1. Motivating Self and Others
Chapter 4
Motivating Self and Others

2. Chapter Outline What is Motivation? Needs Theories of Motivation
Process Theories of Motivation
Motivating for Specific Organizational Goals
Motivating to Accommodate Individual Differences
Responses to the Reward System
Beware the Signals That Are Sent by Rewards
Caveat Emptor: Motivation Theories Are Culture-Bound
Motivation in Practice: Perhaps Rewards are Overrated
This material is found in the beginning of the chapter.

3. Motivating Self and Others
Questions for Consideration
What do theories tell us about motivating ourselves and others?
How do we motivate for specific organizational circumstances and/or individual differences?
Are rewards always necessary?
This material is found in the beginning of the chapter.

4. What is Motivation? Motivation
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal
Intensity: how hard a person tries
Direction: where effort is channeled
Persistence: how long effort is maintained
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5. Theory X and Theory Y Theory X Theory Y
The assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform.
Theory Y
The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction.
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Theory Y suggests that:
Employees inherently dislike work and, whenever possible, will attempt to avoid it.
Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals.
Employees will avoid responsibilities and seek formal direction whenever possible.
Most workers place security above all other factors associated with work and will display little ambition.
Employees can view work as being as natural as rest or play.
People will exercise self-direction and self-control if they are committed to the objectives.
The average person can learn to accept, even seek, responsibility.
The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.

6. Motivators Intrinsic Extrinsic
A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic
Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.
This material is found on page

7. Needs Theories of Motivation
Maslow’s hierarchy of needs
Herzberg’s two factor theory (motivation-hygiene theory)
Alderfer’s ERG theory
McClelland’s theory of needs
Basic idea:
Individuals have needs that, when unsatisfied, will result in motivation
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8. Maslow’s Hierarchy of Needs
Physiological
includes hunger, thirst, shelter, sex and other bodily needs
Safety
includes security and protection from physical and emotional harm
Social
includes affection, belongingness, acceptance, and friendship
Esteem
includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention
Self-actualization
the drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfilment
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9. Herzberg’s Motivation-Hygiene Theory
Hygiene factors - necessary, but not sufficient, for healthy adjustment
extrinsic factors; context of work
company policy and administration
unhappy relationship with employee's supervisor
poor interpersonal relations with one's peers
poor working conditions
Motivators - the sources of satisfaction
intrinsic factors; content of work
achievement
recognition
challenging, varied or interesting work
responsibility
advancement
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10. Alderfer’s ERG Theory Existence Relatedness Growth
concerned with providing basic material existence requirements
Relatedness
desire for maintaining important interpersonal relationships
Growth
intrinsic desire for personal development
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11. McClelland’s Theory of Needs
Need for Achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for Power
The need to make others behave in a way that they would not have behaved otherwise
Need for Affiliation
The desire for friendly and close interpersonal relationships
This material is found on page

12. Exhibit 4-1 Summarizing the Various Needs Theories
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13. Exhibit 4-1 Summarizing the Various Needs Theories
This material is found on page

14. Process Theories of Motivation
Looks at the actual process of motivation
Expectancy theory
Goal-setting theory
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15. 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 that outcome to the individual. The theory focuses on three relationships:
Effort-performance relationship or the probability perceived by the individual that exerting a given amount of effort will lead to performance.
Performance-reward relationship or the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome.
Rewards-personal goals relationship or the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual.
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16. Exhibit 4-2 Expectancy Theory
Individual Effort
Individual Performance
Organizational Rewards
Personal Goals 1 2 3
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1. Effort -performance relationship (expectancy)
2. Performance -reward relationship (instrumentality)
3. Rewards - personal goals relationship (valence)

17. Exhibit 4-3 Steps to Increasing Motivation, Using Expectancy Theory
This material is found on page

18. Goal-Setting Theory
The theory that specific and difficult goals lead to higher performance.
Goals tell an employee what needs to be done and how much effort will need to be expended.
Specific goals increase performance; difficult goals, when accepted, result in higher performance than do easy goals; and feedback leads to higher performance than does nonfeedback.
Specific hard goals produce a higher level of output than does the generalized goal of “do your best.”
The specificity of the goal itself acts as an internal stimulus.
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19. Management by Objectives
A program that encompasses
specific goals
participatively set
for an explicit time period
with feedback on goal progress
MBO operationalizes the concept of objectives by devising a process by which objectives cascade down through the organization.
The result is a hierarchy of objectives that links objectives at one level to those at the next level.
For the individual employee, MBO provides specific personal performance objectives.
This material is found on page

20. Exhibit 4-4 Cascading of Objectives
Overall
Organizational
Objectives
XYZ Company
Consumer Products
Division
Industrial Products
Divisional
Departmental
Individual
Production
Sales
Customer
Service
Marketing
Research
Develop
This material is found on page

21. Linking MBO and Goal-Setting Theory
Goal Setting Theory Demonstrates that:
hard goals result in a higher level of individual performance,
specific hard goals result in higher levels of performance than do no goals or generalized goals, and
feedback on one’s performance leads to higher performance
MBO directly advocates specific goals and feedback.
This material is found on page

22. Motivating for Specific Organizational Goals
Motivating to Show People Matter
employee recognition plans
linking recognition and reinforcement
Motivating for Improved Productivity
individual-based incentives: piece rate
group-based incentives: gainsharing
organizational-based incentives: profit-sharing, ESOPs
Motivating to Encourage Learning
skill-based pay
programs to encourage new learning
Motivating for Organizational Change
stretch targets
Motivating To Accommodate Individual Differences
flexible benefits
This material is found on page

23. Motivating to Show People Matter
Employee Recognition Programs
Programs that use multiple sources and recognizes both individual and group accomplishments.
Linking Programs and Reinforcement Theory
Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition.
Employee Recognition Programs in Practice
In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry.
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24. Motivating for Improved Productivity
A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance.
piece-rate pay plans
profit-sharing plans
gainsharing plans
Linking variable-pay plans and expectancy theory
evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems.
group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.
This material is found on page

25. Variable Pay Programs Piece-rate pay plans Gainsharing
Workers are paid a fixed sum for each unit of production completed.
Gainsharing
An incentive plan where improvements in group productivity determine the total amount of money that is allocated.
Profit-sharing plans
Organization wide programs that distribute compensation based on some established formula designed around a company’s profitability.
Employee stock ownership plans (ESOPs)
Company-established benefit plans in which employees acquire stock as part of their benefits.
This material is found on page

26. Exhibit 4-5 Comparing Various Pay Programs
This material is found on page 132.

27. Skill-Based Pay Plans
Pay levels based on how many skills employees have or how many jobs they can do.
What’s the appeal of skill-based pay?
Management’s perspective
flexibility
facilitates communication
lessens “protective territory” behaviour
Is there a downside?
People can “top out”
Employee frustration can increase
Skills become obsolete
Paying people for acquired skills not used
This material is found on page 132.

28. Motivating For Organizational Change
Stretch Targets
Relatively new technique: A virtually unachievable goal that forces an organization to significantly alter its processes.
Team Based
Autonomy
Empowered
Structural Accommodation
Bureaucratic Immunity
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Teams that successfully handle stretch targets need to be autonomous and empowered. Autonomy refers to the ability of the group working on the goal to control the situation themselves. Teams that were successful were also empowered, which meant that they had power over resources and power to propose and implement changes as necessary.
Successful stretch target teams must also know that top management supports them. Successful teams experienced the structural accommodation of their organizations, meaning they had unlimited access to information and the power to change organizational procedures if necessary. Successful teams with stretch targets were also given bureaucratic immunity. This meant that they were not subject to the bureaucratic review process of other projects, and reported only to top management.

29. Individual Differences and Flexible Benefits
Allowing employees to tailor their benefit program to meet their personal needs by picking and choosing from a menu of benefit options.
Specially designed work schedules
flexible compensation plans
flexible benefits plans
physical work settings
child care
elderly care
flexible work hours
job sharing
flexible leave
work teams
Link to expectancy theory: increases motivation by increasing the valence of the reward
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30. Motivating Professionals
How are “professionals” different?
Receive a great deal of “intrinsic” satisfaction from their work.
Strong and long-term commitment to their field of expertise
Well paid/ Chief reward is work itself.
Value support
More focused on work as central life interest.
How do we motivate professionals?
Provide challenging projects
Give them autonomy in follow interests and structure work.
Reward with educational opportunities.
Recognize their contributions.
This material is found on page

31. Motivating Contingent Workers
No simple solutions to motivating contingent workers.
Contingent or temporary workers have little or no job security/stability, therefore they don’t identify with the organization or display the commitment of permanent employees.
Contingent or temporary workers are typically provided with little or no health care, pensions, or similar benefits.
Greatest motivating factor is the opportunity to gain permanent employment.
Motivation is also increased if the employee sees that the job he or she is doing for the firm can develop salable skills.
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32. Motivating Low-Skilled Service Workers
Many 15- to 24-year-olds have “McJobs” with pay levels near minimum wage
To motivate
employees want more respect
make jobs more appealing
raise pay levels
find unusual ways to motivate:
flexible work schedules
broader responsibility for inventory, scheduling, and hiring
creation of a “family” atmosphere among employees
This material is found on page 136.

33. Responses to the Reward System
Equity Theory
Fair Process
Material pertinent to this illustration is found on pages
Equity Theory: Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
Fair Process: Concern for fairness in the process of distributing rewards.

34. Equity Theory
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive.
Historically, equity theory focused on:
distributive justice or the perceived fairness of the amount and allocation of rewards among individuals.
however, equity should also consider procedural justice or the perceived fairness of the process used to determine the distribution of rewards.
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35. Exhibit 4-6 Equity Theory
Perception due to being underrewarded
O/IA < O/IB
This material is found on page 137.
O/IA = O/IB
Equity
Inequity due to being overrewarded
O/IA > O/IB

36. Responses to Inequity Change Inputs Change Outcomes
Adjust Perceptions of Self
Adjust Perceptions of Others
Choose a Different Referent
Leave the Field
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37. Fair Process Distributive Justice Procedural Justice
Perceived fairness of the amount and allocation of rewards among individuals
Procedural Justice
Perceived fairness of the process used to determine the distribution of rewards
Interactional Justice
The quality of the interpersonal treatment received from another
This material is found on page

38. Exhibit 4-7 Management Reward Follies
But we reward:
The best individual team members
Proven methods and no mistakes
Technical achievements and accomplishments
Tight control over operations, resources
Another year’s efforts
Quarterly earnings
Shipment on schedule, even with defects
Reporting good news
We hope for:
Teamwork and collaboration
Innovative thinking and risk taking
Development of people skills
Employee involvement and empowerment
High achievement
Long-term growth
Commitment to total quality
Candor
This material is found on page
A recent survey suggests that three themes seem to account for some of the biggest obstacles in dealing with the folly. First, individuals are unable to break out of old ways of thinking about reward and recognition practices. This is demonstrated in such things as an emphasis on quantifiable behaviours, to the exclusion of non-quantifiable behaviours; employees having an entitlement mentality (i.e., they don’t support changing the reward system because they are comfortable with the current behaviours that are rewarded), and management being reluctant to change the existing performance system. A second factor is that organizations often don’t look at the big picture of their performance system. Consequently, rewards are allocated at subunit levels, with the result that units often compete against each other. Finally, both management and shareholders often focus on short-term results, rather than rewarding employees for planning for longer ranges.

39. Abolishing Rewards
Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments
Abolish incentives
Re-evaluate evaluation
Create conditions for authentic motivation
Collaboration
Content
Choice
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Abolish incentives. Pay people generously and fairly, make sure people don’t feel exploited, and then make sure that pay is not on their minds.
Re-evaluate evaluation. Rather than making performance appraisals look and feel like a punitive effort—who gets raises, who gets promoted, who is told they’re performing poorly—the performance evaluation system might be structured more like a two-way conversation to trade ideas and questions, done continuously, not as a competition.
Create the conditions for authentic motivation. A noted economist recently summarized the evidence about pay for productivity as follows: “Changing the way workers are treated may boost productivity more than changing the way they are paid.”
Collaboration. People are more likely to perform better in well-functioning groups where they can get feedback and learn from each other.
Content. People are generally the most motivated when their jobs give them an opportunity to learn new skills, provide variety in the tasks that are performed, and enable them to demonstrate competence.
Choice. “We are most likely to become enthusiastic about what we are doing—and all else being equal, to do it well—when we are free to make decisions about the way we carry out a task.”

40. Summary Need Theories Goal Setting Theory Expectancy Theory
Be aware that individuals differ in their levels and types of needs
Goal Setting Theory
Clear and difficult goals lead to higher levels of employee productivity.
Expectancy Theory
Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover.
Equity Theory
Strongest when predicting absence and turnover behaviours.
Weakest when predicting differences in employee productivity.
This material is found on page

41. Implications Recognize Individual Differences Use Goals and Feedback
Employees have different needs.
Don’t treat them all alike.
Spend the time necessary to understand what’s important to each employee.
Use Goals and Feedback
Allow Employees to Participate in Decisions That Affect Them
Link Rewards to Performance
Employees must perceive a clear linkage.
Check the System for Equity
This material is found on page

42. Exhibit 4-8 Compensation of Canada’s Five Best-Paid CEOs (1998)
Exhibit prepared for Ethical Dilemma Exercise, p. 153.