1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Motivation Chapter 6

2. 6-2 Class Agenda Motivation defined Theories of motivation ๏ Expectancy theory ๏ Goal setting theory ๏ Equity theory ๏ Psychological empowerment How important is motivation? Best practices

3. 6-3

4. 6-4 Why Are Some Employees More Motivated than Others?

5. 6-5 Motivation Defined A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity, and persistence ๏ What do you do? ๏ How hard do you do it? ๏ How long do you do it?

6. 6-6 Theories of Motivation Several theories attempt to summarize the key factors that foster high motivation: ๏ Expectancy theory ๏ Goal setting theory ๏ Equity theory ๏ Psychological empowerment

7. 6-7 Expectancy Theory Motivation is fostered when the employee believes three things: ๏ That effort will result in performance ๏ That performance will result in outcomes ๏ That those outcomes will be valuable

8. 6-8 Expectancy Theory

9. 6-9 Expectancy Effort → Performance ๏ Can be hindered by: ๏ Lack of necessary resources ๏ Lack of supportive leadership ๏ Low self-efficacy

10. 6-10 Expectancy

11. 6-11 Instrumentality Performance → Outcomes ๏ Can be hindered by: ๏ Poor methods for measuring performance, as Instrumentality could actually be rewritten to be Performance → Evaluation → Outcomes ๏ Inadequate budget to provide outcomes, even when performance is high ๏ Use of policies that reward things besides performance, such as attendance or seniority ๏ Time delays in doling out rewards

12. 6-12 Valence Anticipated value of outcomes ๏ Extrinsic ๏ Intrinsic

13. 6-13 Valence

14. 6-14 Valence Why does pay have such a high valence? ๏ The meaning of money ๏ Achievement ๏ Respect ๏ Freedom

15. 6-15 13 15 20 Achieve Respect Freedom

16. 6-16 Expectancy Theory Motivation = (E→P) x Σ[(P→O) x V] Key aspect: multiplicative effects ๏ Motivation is zero if either expectancy, instrumentality, or valence is zero

17. 6-17 Expectancy Theory Taken together, the instrumentality and valence components resemble a concept from a famous movie franchise ๏ OB on Screen: Wall Street: Money Never Sleeps

18. 6-18 Expectancy Theory Motivation = (E→P) x Σ[(P→O) x V] Motivation = (E→P) x Greed? ๏ Is greed indeed “good”? ๏ How could greed be “channeled”?

19. 6-19 Goal Setting Theory Motivation is fostered when employees are given specific and difficult goals ๏ Rather than no goals, easy goals, or “do your best” goals

20. 6-20 Goal Setting Theory

21. 6-21 Goal Setting Theory

22. 6-22 Equity Theory Motivation is maximized when an employee’s ratio of “outcomes” to “inputs” matches those of some “comparison other” Thus motivation also depends on the outcomes received by other employees

23. 6-23 Equity Theory Are these really equal?

24. 6-24 Equity Theory What emotion do you feel in this case? What methods can be used to restore equity?

25. 6-25 Equity Theory What emotion do you feel in this case? What methods can be used to restore equity?

26. 6-26 Psychological Empowerment An intrinsic form of motivation derived from the belief that one’s work tasks are contributing to some larger purpose Fostered by four beliefs: ๏ Meaningfulness ๏ Self-Determination ๏ Competence ๏ Impact

27. 6-27 Why Are Some Employees More Motivated than Others?

28. 6-28 Why Are Some Employees More Motivated than Others? Instrumentality Expectancy Valence Specific & Difficult Goals Empowerment Equity Expectancy Instrumentality Valence Empowerment Specific & Difficult Goals Equity

29. 6-29

30. 6-30 How Important is Motivation?

31. 6-31 Application

32. 6-32 Best Practices: Enterprise

33. 6-33 Best Practices: Enterprise Hires more college grads than any other company Clear promotion ladder: 100% of top managers started as trainees Emphasizes energy, enthusiasm, and positivity in hiring Promotions depend on branch performance on customer service Bonuses paid based on supplemental insurance Salary supplemented with branch-based profit sharing