1. Motivation and Empowerment
Chapter 8
Motivation and Empowerment

2. Chapter Objectives
Recognize and apply the difference between intrinsic and extrinsic rewards.
Motivate others by meeting their higher-level needs.
Apply needs-based theory of motivation.
Implement individual and systemwide rewards.
Avoid the disadvantages of “carrot-and-stick” motivation.
Implement empowerment by providing the five elements of information, knowledge, discretion, meaning, and rewards.

3. “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy”
Dr. Martin Luther King, Jr.

4. Motivation
The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action

5. Ex. 8.1 A Simple Model of Motivation
Need Creates desire to fulfill needs (money, friendship, recognition, achievement
Behavior Results in actions to fulfill needs
Rewards Satisfy needs: intrinsic or extrinsic rewards
Feedback Reward informs person whether behavior was appropriate and should be used again

6. Types of Rewards Intrinsic Rewards Extrinsic Rewards
Internal satisfactions a person receives in the process of performing a particular action
Extrinsic Rewards
Rewards given by another person, typically a supervisor, such as pay increases and promotions
Systemwide Rewards
Rewards that apply the same to all people within an organization or within a specific category or department

7. Ex. 8.2 Examples of Intrinsic and Extrinsic Rewards
Individual
Large merit increase
Feeling of self-fulfillment
Pride in being part of a “winning” organization
Systemwide
Insurance benefits

8. Ex. 8.3 Needs of People and Motivation Methods
Conventional management
Leadership
Lower needs
Higher needs
Carrot and stick (Extrinsic)
Empowerment (Intrinsic)
Growth and fulfillment
Control people
Best effort
Adequate effort

9. Ex. 8.4 Maslow’s Hierarchy of Needs
Need Hierarchy
Fulfillment on the Job
Opportunities for advancement, autonomy, growth, creativity
Self-actualization Needs
Esteem Needs
Recognition, approval, high status, increased responsibilities
Belongingness Needs
Work groups, clients, coworkers, supervisors
Safety Needs
Safe work, fringe benefits, job security
Physiological Needs
Heat, air, base salary

10. Ex. 8.5 Herzberg’s Two-Factor Theory
Highly Satisfied
Motivators
Achievement
Recognition
Responsibility
Work itself
Personal growth
Area of Satisfaction
Motivators influence level of satisfaction
Neither Satisfied nor Dissatisfied
Hygiene Factors
Work conditions
Pay/security
Co. policies
Supervisors
Area of Dissatisfaction
Hygiene factors influence level of dissatisfaction
Interpersonal. relationships
Highly Dissatisfied

11. Reinforcement Theory
Behavior Modification – the set of techniques by which reinforcement theory used to modify behavior.
Law of effect – positively reinforced behavior tends to be repeated and behavior that is not reinforced is not repeated.

12. Reinforcement Theory
Reinforcement – anything that causes a certain behavior to be repeated or inhibited.
Positive reinforcement: a pleasant and rewarding consequence following a behavior.
Negative reinforcement: the withdrawal of an unpleasant consequence once a behavior is improved. (avoidance learning)

13. Reinforcement Theory Reinforcement
Punishment: the imposition of unpleasant outcomes following undesirable behavior.
Extinction: the withdrawal of a positive reward so that behavior is no longer reinforce and therefore less likely to occur in the future.

14. Acquired Needs Theory
McClelland’s theory that proposes that certain types of needs are acquired during an individual’s lifetime
Three needs most frequently studied:
Need for achievement
Need for affiliation
Need for power

15. Ex. 8.6 Key Elements of Expectancy Theory
Will putting effort into the task lead to the desired performance?
E > P expectancy
Effort Performance
Will high performance lead to the desired outcomes?
P > O expectancy
Performance Outcomes
Valence – value of outcomes
(pay, recognition, other rewards)
Are the available outcomes highly valued?
Motivation

16. Equity Theory
A theory that proposes that people are motivated to seek social equity in the rewards they expect for performance

17. Equity Theory
Equity = when my outcomes to inputs equals the ratio of other’s in work group.
Inequity = when my outcomes to inputs to do not equal the ratio of other’s in work group.
Outcomes: pay recognition, promotions and other rewards
Inputs: education, experience, effort and ability

18. Carrot Stick Controversy
Extrinsic rewards diminish intrinsic rewards.
Extrinsic rewards are temporary.
Extrinsic rewards assume people are driven by lower needs.
Organizations are too complex for carrot and stick approaches.
Carrot and stick approaches destroy people’s motivation to work as a group.

19. Managers Hope For But They Reward
Teamwork and collaboration
Innovative thinking and risk taking
Development of people skills
Employee involvement and empowerment
High achievement
Commitment to loyalty
Long-term growth
The Best individual performers
Proven methods and not making mistakes
Technical achievements and accomplishments
Tight control over operations and resources
Another year’s routine effort
Shipping on time, even with defects
Quarterly earnings

20. Empowerment
Power sharing; the delegation of power or authority or to subordinates in the organization.

21. Elements of Empowerment
Employees receive information about company performance
Employees receive knowledge and skills to contribute to the company goals.
Employees have the power to make substantive decisions.
Employees understand the meaning and impact of their jobs.
Employees are rewarded based on company performance.

22. Engagement
Being emotionally connected to the organization; being fully involved in and enthusiastic about his or her work and who cares about the success of the organization.

23. Motivational Programs
Employee ownership
Gainsharing
Pay for knowledge
Pay for performance
Job enrichment