1. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, Spring Trimester 2011 Module 2: The Individual Module 2 : Organizational Behaviour & Leadership – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

2. © 2003 Prentice Hall Inc. All rights reserved.6–26–2 Defining Motivation Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries

3. © 2003 Prentice Hall Inc. All rights reserved.6–36–3 Hierarchy of Needs Theory

4. © 2003 Prentice Hall Inc. All rights reserved.6–46–4 Maslow’s Hierarchy of Needs E X H I B I T 6-1

5. © 2003 Prentice Hall Inc. All rights reserved.6–56–5 Theory X and Theory Y (Douglas McGregor)

6. © 2003 Prentice Hall Inc. All rights reserved.6–66–6 Two-Factor Theory (Frederick Herzberg)

7. © 2003 Prentice Hall Inc. All rights reserved.6–76–7 Comparison of Satisfiers and Dissatisfiers E X H I B I T 6-3 Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction

8. © 2003 Prentice Hall Inc. All rights reserved.6–86–8 Contrasting Views of Satisfaction and Dissatisfaction E X H I B I T 6-4 PresenceAbsence

9. © 2003 Prentice Hall Inc. All rights reserved.6–96–9 E-R-G Theory (Clayton Alderfer) Core Needs Existence: provision of basic material requirements. Relatedness: desire for relationships. Growth: desire for personal development. Core Needs Existence: provision of basic material requirements. Relatedness: desire for relationships. Growth: desire for personal development. Concepts: More than one need can be operative at the same time. If a higher-level need cannot be fulfilled, the desire to satisfy a lower- level need increases. Concepts: More than one need can be operative at the same time. If a higher-level need cannot be fulfilled, the desire to satisfy a lower- level need increases.

10. © 2003 Prentice Hall Inc. All rights reserved.6–10 Exercise 3: “What do people want from their jobs?” Rate the following job factors according to how important each is to you. Place a number on a scale of 1 (not important) to 5 (most important) on the line before each factor. 1. An interesting job__________ 2. A good boss__________ 3. Recognition and appreciation for the work I do__________ 4. The opportunity for advancement__________ 5. A satisfying personal life__________ 6. A prestigious or status job__________ 7. Job responsibility__________ 8. Good work condition__________ 9. Sensible company rules, regulations, procedures and policies __________ 10. The opportunity to grow through learning new things __________ 11. A job I can do well and succeed at__________ 12. Job security __________

11. © 2003 Prentice Hall Inc. All rights reserved.6–11 Exercise 3: “What do people want from their jobs?” (Cont’d) Place the number you have given to each of them and total it. 2. ___________1. ___________ 5. ___________3. ___________ 6. ___________4. ___________ 8. ___________7. ___________ 9. ___________10. __________ 12. __________11. __________ Total:

12. © 2003 Prentice Hall Inc. All rights reserved.6–12 Exercise 3: “What do people want from their jobs?” (Cont’d) Analysis: The left side of your chart shows your inclination towards hygiene factors while the right side shows your inclination towards motivational factors. There is no grading for Exercise 3.

13. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, Spring Trimester 2011 Module 2: The Individual Module 2 : Organizational Behaviour & Leadership – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

14. © 2003 Prentice Hall Inc. All rights reserved.6–14 David McClelland’s Theory of Needs nAch nPow nAff

15. © 2003 Prentice Hall Inc. All rights reserved.6–15 David McClelland’s Theory of Needs (Cont’d) Within five minutes, write a short story based on the picture above.

16. © 2003 Prentice Hall Inc. All rights reserved6–16 Cognitive Evaluation Theory E.g.: Social service work of visiting elderly people at Pashupati Bridyashram every weekend may not be as fun when one is hired by an NGO to do the same job on a monthly salary.

17. © 2003 Prentice Hall Inc. All rights reserved6–17 Goal-Setting Theory (Edwin Locke) E.g.: When soccer team coaches present “motivational speeches” before a penalty shootout in a tough knockout game.

18. © 2003 Prentice Hall Inc. All rights reserved6–18 Job Design Theory This theory supports the thesis promoted by Maslow, McGregor and Herzberg on the importance of looking at the work itself as a possible source of motivation. Researches on job design provides stronger evidence that the way the elements in a job are organized can act to increase or decrease effort. This theory also addresses productivity, satisfaction, absenteeism, and turnover variables. But it may be limited to employees who place a high importance on finding meaningfulness in their jobs and who seek control over key elements in their work. So jobs that score high on skill variety, task identity and significance, autonomy, and feedback will help to satisfy the individual goal of employees who desire greater meaningfulness from, and control over, their work.

19. © 2003 Prentice Hall Inc. All rights reserved6–19 Job Design Theory (Cont’d)  The key five elements to describe a job: –Skill Variety: The degree to which the job requires a variety of different activities. –Task Identity: The degree to which the job requires completion of a whole and identifiable piece of work. –Task Significance: The degree to which the job has a substantial impact on the lives or work of other people. –Autonomy: The degree to which the job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. –Feedback: The degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.

20. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, Spring Trimester 2011 Module 2: The Individual Module 2 : Organizational Behaviour & Leadership – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

21. © 2003 Prentice Hall Inc. All rights reserved6–21 Reinforcement Theory Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated. Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated. Behavior is a function of Reinforcement Theory’s consequences. It has an impressive record for predicting factors like quality & quantity of work, persistence of effort, absenteeism, tardiness and accident rates. However, it does not offer much insight into employee satisfaction or the decision to quit.

22. © 2003 Prentice Hall Inc. All rights reserved6–22 Reinforcement Theory (Cont’d) Schedules of Reinforcement: 1. Continuous Reinforcement. Reinforcement that is given on a continuous basis after each action. E.g.: When every time a dog does ‘Namaste’, you give the dog a biscuit. 2. Intermission or Interval Reinforcement. Reinforcement which is given not to every action but to actions on an interval basis. Intermission reinforcement can be of two types: Ratio and Time. RatioTime Fixed: E.g. computers sales person. Variable: E.g. Jackpot machine in casinos. Fixed: E.g. promotions, salaries. Variable: E.g. M- D talking to workers in office.

23. © 2003 Prentice Hall Inc. All rights reserved6–23 Reinforcement Theory (Cont’d) Types of Reinforcement: 1. Positive Reinforcement: Any reinforcement given after a positive action. Given in a positive way in the form of an award, reward, tapping on the back, smile of the employer, kind words and so on that makes the employee feels good. 2. Negative Reinforcement: Any reinforcement given continuously for an unwanted or undesirable action till the person stops performing in an undesirable manner. E.g.: Continuously harassing a late-comer student every time the teacher meets him/her till the student realizes her/his mistake and starts coming to class on time. 3. Punishment: The difference in negative reinforcement and punishment is that every undesirable action of a person is punished in the latter. E.g.: Whenever a student talks the teacher makes that student stand up; Penalty to be paid for every time one spits on the road. 4. Extinction: This is continuous flow of positive reinforcement till the person gets to learn the desirable or accepted form of behavior. E.g.: Giving chocolates to a child till the child learns to recite a poem. But, soon after the child learns it, by heart, the chocolate reward is withdrawn, i.e. extinction.

24. © 2003 Prentice Hall Inc. All rights reserved6–24 Equity Theory Referent Comparisons: Self-inside Self-outside Other-inside Other-outside Referent Comparisons: Self-inside Self-outside Other-inside Other-outside J. Stacy Adam’s Equity Theory states that individuals are concerned not only with the absolute amount of rewards they receive for their efforts, but also with the relationship of this amount to what others receive.

25. © 2003 Prentice Hall Inc. All rights reserved6–25 Equity Theory (cont’d) Choices for dealing with inequity: 1.Change their inputs. E.g.: May reduce their efforts. 2.Change their outcome. E.g.: May increase their pay rate, if paid on a piece rate basis by producing a higher quantity of units of low quality. 3.Distort perceptions of self. E.g.: Now I found that I work a lot harder than others but get less rewards. 4.Distort perceptions of others’. E.g.: Others’ jobs are not desirable & good compared to mine. 5.Choose a different referent. E.g.: I am doing better off as Nepal’s Prime Minister than Girija Prasad Koirala or Sher Bahadur Deuba when they were in this position. 6.Leave the job. E.g.: Quit the job. Choices for dealing with inequity: 1.Change their inputs. E.g.: May reduce their efforts. 2.Change their outcome. E.g.: May increase their pay rate, if paid on a piece rate basis by producing a higher quantity of units of low quality. 3.Distort perceptions of self. E.g.: Now I found that I work a lot harder than others but get less rewards. 4.Distort perceptions of others’. E.g.: Others’ jobs are not desirable & good compared to mine. 5.Choose a different referent. E.g.: I am doing better off as Nepal’s Prime Minister than Girija Prasad Koirala or Sher Bahadur Deuba when they were in this position. 6.Leave the job. E.g.: Quit the job.

26. © 2003 Prentice Hall Inc. All rights reserved6–26 Equity Theory (cont’d)

27. © 2003 Prentice Hall Inc. All rights reserved6–27 Expectancy or V-I-E Theory E X H I B I T 6-8

28. © 2003 Prentice Hall Inc. All rights reserved6–28 Expectancy or V-I-E Theory Expectancy Theory was developed by Victor H. Vroom & reinforced by Porter & Lower. Vroom explains that motivation is the product of three factors: 1. How much one wants a reward (Valence). 2. One’s estimate of the probability that effort will result in successful performance (Expectation). 3. One’s estimate that performance will result in receiving the reward (Instrumentality). In a formula, Motivation = Valence x Instrumentality x Expectancy = VIE

29. © 2003 Prentice Hall Inc. All rights reserved6–29 Expectancy or V-I-E Theory SNValenceExpectancyInstrumentalityMotivation 1High Pos.High Strong Motivation 2High Pos.HighLowModerate Motivation 3High Pos.LowHighModerate Motivation 4High Pos.Low Weak Motivation 5High Neg.High Strong Avoidance 6High Neg.HighLowModerate Avoidance 7High Neg.Low Weak Avoidance Expectancy Theory also helps to explain why a lot of workers are not motivated on their jobs and merely do the minimum necessity to get by.

30. © 2003 Prentice Hall Inc. All rights reserved6–30 Others: Flow and Intrinsic Motivation Theory

31. © 2003 Prentice Hall Inc. All rights reserved6–31 Others (Cont’d): Ken Thomas’s Model of Intrinsic Motivation Employees are intrinsically motivated when rewards an employee gets from work result from: –Choice– the ability to freely self-select and perform task activities. –Competence– the sense of accomplishment from skillfully performing chosen tasks or activities. –Meaningfulness– pursuing a task that matters in the larger scheme of things. –Progress– the feeling of significant advancement in achieving the task’s purpose.

32. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, SPring Trimester 2011 Module 2: The Individual MBAe OB Fall 2008, Module 2 – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

33. © 2003 Prentice Hall Inc. All rights reserved7–33 Cascading of Objectives E X H I B I T 7-1

34. © 2003 Prentice Hall Inc. All rights reserved7–34 Employee Recognition Programs  Types of programs –Personal attention –Expressing interest –Approval –Appreciation for a job well done  Benefits of programs –Fulfills employees’ desire for recognition. –Encourages repetition of desired behaviors. –Enhances group/team cohesiveness and motivation. –Encourages employee suggestions for improving processes and cutting costs.

35. © 2003 Prentice Hall Inc. All rights reserved7–35 What is Employee Involvement?

36. © 2003 Prentice Hall Inc. All rights reserved7–36 Examples of Employee Involvement Programs

37. © 2003 Prentice Hall Inc. All rights reserved7–37 Examples of Employee Involvement Programs (cont’d)

38. © 2003 Prentice Hall Inc. All rights reserved7–38 Examples of Employee Involvement Programs (cont’d)

39. © 2003 Prentice Hall Inc. All rights reserved7–39 Examples of Employee Involvement Programs (cont’d)

40. © 2003 Prentice Hall Inc. All rights reserved7–40 Special Issues in Motivation  Motivating Professionals –Provide challenging projects. –Allow them the autonomy to be productive. –Reward with educational opportunities, sabbaticals. –Reward with recognition. –Express interest in what they are doing. –Create alternative career paths.  Motivating Contingent Workers –Provide opportunity for permanent status. –Provide opportunities for training. –Provide equitable pay.

41. © 2003 Prentice Hall Inc. All rights reserved7–41 Special Issues in Motivation (cont’d)  Motivating the Diversified Workforce –Provide flexible work, leave, and pay schedules. –Provide child and elder care benefits. –Structure working relationships to account for cultural differences and similarities.  Motivating Low-Skilled Service Workers –Recruit widely. –Increase pay and benefits. –Make jobs more appealing.  Motivating People Doing Highly Repetitive Tasks –Recruit and select employees that fit the job. –Create a pleasant work environment. –Mechanize the most distasteful aspects of the job.

42. © 2003 Prentice Hall Inc. All rights reserved7–42 Ability and Selection  Emotional Intelligence (EI) –Self-awareness –Self-management –Self-motivation –Empathy –Social skills  Research Findings –High EI scores, not high IQ scores, characterize high performers.  Emotional Intelligence (EI) –Self-awareness –Self-management –Self-motivation –Empathy –Social skills  Research Findings –High EI scores, not high IQ scores, characterize high performers.

43. © 2003 Prentice Hall Inc. All rights reserved7–43 Emotional Intelligence (EQ): Emotional Intelligence (E-Q) was first authored by a psychologist Peter Salovey. I-Q deals with the smartness that is within you and E-Q defines the interpretation & utilization of that very smartness. I-Q gets you hired & E-Q gets you promoted. EQ is essentially the non-cognitive capacity to create positive outcomes in one's relationships with others and with oneself. EQ refers to specific skills, habits & attitudes-the personal & social skills that lead to superior performance. EQ strengths: Conscientiousness, adaptability, trustworthiness, innovation, & self control. Improving EQ: Concentration, try meditation, try being calm most of the time, learn from others, & channelize your energy content.

44. © 2003 Prentice Hall Inc. All rights reserved7–44 Exercise 4: “Emotional Intelligence Self-Evaluation” Please answer the following questions honestly provided in your hands-out. See where you need to improve to build your Emotional Intelligence. Marking Scale: There is no grading for Exercise 4. BadNeeds Substantial Development Needs Some Development SA, 1 – 625 or below26-3031 or above SR, 7 – 1226 or below27-3132 or above SM, 13 – 1826 or below27-3031 or above E, 19 – 2425 or below26-3031 or above SS, 25 – 3024 or below25-2930 or above Grand Total126 or below131-154155 or above