Motivation Chapter 5 McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives Describe the role that need deficiencies play in motivating employees. Compare the major differences between the four content approaches of motivation. Give examples of how the three process approaches affect employee motivation. Examine how the changing nature of the psychological contract influences employee motivation. Summarize the action steps that managers can take to motivate employees.

Introduction Ability Instinct More than motivation plays a role in performance Ability Instinct Aspiration level Personal factors (age, education, background)

EXHIBIT 5.1 Determinants of Job Performance

Determinants of Job Performance Motivation Components Direction Persistence Intensity

Needs Motivate Employees Most managers must motivate a diverse and unpredictable group of people They have varying needs and goals Needs Deficiencies an individual experiences at a particular time May be physiological, psychological, or sociological Those with deficiencies are more susceptible to motivational efforts

Needs Motivate Employees Needs trigger tension and a search for ways to reduce it A course of action is selected Goal-directed behavior occurs The behavior triggers either a reward or punishment The deficiencies are reassessed

EXHIBIT 5.2 The Motivational Process: A General Model

Content theories focus on Motivation Theories Content theories focus on Factors within the person The needs that motivate people Process theories describe, explain, and analyze how behavior is… Energized Directed Sustained Stopped

EXHIBIT 5.3 Managerial Perspective of Content and Process Theories of Motivation

Content Motivation Theories Maslow’s need hierarchy Alderfer’s ERG theory Herzberg’s two-factor theory McClelland’s learned needs theory

EXHIBIT 5.4 Maslow’s Need Hierarchy Related to the Job

The Need-Hierarchy Approach A satisfied need ceases to motivate Unsatisfied needs can cause frustration, conflict, and stress People have a need to grow and develop; they strive to move up the hierarchy

Maslow’s Need Hierarchy Need-hierarchy issues Little data proves that a needs hierarchy exists Only two needs levels exist: physiological and then all others Security needs decrease as managers advance With a corresponding increase in need for social interaction, achievement, and self-actualization

Alderfer’s ERG needs correspond to Maslow’s hierarchy Alderfer’s ERG Theory Alderfer’s ERG needs correspond to Maslow’s hierarchy Existence = physiological and safety Relatedness = belongingness, social, love Growth = esteem and self-actualization A frustration-regression process exists If one continually fails to satisfy growth needs, relatedness needs reemerge Efforts will be redirected toward satisfying a lower-order need

Herzberg’s Two-Factor Theory A content theory with two motivation factors Dissatisfiers-satisfiers (hygiene factors) Salary, job security, working conditions, status, company procedures, interpersonal relations Satisfiers-motivators (intrinsic conditions) The job content, achievement, recognition, responsibility, advancement, possibility of growth

EXHIBIT 5.5 Traditional versus Herzberg View of Job Satisfaction

Criticisms of Herzberg’s Theory Over-simplifies the nature of job satisfaction Requires people to look at themselves retrospectively Only self-reports of performance over long period of time were used in original study Little testing of motivational and performance consequences of the theory

Herzberg’s Two-Factor Theory Job enrichment Builds personal achievement, recognition, challenge, responsibility, and growth opportunities into a job Increases individual motivation by providing more discretion and accountability

McClelland’s Learned Needs Theory McClelland believes needs are acquired from culture Need for achievement (n Ach) Need for affiliation (n Aff) Need for power (n Pow) When a need is strong, there is motivation to use behavior that leads to its satisfaction

McClelland’s Learned Needs Theory Factors reflecting a high n Ach Likes to take responsibility for solving problems Sets moderate achievement goals and takes calculated risks Desires feedback on performance

McClelland’s Learned Needs Theory Factors reflecting a high n Pow Concentrates on obtaining and exercising power and authority Concerned with influencing others and winning arguments Power can be negative or positive

McClelland’s Learned Needs Theory Factors reflecting a high n Aff Desires social interaction Concerned about the quality of personal relationships Social relationships take precedence over task accomplishment

Criticisms of Learned Needs Theory Supporting evidence supplied by McClelland and his associates Use of projective psychological personality tests has been questioned as being unscientific Claim that n Ach can be learned runs counter to a large body of literature that argues the acquisition of motives normally occurs in childhood and is very difficult to alter in adulthood No proof that acquired needs are permanently acquired

EXHIBIT 5.6 A Graphic Comparison of Four Content Approaches to Motivation

Process Theories of Motivation Content theories focus primarily on the needs and incentives that cause behavior They try to explain how behavior is energized, directed, maintained, and stopped The process theories of motivation are concerned with answering the questions of how individual behavior is energized, directed, maintained, and stopped. Expectancy theory Equity theory Goal-setting

Vroom’s Expectancy Theory Employees are more likely to be motivated when they perceive that effort = successful performance + desired rewards and outcomes Motivation is a process governing choices among alternative forms of voluntary activity Most behaviors are under the voluntary control of the individual and consequently are motivated

Vroom’s Expectancy Theory Instrumentality The perception that first-level outcomes (performance) are tied to second-level outcomes (rewards or punishment) Valence An individual’s preferences for outcomes Expectancy Belief that a particular behavior will be followed by a particular outcome

EXHIBIT 5.7 Expectancy Theory

Equity Theory One’s perception of being treated fairly in social exchanges can influence motivation Equity exists when one perceives that the ratio of their inputs (efforts) to their outcomes (rewards) equals the ratios of other employees

Important Equity Theory Terms Person The individual for whom equity or inequity is perceived Comparison Other Any group or persons used as a referent by Person, regarding the ratio of inputs and outcomes Inputs The individual characteristics brought by Person to the job Outcomes What Person received from the job

EXHIBIT 5.8 The Equity Theory of Motivation

Change Procedures to Restore Equity Changing inputs Changing outcomes Changing attitudes Changing the reference person Changing the inputs or outcomes of the reference person Leaving the field

Organizational Justice The degree to which individuals feel fairly treated at the workplace

Exhibit 5.9 Four Dimensions of Organizational Justice

Organizational Justice Positive Reactions to Procedural Justice Organizational commitment Intent to stay with the organization Organizational citizenship Trust in supervisor Satisfaction with decision outcome Work effort Performance

People are more inclined to interpret decisions as fair when… Procedural Justice People are more inclined to interpret decisions as fair when… They have a voice in the decision Decision making is consistent The process and procedures conform to ethical and moral values

Procedural Justice Why does it work? Self-interest Theory Group Theory People want fair procedures because it enables them to obtain desired extrinsic outcomes Group Theory Fair group procedures are a sign of respect and an indication that group members are valued

Interpersonal justice Procedural Justice Interpersonal justice Judgments made by employees as to whether they feel they are treated fairly Perceptions of justice are higher when employees are treated with dignity and respect Abusive supervisors are common Employees who experience bullying and incivility are more likely to quit

Informational justice Procedural Justice Informational justice Perceived fairness of the communication provided to employees from authorities Keep many channels open and communicate frequently Utilize informal chats Don’t sugarcoat bad news

Goal Setting A goal is a result that a person or group is trying to accomplish through behavior and actions Locke’s view… An individual’s conscious goals and intentions are the primary determinants of behavior Once a person starts something, he/she pushes on until a goal is achieved Harder goals result in higher levels of performance if the goals are accepted by the individual

Goal Setting Terms Goal specificity Goal difficulty Goal intensity the degree of quantitative precision (clarity) of the goal. Goal difficulty the degree of proficiency or the level of performance that is sought. Goal intensity pertains to the process of setting the goal or of determining how to reach it. Goal commitment the amount of effort used to achieve a goal.

EXHIBIT 5.10 Goal Setting Applied to Organizations

Motivation and the Psychological Contract Exchange theory Organizational members engage in reasonably predictable give-and-take relationships Per Schein, the degree to which employees exert effort, commit to goals, and derive satisfaction from work depends on The extent to which employee expectations match the organization’s expectations The specific nature of what is exchanged

The Psychological Contract Mutual expectations constitute part of the psychological contract An unwritten agreement between the individual and the organization Specifies what each expects to give and receive from the other Can change over time These implicit agreements may take precedence over written agreements

Psychological Contract Breach A perception that the organization has failed to fulfill an unwritten exchange agreement. A violation in the psychological contract can lead to decreased job satisfaction and citizenship behavior.

Reviewing Motivation Managers can influence the motivation state of employees. If performance needs to be improved, then managers must intervene and help create an atmosphere that encourages, supports, and sustains improvement. Managers should be sensitive to variations in employees’ needs, abilities, and goals. Managers also must consider differences in preferences (valences) for rewards. Continual monitoring of needs, abilities, goals, and preferences of employees is each individual manager’s responsibility and is not the domain of personnel/human resource managers only. Managers need to work on providing employees with jobs that offer task challenge, diversity, and a variety of opportunities for need satisfaction.

In Review, Can You… Describe the role that need deficiencies play in motivating employees. Compare the major differences between the four content approaches of motivation. Give examples of how the three process approaches affect employee motivation. Examine how the changing nature of the psychological contract influences employee motivation. Summarize the action steps that managers can take to motivate employees.