Chapter 13 Motivation and Performance

MGMT 321 – Chapter 132 The Nature of Motivation Motivation –The psychological forces that determine The direction of a person’s behavior A person’s level of effort A person’s level of persistence –Explains why people behave the way they do in organizations

MGMT 321 – Chapter 133 The Nature of Motivation Intrinsically Motivated Behavior –Behavior that is performed for its own sake Extrinsically Motivated Behavior –Behavior that is performed to: Acquire material or social rewards Avoid punishment

MGMT 321 – Chapter 134 The Motivation Equation

MGMT 321 – Chapter 135 Maslow’s Hierarchy of NeedsSelf-actualizationSelf-actualization Realize one’s full potential full potential Realize one’s full potential full potential Use abilities to the fullest Use abilities to the fullest EsteemEsteem Feel good about oneself Feel good about oneself Promotions and recognition and recognitionPromotions BelongingnessBelongingnessSocial interaction, love Social Interpersonal relations, parties Interpersonal SafetySafety Security, stability Job security, health insurance Job security, health insurance PhysiologicalPhysiological Food, water, shelter shelter Basic pay level to buy items Basic pay level to buy items NeedsDescriptionExamples. Lower-level needs must be satisfied before higher-level needs are addressed. Highest-level needs Lowest-level needs

MGMT 321 – Chapter 136 Alderfer’s ERG Theory After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised. GrowthGrowthSelf-development, creative work Self-development, Continually improve skills Continually RelatednessRelatednessInterpersonal relations, feelings Interpersonal Good relations, accurate feedback Good relations, accurate feedback ExistenceExistence Food, water, clothing, and shelter Food, water, clothing, and shelter Adequate pay for necessities NeedsDescriptionExamples Highest-level needs Lowest-level needs

MGMT 321 – Chapter 137 Herzberg’s Motivation-Hygiene Theory Motivator needs –Relate to the nature of the work itself –Autonomy, responsibility, interesting work Hygiene needs –Relate to the physical and psychological context of the work –Comfortable work environment, pay, job security

MGMT 321 – Chapter 138 McClelland’s Needs Achievement –A strong need to perform challenging tasks well Affiliation –Establishing and maintaining good interpersonal relations Power –A desire to control or influence others

MGMT 321 – Chapter 139 Equity Theory –Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.

MGMT 321 – Chapter 1310 Equity Theory Condition Person ReferentExample EquityEquity Outcomes = Outcomes Inputs Inputs Outcomes = Outcomes Inputs Inputs Worker contributes more inputs but also gets more outputs than referent Worker contributes more inputs but also gets more outputs than referent Underpayment Equity Underpayment Equity Outcomes < Outcomes Inputs Outcomes < Outcomes Inputs Worker contributes more inputs but also gets the same outputs as referent Worker contributes more inputs but also gets the same outputs as referent OverpaymentEquityOverpaymentEquity Outcomes > Outcomes Inputs Inputs Outcomes > Outcomes Inputs Inputs Worker contributes same inputs but also gets more outputs than referent Worker contributes same inputs but also gets more outputs than referent

MGMT 321 – Chapter 1311 Equity Theory Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity. –In underpayment, workers may reduce input levels to correct (rebalance) the ratio or seek a raise. –In overpayment, workers may change the referent person and readjust their ratio perception. –If inequity persists, workers will often choose to leave the organization.

MGMT 321 – Chapter 1312 Expectancy Theory Motivation will be high when workers believe: –High levels of effort will lead to high performance. –High performance will lead to the attainment of desired outcomes.

MGMT 321 – Chapter 1313 Expectancy Theory

MGMT 321 – Chapter 1314 Expectancy Theory

MGMT 321 – Chapter 1315 Operant Conditioning –People learn to perform behaviors that lead to desired consequences Organizational Behavior Modification –Using operant conditioning techniques to promote the performance of desired organizational behaviors

MGMT 321 – Chapter 1316 Operant Conditioning

MGMT 321 – Chapter 1317 Social Learning Theory –Modeling the behavior of others Self-Reinforcement –Any attractive outcome or award that a person can give himself/herself Self-efficacy –A person’s belief about his or her ability to perform a behavior successfully

MGMT 321 – Chapter 1318 Pay and Motivation Need Theory –Pay is used to satisfy many needs Equity Theory –Pay is given in relation to inputs Expectancy –Pay must be valued as an outcome Learning Theory –Pay is distributed upon performance of functional behaviors

MGMT 321 – Chapter 1319 Merit Pay and Performance Compensation that bases pay on based on performance. Individual –When individual performance can be accurately measured Group –When a group that works closely together is measured and rewarded as a group Organization –When group or individual outcomes are not easily measured

MGMT 321 – Chapter 1320 Examples of Merit Pay Plans Piece-rate Pay –Employee’s pay is based on the number of units that the employee produces Commission Pay –Employee’s pay is based on a percentage of sales that the employee makes. Organization-based Merit Plans –Scanlon plan—focuses on reduced expenses or cutting costs –Profit sharing—employees receive a share of an organization’s profits