Motivation and Performance Management

Focus on motivation before exam

Goals Many different ways to motivate employees. People have preferences for different types of motivation. Link Motivation to leadership style Link Motivation to organizational culture.

Performance Performance = motivation X ability X situational factors (leadership support, resources, peer support, etc). Attributions. Ability is relatively fixed. Ability linked to wages. Supervisors can work largely on motivation or situational factors. In this class focus on leadership support and peer support (teams). Other classes resource (ex. MIS).

Focus on Motivation for now.

Motivation is important in management Basic job motivation. Most firms have average workers. Exceptional firms motivate average workers. (note some firms have high pay and select talented employees). Change efforts Supervision is easier if people are trying.

Think of a time when you were highly motivated Describe the circumstances.

Intrinsic vs. Extrinsic Motivation Intrinsic Motivation being driven by positive feelings associated with doing well on a task or job Extrinsic Motivation motivation caused by the desire to attain specific outcomes 8-18 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Model of Intrinsic Motivation Sense of Choice Sense of Competence Sense of Meaningfulness Sense of Progress Opportunity Rewards Accomplishment Rewards From Task Activities From Task Purpose 8-19 Figure 8-6 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Models of intrinsic motivation Video How do they create meaning, choice, competence, progress?

. The Job Characteristics Model  High work effectiveness  High growth satisfaction  High general job satisfaction  High intrinsic work motivation Outcomes  Knowledge of the actual results of the work activities  Experienced responsibility for outcomes of the work  Experienced meaningfulness of work Critical psychological state  Feedback from job  Autonomy  Skill variety  Task identity  Task significance Core job characteristics Moderators 1.Knowledge and skill 2.Growth need strength 3.Context satisfaction 8-15 Figure 8-5 McGraw-Hill

Advantages of intrinsic Motivation Low cost Persistence is high Unleash employees for change. Builds relationships internally and externally

Disadvantages Control freaks nightmare Strategic change is difficult.

Intrinsic Motivation Often ignored in today’s work environment. Its what many of the best firms do! Very few average or below average firms do not. Not leadership per se but more organizational culture. Leadership style needs to be supportive to create the culture.

Extrinsic Motivation Many different approaches. Debate highlighted these issues.

First, What can be used as rewards

Punishments.

Equity approaches Discussed earlier.

Negative and Positive Inequity A. An Equitable Situation Self Other $2 1 hour = $2 per hour $4 2 hours = $2 per hour 9-5 Figure 9-1 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Factors Considered When Making Equity Comparisons Challenging assignments Experience Fringe benefitsEducation/training Pay/bonusesTime OutcomesInputs Time off with pay/Job security Recognition Past Performance Ability and Skill Effort 9-2 Table 9-1 McGraw-Hill.

Pleasant/safe working environment Loyalty to organization Status symbolsSeniority Career advancement/promotions Creativity OutcomesInputs Opportunity for personal growth/development Age Factors Considered When Making Equity Comparisons 9-3 Table 9-1 cont. McGraw-Hill

Since perceptual many ways to manage Ask for a raise; ask for a new title;seek outside intervention 3)Person can attempt to increase his or her outcomes Don’t work as hard; take longer breaks 2)Person can attempt to increase his or her inputs Work harder; attend school or a specialized program 1)Person can increase his or her inputs ExamplesMethods Ask for less pay4)Person can decrease his or her outcomes 9-9 Table 9-2 l

Management Perceived Justice is important to employee. Some are more equity sensitive than others. Depends. Some questions. Debate if pay should be made public. What would equity theory suggest?

Susan is a single parent. She needs to come in late to drop her kids at school. How do you manage this? How could equity theory guide your choices? Can you be best friends or have intimate relations with your one subordinate? Here is a tough one. Which leadership style is most equity sensitive? Least equity sensitive?

Expectancy theory is closely linked to reward theory. Assumes People will do what is most rewarding for them. So as students, choice to work and earn more money or study. Work for a course where all get As or course where full range distribution. Work in a course where can get an A or work in a course where lucky to get B but unlikely to fail.

Employees make the same choices. What gets you ahead on your job. Playing golf with your boss or doing a good job. Your job is MIS systems. You are the nerd of all nerds. Love programming and hate people. Job requires meeting clients needs. Spend more time programming or talking to clients?

Effort Performance Outcomes

Vroom’s Expectancy Theory Expectancy belief that effort leads to a specific level of performance Instrumentality a performance outcome perception Valence the value of a reward or outcome 9-14 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Influence and Employee’s Expectancy Perceptions Self-esteem Self-efficacy Previous success at the task Help received from a supervisor and subordinates Information necessary to complete the task Good materials and equipment to do work with 9-15

Factors that influence Instrumentalities Written statements/policies Historical evidence. Past perceptions from experiences of self and others Role ambiguity

Valences Individual differences.

Lets go back to Mary Martin Using expectancy theory, what would you do using expectancy theory.

Managerial implications Make reward systems explicit and clear. Make job standards explicit and clear. Prepare people to succeed at job standards. Links to which leadership style. Expectancies are supervisory based. Instrumentalities can be supervisor or organizational culture.

Prerequisites to Linking Performance and Rewards Managers should:  Develop and communicate performance standards  Give valid and accurate performance ratings  Determine the relative mix of individual vs. team contribution to performance and reward accordingly  Use the performance ratings to differentially allocate rewards among employees 9-20 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

video

Problems Very general and difficult to implement in reality.

MBO/Goal Setting My favorite extrinsic mode of motivation. Effective managers work with subordinates to set specific, objective performance standards. All jobs. Retails sales easiest. Police officer Football athletic trainer.

Locke’s Model of Goal Setting Encouraging the development of goal- attainment strategies or action plans Increasing one’s persistence Regulating one’s effort Directing one’s attention Goals motivate the individual by... Task performance 9-22 Figure 9-3

Insights from Goal Setting Research 1)Difficult goals lead to higher performance 2)Specific, difficult goals lead to higher performance for simple rather than complex tasks 3)Feedback enhances the effect of specific, difficult goals 4)Participative goals, assigned goals, and self- set goals are equally effective 5)Goal commitment and monetary incentives affect goal-setting outcomes 9-24 Table 9-4.

MBO Starts at the top. Officers set strategic goals. Target. 5% revenue Growth through repeat customers -- quality and choice at a low price. Store manager goals Dept manager goals Floor attendants goals Check out goals

Goes beyond goals Goals are a tool to both motivate and identify performance problems (performance management). Goals setting done jointly long time frame. Monitor (indirectly) if goals are being attained. Provide feedback daily, weekly, monthly

Supervisor monitors. Gives recognition if goals on target Problems solves if goals are not on target. Done in supportive manner. What does supervisor need to do to help? What does subordinate need to do to help? Bonuses given if goals are met.

Research supports But not widely used.

Managerial implications Steps to adoption are specific and clear. Monitoring and feedback. Leadership style. Organizational culture.

Dark side Game playing/Ethical lapses with outcome measurements. Poor goal assessment.

Motivation Different approaches Choice based on beliefs about employees, leadership style and organizational culture. All can be proven to be effective at achieving different things.