6-1©2005 Prentice Hall Understanding and Managing Organizational Behavior 4th Edition 6: The Nature of Work Motivation Chapter 6: The Nature of Work Motivation JENNIFER GEORGE & GARETH JONES

6-2 ©2005 Prentice Hall Chapter Objectives  Appreciate why motivation is of central importance in organizations and the difference between intrinsic and extrinsic motivation  Understand what we can learn about motivation from need theories

6-3 ©2005 Prentice Hall Chapter Objectives  Describe why expectancy, valence, and instrumentality are of central importance for work motivation  Appreciate the importance of equity and the dangers of inequity  Understand why procedural justice is so important and how to promote it

6-4 ©2005 Prentice Hall Opening Case: Motivating Employees at SAS Institute  How can organizations continue to grow and have satisfied employees in the hard times as well as the good times?  SAS – the largest privately owned software company in the world  9,000 employees  1 of the 100 Best Companies to Work for in America and 100 Best Companies for Working Mothers

6-5 ©2005 Prentice Hall What is Work Motivation?  Psychological forces within a person that determine –the direction of a person’s behavior in an organization, –a person’s level of effort, and –a person’s level of persistence in the face of obstacles  Table 6.1

6-6 ©2005 Prentice Hall Motivation and Performance  Performance is an evaluation of the results of a person’s behavior  Motivation is only one factor among many that contributes to an employee’s job performance

6-7 ©2005 Prentice Hall Motivation  Intrinsic –Source of motivation is actually performing the behavior –Behavior performed for its own sake  Extrinsic –Source of motivation is acquisition of material or social rewards or to avoid punishment

6-8 ©2005 Prentice Hall Theories of Motivation  Need Theory  Expectancy Theory  Equity Theory  Procedural Justice Theory

6-9 ©2005 Prentice Hall Need Theory  What outcomes is an individual motivated to obtain from a job and an organization?  Employees have needs that they are motivated to satisfy in the workplace  Only unsatisfied needs motivate

6-10 ©2005 Prentice Hall Expectancy Theory_1  Does the individual believe that his or her inputs will result in a given level of performance?  Employees will not be motivated to contribute their inputs to the organization unless they believe that their inputs will result in achieving a given level of performance, regardless of available outcomse

6-11 ©2005 Prentice Hall Expectancy Theory_2  Does the individual believe that performance at this level will lead to obtaining desired outcomes?  Employees will be motivated to obtain given level of performance only if that level of performance leads to desired outcomes

6-12 ©2005 Prentice Hall Equity Theory  Are outcomes perceived as being at an appropriate level in comparison to inputs?  From past experience or observation, employees will have a sense of what level of inputs should result in a certain level of outcomes  Outcomes based upon inputs  Different employees’ outcome/input ratios equal

6-13 ©2005 Prentice Hall Procedural Justice Theory  Are the procedures used to assess inputs and performance and to distribute outcomes perceived as fair?  Employees will not be motivated to contribute inputs unless they perceive that fair procedures will be used to distribute outcomes

6-14 ©2005 Prentice Hall Need Theories  Maslow’s Hierarchy of Needs –5 universal needs –Hierarchy of importance –Once satisfied, need no longer motivates  Alderfer’s ERG Theory –3 universal needs –Hierarchy of importance –Flexible movement amongst levels

6-15 ©2005 Prentice Hall Expectancy Theory  Valence –How desirable is an outcome?  Instrumentality –What is the connection between job performance and an outcome?  Expectancy –What is the connection between effort and job performance?

6-16 ©2005 Prentice Hall Yes or No?  Will I be able to obtain outcomes I desire?  Do I need to perform at a high level to obtain these outcomes?  If I try hard, will I be able to perform at a high level? –Motivation occurs only when the answer is YES to all three questions!

6-17 ©2005 Prentice Hall Equity Theory  Inputs –Special skills –Training –Education –Work experience –Effort on the job –Time  Outcomes –Pay –Fringe benefits –Job satisfaction –Status –Opportunities for advancement –Job security

6-18 ©2005 Prentice Hall Equity Theory_2  Inputs lead to outcomes  Objective level of outcomes does not determine work motivation  Outcome/input ratio compared to ratio of referent others leads to work motivation

6-19 ©2005 Prentice Hall Ways to Restore Equity  Change inputs or outcomes  Change referent’ inputs or outcomes  Change perceptions of inputs and outcomes  Change the referent  Leave the job  Force referent to leave the job

6-20 ©2005 Prentice Hall Procedural Justice Theory  Perceived fairness of the procedures used to make decisions about the distribution of outcomes –Not the actual distribution of outcomes  Procedural decisions –How performance levels are evaluated –How grievances are handled –How outcomes are distributed

6-21 ©2005 Prentice Hall Procedural Justice Theory_2  Higher motivation occurs when procedures used to make decisions are perceived as fair  Factors for determination of fairness –Interpersonal treatment of employees –Extent to which managers explain decisions to employees