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2. The Nature of Motivation
The set of forces that cause people to behave in certain ways.
The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.
The Importance of Motivation in the Workplace
Determinants of Individual Performance
Motivation—the desire to do the job.
Ability—the capability to do the job.
Work environment—the resources to do the job.
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3. 16.1 The Motivation Framework
Content Perspectives
Process Perspectives
Search for ways to satisfy need
Choice of behavior to satisfy need
Need or deficiency
Determination of future needs and search/choice for satisfaction
Evaluation of need satisfaction
The motivation processes through a series of discreet steps. Content, process, and reinforcement perspectives on motivation address different parts of this process.
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4. Historical Perspectives on Motivation
The Traditional Approach
Workers are interchangeable tools of production.
Frederick Taylor (Scientific Management)
Assumptions:
Managers know more than workers.
Economic gain (money) is the primary motivation for performance.
Work is inherently unpleasant.
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5. Historical Perspectives on Motivation (cont’d)
The Human Relations Approach
Emphasized role of social processes in workplace.
Assumptions:
Employees want to feel useful and and important.
Employees have strong social needs, more important than money.
Maintaining the appearance of employee participation is important.
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6. Historical Perspectives on Motivation (cont’d)
The Human Resource Approach
Emphasized value of employees to organization
Assumptions:
Employee contributions are important and valuable to the employee and the organization.
Employees want to and are able to make genuine contributions.
Management’s job is to encourage participation and create a work environment that motivates employees.
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7. Content Perspectives on Motivation
Try to answer the question, “What factors in the workplace motivate people?”
Content Perspective Theories
Maslow’s Hierarchy of Needs
Aldefer’s ERG Theory
Herzberg’s Two-Factor Theory
McClelland’s Achievement, Power, and Affiliation Needs
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8. Maslow’s Hierarchy of Needs
Physiological
Attending to basic survival and biological functions.
Security
Seeking a safe physical and emotional environment.
Belongingness
Experiencing love and affection.
Esteem
Having a positive self-image/self-respect and recognition and respect from others.
Self-actualization
Realizing one’s potential for personal growth and development.
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9. 16.2 Maslow’s Hierarchy of Needs
Self-
actualization
Esteem
Belongingness
Security
Physiology
Food
Achievement
Status
Friendship
Stability
Job
Friends
Pension
Base
NEEDS
General Examples
Organizational Examples
job
Challenging
title
at work
plan
salary
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10. The Needs Hierarchy Approach
Contributions of Maslow’s Theory
Identified and categorized individual needs.
Emphasized importance of needs to motivation.
Weaknesses of Maslow’s Theory
All levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences can impact the ordering and salience of needs.
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11. Content Perspectives… (cont’d)
Relatedness Needs
Growth Needs
Existence Needs
The ERG Theory
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12. Content Perspectives… (cont’d)
The ERG Theory (Aldefer)
Needs are grouped into overlapping categories:
Existence needs—physiological and security needs.
Relatedness needs—belongingness and esteem by others.
Growth needs—self-esteem and self-actualization.
ERG theory assumes that:
Multiple needs can be operative at one time (there is no absolute hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).
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13. Content Perspectives… (cont’d)
The Two-Factor Theory (Herzberg)
Satisfaction and dissatisfaction are influenced by two independent sets of factors.
Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums:
Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
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14. Content Perspectives… (cont’d)
The Two-Factor Theory (cont’d)
Theory posits that motivation is a two-step process:
Ensuring that the hygiene factors are not deficient and not blocking motivation.
Giving employees the opportunity to experience motivational factors through job enrichment.
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15. 16.3 The Two-Factor Theory of Motivation
Work Content
Motivation Factors •
Achievement
Recognition
The work itself
Responsibility
Advancement and growth
Satisfaction No satisfaction
Work Environment
Hygiene Factors •
Supervisors
Working conditions
Interpersonal relations
Pay and security
Company policies and
administration
Dissatisfaction No dissatisfaction
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16. Content Perspectives… (cont’d)
Individual Human Needs (McClelland)
Need for Achievement
The desire to accomplish a goal or task more effectively than in the past.
Need for Affiliation
The desire for human companionship and acceptance.
Need for Power
The desire to be influential in a group and to be in control of one’s environment.
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17. Content Perspectives… (cont’d)
Implications of the Content Perspectives
Content Perspectives (what causes motivation)
Process Perspectives (how motivation occurs)
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18. Motivation Process Perspectives
Approaches to motivation that focus on:
Search for behavioral options and alternatives
Choice of behavioral options to satisfy needs
Rewards and evaluation of satisfaction after goals are attained.
Process Perspective Theories
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory
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19. Motivation Process Perspectives (cont’d)
Expectancy Theory
Motivation depends on how much we want something and how likely we are to get it.
Assumes that:
Personal and environmental forces determine behavior
People make decisions about their behavior in organizations.
People have different types of needs, desires, and goals.
People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.
Motivation leads to effort that, when combined with ability and environmental factors, results in performance which leads to outcomes having value (valence) to employees.
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20. Elements of Expectancy Theory
Effort-to-Performance Expectancy
Employee’s perception of the probability that effort will lead to a high level of performance.
Performance-to-Outcome Expectancy
Employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.
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21. Elements of Expectancy Theory (cont’d)
Valence
Is an index of how much an individual values a particular outcome (reward).
Is the attractiveness of the outcome to the individual.
Attractive outcomes have positive valences and unattractive outcomes have negative valences.
Outcomes to which an individual is indifferent have zero valences.
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22. Elements of Expectancy Theory (cont’d)
What is required for motivated behavior to occur:
Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.
The sum of the valences must be greater than zero.
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23. 16.4 The Expectancy Model of Motivation
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24. The Porter-Lawler Extension of Expectancy Theory
Assumptions:
If performance results in equitable and fair rewards, people will be more satisfied.
High performance can lead to rewards and high satisfaction.
Types of Rewards:
Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions).
Intrinsic rewards are outcomes internal to the individual (e.g., self-esteem and feelings of accomplishment).
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25. Equity Theory Equity Theory’s Assumptions outcomes (self)
An individual’s belief that the treatment the individual receives is fair relative to the treatment received by others.
Theory’s Assumptions
People are motivated to seek social equity in the rewards they receive for performance.
Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.
outcomes (self)
inputs (self) =
outcomes (other)
inputs (other)
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26. Equity Theory (cont’d)
Equity Comparisons of Individuals:
Feeling equitably rewarded.
Maintain performance and accept comparison as fair estimate.
Feeling under-rewarded—try to reduce inequity.
Change inputs by trying harder or slacking off.
Change outcomes by demanding a raise.
Distort the ratios by altering perceptions of self or of others.
Leave situation by quitting the job.
Change comparisons by choosing another object person.
Feeling over-rewarded.
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
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27. Goal-Setting Theory Theory’s Assumptions Characteristics of Goals
Behavior is a result of conscious goals and intentions.
Setting goals influences behavior in organizations.
Characteristics of Goals
Goal difficulty
Extent to which a goal is challenging and requires effort.
People work harder to achieve more difficult goals.
Goals should be difficult but attainable.
Goal specificity
Clarity and precision of the goal.
Goals vary in their ability to be stated specifically
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28. Goal Setting Theory (cont’d)
Characteristics of Goals (cont’d)
Goal acceptance
The extent to which persons accept a goal as their own.
Goal commitment
The extent to which an individual is personally interested in reaching a goal.
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29. Implications of the Process Perspectives
If rewards are to motivate employees, they must be perceived as being valued, attainable, fair and equitable.
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30. 16.6 The Expanded Goal-setting Theory of Motivation
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31. Reinforcement Perspectives
Reinforcement Theory
The role of rewards as they cause behavior to change or remain the same over time.
Assumes that:
Behavior that results in rewarding consequences is likely to be repeated.
Behavior that results in punishing consequences is less likely to be repeated.
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32. Reinforcement in Organizations
Kinds of Reinforcement
Positive Reinforcement
Avoidance
Punishment
Extinction
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33. Reinforcement Perspectives (cont’d)
Fixed Interval
Variable Interval
Fixed Ratio
Variable Ratio
Reinforcement Schedules
Time
Frequency
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34. 16.1 Elements of Reinforcement Theory
Arrangement of the Reinforcement Contingencies
Positive reinforcement
Strengthens behavior by providing a desirable consequence
Avoidance
Strengthens behavior by allowing escape from an undesirable consequence
Punishment
Weakens behavior by providing an undesirable consequence
Extinction
Weakens behavior by ignoring it
Schedules for Applying Reinforcement
Fixed-interval
Reinforcement is applied at fixed time intervals, regardless of behavior
Variable-interval
Reinforcement is applied at variable time intervals
Fixed-ratio
Reinforcement is applied after a fixed number of behaviors, regardless of time
Variable-ratio
Reinforcement is applied after a variable number of behaviors
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35. Reinforcement Perspectives (cont’d)
Behavior Modification (OB mod)
A method for applying the basic elements of reinforcement theory in an organizational setting.
Specific behaviors are tied to specific forms of reinforcement.
Implications of the Reinforcement Perspectives
Consistently applied reinforcement helps maintain employee motivation by:
encouraging (rewarding) positive behaviors.
discouraging (punishing) dysfunctional behaviors.
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36. Popular Motivational Strategies
Empowerment and Participation
Empowerment
Enabling workers to set their work goals, make decisions, and solve problems within their sphere of influence.
Participation
Giving employees a voice in making decisions about their work.
Areas of participation for employees:
Making decisions about their jobs.
Decisions about administrative matters
Participating in decision making about broader issues of product quality.
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37. Popular Motivational Strategies (cont’d)
Techniques and Issues in Empowerment
Using work teams
Collections of employees empowered to plan, organize, direct, and control their work
Decentralization
Changing the overall method of organizing the firm
Conditions necessary for empowerment:
Power spread to lower organizational levels
Commitment to empowering workers
Systematic and patient efforts to empower workers
Increased commitment to training
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38. Popular Motivational Strategies (cont’d)
Alternative Forms of Working Arrangements
Compressed work schedule
Flexible work schedules (flextime)
Job sharing
Telecommuting
Variable Work Schedules
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39. Using Reward Systems to Motivate Performance
Formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards
Higher-level performance-based rewards motivate employees to work harder.
Rewards help align employee self-interest with organizational goals.
Rewards foster increased retention and citizenship.
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40. Reward Systems and Performance
Individual Incentive Rewards Systems
Group and Team Incentive Rewards Systems
Individual Merit Rewards Systems
Types of Reward Systems
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41. Using Reward Systems to Motivate Performance (cont’d)
Merit Reward Systems
Base a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization.
Employees who make greater contributions are given higher pay than those who make lesser contributions.
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42. Using Reward Systems to Motivate Performance (cont’d)
Incentive Reward Systems
Concept:
Employee pay is based on employee output.
Assume that:
Performance is under control of individual worker.
Employee works at a single task continuously.
Pay is tightly tied to performance (i.e., pay varies with output).
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43. Using Reward Systems to Motivate Performance (cont’d)
Incentive Reward Systems (cont’d)
Incentive pay plans
Piece-rate systems
Sales commissions
Non-monetary incentives (perks)
Team and Group Incentive Reward Systems
Gainsharing programs
Scanlon Plan
Employee stock ownership plans (ESOPs)
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44. Executive Compensation
Standard Forms of Executive Compensation
Base salary
Incentive pay (bonuses)
Special Forms of Executive Compensation
Stock option plans
Executive perks
Criticism of Executive Compensation
Excessively large compensation amounts
Compensation not tied to overall and long-term performance of the organization
Earnings gap between executive pay and typical employee pay
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45. New Approaches to Performance-Based Rewards
Leveraging the Value of Incentives
Allowing individuals and groups in the organization to have a say in how rewards are distributed.
Innovative Incentive Programs:
Offering stock options to all employees.
Individualizing the rewards available to individuals in reward systems.
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