©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Achievement Motivation Achievers work hard when… They will receive personal credit for effort The risk of failure is only moderate They receive feedback about past performance Characteristics of Achievers Take responsibility for actions and results Control their destiny Seek regular feedback Enjoy winning Achievement oriented

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Affiliation Motivation People with affiliation motives… Work better when complimented for favorable attitudes and cooperation Surround themselves with likable people Have trouble assigning challenging tasks, directing activities, monitoring effectiveness May have trouble getting things done Achievement-oriented people… Select assistants who are technically capable Have little regard for personal feelings

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Power Motivation A drive to influence people, take control, and change situations Constructive or destructive Institutional or personal Managerial Application of the Drives Observe employee behavior to determine how they will respond Identify strongest motivational drive

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Human Needs Key conclusions about secondary needs: Strongly conditioned by experience Vary in type and intensity Subject to change across time Work in combination and influence each other Often hidden from conscious recognition Vague feelings, not specific physical needs Influence behavior in powerful ways

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Maslow’s Hierarchy of Needs Physiological Safety and Security Belonging and Social Esteem and Status Self-Actualization

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Herzberg’s Two-Factor Model Effects of Maintenance and Motivational Factors

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Alderfer’s E-R-G Model Existence Needs Physiological and security factors Relatedness Needs Being understood and accepted Growth Needs Desire for self-esteem and self-actualization

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Four Consequences of OB Mod

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Alternative Consequences Positive Reinforcement Shaping Negative Reinforcement Punishment Extinction

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Goal Setting Motivates because it creates a discrepancy between current and expected performance Self-efficacy affects goal setting

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Elements of Goal Setting Goal Acceptance Specificity Challenge Performance Monitoring Feedback

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Expectancy Model Valence × Expectancy × Instrumentality = Motivation Valence = reward preference Expectancy = belief that effort will complete task Instrumentality = reward probability

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Valence, Expectancy, Instrumentality

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Key Factors in Equity Assessment

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Importance of Pay Pay relationships carry immense social value Money is not a direct incentive Motivation is encouraged by a complete reward system

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved A Complete Program Many types of pay are required for a complete economic reward system Base pay (jobs) Performance rewards (individuals) Profit sharing (the organization) Non-incentive Pay Adjustments Seniority pay Pay for inconvenience Pay for time not worked

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Rewarding Employees with Money Money has Social Value Status value when received Status value when spent Represents to employees what their employer thinks of them Indicates one employee’s status relative to that of other employees Has as many values as there are possessors

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Additional Money Considerations Extrinsic and Intrinsic Rewards Money is less immediately satisfying than intrinsic rewards Difficult Integration Employees differ in amount of intrinsic and extrinsic rewards desired Payment of an extrinsic reward decreases the intrinsic satisfaction received Hard to administer intrinsic rewards on a systematic basis

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Additional Money Considerations Compliance With the Law Equal Pay Act of 1963 Comparable worth Equal opportunity Other Factors Equality Secrecy Control Flexibility

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved OB and Performance Appraisal Management by Objectives is a four-step, cyclical process… Objective setting Action planning Periodic reviews Annual evaluation

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved OB and Performance Appraisal Reasons For Employee Appraisal Allocate resources in a dynamic environment Motivate and reward employees Give employees feedback about their work Maintain fair relationships within groups Coach and develop employees Comply with regulations Formal opportunity to express appreciation for employee contributions Compliance with state and federal laws

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Performance Feedback Leads to improved performance and improved attitudes If handled properly Greatest chance for behavioral change if… Feedback is desired by the employee It is connected to job tasks Receiver can choose a new behavior from alternatives offered It is provided on an ongoing basis

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved 360-Degree Feedback Systematic data gathering from a variety of sources Manager(s) Peers Subordinates Customers or clients Advantages Can be compared across time Rich feedback Can aid in performance improvement

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Appraisal Problems Management Problems Lack of vital skills Failure to gather data systematically Reluctance to address difficult/sensitive topics Failure to involve employees in assessment process and discussion Cynical about probability that changes will occur in employees Sees appraisals as a meaningless game Intentional distortion of feedback and ratings

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Attribution The process by which people interpret and assign causes for their own and others’ behavior Consistency – is behavior the same over time Consensus – is behavior similar to others Distinctiveness – is behavior the same across situations

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Attributions Personal Versus Situational Attributions Self-serving bias Fundamental attribution bias Perceptual set Self-fulfilling prophecy