10-1 Managing Employee Motivation and Performance

10-2 At the end of this chapter you will learn: What is Motivation? What is Motivation? What Motivates Employees? What Motivates Employees? Why People choose certain behavioral options? Why People choose certain behavioral options? How to reinforce behavior? How to reinforce behavior?

10-3 WHAT is Motivation An internal force that lead people to behave in certain ways An internal force that lead people to behave in certain ways

10-4 Why motivation is important for organizations? Why motivation is important for organizations?

10-5 EnvironmentEnvironment Motivation Ability PERFORMANCEPERFORMANCE

10-6 What Motivates Employees? What Motivates Employees? How to motivate employees? How to motivate employees? How to reinforce behavior? How to reinforce behavior? Content Process Reinforcement Managing Employee Motivation and Performance Motivation and Performance

10-7 Historical Perspective on Motivation Traditional Approach Traditional Approach Human Relations Approach Human Relations Approach Human Perspective Approach Human Perspective Approach Taylor Taylor Economic Gain Economic Gain Social Process Social Process Illusion of involvement and participation Illusion of involvement and participation People’s contribution are valuable People’s contribution are valuable Encourage real participation Encourage real participation

10-8 Content Perspectives of Motivation What Motivates People? Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Existence-Relatedness Growth (ERG) Existence-Relatedness Growth (ERG) Herzber’g Two Factors Theory Herzber’g Two Factors Theory Achievement, Affiliation, Power (AAP) Achievement, Affiliation, Power (AAP)

10-9 Maslow’s Hierarchy of Needs Physiological Needs Safety Needs Social Needs Esteem Needs (Self + Others) Self- Self-Actualization Satisfied

10-10 Use Maslow’s Hierarchy of Needs to categories the following general needs 1. Sleep, Eat 2. The need to have a safe environment 3. Respect and recognition for self 4. Respect and recognition from others 5. Relationship and communication with others 6. The need to continue to grow, develop, and expand our capabilities

10-11 Use Maslow’s Hierarchy of Needs to categories the following general needs A. Changing job titles of Batelco’s employees from General Managers to Vice President B. UoB is providing partial health insurance for its employees C. The Labor Law in Bahrain states that all employees must have a ‘pension’ D. Choosing a new employees to be part of a team that is responsible to arrange for the graduation ceremony in UoB E. UOB arranged a trip to the ‘Italian Circus’ for all UOB employees and their families F. A General Manager who participated in the marathon G. The Labor Law in Bahrain states that the minimum wage for Bahrainis’ is BD200

10-12 Maslow’s Hierarchy of Needs Salary, Benefits Job Continuity, Pension Team Work, Gathering Job title, Assignments New Challenges Satisfied

10-13 Shortcomings.. Is it Five Levels? Is it Five Levels? Do you agree on the ordering? Do you agree on the ordering? Is it different by culture? Is it different by culture?

10-14 Physiological Security Social Esteem Self Self- Actualization Existence-Relatedness- Growth Existence Relatedness Growth Esteem Others

10-15 ERG Existence = Existence = Relatedness = Relatedness = Growth = Growth = Physiological + Security Physiological + Security Belongings (Social)+ Esteem from Others Belongings (Social)+ Esteem from Others Self Esteem + Self Actualization Self Esteem + Self Actualization

10-16 ERG Hierarchy Hierarchy Overlap Overlap Frustration-Regression Frustration-Regression

10-17 Herzberg’s Two-Factor Theory Job-Related Factors and Job Environment Factors Are they the same?

10-18 Herzberg’s Two-Factor Theory Achievement Achievement Recognition Recognition Work Itself Work Itself Growth/Advancement Growth/Advancement Responsibility Responsibility Working Conditions Working Conditions Policy/Admin. Policy/Admin. Supervision Supervision Pay and security Pay and security Job-Related Job Environment

10-19 Herzberg’s Two-Factor Theory Satisfaction& No dissatisfaction No dissatisfaction Are they the same? حالة الرضا حالة الرضاو حالة عدم الانزعاج

10-20 Herzberg’s Two-Factor Theory Satisfaction No dissatisfaction Job Related Job Related Job Environment Factors

10-21 Job Related - Motivating Factors AchievementRecognition Work Itself ResponsibilityAdvancement ✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔✔ ✘ ✘✘✘ ✘✘✘✘✘✘✘✘✘ ✘✘✘ ✘✘✘✘✘✘✘✘✘✘✘ Satisfaction No Satisfaction

10-22 Job Enviro. - Hygiene Factors Working Conditions Work itself Supervision Pay and security ✔✔✔✔✔✔✔✔✔✔✔✔✔✔ ✘ ✘✘✘ ✘✘✘ ✘✘✘ ✘✘✘✘ No Dissatisfaction Dissatisfaction

10-23 Answer the following 1. Which factors must be present to lead to employee motivation a) Job Related factors b) Environment related factors 2. Which factors must be present to lead to a hygienic working environment a) Job Related factors b) Environment related factors 3. The existence of environment related factors will lead to employees satisfaction and hence motivation (T/F) 4. According to Herzberg, if a manager wants to motivate employees, she/he must provide job- related factors (T/F)

10-24 Shortcoming of Two-Factor Theory Interview results subject to different interpretation Interview results subject to different interpretation Sample not representative of general population (Accountants) Sample not representative of general population (Accountants) Pay – Is it a hygiene or motivating factor? Pay – Is it a hygiene or motivating factor?

10-25 AAP Prioritize the following statements according to their importance to your I set difficult goals for my self, I get preoccupied with my work and I like to have quick feedback I set difficult goals for my self, I get preoccupied with my work and I like to have quick feedback I like to interact and socialize with others I like to interact and socialize with others I have the desire to be influential in a group and to control one’s environment I have the desire to be influential in a group and to control one’s environment

How to Motivate Achiever Achiever Affiliater Affiliater Power-centred Power-centred 10-26

10-27Achievement What is the % Americans who are classified as Achievers? What is the % Americans who are classified as Achievers? What is the % Japanese who are classified as Achievers? What is the % Japanese who are classified as Achievers? How to motivate a person with high Achievement need? How to motivate a person with high Achievement need? 10% Americans 10% Americans 25% Japanese 25% Japanese Goal-accomplishment Goal-accomplishment How to motivate a person with high Achievement need? How to motivate a person with high Achievement need?

10-28Achievement 10% Americans 10% Americans 25% Japanese 25% Japanese How to motivate a person with high Achievement need? How to motivate a person with high Achievement need? Goal-accomplishment Goal-accomplishment

10-29Affiliation How to motivate a person with high Affiliation need? How to motivate a person with high Affiliation need? Acceptance & Companionship Acceptance & Companionship Increase the human interaction and companionship Increase the human interaction and companionship Customer interaction Customer interaction

10-30 Power How to motivate a person with high Power need? How to motivate a person with high Power need? Control and Influence Control and Influence Supervisory Supervisory Team Leader Team Leader Committee Leader Committee Leader

10-31 Content Perspectives of Motivation What Motivates People? Maslow Maslow Physiological Needs Physiological Needs Security Needs Security Needs Belongings Belongings Esteem Esteem Self actualization Self actualization ERG ERG Need for Existence Need for Existence Need for Relatedness Need for Relatedness Need for Growth (ERG) Need for Growth (ERG) Two-Factors Theory - Two-Factors Theory - Job-related factors Job-related factors Achievement Achievement Responsibility Responsibility Work Itself Work Itself Advancement Advancement Growth Growth AAP AAP Achievement Achievement Affiliation Affiliation Power Power

10-32 Content Motivation theories suggest that motivation process should begin with identification of Content Motivation theories suggest that motivation process should begin with identification of

10-33 PROCESS Perspectives on Motivation Why people choose certain behavioral options to satisfy their needs? Why people choose certain behavioral options to satisfy their needs? How they evaluate their satisfaction after goal- attainment? How they evaluate their satisfaction after goal- attainment?

10-34 PROCESS Perspectives on Motivation Expectancy Theory Expectancy Theory Equity Theory Equity Theory

10-35 Expectancy Theory MotivationEffort Environment Ability PerformanceOutcome Valence

10-36 Motivation depends on Motivation depends on How much we want something How much we want something Valence Valence –Positive (if we want something) –Negative (if we don’t want something) –Zero (indifference) How likely we think we will get it How likely we think we will get it Effort-to Performance Expectancy Effort-to Performance Expectancy Performance-to-outcome Expectancy Performance-to-outcome Expectancy

10-37 Expectancy Theory MotivationEffortPerformanceOutcome Valence How Much we want Something? Performance-to- Outcome Expectancy Effort-to- Performance Expectancy

10-38 Employee Questions About Expectancy Theory  What is the probability that I can perform at the required level if I try?  What is the likelihood my performance will lead to the desired outcomes?  What value do I place on the outcome?

10-39 Conditions For Motivational behavior Greater than Zero  Effort-to-performance  Performance -to- Outcome  Valence

10-40 Equity Theory - Adam Stacey Social equity in the rewards they receive for performance. Social equity in the rewards they receive for performance. SELF Outcome: Input OTHER Outcome : Input

10-41 Under rewarded Under rewarded Equitable rewards Equitable rewards Over rewarded Over rewarded   Reward  Reward  Inputs  Inputs   Input  Input

Good Behavior Good behavior if rewarded will increase the probability of it being repeated. This type of reinforcement is called positive reinforcement. Good behavior if rewarded will increase the probability of it being repeated. This type of reinforcement is called positive reinforcement. Some time good behavior is repeated to avoid punishment. This type of reinforcement is called Avoidance. Some time good behavior is repeated to avoid punishment. This type of reinforcement is called Avoidance

Bad Behavior Punishment of bad behavior, will reduce its’ repeation. This type of reinforcement is called - Punishment. Punishment of bad behavior, will reduce its’ repeation. This type of reinforcement is called - Punishment. Ignorance of bad behavior might eventually lead extinction. This type of reinforcement is called extinction. Ignorance of bad behavior might eventually lead extinction. This type of reinforcement is called extinction

Types (Arrangements) of Reinforcement POSITIVE REINFORCEMENT POSITIVE REINFORCEMENT Good behavior Good behavior reward reward to strengthen to strengthen to be repeated to be repeated AVOIDANCE AVOIDANCE Good Behavior To avoid punishment PUNISHEMENT PUNISHEMENT Bad behavior punishment Bad behavior punishment to weaken to weaken not repeated not repeated EXTINCTION EXTINCTION Bad behavior Ignore Bad behavior Ignore eventually ‘extinct’ eventually ‘extinct’ 10-44

Extinction, Positive Reinforcement, Punishment, Avoidance strengthen behavior by providing a desirable consequences strengthen behavior by providing a desirable consequences strengthen behavior by allowing escape from an undesirable consequences strengthen behavior by allowing escape from an undesirable consequences weakness behavior by providing an undesirable consequence weakness behavior by providing an undesirable consequence weakens behavior by ignoring it weakens behavior by ignoring it

Schedule for Applying Reinforcement Time (Interval) Time (Interval) Fixed-Internal Fixed-Internal Reinforcement is applied at fixed intervals, regardless of behavior Reinforcement is applied at fixed intervals, regardless of behavior Variable-Internal Variable-Internal Reinforcements applied at variable time interval. Reinforcements applied at variable time interval. Behavior (Ratio) Fixed-Ratio Fixed-Ratio Reinforcement is applied after a fixed number of behaviors, regardless of time. Reinforcement is applied after a fixed number of behaviors, regardless of time. Variable-Ratio Variable-Ratio Reinforcements applied after a variable number of behaviors. Reinforcements applied after a variable number of behaviors