CHAPTER 12 MOTIVATION Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin.

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CHAPTER 12 MOTIVATION Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

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. Our inner needs (food, companionship, growth) and cognitions (knowledge and thoughts about effort we might expend) lead to various behaviours. Assuming these behaviours are suitable, they may lead to rewards. In turn the rewards help reinforce our behaviours, fulfill needs and influence cognitions about links between our behaviour and possible rewards. (See Figure 11.2 on page 367 of text.) Further discussion may be found on page 366. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NATURE OF MOTIVATION = X X environmental performance ability conditions ability motivation X X = The challenge for management is to provide working conditions that nurture and support individual motivation to work to company goals. Further discussion may be found on page 366. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Hierarchy-of-needs theory (Maslow) Two-factor theory (Herzberg) ERG theory (Aldefer) Acquired-needs theory (McClelland) Needs theories argue that we behave as we do because we are attempting to fulfill internal needs. These content motivation theories specify what motivates people (i.e. the content of needs). Further discussion may be found on page 367. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MASLOW THEORY Self-actualisation: developing capabilities and reaching full potential Esteem: positive self-image and have contributions valued Belongingness: desire to affiliate with and be accepted by others Pages 367-368 Safety: desire to be safe, secure, free from threats Physiological: basic ; food, shelter, water Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Important Points for Maslow Needs at one level do not need to be satisfied As needs on one level are fulfilled they cease to act as motivators and tension develops Shortcomings: Number of categories of needs Not same hierarchy for everyone Individuals may work to satisfy several needs at once. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Lower level needs must be satisfied before higher needs are addressed. Hierarchy of Needs Need Level Description Examples Self- Actualization Realize one’s full potential Use abilities to the fullest Esteem Feel good about oneself Promotions & recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items Lower level needs must be satisfied before higher needs are addressed. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Two-factor theory (Herzberg) Herzberg’s theory argues that hygiene factors are necessary to keep workers from feeling dissatisfied, but only motivators can lead workers to feel satisfied and motivated. Herzberg built upon Maslow’s work in arguing that it was necessary to provide hygiene factors to reduce worker dissatisfaction and motivators to increase motivation and job satisfaction. Further discussion may be found on page 368. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Hygiene factors Motivators Factors seeming to make individuals feel dissatisfied with their jobs Associated with job circumstances Motivators Factors seeming to make individuals feel satisfied with their jobs Associated with job content Pages 368-369 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Hygiene factors Motivators Pay Working Conditions Supervisors Company Policies Fringe benefits Achievement Responsibility Work itself Recognition Growth Advancement These factors promote satisfaction. These factors help prevent dissatisfaction. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES ERG theory (Alderfer): Alternative to Maslow’s hierarchy of needs theory, which argues that there are three levels of individual needs. Existence: material and physiological desires e.g. pay, fringe benefits, physical working conditions, desire to have productive impact on surroundings Relatedness: relationships with significant others Growth needs: creativity, innovation, and have productive impact on surroundings Alderfer also built on Maslow’s work in proposing his ERG theory. However, he departs from Maslow in arguing that it is possible to be motivated by more than one need at a time, that people’s needs may well form differing hierarchies and that the frustration-regression principle may well rule out a category of need as a potential motivator. Further discussion may be found on page 369. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Principles of ERG Individuals are concerned with fulfilling more than one need at a time, once one group of needs is fulfilled the satisfaction-progression principle applies. Some individuals needs may occur in a different order than that outlined in erg A frustration-regression principle applies if we are continually frustrated in our attempts to satisfy higher needs, will concentrate on more attainable lower-level needs Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Alderfer’s ERG Growth Relatedness Existence Need Level Description Self-development, creative work Worker continually improves skills Relatedness Interpersonal relations, feelings Good relations, feedback Existence Food, water, shelter Basic pay level to buy items Lowest Highest Need Level Description Examples After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Acquired-needs theory (McClelland) Theory stating that our needs are acquired or learned on the basis of our life experiences. Differing from other needs-based motivational theorists, McClelland argued that needs were learned rather than innate. McClelland argued that needs are gained or learned by experience. Though needs come from a range of conditions, a specific event can influence our desires profoundly. Further discussion may be found on page 371. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

NEEDS THEORIES Acquired needs theory (McClelland) Need for achievement Desire to accomplish challenging tasks Achieve results through own efforts Feedback; competitive surroundings Need for affiliation Desire to have warm, friendly relationships Involved with professions with interactions Need for power Desire to influence & control personal power: try to dominate others for the sake of demonstrating their ability to exercise power. institutional power: working with others to solve problems and further organizational goals. Page 371

Classification of Needs by Four Theories of Motivation Maslow’s Needs Hierarchy Theory Alderfer’s ERG Theory Herzberg’s Two-Factor Theory McClelland’s Manifest Needs Theory Self-actualization Power Esteem Achievement Social Relatedness Affiliation Safety Physiological Growth Motivators Hygienes Existence Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

How Organizations Meet Employee Needs Method: Challenge Autonomy Leadership positions Authority Responsibility Pay and Prestige Growth (esteem / self-actualization / motivators / achievement / power) Relatedness (social / hygiene / affiliation) Coffee breaks Sports teams Social events Work teams Existence (physiological / safety / hygiene) Working conditions (safe/clean/attractive) Job security – seniority Employee benefits Base Pay Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

COGNITIVE THEORIES Expectancy theory Equity theory Goal-setting theory Attempt to isolate thinking patterns used in deciding whether or not to behave in a certain way. Thought process: Expectancy theory Equity theory Goal-setting theory Need theories identify internal desires guiding behaviour but do not explain the thought processes involved. In contrast, cognitive theories work to isolate thinking patterns used in deciding whether or not to act in a certain way. Cognitive theories do not conflict with need theories; rather, they look differently at motivation. As they concentrate on the thought processes of motivation, cognitive theories are called process theories. Further discussion may be found on page 373. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

COGNITIVE THEORIES Expectancy theory (Vroom) Developed by Victor Vroom and is a very popular theory of work motivation. Vroom suggests that motivation will be high when workers feel: High levels of effort lead to high performance. High performance will lead to the attainment of desire outcomes. Consists of three areas: Expectancy, Instrumentality, & Valence Motivation = Expectancy x Valence Expectancy: person’s perception of his or her ability (probability) to accomplish an objective The higher one’s expectancy, the better the motivation Valence: the value a person places on the outcome or reward The higher the value (importance) of the outcome or reward, the better the motivation Pages 373-374 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Three main issues of expectancy theory Effort-performance expectancy : assessing the probability of our efforts that will lead to the required performance level. Evaluate own ability and consider the contextual factors Performance-outcome expectancy: assessing the probability of successful performance that will lead to certain outcomes.. Rewards will be considered. Valence refers to assessment of anticipated value of various outcomes or rewards. If available rewards interest us, valance is high. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Expectancy, Instrumentality, & Valence Effort Expectancy: Person’s perception that their effort will result in performance Instrumentality results in outcomes Valence: How desired are the outcomes from a job Performance Outcomes Expectancy theory argues that when deciding to expend effort, we consider all three elements: effort-performance, performance-outcome and valence. Expectancy theory gives useful guidelines to managers, however results may not be as expected if employees do not see outcomes as equitable. Further discussion may be found on page 375. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Expectancy Theory High Motivation: should have high e-p. provide High Expectancy (Worker knows that if they try, they can perform) High Instrumentality (Worker perceives that high performance leads to outcomes) High Valence (Worker desires the outcomes resulting from high performance) High Motivation: should have high e-p. provide training to provide expertise. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

COGNITIVE THEORIES Equity theory (Adams) Considers worker’s perceptions of the fairness of work outcomes in proportion to their inputs. Adams notes it is the relative rather than the absolute level of outcomes a person receives. The Outcome/input ratio is compared by worker with another person called a referent. The referent is perceived as similar to the worker. Equity exists when a person perceives their outcome/input ratio to be equal to the referent’s ratio. If the referent receives more outcomes, they should also give more inputs to achieve equity. Adams developed this theory to explain how we identify and react to events we see as inequitable. According to this theory, we prefer situations of balance or equity: i.e. when inputs are equal to outputs in comparison to others. Further discussion may be found on pages 375-376. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Inputs: educational background, skills, experiences, hours worked, performance results Outcomes: pay, bonuses, praise, parking places, office space, work assignment. Inequity: perception that the level of input is not matched with the outcomes. Under-reward: is when our input/output ratio seen to be less than that of a comparison Over-reward: is when our input/output ratio is seen to be greater than that of a comparison other. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

COGNITIVE THEORIES Goal-setting theory Goal-setting theory [technique] works by focusing attention & action, mobilising effort, increasing persistence, & encouraging the development of strategy to achieve goals. Goal-setting’s success in motivating performance depends on setting goals with the right aspects, i.e. measurable, challenging, attainable, relevant and time-limited. Further discussion may be found on page 376. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

REINFORCEMENT THEORY (Skinner) Theory arguing that our behaviour can be explained by consequences in the environment. Behavior can be controlled through the use of rewards. Behavior is learned through experiences of positive and negative consequences TYPES: Positive Reinforcement Negative Extinction Punishment In reinforcement theory, a stimulus cues a response or behaviour, followed by a consequence. If this is rewarding we are more likely to repeat the behaviour when the stimulus reoccurs. If we find it unrewarding we are unlikely to repeat the behaviour. Further discussion may be found on page 378. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Reinforcement theory Relies on law of effect: which states that behaviors having pleasant or positive consequences are most likely to be repeated. Positive reinforcement and negative are aimed at increasing a behavior. Extinction and punishment focus on decreasing a behavior Skinner argued that positive reinforcement and extinction encourage individual growth, whereas negative reinforcement and punishment foster immaturity in individuals. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Motivation Techniques Giving Praise Management by Objectives (MBO) Job Enrichment Job Design Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

SOCIAL LEARNING THEORY Social learning theory (Bandura) Theory arguing that learning occurs through continuous reciprocal interaction of our behaviours, various personal factors and environmental forces. Social learning theory argues that behaviour is learnt by observing, imitating and interacting with the social environment. Social learning theory combines cognitive and reinforcement approaches. Further discussion may be found on page 383. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

SOCIAL LEARNING THEORY Learning occurs by continuous interaction between our behaviours, personal factors and environmental forces, viz.: Symbolic processes: use of verbal and imagined symbols to process and store experiences to guide future behavior. Self-control/regulation: ability to control our own behavior by setting standards and providing consequences. Vicarious learning: ability to use observations to learn new behaviors and to process outcomes. Pages 383-384 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin