1. Topic 7
Motivation: From Concepts to Applications [Robbins, SP, Judge, TA, Millett, B & Boyle, M 2011, Organisational behaviour, 6th edn, Pearson/Prentice Hall]
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2. Three elements of motivation.
Early theories of motivation (Maslow’s Hierarchy of Needs Theory, Alderfer’s ERG, McGregor’s Theory X and Theory Y, Herzberg’s Two-Factor Theory, McClelland’s Theory of Needs).
Contemporary theories of motivation (Cognitive Evaluation Theory, Goal-Setting Theory, Self-Efficacy Theory, Reinforcement Theory, Equity Theory, Expectancy Theory).
Job Characteristics Model (JCM).
Guidelines for Enriching a Job.
Alternative Work Arrangements.
Employee Involvement.
Four Major Strategic Reward Decisions.
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3. Chapter Learning Objectives
After studying this chapter, you should be able to:
Describe the three elements of motivation.
Identify four early theories of motivation and evaluate their applicability today.
Apply the predictions of Cognitive Evaluation theory to intrinsic and extrinsic rewards.
Compare and contrast goal-setting theory and Management by Objectives.
Contrast reinforcement theory and goal-setting theory.
Demonstrate how organizational justice is a refinement of equity theory.
Apply the key tenets of expectancy theory to motivating employees.
Compare contemporary theories of motivation.
Explain to what degree motivation theories are culture-bound.
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4. Defining Motivation
The result of the interaction between the individual and the situation.
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal.
Three key elements:
Intensity – how hard a person tries
Direction – effort that is channeled toward, and consistent with, organizational goals
Persistence – how long a person can maintain effort
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5. Early Theories of Motivation
These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers.
Maslow’s Hierarchy of Needs Theory
Alderfer’s ERG (Existence, Relatedness, and Growth)
McGregor’s Theory X and Theory Y
Herzberg’s Two-Factor Theory
McClelland’s Theory of Needs
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6. Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant.
Assumptions
Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied
Must move in hierarchical order
Self-Actualization
Esteem
Social
Safety
Physiological
Higher Order
Internal
Lower Order
External
See E X H I B I T 6-1
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7. A reworking of Maslow to fit empirical research.
Alderfer’s ERG Theory
A reworking of Maslow to fit empirical research.
Three groups of core needs:
Existence (Maslow: physiological and safety)
Relatedness (Maslow: social and status)
Growth (Maslow: esteem and self-actualization)
Removed the hierarchical assumption
Can be motivated by all three at once
Popular, but not accurate, theory E G R
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8. McGregor’s Theory X and Theory Y
Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive).
Managers used a set of assumptions based on their view
The assumptions molded their behavior toward employees
No empirical evidence to support this theory.
Theory X
Workers have little ambition
Dislike work
Avoid responsibility
Theory Y
Workers are self-directed
Enjoy work
Accept responsibility
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9. Herzberg’s Two-Factor Theory
Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs
Hygiene Factors
Motivators
Achievement
Responsibility
Growth
Work Conditions
Salary
Company Policies
Extrinsic and Related to Dissatisfaction
Intrinsic and Related to Satisfaction
See E X H I B I T S 6-2 and 6-3
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10. Criticisms of Two-Factor Theory
Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur.
Herzberg is limited by his procedure
Participants had self-serving bias
Reliability of raters questioned
Bias or errors of observation
No overall measure of satisfaction was used
Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity
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11. McClelland’s Three Needs Theory
Need for Achievement (nAch)
The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for Power (nPow)
The need to make others behave in a way that they would not have behaved otherwise
Need for Affiliation (nAff)
The desire for friendly and close interpersonal relationships
People have varying levels of each of the three needs.
Hard to measure
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12. Performance Predictions for High nAch
People with a high need for achievement are likely to:
Prefer to undertake activities with a 50/50 chance of success, avoiding very low- or high-risk situations
Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk
Not necessarily make good managers – too personal a focus. Most good general managers do NOT have a high nAch
Need high level of nPow and low nAff for managerial success
Good research support, but it is not a very practical theory
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13. Contemporary Theories of Motivation
Cognitive Evaluation Theory
Goal-Setting Theory
Management by Objectives (MBO)
Self-Efficacy Theory
Also known as Social Cognitive Theory or Social Learning Theory
Reinforcement Theory
Equity Theory
Expectancy Theory
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14. Cognitive Evaluation Theory
Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation
Major Implications for work rewards
Intrinsic and extrinsic rewards are not independent
Extrinsic rewards decrease intrinsic rewards
Pay should be noncontingent on performance
Verbal rewards increase intrinsic motivation; tangible rewards reduce it
Self-concordance
When the personal reasons for pursuing goals are consistent with personal interests and core values (intrinsic motivation), people are happier and more successful
See E X H I B I T 6-4
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15. Locke’s Goal-Setting Theory
Basic Premise:
That specific and difficult goals, with self-generated feedback, lead to higher performance
Difficult Goals:
Focus and direct attention
Energize the person to work harder
Difficulty increases persistence
Force people to be more effective and efficient
Relationship between goals and performance depends on:
Goal commitment (the more public the better!)
Task characteristics (simple, well-learned)
Culture (best match is in North America)
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16. Implementation: Management by Objectives
MBO is a systematic way to utilize goal-setting.
Goals must be:
Tangible
Verifiable
Measurable
Corporate goals are broken down into smaller, more specific goals at each level of organization.
Four common ingredients to MBO programs:
Goal specificity
Participative decision making
Explicit time period
Performance feedback
See E X H I B I T 6-5
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17. Bandura’s Self-Efficacy Theory
An individual’s belief that he or she is capable of performing a task.
Higher efficacy is related to:
Greater confidence
Greater persistence in the face of difficulties
Better response to negative feedback (work harder)
Self-Efficacy complements Goal-Setting Theory.
Given Hard Goal
Higher Self-Set Goal
Increased Confidence
Higher Performance
See E X H I B I T 6-6
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18. Increasing Self-Efficacy
Enactive mastery
Most important source of efficacy
Gaining relevant experience with task or job
“Practice makes perfect”
Vicarious modeling
Increasing confidence by watching others perform the task
Most effective when observer sees the model to be similar to him- or herself
Verbal persuasion
Motivation through verbal conviction
Pygmalion and Galatea effects - self-fulfilling prophecies
Arousal
Getting “psyched up” – emotionally aroused – to complete task
Can hurt performance if emotion is not a component of the task
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19. Reinforcement Theory
Similar to Goal-Setting Theory, but focused on a behavioral approach rather than a cognitive one.
Behavior is environmentally caused
Thought (internal cogitative event) is not important
Feelings, attitudes, and expectations are ignored
Behavior is controlled by its consequences – reinforcers
Is not a motivational theory but a means of analysis of behavior
Reinforcement strongly influences behavior but is not likely to be the sole cause
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20. Adams’ Equity Theory
Employees compare their ratios of outcomes-to-inputs of relevant others.
When ratios are equal: state of equity exists – there is no tension as the situation is considered fair
When ratios are unequal: tension exists due to unfairness
Underrewarded states cause anger
Overrewarded states cause guilt
Tension motivates people to act to bring their situation into equity
See E X H I B I T 6-7
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21. Equity Theory’s “Relevant Others”
Can be four different situations:
Self-Inside
The person’s experience in a different job in the same organization
Self-Outside
The person’s experience in a different job in a different organization
Other-Inside
Another individual or group within the organization
Other-Outside
Another individual or group outside of the organization
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22. Reactions to Inequity Employee behaviors to create equity:
Change inputs (slack off)
Change outcomes (increase output)
Distort/change perceptions of self
Distort/change perceptions of others
Choose a different referent person
Leave the field (quit the job)
Propositions relating to inequitable pay:
Paid by time:
Overrewarded employees produce more
Underrewarded employees produce less with low quality
Paid by quality:
Overrewarded employees give higher quality
Underrewarded employees make more of low quality
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23. Justice and Equity Theory
Organizational Justice
Distributive Justice
Fairness of outcome
Procedural Justice
Fairness of outcome process
Interactional Justice
Being treated with dignity and respect
Overall perception of what is fair in the workplace.
See E X H I B I T 6-8
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24. Vroom’s Expectancy Theory
The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual.
Expectancy of performance success
Instrumentality of success in getting reward
Valuation of the reward in employee’s eyes
See E X H I B I T 6-9
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25. Integrating Contemporary Motivation Theories
Based on Expectancy Theory
See E X H I B I T 6-10
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26. Global Implications Motivation theories are often culture-bound.
Maslow’s Hierarchy of Needs Theory
Order of needs is not universal
McClelland’s Three Needs Theory
nAch presupposes a willingness to accept risk and performance concerns – not universal traits
Adams’ Equity Theory
A desire for equity is not universal
“Each according to his need” – socialist/former communists
Desire for interesting work seems to be universal.
There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal
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27. Summary and Managerial Implications
Need Theories (Maslow, Alderfer, McClelland, Herzberg)
Well known, but not very good predictors of behavior
Goal-Setting Theory
While limited in scope, good predictor
Reinforcement Theory
Powerful predictor in many work areas
Equity Theory
Best known for research in organizational justice
Expectancy Theory
Good predictor of performance variables but shares many of the assumptions as rational decision making
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28. Motivation: From Concepts to Applications
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29. Chapter Learning Objectives
After studying this chapter, you should be able to:
Describe the Job Characteristics Model and evaluate the way it motivates by changing the work environment.
Compare and contrast the three main ways jobs can be redesigned.
Identify three alternative work arrangements and show how they might motive employees.
Give examples of employee involvement measures and show how they can motivate employees.
Demonstrate how the different types of variable-pay programs can increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of intrinsic rewards.
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30. Motivation by Job Design: The JCM
Job Characteristics Model (JCM)
Hackman and Oldham’s concept that any job can be described through five core job dimensions:
Skill variety – Requirements for different tasks in the job.
Task identity – Completion of a whole piece of work.
Task significance – The job’s impact on others.
Autonomy – Level of discretion in decision making.
Feedback – Amount of direct and clear information on performance.
The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.
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31. The Job Characteristics Model
Employee growth-need strength moderates the relationships.
Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc.
E X H I B I T 7-1
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32. Motivating Potential Score (MPS)
Five dimensions combined into a single predictive index of motivation.
People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive.
Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.
While the JCM framework is supported by research, the MPS model isn’t practical and doesn’t work well.
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33. How Can Jobs Be Redesigned?
Job Rotation
The periodic shifting of a worker from one task to another
Job Enlargement
The horizontal expansion of jobs
Job Enrichment
The vertical expansion of jobs
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34. Guidelines for Enriching a Job
Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.
E X H I B I T 7-2
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35. Alternative Work Arrangements
Flextime
Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.
Job Sharing
The practice of having two or more people split a 40-hour-a-week job
E X H I B I T 7-3
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36. Another Alternative: Telecommuting
Employees do their work at home at least two days a week on a computer that is linked to their office.
The Virtual Office
Employees work out of their home on a relatively permanent basis.
Typical Telecommuting Jobs
Professional and other knowledge-related tasks
Routine information-handling tasks
Mobile activities
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37. Reasons for and against Telecommuting
Advantages
Disadvantages
Larger labor pool
Higher productivity
Less turnover
Improved morale
Reduced office-space costs
Employer
Less direct supervision of employees
Difficult to coordinate teamwork
Difficult to evaluate non-quantitative performance
Employee
May not be as noticed for his or her efforts
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38. Motivation Is Not the Whole Story
Performance
(P)
Motivation
(M)
Ability
(A)
Opportunity to Perform
(O)
P = f(A x M x O)
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39. Employee Involvement
A participative process that uses the input of employees to increase their commitment to the organization’s success.
By increasing worker autonomy and control over work lives (involvement), organizations:
Increase employee motivation
Gain greater organizational commitment
Experience greater worker productivity
Observe higher levels of job satisfaction
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40. Types of Employee Involvement Programs
Participative Management
Subordinates share a significant degree of decision-making power with their immediate superiors
Representative Participation
Works councils
Groups of nominated or elected employees who must be consulted for any personnel decisions
Board representative
An employee sits on a company’s board of directors and represents the interests of the firm’s employees
Quality Circle
A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions
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41. Motivational Theory Links to EI Programs
Theory Y
Employees want to be involved
Managerial viewpoint
Two-Factor Theory
Intrinsic Motivation
Growth
Responsibility
Involvement
ERG Theory
Stimulate nAch
Recognition
Self-esteem
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42. Four Major Strategic Reward Decisions
What to pay? (pay structure)
How to pay individuals? (variable pay plans and skill-based pay plans)
What benefits to offer? Do we offer choice of benefits? (flexible benefits)
How to build recognition programs?
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43. 1. What to Pay – Pay Structure
Internal equity
The worth of the job to the organization
Determined by job evaluations
External equity
The competitiveness of the company’s pay relative to pay elsewhere in the industry
Determined through pay surveys
Choose organizational position
Pay leaders
Greater employee loyalty
Attracts better-quality employees
Pay laggards – accept high turnover for low hourly costs
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44. 2. How to Pay - Variable Pay Programs
Types of Variable Pay Programs
A portion of an employee’s pay is based on some individual and/or organizational measure of performance
Piece Rate:
Workers are paid a fixed sum for each unit of production completed
Weakness: not feasible for many jobs
Merit-Based:
Based on performance appraisal ratings
Gap increasing between average and top-performers
Weaknesses: validity of system based on annual appraisals, pay pool can be small, unions strongly resist
Bonuses:
Rewards recent performance
Weakness: employees consider this a pay
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45. 2. How to Pay - Skill-Based Pay Programs
Types of Skill-Based Programs:
Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can perform
Profit Sharing:
Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability
Gain Sharing:
An incentive plan in which improvements in group productivity determine the total amount of money that is allocated
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which employees acquire stock as part of their benefits
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46. Evaluation of Variable and Skill-based Pay
To some extent, variable pay does increase motivation and productivity
Benefits of Skill-based Pay Plans
Provide staffing flexibility
Facilitate communication across the organization
Lessen “protection of territory” behaviors
Meet the needs of employees for advancement
Lead to performance improvements
Drawbacks:
Lack of additional learning opportunities
Continuing to pay employees for obsolete skills
Paying for skills of no immediate use to the organization
Paying for a skill, not for performance of the skill
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