1. © 2003 McGraw-Hill Ryerson Ltd. Motivation Chapter Three

2. © 2003 McGraw-Hill Ryerson Ltd. The Fundamentals of Employee Motivation Need Theories of Motivation Motivating Employees Through Job Design Job Enlargement Job Rotation Job Enrichment The Job Characteristics Model Chapter Three Outline

3. © 2003 McGraw-Hill Ryerson Ltd. Process Theories of Motivation Equity Theory of Motivation Expectancy Theory of Motivation Motivation Through Goal Setting Putting Motivation Theories to Work Chapter Three Outline (cont’d)

4. © 2003 McGraw-Hill Ryerson Ltd. Motivation is the Motivation is the psychological processes that cause the arousal, direction, and persistence of voluntary actions that are goal directed. Motivation

5. © 2003 McGraw-Hill Ryerson Ltd. Need Theories Needs Needs are physiological or psychological deficiencies that arouse behaviour. Maslow’s Need Theory Motivation is a function of five basic needs – physiological, safety, social, esteem, and self-actualization. McClelland’s Need Theory The needs for achievement, affiliation, and power affect behaviour.

6. © 2003 McGraw-Hill Ryerson Ltd. Job Design Job Design is changing the content and/or process of a specific job to increase job satisfaction and performance. Job Enlargement Job Enlargement is putting more variety into a job. Job Rotation Job Rotation is moving employees from one specialized job to another. Job Enrichment Job Enrichment is building achievement, recognition, stimulating work, responsibility, and advancement into a job. Motivating Through Job Design

7. © 2003 McGraw-Hill Ryerson Ltd. Herzberg’s Motivator-Hygiene Model No Satisfaction Satisfaction Jobs that do not offer achievement, Jobs offering achievement recognition, stimulating work, recognition, stimulating responsibility, and advancement. stimulating work, responsibility, and advancement. Dissatisfaction No Dissatisfaction Jobs with poor company policies Jobs with good company policies and administration, technical and administration, technical supervision, salary, interpersonal supervision, salary, interpersonal relationships with supervisors, relationships with supervisors, and working conditions. and working conditions. Motivators Hygiene Factors

8. © 2003 McGraw-Hill Ryerson Ltd. Outcomes *High internal work motivation *High growth satisfaction *High general job satisfaction *High work effectiveness Criticalpsychologicalstates *Experienced meaningfulness of the work *Experienced responsibility for outcomes of the work *Knowledge of the actual results of the work activities Core job characteristics *Skill variety *Task identity *Task significance *Autonomy *Feedback from job Moderators 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions The Job Characteristics Model

9. © 2003 McGraw-Hill Ryerson Ltd. A. An Equitable Situation Self Other $2 1 hour = $2 per hour $4 2 hours = $2 per hour Negative and Positive Inequity

10. © 2003 McGraw-Hill Ryerson Ltd. $2 1 hour = $2 per hour $3 1 hour = $3 per hour B. Negative Inequity Self Other Negative and Positive Inequity (cont’d)

11. © 2003 McGraw-Hill Ryerson Ltd. $2 1 hours = $1 per hour C. Positive Inequity $3 1 hour = $3 per hour Self Other Negative and Positive Inequity (cont’d)

12. © 2003 McGraw-Hill Ryerson Ltd. Distributive Justice: Distributive Justice: The perceived fairness of how resources and rewards are distributed. Procedural Justice: Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice: Interactional Justice: The perceived fairness of the decision maker’s behaviour in the process of decision making. Organizational Justice

13. © 2003 McGraw-Hill Ryerson Ltd. Expectancy: Expectancy: Belief that effort leads to a specific level of performance Instrumentality: Instrumentality: A performance  outcome perception. Valence: Valence: The value of a reward or outcome. Vroom’s Expectancy Theory Concepts

14. © 2003 McGraw-Hill Ryerson Ltd. Expectancy Theory EffortPerformance Outcome #1 + or - Outcome #2 + or - Outcome #3 + or - E  P Expectancy P  O Instrumentality Outcomes and Valences

15. © 2003 McGraw-Hill Ryerson Ltd. Determine the outcomes employees value. Identify good performance so appropriate behaviours can be rewarded. Make sure employees can achieve targeted performance levels. Link desired outcomes to targeted levels of performance. Make sure changes in outcomes are large enough to motivate high effort. Monitor the reward system for inequities. Managerial Implications of Expectancy Theory

16. © 2003 McGraw-Hill Ryerson Ltd. Reward people for desired performance, and do not keep pay decisions secret. Design challenging jobs. Tie some rewards to group accomplishments to build teamwork and encourage cooperation. Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and oucomes that lead to high effort and goal attainment. Monitor employee motivation through interviews or anonymous questionnaires. Accommodate individual differences by building flexibility into the motivation program. Organizational Implications of Expectancy Theory

17. © 2003 McGraw-Hill Ryerson Ltd. Goals Goals motivate the individual by: directing attention regulating effort increasing persistence fostering strategies and action plans Goals

18. © 2003 McGraw-Hill Ryerson Ltd. Difficult Goals Lead to Higher Performance. Difficult Goals Lead to Higher Performance. -Easy goals produce low effort because the goal is too easy to achieve. -Impossible goals ultimately lead to lower performance because people experience failure. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. -Goal specificity refers to the quantifiability of a goal. Feedback Enhances The Effect of Specific, Difficult Goals. Feedback Enhances The Effect of Specific, Difficult Goals. -Goals and feedback should be used together. Insights from Goal-Setting Research

19. © 2003 McGraw-Hill Ryerson Ltd. Participative Goals, Assigned Goals, and Self- Set Goals Are Equally Effective. Participative Goals, Assigned Goals, and Self- Set Goals Are Equally Effective. -Managers should set goals by using a contingency approach. Different methods work in different situations. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. -Difficult goals lead to higher performance when employees are committed to their goals. -Difficult goals lead to lower performance when employees are not committed to their goals. Insights from Goal-Setting Research (cont’d)

20. © 2003 McGraw-Hill Ryerson Ltd. S S pecific M M easurable A A ttainable R R esults oriented T T ime bound Guidelines for Writing “SMART” Goals