1. Chapters 5 & 6 Motivation Concepts and Applications1

2. What Is Motivation?
Motivation: A willingness to do some act, conditioned by the action’s ability to satisfy some need for the person.
Need: A physiological or psychological deficiency that makes certain outcomes appear attractive to the person.
(Note: P = M x A)
A state of mind, desire, energy, or interest that turns into action, motivation is important to managers for three reasons: it leads to action, it is one of three main factors in work performance, and it can be influenced.
Performance is a function of ability, motivation, and opportunity. Ability, a natural talent, tends to be stable over time. Organizations take advantage of and manage levels of ability by recruiting, selecting, and hiring people with the right type and level of ability and placing them in appropriate jobs.
Motivation is not a stable characteristic; it changes from situation to situation and over time. So managers can influence it. Motivation includes not only attitudes about the job but also factors such as individual needs--things that are lacking and desired.
The opportunity to perform varies from situation to situation and over time. Managers can motivate employees by providing the right performance opportunities. 3

3. Theories of Motivation
Content (or Need) Theories: Attempt to tell us what motivates people.
Maslow’s Hierarchy Theory
McGregor’s Theory X and Y
Herzberg’s Theory
McClelland’s Theory
Job Design Model

4. Theories of Motivation
Process Theories: Attempt to tell us how motivation takes place.
Expectancy Theory
Goal Setting Theory
Behavior Modification (Learning) Theory
Equity Theory

5. Content Theories: Maslow’s Hierarchy

6. Content Theories: McGregor’s X & Y
Theory X Workers
Dislike work
Must be threatened with punishment
Avoid responsibilities
Seek formal direction
Require security
Little ambition
Theory Y Workers
View work as natural
Self-directed
Exercise self-control
Accept responsibility
Seek responsibility
Make innovative decisions

7. Content Theories: Herzberg’s Two-Factors
High
Job Dissatisfaction
Job Satisfaction
Hygiene factors affect job dissatisfaction
Motivator factors affect job satisfaction
Quality of supervision
Pay
Company policies
Physical working conditions
Relations with others
Job security
Promotional opportunities
Opportunities for personal growth
Recognition
Responsibility
Achievement

8. Herzberg’s Two-Factor Theory
If managers eliminate factors creating job dissatisfaction, they may bring about “peace” but not necessarily motivation.
If managers want to motivate, they should emphasize factors associated with the work itself (or outcomes directly derived from it).

9. Content Theories: McClelland's Needs
Need for achievement (nAch) - drive to excel
Need for power (nPow) - need to make others behave in ways they would not otherwise
Need for affiliation (nAff) - desire for friendly and close interpersonal relationships

10. McClelland's Needs Theory
High nAchievers: Prefer jobs with personal responsibility, feedback, intermediate risk.
High nAchievers: Not necessarily good managers.
nAffiliation and nPower: Are both closely related to managerial success.

11. Content Theories: Job Char’s Model
An interesting job creates intrinsic motivation: positive internal feelings that are independent from outside rewards. Job design affects both the effort-to-performance and the performance-to-outcome linkages of the expectancy model.
The Hackman/Oldham job design model represents a contingency view of motivation which asserts that to motivate an employee, managers must consider the job and the person’s individual needs. The model has three parts: job characteristics, psychological states, and outcomes. 9

12. Applications of Job Char’s Model: Job Redesign & Work Scheduling Programs
Improve the job’s “VISAF”
Use employee involvement & participation
Look to job rotation
Look to job sharing
Consider flextime
Consider telecommuting

13. Application of Content Theories
Managers must appreciate the difference between:
Intangible (intrinsic) vs. tangible (extrinsic) needs.
Examples of Intangible (intrinsic) needs:
trust, respect
autonomy
involvement
teamwork
mastery
recognition
guidance
structure
sense of purpose
fairness
gratifying work
acceptance
(Do managers have greater control over tangible or intangible rewards?)

14. Theories of Motivation
Process Theories: Attempt to tell us how motivation takes place.
Expectancy Theory
Goal Setting Theory
Behavior Modification (Learning) Theory
Equity Theory

15. Process Theories: Expectancy
Motivation is a process governing choice
Assumes Perf. = (Mot. x Ability) and that
Mot. = (V x I x E)
Works well for diagnosing
Works well for predicting discrete and
important job choices

16. The Expectancy Process
Proposed by Victor Vroom, the expectancy model of motivation assumes that motivation is a cognitive (mental) process and that an employee’s belief about a motivational factor is more important than the reality of the situation. So managers must understand how employees view a situation to know how to motivate them.
The expectancy model outlines three beliefs that people must have before they can be motivated to work. They must first believe that their efforts are likely to lead to good performance: that is, that effort is instrumental to good performance. Second, they must expect that their performance is clearly linked to certain outcomes. And they must value the performance outcomes. If any one of these “linkages” does not occur, workers will not be motivated. 6

17. Process Theories: Goal Setting
Goal Setting Theory
Assumes conscious goals and intentions will drive (or motivate) behavior
Important terms: S M A R T
Ownership of goal also critical for motivation!
Remember Self-Efficacy

18. The “SMART” Goal-Setting Process
Use SMART Rules
to Set Goals
Involve Employees to
Gain Ownership
and Commitment
Monitor and
Provide Support and
Regular Feedback
Motivation
and Performance
The SMART goal-setting process involves three steps: (1) setting goals according to SMART rules, (2) involving employees in goal setting, and (3) supporting employees and providing regular feedback.
Employee involvement in setting goals strengthens the effort-to-performance and performance-to-outcomes linkages. Employee involvement is important for two more reasons: it helps managers set SMART goals and it leads to commitment and acceptance of the goals. Monitoring allows a manager to see whether the employee is progressing well. Feedback is a “two-way street.” Managers can let employees know how they are performing relative to the SMART goals; employees can request assistance, training, and resources or renegotiate goals and deadlines. This process should lead to increased motivation and higher performance on the job. 13

19. Beware of “Goals Gone Wild!”
The “dark side” of writing good SMART goals:
Higher order goal displacement:
Short term goals, plus a high pay off, can lead to some nasty outcomes as people become myopically focused and quickly take the low road;
Short term, high stakes goals will crowd out long term goals and work against the long term interest of the organization (for example, strong quarterly earnings goals with strong incentives/punishments, work against LR R&D investments, etc.).

20. Process Theories: Behavior Modification (or Learning Theory)
Assumes all human behavior is shaped (or “reinforced”)
by its environmental consequences
Important terminology:
Reinforcement (both +/-): increases probability
of a behavior
Punishment (both +/-): decreases probability
Tricky Application: When is a reward a punishment ?
(Hint: What’s the role of human cognition in all this?)
(See also: Cognitive Evaluation Theory)

21. Using Behavior Modification and Consequences to Manage Behavior
Focus on specific behaviors
Respond quickly
Be consistent
Use positive reinforcement
Punish sparingly
Praise publicly; punish privately
Provide alternative behaviors
Don’t hope for A while rewarding B
(it’s called “Learning Theory” for a reason!)
Managers can use consequences to manage behavior through positive or negative reinforcement and punishment. A reinforcer is an outcome or event that increases the likelihood that a behavior will occur again. A positive reinforcer is a pleasant outcome that follows a desired behavior and is aimed at encouraging the behavior. A negative reinforcer is an unpleasant outcome that precedes an undesirable behavior and is aimed at encouraging a desirable behavior. Punishment is a negative event that occurs after an undesirable behavior and is aimed at stopping it.
The following are some rules for using reinforcement and punishment.
Focus on specific, job related behaviors and stay away from issues that are not directly related to the job. Respond quickly to clarify the connection between the behavior and its consequences. Be consistent. Use the “hot stove” rule--the same behavior should lead to the same consequences every time. Generally, provide positive reinforcement that is as large as possible. Use punishment sparingly, as a last resort, because of the potential for negative consequences. Give praise in public, but punish in private. Since punishment is aimed at stopping undesirable behaviors, follow up with examples of alternative positive behaviors. 17

22. Process Theories: Equity Theory
Assumes people are motivated (in a social
context) to attain fairness
Inputs, Outcomes and “comparison other”
Inequity  tension  behaviors (to eliminate it)
Behaviors to eliminate the inequity are very
predictable

23. When employees perceive inequity, they will:
Change attitudes/perceptions about inputs and/or outcomes (of self or comparison other)
Increase own outcomes and/or decrease inputs
Use different “comparison person”
Try to get “other” to change inputs and/or outcomes
Quit their job or seek to transfer

24. In summary... What about money? Does it motivate? Content theories:
Basic survival needs (i.e., food, water, etc.)
Higher level intrinsic needs (i.e., list of intangibles)
Process theories:
Establishing clear “if-then” linkages
Establishing vague “trust-based” linkages
What about money? Does it motivate?
Of course, money matters hugely!
But it typically does NOT “motivate” because:
It only matters up to a certain “point”
It’s rarely ever “contingent”
Advice: Pay enough to take money “off the table,” then create a culture that motivates through higher levels of intrinsic needs (like mastery, autonomy, purpose, etc.)

25. Putting it all together . . .
So, why do so many managers often fail
at properly motivating their employees?
1. They are usually guilty of “projection”
(Note to Self: People will always commit
themselves for “their” reasons, not mine!)
2. They assume “one-size-fits-all”
3. They don’t appreciate the difference between
tangible vs. intangible rewards
4. They don’t appreciate the difference between
features and benefits

26. To motivate your people, you should know....
Their tangible needs
Their intangible needs
Their skills and abilities
Their background and experience
The tasks they like and dislike
Their job and career goals
Their personal goals and ambitions