© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

2 Chapter Objectives Explain the motivational lessons taught by Maslow’s theory, Herzberg’s theory, and expectancy theory. Describe how goal setting motivates performance. Discuss how managers can improve the motivation of personnel who perform routine tasks. Explain how job enrichment can be used to enhance the motivating potential of jobs. Distinguish extrinsic rewards from intrinsic rewards and list four rules for administering extrinsic rewards effectively. Explain how employee engagement and retention programs, open-book management, and self-managed teams promote employee participation. Explain how companies are striving to motivate today’s diverse workforce with quality-of-work-life programs.

Motivation Theories Motivation The psychological process that gives behavior purpose and direction Theories of Motivation Maslow’s hierarchy of needs theory Herzberg’s two-factor theory Expectancy theory Goal-setting theory © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Figure 12.2: Maslow’s Hierarchy of Needs Theory © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Self-Actualizing Manager Characteristics of the Self-Actualizing Manager Has warmth, closeness, and sympathy Recognizes and shares negative information and feelings Exhibits trust, openness, and candor Does not achieve goals by power, deception, or manipulation Does not project own feelings, motivations, or blame onto others Does not limit horizons; uses and develops body, mind, and senses Is not rationalistic; can think in unconventional ways Is not conforming; regulates behavior from within © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

Relevance of Maslow’s Theory for Managers Beyond physical and safety needs, managers cannot predict which of the three highest needs will emerge. A fulfilled need does not motivate an individual. Effective managers can anticipate emerging needs based on individual need profiles and provide opportunities for fulfillment. The esteem level of needs satisfied by jobs and recognition provides managers with the greatest opportunity to motivate better performance. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Herzberg’s Two-Factor Theory Herzberg’s two-factor theory is a theory of motivation based on job satisfaction. A satisfied employee is motivated from within to work harder. A dissatisfied worker is not self-motivated to work. Conclusion: Enriched jobs are the key to self- motivation. Dissatisfiers: Factors associated with the job context or work environment Satisfiers: Factors associated with the nature of the task itself (job content) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Implications of Herzberg’s Theory Satisfaction is not the opposite of dissatisfaction. There is a need to think carefully about what motivates employees. Meaningful, interesting, and challenging (enriched) work is needed to satisfy and motivate employees. Problems with Theory Assumption of job performance improving with satisfaction is weakly, at best, supported. One person’s dissatisfier is another person’s satisfier. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

Expectancy Theory (Vroom) Vroom’s theory is a model that assumes that motivational strength is determined by the perceived probabilities of success. Expectancy: One’s subjective belief or expectation that one thing will lead to another A Basic Expectancy Model One’s motivational strength increases as one’s perceived effort-performance and performance-reward probabilities increase the likelihood of obtaining a valued reward. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Relevance of Expectancy Theory to Managers Employee expectations can be influenced by managerial actions and organizational experience. Training increases employee confidence in their efforts to perform. Listening provides managers with insights into employees’ perceived performance-reward probabilities. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

Figure 12.4: A Model of How Goals Can Improve Performance © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

Goal-Setting Theory (cont’d) Personal Ownership and Effective Goals: Specificity makes goals measurable Difficulty makes goals challenging Participation gives personal ownership of the goal How Do Goals Actually Motivate? Exercises in selective perception Encourage effort to achieve something specific Encourage persistent effort Foster creation of strategies and action plans Practical Implications of Goal-Setting Theory The developed ability to effectively set goals can be transferred readily to any performance environment. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Motivation Through Job Design Job Design Strategy One: Fitting People to Jobs Strategy Two: Fitting Jobs to People Five Core Dimensions of Work Skill variety Task identity Task significance Autonomy Job feedback © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Motivation Through Rewards Rewards Extrinsic Rewards Intrinsic Rewards Employee Compensation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

Motivation Through Employee Participation Empowering employees to assume greater control of the workplace Three approaches to participation Open book management Self-managed teams © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

Figure 12.7: The Four STEP Approach to Open-Book Management © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

Keys to Successful Employee Participation Programs Building Employee Support for Participation A profit-sharing or gain-sharing plan A long-term employment relationship with good job security A concerted effort to build and maintain group cohesiveness Protection of the individual employee’s rights © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

Motivation Through Quality-of- Work-Life Programs Flexible Work Schedules Family Support Services Family-Friendly Benefits Wellness Programs Sabbaticals © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

Summary Maslow’s hierarchy of needs contends that people are motivated by emerging rather than fulfilled needs. Herzberg believes that the key to true satisfaction is an enriched job. Expectancy theory argues that motivation is the product of perceived probabilities of acquiring personally valued rewards. Goals can be an effective motivational tool when they are specific, difficult, participatively set, and accompanied by feedback on performance. Managers can counteract the boredom associated with routine-task jobs through realistic job previews, job rotation, and limited exposure. Job enrichment helps to meet individual needs for meaningfulness, responsibility, and knowledge of results. Both extrinsic and intrinsic rewards can have a positive impact on performance and satisfaction. Participative management programs foster direct employee involvement in one or more of the following areas: goal setting, decision making, problem solving, and change implementation. Quality-of-work-life programs are being used to accommodate and motivate today’s diverse workforce. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

Terms to Understand Motivation Expectancy theory Expectancy Goal setting Job design Realistic job previews Job rotation Contingent time off Job enlargement Job enrichment Rewards Extrinsic rewards Intrinsic rewards Cafeteria compensation Participative management Open-book management Self-managed teams Flextime PTO Bank Family-friendly companies © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20