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1-2 McGraw-Hill/Irwin copyright © 2009 by The McGraw-Hill Companies, inc. All Rights Reserved Motivation, Satisfaction, and Performance “Polls estimate that if companies could get 3.7 percent more work out of each employee, the equivalent of 18 more minutes of work for each eight-hour shift, the gross domestic product in the U.S. would swell by $355 billion, twice the total GDP of Greece.” ~The Gallup Organization Chapter 99

9-3 Introduction The ability to motivate others is a fundamental leadership skill and has strong connections to managerial incompetence. Variation in work output varies significantly across leaders and followers. Creating highly motivated and satisfied followers depends, most of all, on understanding others.

9-4 Defining Motivation, Satisfaction, and Performance Motivation: Anything that provides direction, intensity, and persistence to behavior. –Not directly observable; must be inferred from behavior. Performance: Behaviors directed toward the organization’s mission or goals, or the products and services resulting from those behaviors. –Differs from effectiveness. Job Satisfaction: How much one likes a specific kind of job or work activity. –Related to organizational citizenship behaviors.

9-5 Relationships between Leadership, Job Satisfaction, and Performance

9-6 Understanding and Influencing Follower Motivation Motivational theories are useful in certain situations but not as applicable in others. Knowledge about different motivational theories helps choose the right theory for a particular follower and situation. –Often results in higher-performance and more satisfied employees. Most performance problems can be attributed to unclear expectations, skill deficits, improper/lack of communications, resource/ equipment shortages, or a lack of motivation.

9-7 Eleven Motivational Approaches

9-8 Need Theories Needs: Refer to internal states of tension or arousal, or uncomfortable states of deficiency people are motivated to change. –Maslow’s Hierarchy of Needs theory –Alderfer’s Expectancy-Relatedness-Growth (ERG) theory

9-9 Maslow’s Hierarchy of Needs

9-10 Alderfer’s Existence – Relatedness- Growth Similar to Maslow’s hierarchy of needs. Existence needs – corresponds to Maslow’s physiological and security needs. Relatedness needs – are similar to social and self esteem needs. Growth needs – corresponds to the Maslow’s self actualization needs. Followers will first satisfy the first two needs before they seek growth needs.

9-11 Concluding Thoughts on Need Theories Leaders should start by determining if follower’s lower-level needs are being satisfied. These theories do not make specific predictions about what an individual will do to satisfy a particular need. Awareness of general nature of various sorts of basic human needs seems fundamentally useful to leaders. –Basic, fundamental areas need to be addressed first.

9-12 Individual Differences in Motivation Assumes people differ in key personality traits, work values, and the work they like to do. Concluding thoughts on individual differences in motivation: –Ensure that followers exert needed effort for task accomplishment by selecting individuals already high in these motives. –To determine what followers find to be intrinsically motivating, simply ask them what they like to do. –By reassigning work according to values and intrinsic interests, leaders may be able to get higher-quality work and have more satisfied employees.

9-13 Key Work Values and Motivational Strategies

9-14 Cognitive Theories Goal setting: Goals are the most powerful determinants of task behavior. –Pygmalion Effect – positive expectations in most cases yields better team performance. –Golem Effect – negative expectations about a follower or tam most often lowers team performance or become self-fulfilling prophesies. Expectancy theory: Assumes that people act in ways that maximize their expectations of attaining valued outcomes. –Effort-to-performance expectancy –Performance-to-outcome expectancy –Valence

9-15 An Example of Expectancy Theory

9-16 Cognitive Theories (continued) Equity theory: Assumes that people value fairness in leader–follower exchange relationships. –Followers presumably reach decisions about equitable relationships by assigning values to four elements. Self-efficacy: Concerns one’s core beliefs about being able to successfully perform a given task. –Positive self-efficacy –Negative self-efficacy

9-17 Concluding Thoughts on Cognitive Theories of Motivation All four cognitive theories assume that changing followers’ thoughts will help them engage in particular tasks and activities. Leaders can influence followers’ motivational levels by: –Clearly articulating expected outcomes. –Clarifying the links between efforts and rewards. –Providing training, coaching, and feedback to followers. Cognitive theories place a strong premium on leader–follower communication.

9-18 Situational Approaches Operant Approach: –Reward –Punishment –Contingent rewards or punishments from expected behavior –Non-contingent rewards and punishments not associated with behavior – for example receiving same bonus irrespective performance –Extinction – unrewarded or disliked behavior that eventually is eliminated

9-19 Situational Approaches (continued) Operant principles: –Clearly specify what behaviors are important. –Determine if those behaviors are currently being punished, rewarded, or ignored. –Find out what followers actually find rewarding and punishing. –Be wary of creating perceptions of inequity when administering individually tailored rewards. –Do not limit oneself to administering organizationally sanctioned rewards and punishments. –Administer rewards and punishments in a contingent manner whenever possible.

9-20 Situational Approaches (continued) Empowerment: –Top-down approach to delegation –Bottom-up approach to delegation Macro psychological components: –Motivation (if empowerment is properly done…) –Learning of new skills with new responsibilities –Stress can lower if employees make and implement own solutions to problems Micro components of empowerment: –Self-determination, know what, when, and how to do things –Meaning of importance to themselves, others and company –Competence –Influence or impact others in the team

9-21 Concluding Thoughts on Situational Approaches to Motivation Leaders naively assume it is easier to change an individual than it is to change the situation. Leaders can often see positive changes in followers’ motivation levels by restructuring work processes and procedures. –It can increase their latitude to make decisions and add more meaning to work. If properly designed and administered, then in many cases followers will successfully work through their resistance.

9-22 The Empowerment Continuum

9-23 Understanding and Influencing Follower Satisfaction Research has shown that satisfied workers are more likely to continue working for an organization. –More likely to engage in organizational citizenship behaviors. Dissatisfied workers: More likely to be adversarial in their relations with leadership. –May engage in diverse sorts of counterproductive behaviors. Employee turnover has the most immediate impact on leadership practitioners. –Functional turnover –Dysfunctional turnover

9-24 Why People Leave or Stay with Organizations

9-25 Global, Facet, and Life Satisfaction Three different types of items are typically found on a job satisfaction survey (next slide): –Global satisfaction – overall satisfaction with organization –Facet satisfaction – assess the degree to which are satisfied with aspects of work –Life satisfaction Other important findings include: –Hierarchy effect – people with longer tenure or higher positions tend to have higher global and facet satisfaction –Life satisfaction – concerns about life in general Survey results are most useful when they can be compared with those from some reference group.

9-26 Typical Items on a Satisfaction Questionnaire

9-27 Results of a Facet Satisfaction Survey

9-28 Theories of Job Satisfaction Affectivity: Refers to one’s tendency to react to stimuli in a consistent emotional manner. –Negative affectivity –Positive affectivity Hezberg’s Two-Factor Theory –Motivators –Hygiene factors Organizational Justice –Interactional justice –Distributive justice –Procedural justice

9-29 Motivators and Hygiene Factors of the Two-Factor Theory

9-30 Herzberg’s Two-Factor Theory

9-31 Summary Performance and motivation are not the same thing. People often have varying levels of satisfaction for different aspects of their jobs. Many of the approaches to understanding motivation have distinct implications for increasing performance and satisfaction. Followers, as well as leaders are more likely to have positive attitudes about work if they believe that what they do is important and that the reward and disciplinary systems are fair and just.