1. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 13 Motivation Dr. Ellen A. Drost

2. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2 What is Motivation? Initiation Persistence Direction

3. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 3 Motivation  Motivation: set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.  Initiation of effort: choices about how much effort to put forth in their jobs.  Direction of effort: deciding where to put forth effort in their jobs.  Persistence of effort: how long they will put forth effort in their jobs before reducing or eliminating those efforts.

4. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 4 Basics of Motivation Extrinsic and Intrinsic Rewards Extrinsic and Intrinsic Rewards Motivating People Effort and Performance Need Satisfaction 1 1

5. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 5 Effort and Performance  Job performance  how well someone performs the job  Motivation  effort put forth on the job  Ability  capability to do the job  Situational Constraints  external factors affecting performance Job Performance = Motivation x Ability x Situational Constraints

6. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 Need Satisfaction  Needs  physical or psychological needs  must be met to ensure survival and well being  Unmet needs motivate people  One approach:  Maslow’s Hierarchy of Needs 1.2

7. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 Maslow’s Hierarchy of Needs Esteem Belongingness Safety Physiological Self-Actualization 1.2

8. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 Needs Classification Maslow’sHierarchy Higher- Order Needs Lower- Order Needs Self- Actualization Esteem Belongingness Safety Physiological Adapted From Exhibit 13.4 1.2

9. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 9 Extrinsic and Intrinsic Rewards Extrinsic Rewards  tangible and visible to others  given contingent on performance Intrinsic Rewards  natural rewards  associated with performing the task for its own sake 1.3

10. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 Extrinsic Rewards Extrinsic Rewards motivate people to:  Join the organization  Regularly attend their jobs  Perform their jobs well  Stay with the organization 1.3

11. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 Intrinsic Rewards Intrinsic Rewards include :  Sense of accomplishment  Feeling of responsibility  Chance to learn something new  The fun that comes from performing an interesting, challenging, and engaging task 1.3

12. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 The Most Important Rewards  Good benefits  Health insurance  Job security  Vacation time  Interesting work  Learning new skills  Independent work situations 1.3 Extrinsic Intrinsic

13. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall58% manufacturing87% service 54% probability of success 4.3 What Really Works Financial, Nonfinancial, and Social Awards

14. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 63% Financial and Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success62% 4.3 Financial, Nonfinancial, and Social Awards What Really Works

15. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 52% Nonfinancial and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 61% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success90% Financial and Social Rewards Financial, Nonfinancial, and Social Rewards 4.3 What Really Works Financial, Nonfinancial, and Social Awards

16. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 Goal-Setting Theory 5 5 Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort. PerformancePerformance EffortEffort InitiationDirectionPersistence

17. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 17 Goal-Setting Theory  Goal Specificity  the clarity of goals  Goal Difficulty  how challenging goals are  Goal Acceptance  how well goals are agreed to or understood  Performance Feedback  information on goal progress 5.1

18. Chapter 13 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 18 Motivational Goal Setting  JetBlue has what is perhaps the industry’s most aggressive goal relative to baggage handling: from plane’s hold to baggage claim in 20 minutes.  Assign specific, challenging goals  Make sure workers truly accept  Organizational goals  Provide frequent, specific performance-related feedback 5.1