Organizational Behavior BBA & MBA Lecture 161718 Motivation Concepts Course Lecturer: Farhan Mir

What Is Motivation? Direction Intensity Persistence Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward the attainment of a goal. Intensity is concerned with how hard a person tries. This is the element most of us focus on when we discuss the topic of motivation. However, unless effort is channeled in a direction that benefits the organization, high intensity is no guarantee of favorable job-performance outcomes. Quality of effort, therefore, is just as important as intensity of effort. Finally, persistence (how long a person can maintain effort) is important. A motivated person stays with a task long enough to achieve his or her goal.

What Is Motivation? Motivation Key Elements The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Key Elements Intensity: How hard a person tries Direction: Toward beneficial goal Persistence: How long a person tries

Early Theories of Motivation These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers. Maslow’s Hierarchy of Needs Theory Alderfer’s ERG (Existence, Relatedness, and Growth) McGregor’s Theory X and Theory Y Herzberg’s Two-Factor Theory McClelland’s Theory of Needs

Hierarchy of Needs Theory (Maslow) There is a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming

Maslow’s Hierarchy of Needs Lower-Order Needs Needs that are satisfied externally; physiological and safety needs Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs Self Esteem Social Safety Physiological

Assumptions of Maslow’s Hierarchy Movement Up the Pyramid Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied. Maslow Application A homeless person will not be motivated to meditate! Individuals therefore must move up the hierarchy in order.

Managers See Workers as… Theory X Managers See Workers as… Disliking Work Avoiding Responsibility Having Little Ambition Theory Y Managers See Workers as… Enjoying Work Accepting Responsibility Self-Directed Douglas McGregor said that managers hold one of two sets of assumptions about human nature: either Theory X or Theory Y. Seeing people as irresponsible and lazy, managers who follow Theory X assume the following: 1. Employees inherently dislike work and will try to avoid it. 2. Since employees dislike work, they must be coerced, controlled, or threatened to achieve goals. 3. Employees avoid responsibilities and seek formal direction, if possible. 4. Most workers place security above all other work-related factors and will display little ambition. Since they see people as responsible and conscientious, managers who follow Theory Y assume the following: 1. Employees can view work as being as natural as rest or play. 2. When committed to their objectives, people will exercise self-direction and self-control 3. The average person can learn to accept, even seek, responsibility. 4. Many workers besides managers have innovative decision-making skills. No hard evidence confirms that either set of assumptions is universally true. It is more likely that the assumptions of Theory X or Theory Y may or may not be appropriate, depending on the situation at hand. No empirical evidence to support this theory

Herzberg’s Two-Factor Theory Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing! Hygiene Factors Salary Work Conditions Company Policies Motivators Achievement Responsibility Growth Separate Constructs Hygiene Factors—Extrinsic and Related to Dissatisfaction Motivation Factors—Intrinsic and Related to Satisfaction

Criticisms of Two-Factor Theory Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur. Herzberg is limited by his procedure Participants had self-serving bias No overall measure of satisfaction was used Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity

Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October 1987. Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

Contrasting Views of Satisfaction and Dissatisfaction

David McClelland’s Theory of Needs Need for Achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for Affiliation The desire for friendly and close personal relationships Bottom Line Individuals have different levels of needs in each of these areas, and those levels will drive their behavior. Need for Power The need to make others behave in a way that they would not have behaved otherwise

Matching High Achievers and Jobs

Performance Predictions for High nAch People with a high need for achievement are likely to: Prefer to undertake activities with a 50/50 chance of success – avoiding very low or high risk situations Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk Don’t necessarily make good managers – too personal a focus Most good general managers do NOT have a high nAch Need high level of nPow and low nAff for managerial success Good research support but it is not a very practical theory

Contemporary Theories of Motivation Cognitive Evaluation Theory Goal-Setting Theory Management By Objectives (MBO) Self-Efficacy Theory Also known as Social Cognitive Theory or Social Learning Theory Reinforcement Theory Equity Theory Expectancy Theory

Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation The theory may be relevant only to jobs that are neither extremely dull nor extremely interesting. Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it!

Cognitive Evaluation Theory – Lets have a situation

Goal-Setting Theory (Edwin Locke) Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance. But, the relationship between goals and performance will depend on: Goal commitment “I want to do it & I can do it” Task characteristics (simple, well-learned) National culture

Goal Setting in Action: MBO Programs Management By Objectives Programs Company wide goals and objectives Goals aligned at all levels Based on Goal Setting Theory

What Is MBO? Management by Objectives (MBO) Key Elements A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress Key Elements Goal specificity Participative decision making An explicit time period Performance feedback

Cascading of Objectives

Linking MBO and Goal-Setting Theory MBO Goal-Setting Theory Goal Specificity Yes Yes Goal Difficulty Yes Yes Feedback Yes Yes Participation Yes No (qualified)

Why MBOs Fail Unrealistic expectations about MBO results Lack of commitment by top management Failure to allocate reward properly Cultural incompatibilities

Bandura’s Self-Efficacy Theory An individual’s belief that he or she is capable of performing a task Higher efficacy is related to: Greater confidence Greater persistence in the face of difficulties Better response to negative feedback (work harder) Self-Efficacy complements Goal-Setting Theory

Enhances probability that goals will be achieved Self-Efficacy An individual’s feeling that s/he can complete a task (e.g. “I know I can!”) Enhances probability that goals will be achieved Not to be confused with: Self-esteem, which is: Individuals’ degree of liking or disliking themselves

Self-Efficacy and Goal Setting

Four Ways of Increasing Self-efficacy (Bandura) Enactive Mastery Vicarious Modeling Verbal Persuasion Arousal Note: Basic Premise/Mechanism of Pygmalion and Galatea Effects

Reinforcement Theory Argues that behavior is a function of its consequences Assumptions: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.

Equity Theory Equity Theory Referent Comparisons: Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities Referent Comparisons: Self-inside Self-outside Other-inside Other-outside

Equity Theory (cont’d)

Equity Theory’s “Relevant Others” Can be four different situations: Self-Inside The person’s experience in a different job in the same organization Self-Outside The person’s experience in a different job in a different organization Other-Inside Another individual or group within the organization Other-Outside Another individual or group outside of the organization

Justice and Equity Theory

Three Types of Justice Distributive Justice Procedural Justice Perceived fairness of the outcome (the final distribution) “Who got what?” Procedural Justice Perceived fairness of the process used to determine the outcome (the final distribution) “How was who gets what decided?” Interactional Justice The degree to which one is treated with dignity and respect. “Was I treated well?”

Ethical Values and Behaviors of Leaders Expectancy Theory Ethical Values and Behaviors of Leaders Bottom Line All three links between the boxes must be intact or motivation will not occur. Thus, Individuals must feel that if they try, they can perform and If they perform, they will be rewarded and When they are rewarded, the reward will be something they care about.

Chapter Check-up: Motivation Elizabeth’s boss starts out the day each morning saying, “Bet you wish you didn’t have to be here, huh?” Knowing this, which theory gives us insight as to why Elizabeth may not be motivated at work?

Chapter Check-up: Motivation Elizabeth’s boss my well be a Theory X manager, as she/he assumes employees don’t like work and/or want to be there.

Chapter Check-up: Motivation If you study really hard and only get a B on an exam, but your classmate barely studies at all and gets an A, what theory will help explain why you feel less motivated to go to class?

Chapter Check-up: Motivation What theory would say that this man, who knows he works hard and is performing well, will be motivated by a gym membership for being a high performer?

Chapter Check-up: Motivation Expectancy Theory Would a gym membership be considered a motivator or hygiene factor, according to Herzberg? Discuss with a classmate.

Global Implications Motivation theories are often culture-bound Maslow’s Hierarchy of Needs Theory Order of needs is not universal McClelland’s Three Needs Theory nAch presupposes a willingness to accept risk and performance concerns – not universal traits Adams’ Equity Theory A desire for equity is not universal “Each according to his need” – socialist/former communists Desire for interesting work seems to be universal There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal

Summary and Managerial Implications Need Theories (Maslow, Alderfer, McClelland, Herzberg) Well known, but not very good predictors of behavior Goal-Setting Theory While limited in scope, good predictor Reinforcement Theory Powerful predictor in many work areas Equity Theory Best known for research in organizational justice Expectancy Theory Good predictor of performance variables but shares many of the assumptions as rational decision making

Putting It All Together