Last Week… We discussed specific aspects of motivation and leadership including some reference to theories related to both motivation and leadership. The information came primarily from chapters 5 and 7. This week, we will do more application of both leadership and motivational theories and follow more closely the points made in chapters 6 and 8. ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Motivational Models Drives and Needs Herzberg’s hygiene factors Maslow’s physiological and security needs Alderfer’s existence needs Expectancy and Valence Valence x Expectancy x Instrumentality = Motivation Behavior Modification High instrumentality is desired Equity Cost-reward comparison

©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

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Servant Leadership Key Behaviors Listen actively and empathetically Engage in introspection to better understand one’s own attitudes and feelings Treat others as equals, with respect Engage in dialogue/paraphrasing to ensure understanding Affirm the worth and contributions of others Admit mistakes and ask for help Build trust by articulating values and acting consistently with them

Leadership Theories Trait Theories Personality Situational and Behavioral Theories Leadership styles and behaviors Blake and Mouton Managerial Grid Contingency Approaches Fiedler’s Contingency Model Hersey and Blanchard Situational Leadership Path-Goal ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

The Impact on Managerial Power Leader-Member Exchange Reciprocal relationships develop High-quality relationship results in greater decision influence Participative managers retain final authority

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Participative Process

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment African-American participants in North Carolina (i.e., social context in which groups were predominately African-American) reported the highest levels of perceived offensiveness when the target of disempowerment was an African- American women (rather than a Caucasian man) Further, men in North Carolina reported the highest levels of perceived offensiveness. Demographic composition of groups may indeed have a strong influence on perceptions and behaviors Young, Vance, and Harris (2007) and Young, Vance, and Ensher (2003)

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment gender as a predictor of perceived offensiveness when observing disempowering acts Other factors such as social context: study examined perceived offensiveness reported by people in the same ethnic group (i.e., African-Americans). Specifically, data from African-Americans observers from two different regions, one in which observers held a majority status (i.e., North Carolina) and one in which observers held a minority status (i.e., Southern California), were analyzed to determine differences based on social context.

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment negative workplace behaviors including bullying and incivility intentional and unintentional behaviors perceived offensiveness resulting from disempowerment can be direct or vicarious

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Process of Empowerment

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Behavioral Tools Mutual goal setting Job feedback Modeling Contingent reward systems Participative management

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Broad Approaches to Empowerment Job mastery Control Role models Social reinforcement and persuasion Emotional support

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Powerlessness Causes Low Self-esteem Imposter phenomenon Empowerment is any process that provides greater autonomy to employees through: Sharing of relevant information Control over factors affecting job performance