1. CHAPTER 17 Motivating Employees
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2. What Is Motivation? Motivation
The processes that accounts for an individual’s willingness to exert high levels of effort to reach organizational or personal goals, conditioned by the effort’s ability to satisfy some individual need.
It is also the process by which a person’s efforts are energized, directed, and sustained towards attaining a goal.
Energy: a measure of intensity or drive.
Direction: toward organizational or personal goals
Sustenance: persistence or perseverance or diligence to exert effort

3. What Is Motivation? (contd….)
An unsatisfied need creates tension which is reduced by an individual’s efforts to satisfy the need.
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5. Early Theories of Motivation
1. Maslow’s Hierarchy of Needs
2. MacGregor’s Theories X and Y
3. Ouchi’s Theory Z
4. Herzberg’s 2-factor Theory
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6. Early Theories of Motivation
1. Maslow’s Hierarchy of Needs Theory
Needs are categorized into five levels of lower- to higher-order needs.
Individuals must satisfy lower-order needs before they can satisfy higher order needs.
Satisfied needs will no longer motivate.
Motivating a person depends on knowing at what level that person is on the hierarchy.
Hierarchy of needs
Lower-order (external): physiological, safety
Higher-order (internal): social, esteem, self-actualization
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7. Maslow’s Hierarchy of Needs Theory (contd….)
1. physiological – needs of food, drink, shelter, etc. i.e. the basic amenities of life.
2. safety – needs for physical, environmental and emotional safety and protection.
3. social – needs for affection, belongingness, acceptance, friendship, etc.
4. esteem – needs for internal esteem such as self-respect, achievement, status, recognition, attention, admiration, power, etc.
5. self-actualization – needs for growth, achieving one’s potential, self-fulfillment; in other words, the drive to be what one is capable of becoming.

8. Maslow’s Hierarchy of Needs Theory (contd….)
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9. 2. MacGregor’s Theories X & Y
Theory X managers are assumed to view the average employee as:
Disliking work and finding ways to avoid it as much as possible.
Responding to threats of punishment or control because of the dislike of work.
Avoiding responsibility because of lack of ambition.
Wanting to be directed.
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10. MacGregor’s Theories X & Y (cont’d….)
Theory Y manager assumes that the average employee:
Enjoys work and does not want to avoid it.
Wants to achieve organizational goals through self- directed behavior.
Responds to rewards associated with accomplishing goals.
Will accept responsibility.
Has initiative and can be creative in solving organizational problems.
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11. MacGregor’s Theories X & Y (cont’d….)
Theory X and Theory Y represent two extremely different positions — an autocratic management style and democratic management style.
A manager must review the people involved and the situation and then determine if a Theory X or a Theory Y management style will work.

12. 4. Herzberg’s Two-Factor Theory
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory.
According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction.
He said that the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.

13. Herzberg’s Two-Factor Theory
Herzberg classified these job factors into two categories-
Hygiene factors (also called maintenance factors) – factors that do not give satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself (e.g. salary, work environment, company policy, relationship with peers and supervisors, etc.).
Motivating factors (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself. The motivational factors yield positive satisfaction. These factors motivate the employees for a superior performance. These factors are called satisfiers.

14. Herzberg’s Two-Factor Theory

15. Early Theories of Motivation (cont’d)
Three-Needs Theory (McClelland)
There are three acquired (not innate) needs that are major motives in work
Need for achievement (nAch)- the drive to succeed and excel
Need for power (nPow)- the need to influence the behavior of others
Need for affiliation(nAff)- the desire for friendly and close interpersonal relationships

16. Contemporary Theories of Motivation
1. Goal-Setting Theory
2. Reinforcement Theory
3. Job Design Theory
4. Equity Theory
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17. 1. Goal-Setting Theory (Motivation and Goals)
Proposes that accepted goals which are specific, and challenging yet achievable will result in higher performance than having no or easy goals.
Working toward a goal is a major source of job motivation. Motivation is maximized by difficult goals not impossible ones.
Benefits of Participation in Goal-Setting
Increases the acceptance of goals.
Fosters commitment to difficult, public goals.
Self-efficacy- individual’s belief that he or she is capable of performing a task.
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18. Exhibit 17-5 goal-setting theory

19. 2. Reinforcement Theory (Motivation and Behavior)
Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated.
Ignores factors such as goals, expectations, and needs.
Instead, it focuses on what happens to a person when he/she does something.
Positive reinforcement is preferred for its long-term effects on performance (example- hourly bonus)
Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors.

20. 3. Job Design Theory Job Design
The way into which tasks can be combined to form complete jobs.
Job enlargement
Increasing the scope (number of tasks) in a job.
Job enrichment
Increasing responsibility and autonomy (depth) in a job.

21. Job Design & Motivation
Many managers have used job enlargement and job enrichment as strategies to motivate employees. The strategies improve employee productivity and morale.

22. 4. Equity Theory (Motivation and Perception)
Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.
If the ratios are perceived as equal then a state of equity (fairness) exists.
If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded.
When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).
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23. Exhibit 17-7 Equity Theory

24. Motivation and Perception (cont’d)
Equity Theory (cont’d)
Distributive Justice
The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what)
Influences an employee’s satisfaction
Procedural Justice
The perceived fairness of the process used to determine the distribution of rewards (i.e., how who received what)
Affects an employee’s organizational commitment
Historically equity theory focused on distributive justice. Recent equity research has focused on issues of procedural justice.

25. Motivation and Perception (cont’d)
Equity Theory (cont’d)
Employee responses to perceived inequities:
Improve or reduce productivity
Improve or reduce quality of output
Increase absenteeism
Voluntary resignation
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26. Expectancy Theory
States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Key to the theory is understanding and managing employee goals and the linkages among and between efforts, performance and rewards.
Effort: employee abilities and training/ development
Performance: valid appraisal systems
Rewards (goals) : understanding employee needs
employee abilities and training/development
Performance:
Rewards (goals):

27. Exhibit 17-8 expectancy model

28. Expectancy Theory Expectancy relationships
Expectancy (effort–performance linkage)
The probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance
Instrumentality (performance–reward linkage)
The perception that a particular level of performance will result in attaining the desired outcome.
Valence
The attractiveness/importance of the performance reward (outcome) to the individual.

29. Designing Appropriate Rewards Programs
Employee recognition programs
Giving personal attention and expressing interest, approval, and appreciation for a job well done.
Pay-for-performance
Variable compensation plans that reward employees on the basis of their performance:
Piece rates, wage incentives, profit-sharing, and lump-sum bonuses
Stock option programs
Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price.
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30. From Theory to Practice: Guidelines for Motivating Employees
Recognize individual differences
Match people to jobs
Use goals
Ensure that goals are perceived as attainable
Individualize rewards
Link rewards to performance
Check the system for equity
Use recognition
Show care and concern for your employees
Don’t ignore money
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