor theory. Developed by Frederick Herzberg. Also known as motivation-hygiene theory. Portrays two different factors — hygiene factors and motivator factors — as the primary causes of job dissatisfaction and job satisfaction. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Hygiene factors. Sources of job dissatisfaction. Associated with the job context or work setting. Improving hygiene factors prevent people from being dissatisfied but do not contribute to satisfaction. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Motivator factors. Sources of job satisfaction. Associated with the job content. Building motivator factors into the job enables people to be satisfied. Absence of motivator factors in the job results in low satisfaction, low motivation, and low performance. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 What do the content theories suggest about individual needs and motivation? Research evidence on two-factor theory. Theory may be method bound. Theory fails to: Account for individual differences. Link motivation and needs to both satisfaction and performance. Consider cultural and professional differences. These failures also apply to other content theories. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Equity theory. Workplace development by J.Stacy Adams. People gauge the fairness of their work outcomes in relation to others. Perceived inequity occurs when there is an unfavorable social comparison of work outcomes. When perceived inequity occurs, people will be motivated to remove the discomfort. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Equity theory — cont. Felt negative inequity. Individual feels he/she has received relatively less than others in proportion to work inputs. Felt positive inequity. Individual feels he/she has received relatively more than others in proportion to work inputs. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Equity restoration behaviors. Change work inputs. Change the outcomes received. Leave the situation. Change the comparison points. Psychologically distort the comparisons. Take actions to change the inputs or outputs of the comparison person. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Equity theory implications. Inequity perceptions are entirely from reward recipient’s perspective, not from reward giver’s perspective. The equity process must be managed so as to influence the reward recipient’s equity perceptions. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Research evidence on equity theory. Overpayment (felt positive inequity) results in increased quantity or quality of work. Underpayment (felt negative inequity) results in decreased quantity or quality of work. Stronger support for underpayment results. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Research evidence on equity theory — cont. Overpayment and underpayment results are closely tied to individualistic cultures. Collectivist cultures emphasize equality rather than equity. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Expectancy theory. Developed by Victor Vroom. A person’s motivation is a multiplicative function of: Expectancy. Instrumentality Valence. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Expectancy. The probability assigned by an individual that work effort will be followed by a given level of task accomplishment. Instrumentality. The probability assigned by the individual that a given level of achieved task performance will lead to various work outcomes. Valence. The value attached by the individual to various work outcomes. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Motivational implications of expectancy theory. Motivation is sharply reduced when, expectancy, instrumentality or valence approach zero. Motivation is high when expectancy and instrumentality are high and valence is strongly positive. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Managerial implications of expectancy theory. Managers should act to maximize expectancies, instrumentalities, and valences that support organizational objectives. Core Concepts of Organizational Behavior: Chapter 6

What do the process theories suggest about individual motivation? Research evidence on expectancy theory. Theory has received substantial empirical support. Multiplier effect is subject to some question. May be useful to distinguish between extrinsic rewards and intrinsic rewards. Does not specify which rewards will motivate particular groups of workers, thereby allowing for cross-cultural differences. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Job satisfaction. The degree to which individuals feel positively or negatively about their jobs. Job satisfaction can be assessed: By managerial observation and interpretation. Through use of job satisfaction questionnaires. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Key decisions that people make about their work. Joining and remaining a member of an organization. Working hard in pursuit of high levels of task performance. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Joining and remaining a member of an organization. Concerns attendance and longevity at work. Dissatisfied workers are more likely than satisfied workers to be absent and to quit their jobs. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Working hard in pursuit of high levels of task performance. Concerns the relationship between job satisfaction and performance. Alternative points of view. Satisfaction causes performance. Performance causes satisfaction. Rewards cause both performance and satisfaction. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Argument: satisfaction causes performance. Managerial implication — to increase employees’ work performance, make them happy. Job satisfaction alone is not a consistent predictor of work performance. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Argument: performance causes satisfaction. Managerial implication — help people achieve high performance, then satisfaction will follow. Performance in a given time period is related to satisfaction in a later time period. Rewards link performance with later satisfaction. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? Argument: rewards cause both satisfaction and performance. Managerial implications. Proper allocation of rewards can positively influence both satisfaction and performance. Satisfaction and performance are separate but interrelated work results that are affected by reward allocation. Core Concepts of Organizational Behavior: Chapter 6

Core Concepts of Organizational Behavior: Chapter 6 How can satisfaction and its linkage with performance help tie together insights of the motivation theories into an integrated motivational model? An Integrated Model of Individual Motivation to Work Amount & schedule of contingent extrinsic rewards Individual attributes Work effort needed Motivation Performance Satisfaction Equity comparison Net amount of valent intrinsic rewards Organizational support Core Concepts of Organizational Behavior: Chapter 6