MNGT 5590 Organizational Behavior Week 3: Chapters 5 & 6 Dr MNGT 5590 Organizational Behavior Week 3: Chapters 5 & 6 Dr. George Reid

Chapter 5: Foundations of Employee Motivation Chapter 6: Applied Performance Practices

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Chapter 5: Foundations of Employee Motivation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Employee Engagement and Motivation at DHL Express DHL Express, the courier division of Germany’s Deutsche Post, has been building a workforce of highly engaged employees in Africa (shown here) and globally. “Motivated and engaged employees are crucial to the success of any business,” says a DHL Express executive.

Motivation Defined The forces within a person that affect the direction, intensity, and persistence of voluntary behavior Motivated employees are willing to exert a particular level of effort (intensity), for a certain amount of time (persistence), toward a particular goal (direction)

Employee Engagement Both emotional and cognitive motivation Focused, intense, persistent, purposive effort toward goals High level of absorption (focus) High self-efficacy

Maslow’s Needs Hierarchy Theory Seven categories – five in a hierarchy -- capture most needs Lowest unmet need is strongest -- when satisfied, next higher need becomes primary motivator Model lacks empirical support Main problem: Needs hierarchy is unique to each person, not universal Self-actual-ization Need to know/learn Need for beauty/order Esteem Belongingness Safety Physiological

Maslow’s Contribution to Motivation Holistic perspective Study multiple needs together Humanistic perspective Influence of social dynamics, not just instinct Positive perspective Self-actualization (growth needs) Foundation of positive OB Abraham Maslow

Learned Needs Theory Needs can be “learned” strengthened through reinforcement, learning, and social conditions

Three Learned Needs Need for achievement (nAch) Want to accomplish reasonably challenging goals Desire clear feedback, moderate risk tasks Need for affiliation (nAff) Seek approval from others, conform to others’ wishes, avoid conflict Effective decision makers have low nAff Need for power (nPow) Desire to control one’s environment Personalized versus socialized power

Expectancy Theory of Motivation E-to-P Expectancy P-to-O Expectancy Valence Probability a specific effort level will result in a specific level of performance Probability a specific performance level will result in specific outcomes Anticipated satisfaction from the outcome Outcome 1 +/– Effort Performance Outcome 2 +/– Environment Ability Outcome 3 +/–

Expectancy Theory in Practice Increasing E-to-P Expectancies Hire, train, and match people to job requirements Provide role clarity and sufficient resources Provide behavioral modeling and coaching Increasing P-to-O Expectancies Measure performance accurately Explain how rewards are linked to performance Explain how rewards are caused by past performance Increasing Outcome Valences Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes

Four OB Mod Consequences Positive reinforcement – when reinforcer (consequence) is introduced, the behavior is increased/maintained Punishment – when introduced, the frequency or probability of the behavior decreases Negative reinforcement –when this consequence is removed, behavior is increased/maintained Extinction –behavior decreases when no consequence occurs

Social Cognitive Theory Learning behavior outcomes Observing consequences that others experience Anticipate consequences in other situations Behavior modeling Observing and modeling behavior of others Self-regulation We engage in intentional, purposive action We set goals, set standards, anticipate consequences We reinforce our own behavior (self-reinforcement)

Effective Goal Setting Features Specific – What, how, where, when, and with whom the task needs to be accomplished Measurable – how much, how well, at what cost Achievable – challenging, yet accepted (E-to-P) Relevant – within employee’s control Time-framed – due date and when assessed Exciting – employee commitment, not just compliance Reviewed – feedback and recognition on goal progress and accomplishment S M A R T E R

Balanced Scorecard Organizational-level goal setting and feedback Usually financial, customer, internal, and learning/growth process goals Several goals within each process

Characteristics of Effective Feedback Specific – connected to goal details Relevant – Relates to person’s behavior Timely –links actions to recent outcomes Credible – trustworthy source Frequent – often enough to be meaningful

Strengths-Based Coaching Builds on employee’s strengths rather than trying to correct weaknesses Motivational because: People inherently seek feedback about their strengths, not their flaws

Sources of Feedback Social sources -- feedback directly from others e.g., boss, customers, multisource Nonsocial sources -- feedback not conveyed directly by people e.g., electronic displays, customer survey results Preferred feedback source: Nonsocial feedback for goal progress feedback considered more accurate negative feedback less damaging to self-esteem Social sources for conveying positive feedback Enhances employee’s self-esteem

Organizational Justice/Equity Distributive justice Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others Procedural justice Perceived fairness of the procedures used to decide the distribution of resources

Chapter 6: Applied Performance Practices Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Meaning of Money at Work Money motivates, more than previously thought Different meanings of money Symbol of achievement/status; motivator; performance indicator; anxiety source/avoider Strong money ethic Money is perceived as (a) not evil, (b) symbol of achievement/power, (c) budget carefully Gender differences –more valued by men Men -- money is a symbol of power/status Women -- money is instrumental (exchanged) Cultural differences Money importance increases with power distance

Job Status-Based Rewards Includes job evaluation and status perks Advantages: Job evaluation tries to maintain fairness Motivates competition for promotions Disadvantages: Encourages bureaucratic hierarchy Reinforces status vs egalitarian culture Employees exaggerate duties, hoard resources

Competency-Based Rewards Two types of competency rewards Skill-based pay employees paid more with number of skill modules learned Advantages of competency-based pay More flexible work force, better quality, consistent with employability Disadvantages of competency- based pay Potentially subjective, higher training costs

Performance-based Rewards Individual rewards Bonuses, commissions, piece rate systems Team rewards Mostly bonuses, also gainsharing plans Organizational rewards Organizational bonuses, ESOPs, stock options, profit- sharing Evaluating organizational rewards ESOPs and stock options create “ownership culture” Profit sharing adjusts pay with firm's prosperity Problem: organizational rewards have weak P-to-O link

Improving Reward Effectiveness Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences

Unintended Consequences of Rewards at TransSantiago Santiago, Chile, bus drivers paid per passenger Motivated start time, shorter breaks, efficient driving, passengers paid fares Unintended consequences Speeding to next stop, cutting off competing buses Passenger injuries/deaths – doors left open, bus departs before all on board Drove past stops with only one passenger waiting

Job Design Assigning tasks to a job, including the interdependency of those tasks with other jobs Organization's goal -- to create jobs that can be performed efficiently yet employees are motivated and engaged

Job Specialization and Scientific Management Dividing work into separate jobs, each with a subset of tasks to complete the product/service Scientific management Frederick Winslow Taylor Championed job specialization and standardization Also popularized training, goal setting, work incentives Advantages and disadvantages of job specialization Frederick Winslow Taylor

Job Characteristics Model Critical Psychological States Core Job Characteristics Outcomes Work motivation Growth satisfaction General effectiveness Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness Autonomy Responsibility Individual differences

Other Job Characteristics Social characteristics of the job Required interaction with other people clients, coworkers, etc Task interdependence -- job requires social interaction with coworkers Feedback from others -- from coworkers, clients, etc

Job Rotation Moving from one job to another Benefits Minimizes repetitive strain injury Multiskills the workforce Potentially reduces job boredom Job ‘A’ Job ‘B’ Job ‘D’ Job ‘C’

Job Enlargement Adding tasks to an existing job Example: video journalist Video journalist • Operates camera • Operates sound • Reports story Employee 1 Operates camera Employee 2 Operates sound Employee 3 Reports story Traditional news team

Job Enrichment Giving employees more responsibility for scheduling, coordinating, and planning work Natural grouping Stitching highly interdependent tasks into one job e.g., video journalist, assembling entire product Establishing client relationships Directly responsible for specific clients Communicate directly with those clients

Dimensions of Empowerment Self-determination Employees feel they have freedom and discretion Meaning Employees believe their work is important Competence Employees have feelings of self-efficacy Impact Employees feel their actions influence success

Self-Leadership The process of influencing oneself to establish the self-direction and self- motivation needed to perform a task Includes concepts/practices from goal setting, social cognitive theory, and sports psychology

Business Performance Model Employee/team performance Business results Work environment & structures Robinson & Robinson

Business Performance Model Employee/team performance Business results Work environment & structures

Business Performance Model Employee/team performance Business results Work environment & structures

Business Performance Model Employee/team performance Business results Work environment & structures

Schedule for Week 4 – Be On Time! Terry Pat Sandy Sam Chris   Location 8:45-9:15 A B C D E Teams 9:20-9:50 9:55-10:25 add 5 min break 10:35-11:05 11:10-11:40 11:45-12:00 Wrap-Up Summary All Classroom

Schedule for Week 4 – Be On Time! Terry Pat Sandy Sam Chris   Location 1:15-1:45 A B C D E Teams 1:50-2:20 2:25-2:55 add 5 min break 3:05-3:35 3:40-4:10 4:15-4:30 Wrap-Up Summary All Classroom