Motivation Ch. 12 Management A Practical Introduction Angelo Kinicki & Brian K. Williams

Learning objectives 1 Define motivation Explain the meaning of extrinsic and intrinsic rewards Describe the simple model of motivation Discuss the importance of motivation Describe the 3 content perspectives theories, illustrate each of these theories with examples. Discuss the strengths and weakness of these theories.

Learning objectives 2 Describe the 3 process perspectives theories, illustrate each of these theories with examples. Discuss the strengths and weakness of these theories. Describe the reinforcement theory and explain how it can be applied. Suggest how various compensation and rewards can be used to motivate

12.1 Motivating For Performance WHAT IS MOTIVATION? The psychological processes that arouse and direct goal-directed behavior is motivation In a simple model of motivation, people have needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original needs Rewards can be extrinsic (the payoff a person receives from others for performing a particular task), or intrinsic (the satisfaction a person receives from performing the particular task itself)

12.1 Motivating For Performance Figure 12.1: A Simple Model Of Motivation

12.1 Motivating For Performance WHY IS MOTIVATION IMPORTANT? It is important to motivate people to -join your organization -stay with your organization -show up for work at your organization -perform better for your organization -do extra for your organization

12.2 Content Perspectives On Employee Motivation WHAT KINDS OF NEEDS MOTIVATE EMPLOYEES? Theories that emphasize the needs that motivate people are content perspectives or need-based perspectives -where needs are defined as physiological or psychological deficiencies that arouse behavior Three content perspectives are Maslow’s hierarchy of needs, McClelland’s acquired needs theory, and Herzberg’s two-factor theory

12.2 Content Perspectives On Employee Motivation 1. Abraham Maslow put forth the hierarchy of needs theory which proposes that people are motivated by five levels of needs: At the most basic level, people try to fulfill physiological needs (basic human needs like food, clothing, and shelter) Next, are safety needs (physical safety, emotional security, avoidance of violence) Then, belongingness needs (love, friendship, affection) Next, esteem needs (self-respect, status, reputation, recognition, and self-confidence) Finally, self-actualization needs (self-fulfillment increasing competence, using abilities to the fullest)

12.2 Content Perspectives On Employee Motivation Figure 12.2: Maslow’s Hierarchy of Needs

12.2 Content Perspectives On Employee Motivation 2. David McClelland proposed the acquired needs theory which argues that three needs (achievement, affiliation, and power) are major motivators in the workplace The three needs are associated with different sets of work preferences People with a high need for achievement excel in technical fields that require creativity and individual skills People who have a high need for power will do well in jobs where they can control others and be publicly applauded for their accomplishments People with a high need for affiliation prefer work where personal relationships and social approval are important

12.2 Content Perspectives On Employee Motivation 3. Frederick Hertzberg proposed that work satisfaction and dissatisfaction arise from two different factors: Lower level needs are usually handled through hygiene factors (factors associated with job dissatisfaction like salary and working conditions) Higher level needs are associated with motivating factors (factors associated with job satisfaction) So, managers should eliminate dissatisfaction, then focus on encouraging motivation

12.2 Content Perspectives On Employee Motivation Figure 12.4: Hertzberg’s Two-Factor Theory: Satisfaction Versus Dissatisfaction

12.3 Process Perspectives On Employee Motivation IS A REWARD ENOUGH? Process perspectives are concerned with the thought processes by which people decide to act Three process perspectives on motivation are equity theory, expectancy theory, and goal-setting theory

12.3 Process Perspectives On Employee Motivation 1. Equity theory focuses on employee perceptions as to how fairly they think they are being treated relative to others The central issues of equity theory are inputs (what you think you put into the job), outputs (the rewards you could receive), and comparisons (how your inputs and outputs compare to those of others) Employees that believe they are being treated fairly are more likely to support their organizations than those who perceive inequities Managers need to understand employee perceptions, allow employees to participate in important decisions, and have an appeal process in place

12.3 Process Perspectives On Employee Motivation Figure 12.6: Equity Theory

12.3 Process Perspectives On Employee Motivation 2. Victor Vroom’s expectancy theory argues that people are motivated by how much they want something, and how likely they think they are to get it According to expectancy theory, people will do what they can, when they want to Expectancy is the belief that a particular level of effort will lead to a particular level of performance If people believe their efforts matter, they will work harder Instrumentality is the expectation that successful performance of the task will lead to the desired outcome Managers want to know what they will get for successful performance

12.3 Process Perspectives On Employee Motivation Valence is the value or importance a worker assigns to the possible outcome or reward For motivation to be high, employees need to score high on all three elements Managers should ask the following questions when they are trying to motivate employees -what are the job objectives and the performance level desired? -are rewards linked to performance? -do employees believe you will deliver the right rewards for the right performance?

12.3 Process Perspectives On Employee Motivation 3. Goal setting theory suggests that employees can be motivated by goals that are specific and challenging, but achievable Managers can motivate by setting the right goals in the right ways Goals should be SMART - Specific, Measurable, Attainable, Results-oriented, and have Target dates

12.5 Reinforcement Perspectives On Motivation WHAT INCENTIVES INFLUENCE BEHAVIOR? Reinforcement theory attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated When reinforcement theory is used to change human behavior, it is called behavior modification

12.5 Reinforcement Perspectives On Motivation Reinforcement is anything that causes a given behavior to be repeated or inhibited There are four types of reinforcement: 1. The use of positive consequences to encourage desirable behavior is called positive reinforcement 2. The removal of unpleasant consequences following a desired behavior is called negative reinforcement 3. The withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future is called extinction 4. The application of negative consequences to stop or change undesirable behavior is called punishment

12.5 Reinforcement Perspectives On Motivation Figure: 12.9: Four Types of Reinforcement

12.5 Reinforcement Perspectives On Motivation When using positive reinforcement or punishment, managers should: Reward only desirable behavior Give rewards as soon as possible Be clear about what behavior is desired Have different rewards and recognize individual differences Punish only undesirable behavior Give reprimands or disciplinary actions as soon as possible Be clear about what behavior is undesirable Administer punishment in private Combine punishment and positive reinforcement

12.6 Using Compensation & Other Rewards To Motivate HOW CAN FIRMS USE COMPENSATION AND OTHER REWARDS TO MOTIVATE? Wages or salaries are usually not enough to motivate people to work hard, so many companies offer incentives as well Good incentive plans: -link measurable rewards to performance -use rewards that satisfy individual needs -offer rewards that have been agreed on by managers and employees -have believable and achievable rewards

12.6 Using Compensation & Other Rewards To Motivate Some popular incentive plans are: -pay for performance - pay is based on results using piece rates -sales commissions - pay is based on a percentage of the earnings made by sales -bonuses - cash awards given to employees who achieve specific performance objectives -profit sharing - the distribution to employees of a percentage of the company’s profits -gainsharing - the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity -stock options - certain employees are given the right to buy stock at a future date for a discounted price -pay for knowledge - employee pay is tied to the number of job relevant skills or academic degrees they earn

12.6 Using Compensation & Other Rewards To Motivate HOW CAN FIRMS USE NONMONETARY REWARDS TO MOTIVATE EMPLOYEES? Organizations need to be sure that -employees have a balance between work and life -employees can expand their skill set -employees feel valuable

12.6 Using Compensation & Other Rewards To Motivate The most common non-monetary incentive is the flexible workplace Companies need to offer employees a means of balancing their work and their personal lives Companies need to create a work environment that is conducive to productivity Companies can help employees build their skills by developing “shadowing” programs and offering tuition reimbursement Offering sabbaticals to long-term employees gives people a change to recharge themselves

Key terms 1 Hygiene factors Instrumentality Intrinsic reward Motivating factors Motivation Needs Negative reinforcement Positive reinforcement Process perspectives Acquired needs theory Content perspectives Equity theory Expectancy Expectancy theory Extinction Extrinsic reward Goal-setting theory Hierarchy of needs theory

Key terms 2 Punishment Reinforcement Two-factor theory valence