1. Motivation Ch. 12 Management A Practical Introduction
Angelo Kinicki &
Brian K. Williams

2. Learning objectives 1 Define motivation
Explain the meaning of extrinsic and intrinsic rewards
Describe the simple model of motivation
Discuss the importance of motivation
Describe the 3 content perspectives theories, illustrate each of these theories with examples. Discuss the strengths and weakness of these theories.

3. Learning objectives 2
Describe the 3 process perspectives theories, illustrate each of these theories with examples. Discuss the strengths and weakness of these theories.
Describe the reinforcement theory and explain how it can be applied.
Suggest how various compensation and rewards can be used to motivate

4. 12.1 Motivating For Performance
WHAT IS MOTIVATION?
The psychological processes that arouse and direct goal-directed behavior is motivation
In a simple model of motivation, people have needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original needs
Rewards can be extrinsic (the payoff a person receives from others for performing a particular task), or intrinsic (the satisfaction a person receives from performing the particular task itself)

5. 12.1 Motivating For Performance
Figure 12.1: A Simple Model Of Motivation

6. 12.1 Motivating For Performance
WHY IS MOTIVATION IMPORTANT?
It is important to motivate people to
-join your organization
-stay with your organization
-show up for work at your organization
-perform better for your organization
-do extra for your organization

7. 12.2 Content Perspectives On Employee Motivation
WHAT KINDS OF NEEDS MOTIVATE EMPLOYEES?
Theories that emphasize the needs that motivate people are content perspectives or need-based perspectives
-where needs are defined as physiological or psychological deficiencies that arouse behavior
Three content perspectives are Maslow’s hierarchy of needs, McClelland’s acquired needs theory, and Herzberg’s two-factor theory

8. 12.2 Content Perspectives On Employee Motivation
1. Abraham Maslow put forth the hierarchy of needs theory which proposes that people are motivated by five levels of needs:
At the most basic level, people try to fulfill physiological needs (basic human needs like food, clothing, and shelter)
Next, are safety needs (physical safety, emotional security, avoidance of violence)
Then, belongingness needs (love, friendship, affection)
Next, esteem needs (self-respect, status, reputation, recognition, and self-confidence)
Finally, self-actualization needs (self-fulfillment increasing competence, using abilities to the fullest)

9. 12.2 Content Perspectives On Employee Motivation
Figure 12.2: Maslow’s Hierarchy of Needs

10. 12.2 Content Perspectives On Employee Motivation
2. David McClelland proposed the acquired needs theory which argues that three needs (achievement, affiliation, and power) are major motivators in the workplace
The three needs are associated with different sets of work preferences
People with a high need for achievement excel in technical fields that require creativity and individual skills
People who have a high need for power will do well in jobs where they can control others and be publicly applauded for their accomplishments
People with a high need for affiliation prefer work where personal relationships and social approval are important

11. 12.2 Content Perspectives On Employee Motivation
3. Frederick Hertzberg proposed that work satisfaction and dissatisfaction arise from two different factors:
Lower level needs are usually handled through hygiene factors (factors associated with job dissatisfaction like salary and working conditions)
Higher level needs are associated with motivating factors (factors associated with job satisfaction)
So, managers should eliminate dissatisfaction, then focus on encouraging motivation

12. 12.2 Content Perspectives On Employee Motivation
Figure 12.4: Hertzberg’s Two-Factor Theory: Satisfaction Versus Dissatisfaction

13. 12.3 Process Perspectives On Employee Motivation
IS A REWARD ENOUGH?
Process perspectives are concerned with the thought processes by which people decide to act
Three process perspectives on motivation are equity theory, expectancy theory, and goal-setting theory

14. 12.3 Process Perspectives On Employee Motivation
1. Equity theory focuses on employee perceptions as to how fairly they think they are being treated relative to others
The central issues of equity theory are inputs (what you think you put into the job), outputs (the rewards you could receive), and comparisons (how your inputs and outputs compare to those of others)
Employees that believe they are being treated fairly are more likely to support their organizations than those who perceive inequities
Managers need to understand employee perceptions, allow employees to participate in important decisions, and have an appeal process in place

15. 12.3 Process Perspectives On Employee Motivation
Figure 12.6: Equity Theory

16. 12.3 Process Perspectives On Employee Motivation
2. Victor Vroom’s expectancy theory argues that people are motivated by how much they want something, and how likely they think they are to get it
According to expectancy theory, people will do what they can, when they want to
Expectancy is the belief that a particular level of effort will lead to a particular level of performance
If people believe their efforts matter, they will work harder
Instrumentality is the expectation that successful performance of the task will lead to the desired outcome
Managers want to know what they will get for successful performance

17. 12.3 Process Perspectives On Employee Motivation
Valence is the value or importance a worker assigns to the possible outcome or reward
For motivation to be high, employees need to score high on all three elements
Managers should ask the following questions when they are trying to motivate employees
-what are the job objectives and the performance level desired?
-are rewards linked to performance?
-do employees believe you will deliver the right rewards for the right performance?

18. 12.3 Process Perspectives On Employee Motivation
3. Goal setting theory suggests that employees can be motivated by goals that are specific and challenging, but achievable
Managers can motivate by setting the right goals in the right ways
Goals should be SMART - Specific, Measurable, Attainable, Results-oriented, and have Target dates

19. 12.5 Reinforcement Perspectives On Motivation
WHAT INCENTIVES INFLUENCE BEHAVIOR?
Reinforcement theory attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated
When reinforcement theory is used to change human behavior, it is called behavior modification

20. 12.5 Reinforcement Perspectives On Motivation
Reinforcement is anything that causes a given behavior to be repeated or inhibited
There are four types of reinforcement:
1. The use of positive consequences to encourage desirable behavior is called positive reinforcement
2. The removal of unpleasant consequences following a desired behavior is called negative reinforcement
3. The withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future is called extinction
4. The application of negative consequences to stop or change undesirable behavior is called punishment

21. 12.5 Reinforcement Perspectives On Motivation
Figure: 12.9: Four Types of Reinforcement

22. 12.5 Reinforcement Perspectives On Motivation
When using positive reinforcement or punishment, managers should:
Reward only desirable behavior
Give rewards as soon as possible
Be clear about what behavior is desired
Have different rewards and recognize individual differences
Punish only undesirable behavior
Give reprimands or disciplinary actions as soon as possible
Be clear about what behavior is undesirable
Administer punishment in private
Combine punishment and positive reinforcement

23. 12.6 Using Compensation & Other Rewards To Motivate
HOW CAN FIRMS USE COMPENSATION AND OTHER REWARDS TO MOTIVATE?
Wages or salaries are usually not enough to motivate people to work hard, so many companies offer incentives as well
Good incentive plans:
-link measurable rewards to performance
-use rewards that satisfy individual needs
-offer rewards that have been agreed on by managers and employees
-have believable and achievable rewards

24. 12.6 Using Compensation & Other Rewards To Motivate
Some popular incentive plans are:
-pay for performance - pay is based on results using piece rates
-sales commissions - pay is based on a percentage of the earnings made by sales
-bonuses - cash awards given to employees who achieve specific performance objectives
-profit sharing - the distribution to employees of a percentage of the company’s profits
-gainsharing - the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity
-stock options - certain employees are given the right to buy stock at a future date for a discounted price
-pay for knowledge - employee pay is tied to the number of job relevant skills or academic degrees they earn

25. 12.6 Using Compensation & Other Rewards To Motivate
HOW CAN FIRMS USE NONMONETARY REWARDS TO MOTIVATE EMPLOYEES?
Organizations need to be sure that
-employees have a balance between work and life
-employees can expand their skill set
-employees feel valuable

26. 12.6 Using Compensation & Other Rewards To Motivate
The most common non-monetary incentive is the flexible workplace
Companies need to offer employees a means of balancing their work and their personal lives
Companies need to create a work environment that is conducive to productivity
Companies can help employees build their skills by developing “shadowing” programs and offering tuition reimbursement
Offering sabbaticals to long-term employees gives people a change to recharge themselves

27. Key terms 1 Hygiene factors Instrumentality Intrinsic reward
Motivating factors
Motivation
Needs
Negative reinforcement
Positive reinforcement
Process perspectives
Acquired needs theory
Content perspectives
Equity theory
Expectancy
Expectancy theory
Extinction
Extrinsic reward
Goal-setting theory
Hierarchy of needs theory

28. Key terms 2
Punishment
Reinforcement
Two-factor theory
valence