1. PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter 11 5e Part IV: Leading Copyright © 2011 Cengage Learning. All rights reserved. Motivating for High Performance

2. Copyright © 2011 Cengage Learning. All rights reserved.11–2 Learning Outcomes 1. 1.Illustrate the motivation process. 2. 2.Explain the performance formula and how to use it. 3. 3.Discuss the major similarities and differences among the four content motivation theories: hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory. 4. 4.Discuss the major similarities and differences among the three process motivation theories: equity theory, goal-setting theory, and expectancy theory. 5. 5.Explain the four types of reinforcement. 6. 6.State the major differences among content, process, and reinforcement theories. 7. 7.Define the key terms listed at the end of the chapter. After studying this chapter, you should be able to:

3. Copyright © 2011 Cengage Learning. All rights reserved.11–3 IDEAS ON MANAGEMENT IDEAS ON MANAGEMENT at Market America 1. 1.What does Market America do to motivate its distributors, and how does it affect performance? 2. 2.How does Market America meet its distributors’ content motivation needs? 3. 3.How does Market America meet its distributors’ process motivation needs? 4. 4.How does Market America use reinforcement theory to motivate its distributors? 5. 5.Does the Market America UnFranchise ® business model for motivation work in other countries?

4. Copyright © 2011 Cengage Learning. All rights reserved.11–4 Motivation and Performance MotivationMotivation  The willingness to achieve organizational objectives.  People are motivated by self-interest—the key to understanding motivation. Motivation ProcessMotivation Process  Employees go from need to motive to behavior to consequence to satisfaction or dissatisfaction.

5. Copyright © 2011 Cengage Learning. All rights reserved.11–5 How Motivation Affects Performance Expectations, Motivation, and PerformanceExpectations, Motivation, and Performance  Pygmalion effect  Managers’ attitudes toward, expectations of, and treatment of employees largely determine employees’ motivation and performance.  Self-fulfilling prophecy  “If you believe you can, or believe you can’t, then you are right”—Henry Ford.  If you think you will be successful, then you will be. The Performance FormulaThe Performance Formula  Performance = Ability × Motivation × Resources  For maximum performance, all three factors must be high.

6. Copyright © 2011 Cengage Learning. All rights reserved.11–6

7. Copyright © 2011 Cengage Learning. All rights reserved.11–7 An Overview of Three Major Classes of Motivation Theories Reinforcement Theory Content Motivation Theories Process Motivation Theories Motivation

8. Copyright © 2011 Cengage Learning. All rights reserved.11–8 Exhibit 11–1 ●Major Motivation Theories Class of Motivation TheoriesSpecific Theory (Creator) Content motivation theories focus on identifying and understanding employees’ needs Hierarchy of needs theory (Maslow) proposes that employees are motivated by five levels of needs: physiological, safety, social, esteem, and self-actualization. ERG theory (Alderfer) proposes that employees are motivated by three needs: existence, relatedness, and growth. Two-factor theory (Herzberg) proposes that employees are motivated by motivators (higher-level needs) rather than by maintenance factors (lower-level needs). Acquired needs theory (McClelland) proposes that employees are motivated by their need for achievement, power, and affiliation.

9. Copyright © 2011 Cengage Learning. All rights reserved.11–9 Exhibit 11–1 ●Major Motivation Theories (cont’d) Class of Motivation TheoriesSpecific Theory (Creator) Process motivation theories focus on understanding how employees choose behaviors to fulfill the needs. Equity theory (Adams) proposes that employees will be motivated when their perceived inputs equal outputs. Goal-setting theory (Locke) proposes that achievable but difficult goals motivate employees. Expectancy theory (Vroom) proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort.

10. Copyright © 2011 Cengage Learning. All rights reserved.11–10 Exhibit 11–1 ●Major Motivation Theories (cont’d) Class of Motivation TheoriesSpecific Theory (Creator) Reinforcement theory (Skinner) proposes that the consequences of behavior will motivate employees to behave in predetermined ways. Types of reinforcement Positive reinforcement is offering attractive consequences (rewards) for desirable performance to encourage the continuation of that behavior. Avoidance reinforcement is threatening to provide negative consequences for poor performance to encourage desirable behavior. Punishment is providing an undesirable consequence (punishment) for an undesirable behavior to prevent the behavior. Extinction is the withholding of reinforcement for a particular behavior.

11. Copyright © 2011 Cengage Learning. All rights reserved.11–11 Maslow’s Hierarchy of Needs Theory Hierarchy of NeedsHierarchy of Needs 1. Only unmet needs motivate. 2. People’s needs are arranged in order of importance for basic to complex. 3. Satisfaction of lower-level needs precedes satisfaction of higher-level needs. 4. There are five levels of needs:  Physiological needs  Safety needs  Social needs  Esteem needs  Self-actualization needs

12. Copyright © 2011 Cengage Learning. All rights reserved.11–12 Exhibit 11–2 How Managers Motivate Based on Maslow‘s Hierarchy of Needs Theory

13. Copyright © 2011 Cengage Learning. All rights reserved.11–13 ERG Theory ERG Theory (Alderfer)ERG Theory (Alderfer)  Proposes that employees are motivated by three needs:  Existence: physiological and safety needs.  Relatedness: social needs.  Growth: esteem and self-actualization needs.  Needs can be active on more than one level at the same time.  Starving actor: being hungry and wanting fame and fortune.

14. Copyright © 2011 Cengage Learning. All rights reserved.11–14 Exhibit 11–3 ●Herzberg’s Two-Factor Theory Proposes that employees are motivated by motivators rather than by maintenance factors

15. Copyright © 2011 Cengage Learning. All rights reserved.11–15 Acquired Needs Theory Acquired Needs Theory (McClelland)Acquired Needs Theory (McClelland)  Proposes that employees are motivated by their needs for achievement, power, and affiliation.  Need for Achievement (n Ach): the desire for responsibility and accomplishment.  Need for Power (n Pow): the desire to control the situation, to influence others, to enjoy competition in which they can win, and to be willing to confront others.  Need for Affiliation (n Aff): the tendency to want to be liked, to seek close relationship with others, to enjoy social activities, and to seek to belong.

16. Copyright © 2011 Cengage Learning. All rights reserved.11–16 Exhibit 11–4 ●A Comparison of Four Content Motivation Theories

17. Copyright © 2011 Cengage Learning. All rights reserved.11–17 Motivation: Process Theories Process Motivation TheoriesProcess Motivation Theories  Focus on understanding how employees choose behavior to fulfill their needs.  Equity theory  Goal-setting theory  Expectancy theory

18. Copyright © 2011 Cengage Learning. All rights reserved.11–18 Equity Theory Equity Theory (Adams)Equity Theory (Adams)  Proposes that employees are motivated when their perceived inputs equal outputs.  People compare their inputs (effort, experience, seniority, status, intelligence, etc.) and outputs (praise, recognition, pay, benefits, promotions, increased status, supervisor’s approval, etc.) to those of relevant others and conclude that they are:  Underrewarded  Overrewarded  Equitably rewarded

19. Copyright © 2011 Cengage Learning. All rights reserved.11–19 Goal-Setting Theory Goal-Setting TheoryGoal-Setting Theory  Proposes that goals that are challenging, achievable, specific, and measureable will motivate employees, leading them to higher levels of motivation and performance.

20. Copyright © 2011 Cengage Learning. All rights reserved.11–20 Join the Discussion Ethics & Social Responsibility Academic StandardsAcademic Standards 1. How many hours outside of class, on average, do you and other students you know spend preparing for class each week? 2. Are college professors today assigning students 2 hours of preparation for every hour in class? If not, why do you think they have dropped this standard? 3. Are students who are essentially doing part-time work (that is, attending classes but doing little or no academic work outside of class) during college being prepared for a career after graduation (with a 40- to 60-hour work weeks)? 4. Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees for doing less work than students did 5, 10, or 20 years ago?

21. Copyright © 2011 Cengage Learning. All rights reserved.11–21 Expectancy Theory Expectancy Theory (Vroom)Expectancy Theory (Vroom)  Proposes that employees are motivated when they believe they can accomplish a task and the rewards for doing so are worth the effort.  Motivation = Expectancy × Valence  Expectancy—the person’s perception of his or her ability to accomplish an objective.  Valence—the value the person places on the outcome or reward for his or her performance.  Instrumentality—the perception of the relationship between performance and reward.

22. Copyright © 2011 Cengage Learning. All rights reserved.11–22 Expectancy Theory (cont’d) Expectancy Theory Assumptions:Expectancy Theory Assumptions: 1. Both internal factors (needs) and external factors (environment) affect behavior. 2. Behavior is the individual’s decision. 3. People have different needs, desires, and goals. 4. People make behavior decisions based on their perception of the outcome.

23. Copyright © 2011 Cengage Learning. All rights reserved.11–23 Expectancy Theory (cont’d) Keys to using expectancy theory successfully:Keys to using expectancy theory successfully: 1. Clearly define objectives and the performance needed to achieve them. 2. Tie performance to rewards. 3. Be sure rewards have value to employees. 4. Make sure employees believe that management will do what it says it will.

24. Copyright © 2011 Cengage Learning. All rights reserved.11–24 Reinforcement Theory Reinforcement TheoryReinforcement Theory  Proposes that through the consequences for behavior employees will be motivated to behave in predetermined ways. Stimulus Responding Behavior Consequences of Behavior (Reinforcement)

25. Copyright © 2011 Cengage Learning. All rights reserved.11–25 Types of Reinforcement Positive ReinforcementPositive Reinforcement  Encouraging continued behavior by offering attractive consequences (rewards) for desirable performance. Avoidance Reinforcement (Negative Reinforcement)Avoidance Reinforcement (Negative Reinforcement)  Encouraging continued desirable behavior to avoid a negative consequence. PunishmentPunishment  Providing an undesirable consequence for the undesirable behavior. ExtinctionExtinction  Discouraging undesirable behavior by withholding reinforcement when the behavior occurs.

26. Copyright © 2011 Cengage Learning. All rights reserved.11–26 Exhibit 11–5 Types of Reinforcement

27. Copyright © 2011 Cengage Learning. All rights reserved.11–27 Schedules of Reinforcement Continuous ReinforcementContinuous Reinforcement  Each and every desirable behavior is reinforced. Intermittent ReinforcementIntermittent Reinforcement  Time-based schedules  Fixed interval  Variable interval  Output-based schedules  Fixed ratio  Variable ratio

28. Copyright © 2011 Cengage Learning. All rights reserved.11–28 Motivating with Reinforcement General guidelines for using reinforcement:General guidelines for using reinforcement: 1. Make sure employees know what behavior is expected and reinforced. 2. Select appropriate rewards. 3. Select the appropriate reinforcement schedule. 4. Do not reward mediocre or poor performance. 5. Look for the positive and give praise regularly, rather than focusing on the negative and criticizing. 6. Do things for your employees, instead of to them, and you will see productivity increases.

29. Copyright © 2011 Cengage Learning. All rights reserved.11–29 Join the Discussion Ethics & Social Responsibility AirlinesAirlines 1. Not using an airline ticket fully breaks the airline’s rules, not any law, so it’s not illegal. But is it ethical and socially responsible of travelers to do so? 2. Is it ethical and socially responsible of airlines to charge more for less travel? 3. Is it ethical and socially responsible to punish people who break the ticket rules?

30. Copyright © 2011 Cengage Learning. All rights reserved.11–30

31. Copyright © 2011 Cengage Learning. All rights reserved.11–31 Join the Discussion Ethics & Social Responsibility Using Reinforcement TheoryUsing Reinforcement Theory 1. Does reinforcement motivate you? 2. Is reinforcement effective (does it serve to motivate) in today’s global economy? 3. Is the use of reinforcement theory ethical and socially responsible or manipulative?

32. Copyright © 2011 Cengage Learning. All rights reserved.11–32 Exhibit 11–6 ●The Motivation Process and the Motivation Theories The groups of theories are complementary; each refers to a different stage in the motivation process or answers a different question.

33. Employee Rewards and Recognition Copyright © 2011 Cengage Learning. All rights reserved.~–33 Reward Programs Variable Pay Bonuses Profit Sharing Stock Options

34. Copyright © 2011 Cengage Learning. All rights reserved.11–34 Model 11–1 ●Giving Praise

35. Copyright © 2011 Cengage Learning. All rights reserved.11–35 Do Motivation Theories Apply Globally? Cultural Differences in MotivationCultural Differences in Motivation  The source of motivation (intrinsic vs. extrinsic)  The level of needs on which people focus varies.  Individualistic societies tend to value individual accomplishment; collective societies tend to value group accomplishment and loyalty.

36. Copyright © 2011 Cengage Learning. All rights reserved.11–36

37. Copyright © 2011 Cengage Learning. All rights reserved.11–37 KEY TERMS acquired needs theoryacquired needs theory content motivation theoriescontent motivation theories equity theoryequity theory ERG theoryERG theory expectancy theoryexpectancy theory giving praise modelgiving praise model goal-setting theorygoal-setting theory hierarchy of needs theoryhierarchy of needs theory motivationmotivation motivation processmotivation process performance formulaperformance formula process motivation theoriesprocess motivation theories reinforcement theoryreinforcement theory two-factor theorytwo-factor theory