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Chapter Motivating For Performance 13 McGraw-Hill/Irwin Management, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

13-3 Learning Objectives  After Studying Chapter 13, You will Know  The kinds of behaviors managers need to motivate in people.  How to set challenging, motivating goals.  How to reward good performance properly.  The key beliefs that affect people’s motivation.  The ways in which people’s individual needs affect their behavior.  How to create a motivating, empowering job.  How people assess fairness and how to achieve fairness.  The causes and consequences of a satisfied workforce.

13-4 Motivating for Performance  Motivation refers to forces that energize, direct, and sustain a person’s efforts  Managers must motivate people to  Join the organization  Remain in the organization  Come to work regularly  Perform  Exhibit good citizenship

13-5 Setting Goals  Goal setting is perhaps the most important, valid, and useful single approach to motivating performance  Goal setting theory states that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end  Goal setting works for any job in which people have control over their performance

13-6 Goals that Motivate  The most powerful goals are meaningful  Goals for noble purposes, that appeal to people’s ‘higher’ values are extra motivating  Goals should be acceptable to employees, that is they do not conflict with personal values  Goals should be challenging but attainable

13-7 Stretch Goals  Stretch goals are targets that are particularly demanding, sometimes even though to be impossible  There are two types of stretch goals  Vertical stretch goals are aligned with current activities including productivity and financial resources  Horizontal stretch goals involve people’s professional development  Stretch goals can generate a major shift away from mediocrity and toward tremendous achievement

13-8 Limitations of Goal Setting  If people lack relevant ability and knowledge it might be better to urge them to do their best or set a goal to learn rather than a specific performance level  People focused on their own goals may not help others attain their goals  Goals can generate manipulative game- playing and unethical behavior

13-9 Reinforcing Performance  The law of effect states that behavior t that is followed by positive consequences will likely be repeated  This concept led to countless investigations into the effects of positive consequences called reinforcers  Reinforcers are positive consequences that motivate behavior

13-10 Reinforcing Performance  Four key consequences of behavior either encourage or discourage people’s behavior in the future  Positive reinforcement is a consequence that increases the likelihood that the person will repeat the behavior  Negative reinforcement occurs when an undesirable consequence is removed or withheld  Punishment occurs when an aversive consequence is administered  Extinction occurs by withdrawing or failing to provide a reinforcing consequence

13-11 Reinforcing Performance

13-12 Managing Rewards and Punishment  Managers must identify which kinds of behaviors they will reinforce and which they discourage  The reward system has to support the firm’s strategy, defining people’s performance in ways that pursue strategic objectives  Innovative managers use non-monetary rewards including: intellectual challenge, greater responsibility, autonomy, recognition, etc

13-13 Managing Rewards and Punishment

13-14 Managing Mistakes  Punishment is sometimes appropriate especially when people violate the law, ethical standards, etc  Overuse of punishment, or using it inappropriately, can create a climate of fear in the workplace  Recognize that everyone makes mistakes, and that mistakes can be dealt with constructively by discussing and learning from them

13-15 Providing Feedback  Most managers don’t provide enough useful feedback and most people don’t receive or ask for feedback enough  Feedback can com e in many forms  Customers feedback  Statistics on the work performed  Performance reviews  Do not be afraid of receiving feedback; actively seek it  Think: it’s up to me to get the feedback I need so that I can improve my performance and my behavior

13-16 Performance-Related Beliefs  Expectancy theory states that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome  People develop two important beliefs linking these three events  Expectancy, which links effort to performance  Instrumentality, which links performance to outcomes

13-17 Performance-Related Beliefs  Expectancy is the employees’ perception of the likelihood that their efforts will enable them to attain their performance goals  Instrumentality is the perceived likelihood that performance will be followed by a particular outcome  Outcome is a consequence a person receives for his or her performance  Valence is the value an outcome holds for the person contemplating it

13-18 Performance-Related Beliefs

13-19 Implications of Expectancy Theory for Managers  For motivation to be high, expectancy, instrumentalities, and total valence of all outcomes must all be high  This leads to three management responses  Increase expectancies – provide a work environment that facilitates good performance, and set realistically attainable performance goals  Identify positively valiant outcomes – understand what people want to get out of work  Make performance instrumental toward positive outcomes – follow good performance with positive outcomes

13-20 Understanding People’s Needs  Content theories are a second type of motivation theory  Content theories indicate the kinds of needs that people want to satisfy  People have different needs energizing and motivating them toward different goals and reinforcers  The ways in which a person’s needs are met, or not met, at work affect his or her behavior on the job

13-21 Maslow’s need Hierarchy  The need hierarchy illustrates Maslow’s conception of people satisfying their needs in a specified order from bottom to top

13-22 Alderfer’s ERG Theory  This is a human needs theory developed by Alderfer postulating that people have three basic sets of needs which can operate simultaneously  Existence needs are all material and physiological desires  Relatedness needs involve relationships with other people  Growth needs motivate people to productively or creatively change themselves or their environment

13-23 McClelland’s Needs  McClelland states that the most I important needs for managers are  Achievement which is characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment  Affiliation which reflects a strong desire to be liked by other people  Power which is a desire to influence or control other people

13-24 Designing Motivating Jobs  Managers should design their organizations around both intrinsic and extrinsic motivators that matter to the organizational members  Extrinsic rewards are given to a person by the boss, the company, or some other person  Intrinsic rewards are derived directly from performing the job itself

13-25 Job Rotation, Enlargement, and Enrichment  Job rotation allows workers who spend all their time in one routine task move from one task ot another  Job enlargement is similar to job rotation in that people are given different tasks to do; however job enlargement means that the worker has multiple tasks at the same time  Job enrichment means that jobs are restructured or redesigned by adding higher levels of responsibility

13-26 Hertzberg's Two Factor Theory  The two factor theory distinguished between two broad categories of factors that affect people working on their jobs  Hygiene factors are characteristics of the workplace  Motivators describe the job itself, that is, what people do at work

13-27 Hertzberg's Two Factor Theory  Hertzberg was a pioneer in the area of job design  This theory made several contributions  Highlights the important distinction between extrinsic rewards and intrinsic rewards  Reminds managers not to count solely on extrinsic rewards to motivate workers  Set the stage for later theories

13-28 Hackman and Oldham model of Job Design  More complete model than Hertzberg's  Well designed jobs lead to high motivation, high- quality performance, high satisfaction, and low absenteeism and turnover  The model is based on three psychological states  People believe they are doing something meaningful  People feel personally responsible for how they work turns out  People learn how well they performed their jobs

13-29 Hackman and Oldham model of Job Design  Jobs should be designed with the following five core job dimensions in mind  Skill variety – job activities involve several skills and talents  Task identity – completion of a whole, identifiable piece of work  Task significance – has an important, positive impact on the lives of others  Autonomy – independence and discretion in making decisions  Feedback – information about job performance is provided

13-30 Hackman and Oldham model of Job Design

13-31 Empowerment  Empowerment is the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization  An empowering work environment provides people with information necessary for them to perform at their best, knowledge about how to use the information and how to do their work, power to make decisions that give them control over their work, and the rewards they deserve for the contributions they make

13-32 Achieving Fairness  One of the most important issues in motivation surrounds how people view their contributions to the organization and what they receive from the organization  Equity theory proposes that when people assess how they are treated, they consider two key factors  Outcomes  Inputs

13-33 Assessing Equity  People compare the ratio of their own outcomes to inputs against the outcome-to- input ration of some comparison person  If the ratios are equivalent the relationship is equitable, or fair

13-34 Restoring Equity  People who feel inequitably treated and dissatisfied are motivated to do something to resort equity; they:  Can reduce their inputs by giving less effort  Can attempt to increase their outcomes  Can decrease other’s outcomes  Can increase other’ inputs, particularly by changing perceptions

13-35 Procedural Justice  Procedural Justice is a fair process in decision making and making sure others know that the process was as fair as possible  When people perceive procedural fairness, they are more likely to support the decisions and decision makers

13-36 Job Satisfaction  If people feel fairly treated from the outcomes they receive, or the processes used they will be satisfied  This is important because job dissatisfaction can lead to:  Higher turnover  Higher absenteeism  Less good citizenship among employees  More grievances and lawsuits  Strikes  Stealing, sabotage and vandalism  Poor customer service

13-37 Quality of Work Life  Quality of work life (QWL) programs create a workplace that enhances employee will being and satisfaction  QWL has eight categories  Adequate and fair compensation  Safe and healthy environment  Jobs that develop human capacities  Chance for personal growth and security

13-38 Quality of Work Life  Eight categories continued  Social environment that fosters personal identity, freedom from prejudice, a sense of community, and upward mobility  Constitutionalism, or the rights of personal privacy, dissent, and due process  Work role that minimizes infringement on personal leisure and family needs  Socially responsible organizational actions

13-39 Psychological Contracts  A psychological contract is a set of perceptions of what employees owe their employers, and what their employers owe them  This contract has import implications for employee satisfaction and motivation, as well as the effectiveness of the organization

13-40 Psychological Contracts

13-41 Looking Ahead  Chapter 14 Teamwork  How teams contribute to your organization’s effectiveness.  What makes the new team environment different from the old.  How groups become teams.  Why groups sometimes fail.  How to build an effective team.  How to manage your team’s relationships with other teams.  How to manage conflict.