1. Management A Practical Introduction Third Edition
Angelo Kinicki &
Brian K. Williams

2. Chapter 12: Motivating Employees
Achieving Superior Performance
in the Workplace
Motivating for Performance
What Motivates Employees?
Do Rewards Work?
How Should Jobs Be Designed?
What Incentives Should Be Used
Does Compensation Motivate?
The Manager’s Toolbox: Managing for Motivation: The Flexible Workplace
Flexible workplaces can attract, retain, and motivate employees. There are several types of alternative work schedules including:
part-time work
flextime
compressed workweeks
job-sharing
telecommunicating & other work at home schedules
For Discussion: How can flexible workplaces help companies? What are the challenged involved in implementing a flexible workplace? Would you prefer a flexible workplace? Why?

3. 12.1 Motivating For Performance
WHAT IS MOTIVATION?
The psychological processes that arouse and direct goal-directed behavior is motivation
In a simple model of motivation, people have needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original needs
Rewards can be extrinsic (the payoff a person receives from others for performing a particular task), or intrinsic (the satisfaction a person receives from performing the particular task itself)

4. 12.1 Motivating For Performance
Figure 12.1: A Simple Model Of Motivation

5. 12.1 Motivating For Performance
WHY IS MOTIVATION IMPORTANT?
It is important to motivate people to
-join your organization
-stay with your organization
-show up for work at your organization
-perform better for your organization
-do extra for your organization

6. 12.2 Content Perspectives On Employee Motivation
WHAT KINDS OF NEEDS MOTIVATE EMPLOYEES?
Theories that emphasize the needs that motivate people are content perspectives or need-based perspectives
Where needs are defined as physiological or psychological deficiencies that arouse behavior
Three content perspectives are Maslow’s hierarchy of needs, McClelland’s acquired needs theory, and Herzberg’s two-factor theory

7. 12.2 Content Perspectives On Employee Motivation
1. Abraham Maslow put forth the hierarchy of needs theory which proposes that people are motivated by five levels of needs: physiological needs, safety needs, belongingness needs, esteem needs, self-actualization needs
2. David McClelland proposed the acquired needs theory which argues that three needs (achievement, affiliation, and power) are major motivators in the workplace
3. Frederick Hertzberg proposed that work satisfaction and dissatisfaction arise from two different factors: hygiene factors and motivating factors

8. 12.2 Content Perspectives On Employee Motivation
Figure 12.2: Maslow’s Hierarchy of Needs

9. 12.2 Content Perspectives On Employee Motivation
Figure 12.4: Hertzberg’s Two-Factor Theory: Satisfaction Versus Dissatisfaction

10. 12.3 Process Perspectives On Employee Motivation
IS A REWARD ENOUGH?
Process perspectives are concerned with the thought processes by which people decide to act
Three process perspectives on motivation are:
1. Equity theory - focuses on employee perceptions as to how fairly they think they are being treated relative to others
2. Expectancy theory argues that people are motivated by how much they want something, and how likely they think they are to get it
3. Goal setting theory suggests that employees can be motivated by goals that are specific and challenging, but achievable

11. 12.3 Process Perspectives On Employee Motivation
Figure 12.6: Equity Theory

12. 12.4 Job Design Perspectives On Motivation
SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS TO PEOPLE?
Job design is the division of an organization’s work among its employees and the application of motivational theories to jobs to increase satisfaction and performance
Traditionally, people were fitted to jobs, today, many companies fit jobs to people
In companies that fit people to jobs, the challenge then, is to make the worker compatible with the work
To do this, firms may use job simplification where the number of tasks a worker performs is reduced to improve productivity

13. 12.4 Job Design Perspectives On Motivation
In companies where jobs are fitted to people, the challenge is to make the work compatible to workers to increase performance and job satisfaction
Two techniques for doing this are job enlargement and job enrichment
Job enlargement consists of increasing the number of tasks in a job to increase variety and motivation
Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement

14. 12.4 Job Design Perspectives On Motivation
The job characteristics model consists of five core job characteristics that affect three critical psychological states of an employee that in turn affect work outcomes - the employee’s motivation, performance, and satisfaction
The five core characteristics are:
-skill variety
-task identity
-task significance
-autonomy
-feedback

15. 12.4 Job Design Perspectives On Motivation
Figure 12.8: The Job Characteristics Model

16. 12.4 Job Design Perspectives On Motivation
HOW DOES THE MODEL WORK?
High motivation, high performance, high satisfaction, and low absenteeism and turnover are associated with how much workers feel they are doing meaningful work, whether they feel they are responsible for the outcomes of the work, and whether they have knowledge of the results of the work
When using the model, managers need to:
-diagnose the work environment to see whether a problem exists
-determine whether job redesign is appropriate
-consider how to redesign the job

17. 12.5 Reinforcement Perspectives On Motivation
WHAT INCENTIVES INFLUENCE BEHAVIOR?
Reinforcement theory attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated
When reinforcement theory is used to change human behavior, it is called behavior modification
Reinforcement is anything that causes a given behavior to be repeated or inhibited
There are four types of reinforcement: extinction, positive reinforcement, negative reinforcement, and punishment

18. 12.5 Reinforcement Perspectives On Motivation
Figure: 12.9: Four Types of Reinforcement

19. 12.5 Reinforcement Perspectives On Motivation
When using positive reinforcement or punishment, managers should:
Reward only desirable behavior
Give rewards as soon as possible
Be clear about what behavior is desired
Have different rewards and recognize individual differences
Punish only undesirable behavior
Give reprimands or disciplinary actions as soon as possible
Be clear about what behavior is undesirable
Administer punishment in private
Combine punishment and positive reinforcement

20. 12.6 Using Compensation & Other Rewards To Motivate
HOW CAN FIRMS USE COMPENSATION AND OTHER REWARDS TO MOTIVATE?
Wages or salaries are usually not enough to motivate people to work hard, so many companies offer incentives as well
Good incentive plans:
-link measurable rewards to performance
-use rewards that satisfy individual needs
-offer rewards that have been agreed on by managers and employees
-have believable and achievable rewards

21. 12.6 Using Compensation & Other Rewards To Motivate
Some popular incentive plans are:
-pay for performance - pay is based on results using piece rates
-sales commissions - pay is based on a percentage of the earnings made by sales
-bonuses - cash awards given to employees who achieve specific performance objectives
-profit sharing - the distribution to employees of a percentage of the company’s profits
-gainsharing - the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity
-stock options - certain employees are given the right to buy stock at a future date for a discounted price
-pay for knowledge - employee pay is tied to the number of job relevant skills or academic degrees they earn

22. 12.6 Using Compensation & Other Rewards To Motivate
HOW CAN FIRMS USE NONMONETARY REWARDS TO MOTIVATE EMPLOYEES?
Organizations need to be sure that
-employees have a balance between work and life
-employees can expand their skill set
-employees feel valuable