1. 1 ChapterChapter M OTIVATION IN ORGANIZATIONS SixSix

2. Motivation Energizes Behavior Directs Behavior Goals Organization of Effort Reaching Equilibrium Drives Compulsions Deprivation/ Disequilibrium Sustains Behavior Maintaining motivation Persistance Ability to change course Importance of Feedback Equilibrium NeedSatisfaction Drive

3. 3 Motivation: Its Basic Components Desire to make a good impression ArousalDirectionMaintenanceGoal Good impression made Compliment work Persist Work extra hard Persist Do special favors Persist

4. 4 Need Theories: A Comparison 1. Physiological needs 2. Safety needs 3. Social needs Deficiency Needs 4. Esteem needs 5. Self-actualization needs Growth needs Relatedness needs Existence needs Maslow’s need hierarchy theory Alderfer’s ERG theory

5. ERG Theory (Aldefer) Relatedness Needs Growth NeedsExistence Needs Satisfaction/Progression Frustration/Regression Satisfaction/Strengthening

6. Discussion: Considering these theories, how might companies motive their employees What types of incentives would motivate employees How can employers satisfy employees’ needs Would the same type of incentives or rewards satisfy all employees?

7. Goal Setting People’s Behavior is Guided by Intentions Goals provide direction Specific goals are more effective Goals mobilize behavior Difficult goals generate more effort Feedback about goal attainment sustains behavior.

8. 11 GOAL SETTING: SOME IMPRESSIVE EFFECTS Percentage of Maximum Weight Carried on Each Trip Before goal After Goal Four-Week Periods 50 60 70 80 90 100 123456789101112Seven Years Later 94 There was a dramatic improvement in per- formance after a goal was set Performance at the goal level was sustained seven years after the goal was first set

9. Goal Commitment Publically stated goals + High nAch + Internal Locus of Control Commitment to Goals

10. Goal Setting Applications Management by Objectives (MBO) –Performance review procedure by which employees and managers jointly make goals for next review period. They also work out the details for reaching those goals. Performance is regularly monitored. Organizational Behavioral Management (OBM) (remember learning theory?) –Application of goal setting (or other behavioral science technology) to change the behavior of large units within the organization Logging example

11. Theory 1: Exchange Theory If Inputs = OutputsSatisfaction Effort, Motivation, Performance, Skills, Expertise Rewards Bonus Promotions Pay Raise Recognition O I = 1 Distributive Justice: Perceptions of how fairly rewards are distributed

12. Theory 2: Equity Theory -- Compare I/O ratios to others Self Outcome Input Other Outcome Input = Satisfaction

13. Examples of Equity Other 4 Self 4 1. 2. Self 4 Other 8 3. Self 4 2 Other 4 2 4. Other 8 4 Self 4 2 5. Self 2 4 Other 4 8

14. Examples of Inequity 1. Underpayment =Self O/I < Other O/I Example SelfOther 484 2. Overpayment =Self O/I < Other O/I Example SelfOther 424

15. 14 POSSIBLE REACTIONS TO INEQUITY: A SUMMARY Type of Inequity Behavioral (what you can do is...) Psychological (what you can think is...) OverpaymentRaise your inputs (e.g., workConvince yourself that your inequityharder), or lower your outcomesoutcomes are deserved (e.g. work through a paidbased on your inputs (e.g., vacation)rationalize that you work harder than others and so you deserve more pay) UnderpaymentLower your inputs (e.g., reduceConvince yourself that oth- inequityeffort), or raise your outcomesers’ inputs are really higher e.g., get a raise in pay)than your own (e.g., ration- alize that the comparison worker is really more quali- fied and so deserves higher outcomes) TYPE OF REACTION

16. 15 Employee Theft: A Reaction to Underpayment Employees of the factories in which there was a pay cut Employees of the factories in which there was no pay cut Theft Rate percentage of unaccounted for loss of property 0 1 2 3 4 5 6 7 8 9Before Pay Cut During After Theft rates were identical before pay was cut in one of them. Employee theft was greatest in factories whose employees experienced a cut in their pay. Theft rates were identical after pay was restored to normal levels.

17. Procedural Justice Perceived fairness of the processes by which organizational decisions are made –Voice: giving employees a say in how decisions are made –Error correction: allow opportunity for errors to be corrected –Consistently apply rules and policies –Bias suppression

18. Interactional Justice Quality of interpersonal treatment (by supervisor) when decisions are made and communicated –Information justification: thoroughness of information received about at decision –Social sensitivity: amount of dignity and respect demonstrated in the course of presenting an undesirable decision.

19. Applications of Justice Theories Employee Selection Pay systems –Two-tier wage structures –Pay secrecy Participative Decision Making Downsizing

20. Expectancy Theory People will be motivated to engage in a behavior (make a choice) to the degree that they believe that the behavior will lead to a valued outcome

21. 16 Expectancy Theory: An Overview Effort Performance Expectancy Instru- mentality Valence of Rewards Skills and abilities Job Performance Role perceptions and opportunities Motivation X X

22. Expectancy Model: Components Valence: How much do you value the rewards you may receive Instrumentality: The perception that if you perform well you will be rewarded Expectancy: The degree to which you expect that hard work (effort) will lead to good performance or high accomplishments

23. Expectancy Theory, con’t Force: the motivation to choose a particular course of action. Where:E= Expectancy (probability that effort leads to performance) V=Valence (rating of how satisfying various rewards will be) I=Instrumentality (relationship between taking this option and gaining this reward)

24. Example: Choose between Job A vs. Job B 1.What are the possible outcomes I would get from getting a job, and how much do I value each of these outcome (Valence) –Good salary7 –Good Pension6 –Interesting work8 –Travel opportunities4 Valences are measured on a scale from 1 (not at all satisfiying) to 10 (extremely satisfying)

25. Expectancy example, cont Instrumentality: What is the relationship (subjective correlation) between choosing job A or job B and obtaining this outcome? Instrumentality for Job Afor Job B High salary.75.50 Good Pension..25.75 Interesting work.50.75 Travel.75.25

26. Expectancy example, con’t Expectancy: What is the probability that if I work hard, I will be successful: –In Job A:.40 –In Job B:.70

27. Force: Which job should I choose Job A:ValenceInstrum.V*I High salary7.755.25 Good Pension6.251.50 Interesting work8.504.00 Travel4.753.00 Sum13.75 Expectancy.40 Force=.40(13.75) = 5.5 Job B.ValenceInstrum.V*I High salary7.503.50 Good Pension6.754.50 Interesting work8.756.00 Travel4.251.00 Sum15.00 Expectancy.70 Force=.70(15.00) = 10.5

28. Application of Expectancy Theory Clarify expectancies between effort and performance and follow through with rewards. –Pay for performance –Stock option plans and other incentive programs Provide valued rewards –Cafeteria-style benefits

29. Motivating Jobs Through Job Redesign Scientifically managed jobs: boring, repetitive, few skills utilized Job Enlargement: add more tasks of similar skill level to the job Job Enrichment: add more responsibility and autonomy to the job Horizontal Loading Vertical Loading

30. 18 Job Enlargement and Job Enrichment: A Comparison Level of Responsibility (vertical job loading) (high) (low) Number of Tasks (horizontal job loading) Task 1 Task 2 Enlarged Job Task 3 Task 4 Level of Responsibility (vertical job loading) (high) (low) Number of Tasks (horizontal job loading) Task 1 Task 2 Standard Job (low) Number of Tasks (horizontal job loading) Task 1 Task 2 Enhanced Job Level of Responsibility (vertical job loading) (high) Job enlargement adds more tasks at the same level of responsibility. Job enrichment adds more responsibility to the same number of tasks. (high) (low)

31. Job Characteristics model Job CharacteristicsCritical Psyc. States Growth Need Strength Job Outcomes Experienced Meaningfulness of Work Responsibility for work outcomes Knowledge of Results Internal work motivation Job satisfaction Growth Satisfaction Low absenteeism High quality performance } Skill Variety Task Identity Task Significance Autonomy Feedback

32. 20 Enriching Jobs: Some Suggestions From the Job Characteristics Model 1. Combines jobs enabling worker to performSkill variety the entire jobTask identity 2. Establishes client relationships allowing providersSkill variety of a service to meet the recipientsAutonomy Feedback 3. Load jobs vertically allowing greater responsibilityAutonomy an control over work 4. Open feedback channels giving workers knowledgeFeedback of the results of their work Principles of Job DescriptionCore Job Dimensions Incorporated