The Nature of Work Motivation

The Nature of Work Motivation
Understanding and Managing Organizational Behavior Chapter 6 Sixth Edition Jennifer M. George & Gareth R. Jones Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 6-1

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Learning Objectives Appreciate why motivation is of central importance in organizations and the difference between intrinsic and extrinsic motivation Understand what we can learn about motivation from need theories Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives Describe why expectancy, valence, and instrumentality are of central importance for work motivation Appreciate the importance of equity and the dangers of inequity Understand why procedural justice is so important and how to promote it Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Motivating Employees How can managers motivate employees to provide excellent customer service? Enterprise Rent-a-Car company has an excellent Management Training Program for almost all entry- level employees Besides motivating high performance and excellent customer service through training and promotional opportunities, Enterprise also motivates employees with financial incentives. Each individual branch is viewed as a profit center and the managers overseeing the branch have autonomy and responsibility for all aspects of its performance including its financial performance as if it were their own franchise or small business. Branch employees who are at the rank of assistant manager or higher receive incentive compensation such that their monthy pay depends upon the profitability of their branch. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

What Is Work Motivation?
Work motivation is the psychological forces within a person that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence in the face of obstacles Motivation is a frequently used but poorly understood term. More than 140 definitions have been provided over the years. Motivation is important because it explains why employees behave as they do. Because motivation involves psychological forces within a person, many of the topics that we cover in prior chapters are relevant to understanding motivation including personality and ability, values, attitudes, and moods, perception, and attribution. Exhibit 6.1 describes the three key elements of work motivation (direction of behavior, effort, and level of persistence), provides a definition for each, and an example. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Elements of Work Motivation
Exhibit 6.1 Direction of Behavior Which behaviors does a person choose to perform in an organization? Level of Effort How hard does a person work to perform a chosen behavior? Exhibit 6.1 lists the elements of work motivation and provides a definition for each element and lists an example. The example for direction of behavior is “ Does an engineer take the time and effort to convince a skeptical superior of the need to change the design specifications for a new product to lower production costs?” The example for level of effort is “Does an engineer prepare a report outlining problems with the original specifications, or does the engineer casually mention the issue when he or she bumps into the supervisor in the hall and hope that the supervisor will take the advice on faith?” The example for level of persistence is “When the supervisor disagrees with the engineer and indicates that a change in specification is a waste of time, does the engineer persist in trying to get the change implemented or give up despite his or her strong belief in the need for change?” Level of Persistence When faced with obstacles, how hard does a person keep trying to perform a chosen behavior successfully? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Motivation and Performance
Performance is an evaluation of the results of a person’s behavior Motivation is only one factor among many that contributes to an employee’s job performance Motivation and performance are often confused by employees and managers. All else being equal, one would expect a highly motivated person to perform better than one who is poorly motivated. But, because motivation is only one of several factors that can affect performance, a high level of motivation does not always result in a high level of performance. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Motivation Extrinsic Source of motivation is acquisition of material or social rewards or to avoid punishment Intrinsic Source of motivation is actually performing the behavior Behavior performed for its own sake Employees can be intrinsically motivated, extrinsically motivated, or both. When employees are primarily extrinsically motivated and doing the work itself is not a source of motivation, it is especially important for an organization and its managers to make a clear connection between the behaviors the organization wants employees to perform and the outcomes or rewards employees desire. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Theories of Motivation
Need Theory Expectancy Theory Equity Theory Procedural Justice Theory These four theories are complementary perspectives. Each theory addresses a different question about motivation in organizations. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

The Motivation Equation
Exhibit 6.2 Inputs: Effort Time Education Experience Skills Knowledge Job behaviors Performance: Quantity Quality Level of customer service Outcomes: Pay Job security Benefits Vacation Satisfaction Pleasure This Exhibit graphically depicts the primary concerns about motivation. The key challenge facing managers in terms of motivation is how to encourage employees to contribute inputs to their jobs and to the organization. Managers want employees to be motivated to contribute inputs because inputs influence performance. Employees are concerned with obtaining outcomes from the organization. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Need Theory What outcomes is an individual motivated to obtain from a job and an organization? Employees have needs that they are motivated to satisfy in the workplace Only unsatisfied needs motivate The principal message of need theory is that employees have needs that they are motivated to satisfy in the workplace and that to determine which outcomes motivate employees, a manager must determine which needs employees are trying to satisfy. Then the manager must administer the outcomes to the employee contingent on the employee’s performing desired organizational behaviors. Exhibit 6.3 explains Maslow’s Hierarchy of Needs and Exhibit 6.4 explains Alderfer’s ERG theory. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Maslow’s Hierarchy of Needs
Exhibit 6.3 Psychologist Abraham Maslow proposed that human beings have five universal needs they seek to satisfy: physiological needs, safety needs, belongingness needs, esteem needs, and self-actualization needs. These needs and examples of how they can be satisfied are described in Exhibit 6.3. Maslow proposed that these needs can be arranged in a hierarchy of importance, with the most basic or compelling needs—physiological and safety needs—at the base. These basic needs must be satisfied before an individual seeks to satisfy needs higher up in the hierarchy. Maslow argued that once a need is satisfied, it is no longer a source of motivation. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Alderfer’s ERG Theory Exhibit 6.4 Clayton Alderfer’s existence-relatedness-growth (ERG) theory is also a need theory of work motivation. Alderfer’s theory builds on some of Maslow’s thinking but reduces the number of universal needs from five to three and is more flexible in terms of movement between levels. Like Maslow, Alderfer also proposes that needs can be arranged in a hierarchy. The three types of needs in Alderfer’s theory are described in Exhibit 6.4. Whereas Maslow assumes that lower-level needs must be satisfied before a higher-level need is a motivator, Alderfer lifts this restriction. According to ERG theory, a higher-level need can be a motivator even if a lower-level need is not fully satisfied, and needs at more than one level can be motivators at any time. Alderfer agrees with Maslow that as lower-level needs are satisfied, an employee becomes motivated to satisfy higher-level needs. But Alderfer breaks with Maslow on the consequences of need frustration. Maslow says that once a lower-level need is satisfied, it is no longer a source of motivation. Alderfer proposes that when an individual is motivated to satisfy a higher-level need but has difficulty doing so, the person’s motivation to satisfy lower-level needs will increase. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Need Theories Alderfer’s ERG Theory Three universal needs Hierarchy of importance Flexible movement among levels Maslow’s Hierarchy of Needs Five universal needs Hierarchy of importance Once satisfied, need no longer motivates Need theory is actually a group of theories about work motivation. Collectively, these theories explain what motivates employees to behave in a certain way by focusing on employees’ needs as the sources of motivation. Need theories propose that employees seek to satisfy many of their needs at work and that their behavior at work is therefore oriented toward need satisfaction. A need is a requirement for survival and well-being. Managers must determine what needs an employee is trying to satisfy on the job and then ensure that an employee can satisfy his or her needs by engaging in behaviors that contribute to organizational effectiveness. There are four need theories: Maslow’s hierarchy of needs, Alderfer’s ERG theory, McClelland’s learned needs theory, and Herzberg’s motivator-hygiene theory. We’ve discussed McClelland and Herzberg in earlier chapters. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Expectancy Theory_1 Does the individual believe that his or her inputs will result in a given level of performance? Employees will not be motivated to contribute their inputs to the organization unless they believe that their inputs will result in achieving a given level of performance, regardless of available outcomes Expectancy theory addresses two questions about motivation. The first is on this slide and the second question is on the next slide. If an employee does not think that he or she is capable of performing at an adequate level even with maximum effort, motivation to perform at that level will be zero. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Expectancy Theory_2 Does the individual believe that performance at this level will lead to obtaining desired outcomes? Employees will be motivated to obtain given level of performance only if that level of performance leads to desired outcomes This is the second question addressed by expectancy theory. The answer to both questions must be yes for an individual to contribute effort and other inputs on the job. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Expectancy Theory Valence How desirable is an outcome? Instrumentality What is the connection between job performance and an outcome? Expectancy What is the connection between effort and job performance? Whereas need theories try to explain what motivates employees, expectancy theory focuses on how employees decide which specific behaviors to perform and how much effort to exert. In other words, expectancy theory is concerned with how employees make choices among alternate behaviors and levels of effort. This theory was developed by Victor Vroom in the 1960s. It assumes that employees are motivated to receive positive outcomes and to avoid negative outcomes. It assumes that employees are rational processors of information and that they use information about their jobs, abilities, and desires to decide what they will do on the job and how hard they will do it. Three major factors determine an employee’s motivation: valence, instrumentality, and expectancy. Valence and instrumentality can be positive or negative and vary in size or magnitude. They are measured on a scale of -1 to +1. An instrumentality of +1 means that an employee perceives that performance definitely will result in obtaining the outcome. Expectancy varies from 0 to 1 and reflects the chances that putting forth a certain amount of effort will result in a certain level of performance. An expectancy of 1 signifies that an employee is absolutely certain that his or her effort will lead to a certain level of performance. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Expectancy Theory Exhibit 6.5 In order for an employee to be motivated to perform desired behaviors and to perform them at a high level, the following conditions are necessary. Valence must be high. Instrumentality must be high. Expectancy must be high. If just one of these three factors is zero, motivation will be zero. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Yes or No? Will I be able to obtain outcomes I desire? Do I need to perform at a high level to obtain these outcomes? If I try hard, will I be able to perform at a high level? Motivation occurs only when the answer is YES to all three questions! According to expectancy theory, in trying to decide what to do and how hard to do it, employees ask themselves questions such as these. Overall, expectancy theory is supported by empirical research. The Global View insert in the text illustrates how U.S steel manufacturers use expectancy theory. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Equity Theory Are outcomes perceived as being at an appropriate level in comparison to inputs? From past experience or observation, employees will have a sense of what level of inputs should result in a certain level of outcomes Outcomes based upon inputs Different employees’ outcome/input ratios equal To motivate employees to contribute inputs that the organization needs, managers need to administer outcomes to employees based on their inputs. Additionally, managers must ensure that different employees’ outcome/input ratios are approximately equal so that employees who contribute more inputs receive more outcomes and vice versa. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Equity Theory Outcomes Pay Fringe benefits Job satisfaction Status Opportunities for advancement Job security Inputs Special skills Training Education Work experience Effort on the job Time Equity theory was developed by J. Stacy Adams in the 1960s. Equity theory is based on the premise that an employee perceives the relationship between outcomes and inputs. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Equity Theory_2 Inputs lead to outcomes Objective level of outcomes does not determine work motivation Outcome/input ratio compared to ratio of referent others leads to work motivation According to equity theory, it is not the objective level of outcomes and inputs that is important in determining work motivation. What is important to motivation is the way an employee perceives his or her outcome/input ratio compared to the outcome/input ratio of another person. This other person is called a referent. A referent is another employee or group of employees perceived to be similar to oneself. The referent can also be oneself at a different place of time or it could be one’s expectations. Regardless of the referent an employee chooses, it is the employee’s perceptions of the referent’s outcomes and inputs that are compared, not any objective measure of actual outcomes or inputs. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Conditions of Equity and Inequity
Exhibit 6.6 Equity exists when an individual’s outcome/input ratio equals the outcome/input ratio of the referent. Because the comparison of the ratios is what determines the presence or absence of equity (not the comparison of absolute levels of outcomes and inputs), equity can exist even if the referent receives more than the individual who is making the comparison. Inequity exists when outcome/input ratios are not proportionally equal. Inequity creates tension and unpleasant feelings inside an employee and a desire to restore equity. Inequity motivates the individual to try to restore equity by bringing the two ratios back into balance. There are two types of inequity: overpayment inequity and underpayment inequity. Overpayment inequity exists when an individual perceives that his or her outcome/input ratio is greater than that of a referent. Underpayment inequity exists when a person perceives that his or her outcome/input ratio is less than that of a referent. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Ways to Restore Equity Change inputs or outcomes Change referent inputs or outcomes Change perceptions of inputs and outcomes Change the referent Leave the job Force referent to leave the job This is a list of ways an employee can restore feelings of equity. Empirical research largely supports equity theory. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Procedural Justice Theory
Are the procedures used to assess inputs and performance and to distribute outcomes perceived as fair? Employees will not be motivated to contribute inputs unless they perceive that fair procedures will be used to distribute outcomes When procedures are perceived as unfair, motivation suffers because all the relationships in the motivation equation are weakened. The relationship between inputs and performance is weakened when they are not assessed in a fair manner, and the relationship between performance and outcomes is weakened when the procedures to assess performance and distribute outcomes are not fair. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Procedural Justice Theory
Perceived fairness of the procedures used to make decisions about the distribution of outcomes Not the actual distribution of outcomes Procedural decisions How performance levels are evaluated How grievances are handled How outcomes are distributed Procedural justice theory is a relatively new approach to motivation. It is concerned with perceived fairness of the procedures used to make decisions about the distribution of outcomes. It is not concerned with the actual distribution of outcomes. Like equity theory, employees‘ perceptions are key. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Procedural Justice Theory_2
Higher motivation occurs when procedures used to make decisions are perceived as fair Factors for determination of fairness Interpersonal treatment of employees Extent to which managers explain decisions to employees It is important for managers to be honest and courteous, to respect the rights and opinions of employees, and to provide employees with timely feedback about how they are doing. It is also important for managers to allow employees to contribute their own viewpoints, opinions, and perspectives to the decision-making process. Managers should explain how they assess inputs, how they appraise performance and how they decide how to distribute outcomes. The consequences of procedural justice are much like those for expectancy theory and equity theory. Employees will adjust their performance to account for whether they feel procedures are fair. Procedural justice is particularly important when outcomes such as pay and benefits are relatively low. That is, when there are few rewards to give to employees. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the WorldWideWeb) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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