Chapter 6 Work Motivation Michael A. Hitt C. Chet Miller Adrienne Colella Slides by Ralph R. Braithwaite

W.L. Gore & Associates – Four Guiding Principles Wilbert Gore W.L. Gore & Associates – Four Guiding Principles The ability to make one’s own commitments and keep them Freedom to encourage, help, and allow other associates to grow in knowledge, skill and scope of responsibility Consultation with others before undertaking actions that could impact the reputation of the company Fairness to each other and everyone with whom contact is made Exploring Behavior in Action

Work Motivation at W.L. Gore & Associates Wilbert Gore Work Motivation at W.L. Gore & Associates What are your thoughts about Bill Gore’s lattice structure? What are your reactions to the four principles that govern behavior? Would these principles work in other organizations? Why or why not? Do you think the company can maintain its philosophy as it continues to grow? Exploring Behavior in Action

Knowledge Objectives Define work motivation and explain why it is important to organizational success. Discuss how managers can use Maslow’s need hierarchy and ERG theory to motivate associates. Describe how need for achievement, need for affiliation, and need for power relate to work performance and motivation. Explain how Herzberg’s two-factor theory of motivation has influenced current management practice. More

Knowledge Objectives Discuss the application of expectancy theory to motivation. Understand equity theory and procedural justice, and discuss how fairness judgments influence work motivation. Explain how goal-setting theory can be used to motivate associates. Describe how jobs can be enriched and how job enrichment can enhance motivation. Based on all major theories of work motivation, describe specific actions that can be taken to increase and sustain employee motivation.

What is Motivation? Forces coming from within a person that account for the willful direction, intensity, and persistence of the person’s efforts toward achieving specific goals, where achievement is not due solely to ability or to environmental factors

Performance = f (Ability x Motivation) Equation Person’s level of performance is a function (f) of both ability and motivation: Performance = f (Ability x Motivation) Environmental factors also play a role

Theories of Motivation Content Theories Maslow’s need hierarchy Alderfer’s ERG theory McClelland’s need theory Herzberg’s two-factor theory Process Theories Expectancy theory Equity theory Goal-setting theory

Abraham Maslow Abraham Maslow Maslow's Need Hierarchy

Maslow’s Need Hierarchy Must work your way up… Self- Actualization Esteem Needs Social and Belongingness Needs Safety Needs People motivated by desire to satisfy specific needs, arranged in a hierarchical order of prepotency. Lower level needs must be satisfied before a person can be motivated by higher level needs Physiological needs – basic survival needs – food, water, air and shelter Safety needs – need to be safe and secure in the environment – both physical and psychological Social and belongingness needs – interaction with and acceptance by other people, desire for affection, affiliation, friendship and love Esteem needs – relate to feelings of self-respect and self-worth, along with the respect and esteem from peers Self-actualization – a desire to fulfill one’s potential, maximizing the use of one’s skills and abilities Physiological Needs

Clayton Alderfer Alderfer's ERG Theory

ERG Theory Existence Needs Relatedness Needs Growth Needs Satisfaction and Progression Frustration and Regression People are motivated by three hierarchically ordered types of needs: existence needs (E), relatedness needs (R), and growth needs (G). Usually people must satisfy needs at the lower levels before being strongly motivated by higher-level needs. However, frustration at higher levels can lead people to be motivated by lower-level needs

Comparison of Two Theories Maslow’s Need Hierarchy Physiological Needs Safety Needs Social and Belongingness Needs Esteem Needs Self- Actualization Existence Needs Relatedness Needs Growth Needs Alderfer’s ERG Theory Two differences between Maslow’s and Alderfer’s theories: Notion of prepotency is not fixed in ERG theory - May become concerned about a higher order need before lower order need is satisfied and May still have strong desire to satisfy lower order need, even when the higher order need seems most important. Even when a need is satisfied, it may remain as the dominant motivator if the next need in the hierarchy cannot be satisfied (frustration-regression process). Adapted from Exhibit 6-1: Maslow’s Need Hierarchy and Alderfer’s ERG Theory Compared

McClelland’s David C. McClelland Theory of Needs

McClelland’s Theory of Needs Achievement Power Affiliation People with a high need for achievement - Prefer to set their own goals. Set goals of moderate difficulty that are achievable. Like to solve problems rather than leave the results to chance. Are more interested in achieving the goal than in the associated rewards. Prefer situations in which they receive regular, concrete feedback on their performance. Are positive thinkers who find workable solutions to life’s hurdles and challenges. Take a strong personal responsibility for their work. People with a high need for affiliation - Have a strong desire to be liked and to stay on good terms with most other people. Tend not to make good managers because they often treat different people in different ways (for example, may apply inconsistent rules). Are more concerned with initiating and maintaining personal relationships than with focusing on the task at hand. People with a high need for institutional power - Are concerned about the functioning of the organization and have a desire to serve others. Are controlled in their exercise of power. People with a high need for personal power - Desire to influence others for their own personal gain. Are more impulsive in exercising power. Show little concern for other people. Are focused on obtaining symbols of prestige and status (such as big offices).

Conclusion People with a high need for institutional power are particularly good at Increasing morale Creating clear expectations Getting others to work for the good of the organization Effective managers have both a high need for achievement and a high need for institutional power

Managerial Advice Managers Over the Edge Why do you think there have been changes in the need for achievement over the last 20+ years? Do you agree or disagree with the two reasons (coerciveness and shortcuts) given that can cause problems? It is suggested that understanding needs and managing needs are two guidelines that will help high-achievement managers. Do you agree or disagree with this idea?

Frederick Herzberg Herzberg's Two-Factor Theory

Two-Factor Theory Emphasizes two sets of rewards or outcomes – those related to job satisfaction and those related to job dissatisfaction The two sets are not opposite ends of the same continuum but are independent states Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa

Herzberg’s Two-Factor Theory Hygiene Factors Motivators Motivators – also called satisfiers, lead to greater job satisfaction Hygiene factors – also call dissatisfiers, when absent or missing lead to job dissatisfaction

Two-Factor Theory Motivators Hygiene Factors When increased, lead to greater satisfaction When deficient, lead to greater dissatisfaction Achievement Recognition Responsibility Opportunity for advancement or promotion Challenging work Potential for personal growth Pay Technical supervision Working conditions Company policies and procedures Interpersonal relationships with others Status Security

Process Theories Expectancy Equity Goal-Setting

Expectancy Theory MF = E x  (I x V) MF = MF = Motivational Force Victor Vroom MF = E x  (I x V) MF = Motivational Force E = Expectancy I = Instrumentality V = Valence V1 I1 I2 I3 Outcome V2 Effort Performance E Outcome MF = Expectancy theory – Vroom’s theory that suggests motivation is a function of an individual’s expectancy that a given amount of effort will lead to a particular level of performance, instrumentality judgments (perceived connections) that indicate performance will lead to certain outcomes, and the valence (value) of outcomes. Expectancy - subjective probability that effort will lead to performance Instrumentality - subjective probability that a given level of performance will lead to certain outcomes Valence - An Individual’s expected satisfaction associated with each outcome resulting from performance V3 Outcome Adapted from Exhibit 6-2: Expectancy Theory

Expectancy Theory To increase motivation Heighten expectancy by increasing associates’ beliefs that exerting effort will lead to higher levels of performance Increase instrumentalities by clearly linking high performance to outcomes Increase valence by providing outcomes that are highly valued

Equity Theory Motivation is based on a person’s assessment of the ratio of the outcomes received (pay, status) for inputs on the job (effort, ability) compared to the same ratio for a comparison other My Outcomes Other’s Outcomes vs. My inputs Other’s Inputs

Equity Theory Perceived inequity, employees may: Increase or decrease inputs Change their outcomes Distort perceptions of inputs and/or outcomes Distort perceptions of other’s inputs and/or outcomes Change the referent others Leave the organization

Reactions to Inequity Sensitives – pay a great deal of attention to outcome-input ratios, motivated to resolve any inequity – favorable or unfavorable Benevolents – tolerant of inequity that is unfavorable but not comfortable with inequity that favors them Entitleds – do not tolerate unfavorable inequity but are comfortable with inequity that favors them

Reactions to Equity Feelings of equity frequently lead to outcome satisfaction and job satisfaction, organizational commitment, and organizational citizenship behaviors. Organizational Citizenship – an associate’s willingness to engage in organizationally important behaviors that go beyond prescribed job duties – helping co-workers, expending extra effort, etc.

Distributive Justice A form of justice that relates to perceptions of fairness in outcomes. Often tied to perceptions of inequity.

Procedural Justice The degree to which people think the procedures used to determine outcomes are fair. Some rules: Based on accurate information Formal grievance procedures Procedures free from bias Ethical code Procedures applied consistently Treated with respect Procedural justice icon comes in on mouse click. Arrows and rules come in automatically at two second intervals. Procedural Justice Voice in the decision process Given reasons for decisions

Edwin Locke Goal-Setting Theory Challenging and specific goals increase human performance because they affect attention, effort, and persistence. To be effective, managers should address: Goal difficulty Goal specificity Goal commitment Participation in setting goals Feedback Goal difficulty – how difficult should the performance goal be. Should the goal be easy, moderately difficult, or very difficult to achieve? Goal specificity – how specific should the expected outcome be (e.g. number of parts assembled), or can goals be more loosely defined (do your best)? Goal commitment – what will make associates commit to goals? Participation in setting goals – how important is it for associates to have input in selecting the goals and levels of performance to be achieved? If important, how should they be involved? Feedback – to what extent should associates be informed of their progress as they work toward the performance goals?

Factors Affecting Goal Commitment Factors Increasing the Desirability of Attaining a Given Goal Factors Increasing the Perceived Ability of Attaining a Given Goal Desirability Factors The goal is set by or in conjunction with an appropriate authority figure The goal fosters a sense of self-achievement and potential for development The goal is set by or in conjunction with someone who is trustworthy The goal is set by or in conjunction with someone who is supportive and promotes self-efficacy Peers are committed to the goal The goal assigner, if there is one, provides a rationale for the goal The goal provides a challenge to prove oneself and meets ego needs The goal is public Perceived Ability Factors There is high self-efficacy on the task There are successful role models The task is not impossibly difficult Expectancy for success is high There is competition with others Adapted From Exhibit 6-3: Factors Affecting Goal Commitment

Conclusions Feedback on performance, even in the absence of established goals, is likely to have a positive effect on motivation. Feedback is especially important when performance goals exist and when they are relatively difficult to achieve.

Experiencing Strategic OB Making Visible Change Thoughts? Motivate employees by: Providing a well-defined career path Providing valued rewards and benefits Setting specific, challenging goals Providing support to help build client base Avoiding layoffs of associates Engaging associates in a variety of organizational decisions John and Maryanne McCormack Experiencing Strategic OB

Motivating Associates: Integration of Theory X Goal Setting Equity Expectancy Herzberg McClelland Maslow ERG Clarify Goals Provide Feedback Redesign Jobs Tie to Performance Find Rewards Motivation Theories Motivation Practices Adapted from Exhibit 6-4: Motivation Factors Resulting from Motivation Theories

Motivating Associates: Integration of Theory Find meaningful individual rewards Tie rewards to performance Redesign jobs – job enlargement and job enrichment Provide feedback Clarify expectations and goals – some use MBO Tie individual rewards to individual needs - Individuals differ on what they find “rewarding.” Tailor individual rewards to individual needs. Do not overemphasize extrinsic rewards. Tie rewards to performance - Performance is difficult to measure. Managers may lack flexibility in determining rewards. Intrinsic rewards may work when extrinsic rewards are unavailable. Redesign jobs - Job enlargement: add tasks of equal complexity to increase variety and use of skills. Job enrichment: make jobs more motivating by increasing responsibility - Skill variety, Task identity, Task significance, Autonomy, Feedback. Provide feedback - In conjunction with goals, Repeat at regular intervals, Provide information as to how performance can be improved, Come from a credible source, Focus on the performance, not the person. Clarify expectations and goals - Motivating potential of goals, Align individual goals with organizational goals, and Management by Objectives – Throughout the organization, individuals meet with their managers to agree on expectations for the upcoming time period

Job Enrichment Skill Variety Task Identity Task Significance Autonomy Richard Hackman Skill Variety Task Identity Greg Oldham Task Significance Autonomy Feedback Skill variety – refers to the degree to which associates utilize a broad array of skills in doing their jobs – feeling of meaningfulness Task identity – is the extent to which job performance results in an identifiable piece of work – feeling of meaningfulness Task significance – is the extent to which a job has an impact on the organization – feeling of meaningfulness Autonomy – means that the associate has the independence to schedule his or her own work and influence the procedures with which it is carried out – feeling of responsibility Feedback – involves obtaining accurate information about performance – knowledge of results

Connecting People in the Workplace Thoughts? Deloitte recommends: Design physical space that fosters connections Build an organizational cushion of time and space Cultivate communities Stimulate rich networks of high-quality relationships Provide collaboration tools Experiencing Strategic OB

Provide Feedback Feedback is most effective when provided in conjunction with goals Feedback should be repeated and provided at regular intervals Feedback should contain information about how associates can improve their performance Feedback should come from a credible source Feedback should focus on the performance, not the person

The Strategic Lens Assume that you are managing a talented but unmotivated associate. Also assume that organizational resources needed for the job are generally sufficient. What factors would you consider first in attempting to motivate the associate? Why those factors? A number of theories of motivation suggest that different rewards might be important to different people. How difficult is it to reward people differently for performing similar work? How will your individual motivation affect your career opportunities?

Questions