1. CHAPTER 16 Managing Employee Motivation and Performance Managing Employee Motivation and Performance Copyright © by Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook

2. Copyright © by Houghton Mifflin Company. All rights reserved. 16–2 Learning Objectives After studying this chapter, you should be able to: –Characterize the nature of motivation, including its importance and basic historical perspectives. –Identify and describe the major content perspectives on motivation. –Identify and describe the major process perspectives on motivation. –Describe reinforcement perspectives on motivation. –Identify and describe popular motivational strategies. –Describe the role of organizational reward systems in motivation. After studying this chapter, you should be able to: –Characterize the nature of motivation, including its importance and basic historical perspectives. –Identify and describe the major content perspectives on motivation. –Identify and describe the major process perspectives on motivation. –Describe reinforcement perspectives on motivation. –Identify and describe popular motivational strategies. –Describe the role of organizational reward systems in motivation.

3. Copyright © by Houghton Mifflin Company. All rights reserved. 16–3 Chapter Outline The Nature of Motivation –The Importance of Motivation in the Workplace –Historical Perspectives on Motivation Content Perspectives on Motivation –The Need Hierarchy Approach –The Two-Factor Theory –Individual Human Needs Process Perspectives on Motivation –Expectancy Theory –Equity Theory –Goal-Setting Theory The Nature of Motivation –The Importance of Motivation in the Workplace –Historical Perspectives on Motivation Content Perspectives on Motivation –The Need Hierarchy Approach –The Two-Factor Theory –Individual Human Needs Process Perspectives on Motivation –Expectancy Theory –Equity Theory –Goal-Setting Theory Reinforcement Perspectives on Motivation –Kinds of Reinforcement in Organizations –Providing Reinforcement in Organizations Popular Motivational Strategies –Empowerment and Participation –New Forms of Working Arrangements Using Reward Systems to Motivate Performance –Effects of Organization Rewards –Designing Effective Reward Systems –Popular approaches made to client

4. Copyright © by Houghton Mifflin Company. All rights reserved. 16–4 The Nature of Motivation Motivation –The set of forces that cause people to behave in certain ways. –The goal of managers is to maximize desired behaviors and minimize undesirable behaviors. The Importance of Motivation in the Workplace –Determinants of Individual Performance Motivation—the desire to do the job.Motivation—the desire to do the job. Ability—the capability to do the job.Ability—the capability to do the job. Work environment—the resources to do the job.Work environment—the resources to do the job. Motivation –The set of forces that cause people to behave in certain ways. –The goal of managers is to maximize desired behaviors and minimize undesirable behaviors. The Importance of Motivation in the Workplace –Determinants of Individual Performance Motivation—the desire to do the job.Motivation—the desire to do the job. Ability—the capability to do the job.Ability—the capability to do the job. Work environment—the resources to do the job.Work environment—the resources to do the job.

5. Copyright © by Houghton Mifflin Company. All rights reserved. 16–5 The Motivation Framework Search for ways to satisfy need Choice of behavior to satisfy need Determination of future needs and search/choice for satisfaction Evaluation of need satisfaction Need or deficiency Figure 16.1 The motivation processes through a series of discreet steps. Content, process, and reinforcement perspectives on motivation address different parts of this process.

6. Copyright © by Houghton Mifflin Company. All rights reserved. 16–6 Historical Perspectives on Motivation The Traditional Approach –Frederick Taylor (Scientific Management) –Assumptions: Managers know more than workers.Managers know more than workers. Economic gain (money) is the primary motivation for performance.Economic gain (money) is the primary motivation for performance. Work is inherently unpleasant.Work is inherently unpleasant. The Human Relations Approach –Emphasized the role of social processes in the workplace. –Assumptions: Employees want to feel useful and and important.Employees want to feel useful and and important. Employees have strong social needs, more important than money.Employees have strong social needs, more important than money. Maintaining the appearance of employee participation is important.Maintaining the appearance of employee participation is important. The Traditional Approach –Frederick Taylor (Scientific Management) –Assumptions: Managers know more than workers.Managers know more than workers. Economic gain (money) is the primary motivation for performance.Economic gain (money) is the primary motivation for performance. Work is inherently unpleasant.Work is inherently unpleasant. The Human Relations Approach –Emphasized the role of social processes in the workplace. –Assumptions: Employees want to feel useful and and important.Employees want to feel useful and and important. Employees have strong social needs, more important than money.Employees have strong social needs, more important than money. Maintaining the appearance of employee participation is important.Maintaining the appearance of employee participation is important.

7. Copyright © by Houghton Mifflin Company. All rights reserved. 16–7 Historical Perspectives on Motivation (cont’d) The Human Resource Approach –Assumptions: Employee contributions are important and valuable to the employee and the organization.Employee contributions are important and valuable to the employee and the organization. Employees want to and are able to make genuine contributions.Employees want to and are able to make genuine contributions. Management’s job is to encourage participation and create a work environment that motivates employees.Management’s job is to encourage participation and create a work environment that motivates employees. The Human Resource Approach –Assumptions: Employee contributions are important and valuable to the employee and the organization.Employee contributions are important and valuable to the employee and the organization. Employees want to and are able to make genuine contributions.Employees want to and are able to make genuine contributions. Management’s job is to encourage participation and create a work environment that motivates employees.Management’s job is to encourage participation and create a work environment that motivates employees.

8. Copyright © by Houghton Mifflin Company. All rights reserved. 16–8 Content Perspectives on Motivation Content Perspectives –Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?” Content Perspectives of Motivation –Maslow’s Hierarchy of Needs –Aldefer’s ERG Theory –Herzberg’s Two-Factor Theory –McClelland’s Achievement, Power, and Affiliation Needs Content Perspectives –Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?” Content Perspectives of Motivation –Maslow’s Hierarchy of Needs –Aldefer’s ERG Theory –Herzberg’s Two-Factor Theory –McClelland’s Achievement, Power, and Affiliation Needs

9. Copyright © by Houghton Mifflin Company. All rights reserved. 16–9 Content Perspectives on Motivation (cont’d) The Need Hierarchy Approach –Maslow’s Hierarchy of Needs People must, in a hierarchical order, satisfy five groups of needs:People must, in a hierarchical order, satisfy five groups of needs: –Physiological needs for basic survival and biological function. –Security needs for a safe physical and emotional environment. –Belongingness needs for love and affection. –Esteem needs for positive self-image/self-respect and recognition and respect from others. –Self-actualization needs for realizing one’s potential for personal growth and development. –Weakness of Maslow’s theory Five levels of need are not always present.Five levels of need are not always present. Ordering or importance of needs is not always the same.Ordering or importance of needs is not always the same. Cultural differences.Cultural differences. The Need Hierarchy Approach –Maslow’s Hierarchy of Needs People must, in a hierarchical order, satisfy five groups of needs:People must, in a hierarchical order, satisfy five groups of needs: –Physiological needs for basic survival and biological function. –Security needs for a safe physical and emotional environment. –Belongingness needs for love and affection. –Esteem needs for positive self-image/self-respect and recognition and respect from others. –Self-actualization needs for realizing one’s potential for personal growth and development. –Weakness of Maslow’s theory Five levels of need are not always present.Five levels of need are not always present. Ordering or importance of needs is not always the same.Ordering or importance of needs is not always the same. Cultural differences.Cultural differences.

10. Copyright © by Houghton Mifflin Company. All rights reserved. 16–10 Maslow’s Hierarchy of Needs Self- actualization Esteem Belongingness Security PhysiologyFood Achievement Status Friendship Stability Job Friends Pension Base NEEDS General ExamplesOrganizational Examples job Challenging title at work plan salary Figure 16.2

11. Copyright © by Houghton Mifflin Company. All rights reserved. 16–11 Content Perspectives on Motivation (cont’d) The ERG Theory (Alderfer) –People’s needs are grouped into three overlapping categories—existence, relatedness, and growth. –Maslow’s hierarchy is collapsed into three levels: Existence needs related to physiological and security needs.Existence needs related to physiological and security needs. Relatedness needs that are similar to belongingness and esteem by others.Relatedness needs that are similar to belongingness and esteem by others. Growth needs encompass needs for self-esteem and self- actualization.Growth needs encompass needs for self-esteem and self- actualization. –ERG theory assumes that: Multiple needs can be operative at one time (there is no absolute hierarchy of needs).Multiple needs can be operative at one time (there is no absolute hierarchy of needs). If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression). The ERG Theory (Alderfer) –People’s needs are grouped into three overlapping categories—existence, relatedness, and growth. –Maslow’s hierarchy is collapsed into three levels: Existence needs related to physiological and security needs.Existence needs related to physiological and security needs. Relatedness needs that are similar to belongingness and esteem by others.Relatedness needs that are similar to belongingness and esteem by others. Growth needs encompass needs for self-esteem and self- actualization.Growth needs encompass needs for self-esteem and self- actualization. –ERG theory assumes that: Multiple needs can be operative at one time (there is no absolute hierarchy of needs).Multiple needs can be operative at one time (there is no absolute hierarchy of needs). If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).

12. Copyright © by Houghton Mifflin Company. All rights reserved. 16–12 Content Perspectives on Motivation (cont’d) The Two-Factor Theory (Herzberg) –People’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors. –Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums: Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction. Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction. Motivation is a two-step process:Motivation is a two-step process: –Ensuring that the hygiene factors are not deficient and not blocking motivation. –Giving employees the opportunity to experience motivational factors through job enrichment. The Two-Factor Theory (Herzberg) –People’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors. –Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums: Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction. Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction. Motivation is a two-step process:Motivation is a two-step process: –Ensuring that the hygiene factors are not deficient and not blocking motivation. –Giving employees the opportunity to experience motivational factors through job enrichment.

13. Copyright © by Houghton Mifflin Company. All rights reserved. 16–13 The Two- Factor Theory of Motivation Satisfaction No satisfaction Motivation Factors Achievement Recognition The work itself Responsibility Advancement and growth DissatisfactionNo dissatisfaction Hygiene Factors Supervisors Working conditions Interpersonal relations Pay and security Company policies and administration Figure 16.3

14. Copyright © by Houghton Mifflin Company. All rights reserved. 16–14 Content Perspectives on Motivation (cont’d) Individual Human Needs (McClelland) –The need for achievement The desire to accomplish a goal or task more effectively than in the past.The desire to accomplish a goal or task more effectively than in the past. –The need for affiliation The desire for human companionship and acceptance.The desire for human companionship and acceptance. –The need for power The desire to be influential in a group and to be in control of one’s environment.The desire to be influential in a group and to be in control of one’s environment. Individual Human Needs (McClelland) –The need for achievement The desire to accomplish a goal or task more effectively than in the past.The desire to accomplish a goal or task more effectively than in the past. –The need for affiliation The desire for human companionship and acceptance.The desire for human companionship and acceptance. –The need for power The desire to be influential in a group and to be in control of one’s environment.The desire to be influential in a group and to be in control of one’s environment.

15. Copyright © by Houghton Mifflin Company. All rights reserved. 16–15 Process Perspectives on Motivation Process Perspectives –Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals. Process Perspectives of Motivation –Expectancy Theory –Porter-Lawler Extension of Expectancy Theory –Equity Theory –Goal-Setting Theory Process Perspectives –Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals. Process Perspectives of Motivation –Expectancy Theory –Porter-Lawler Extension of Expectancy Theory –Equity Theory –Goal-Setting Theory

16. Copyright © by Houghton Mifflin Company. All rights reserved. 16–16 Process Perspectives on Motivation (cont’d) Expectancy Theory –Motivation depends on how much we want something and how likely we are to get it. –Assumes that: Behavior is determined by a combination of personal and environmental forces.Behavior is determined by a combination of personal and environmental forces. People make decisions about their own behavior in organizations.People make decisions about their own behavior in organizations. Different people have different types of needs, desires, and goals.Different people have different types of needs, desires, and goals. People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.People choose among alternatives of behaviors in selecting one that that leads to a desired outcome. Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees. Expectancy Theory –Motivation depends on how much we want something and how likely we are to get it. –Assumes that: Behavior is determined by a combination of personal and environmental forces.Behavior is determined by a combination of personal and environmental forces. People make decisions about their own behavior in organizations.People make decisions about their own behavior in organizations. Different people have different types of needs, desires, and goals.Different people have different types of needs, desires, and goals. People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.People choose among alternatives of behaviors in selecting one that that leads to a desired outcome. Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.

17. Copyright © by Houghton Mifflin Company. All rights reserved. 16–17 Process Perspectives on Motivation (cont’d) Elements of Expectancy Theory –Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead to a high level of performance.The employee’s perception of the probability that effort will lead to a high level of performance. –Performance-to-Outcome Expectancy The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting. Elements of Expectancy Theory –Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead to a high level of performance.The employee’s perception of the probability that effort will lead to a high level of performance. –Performance-to-Outcome Expectancy The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.

18. Copyright © by Houghton Mifflin Company. All rights reserved. 16–18 Process Perspectives on Motivation (cont’d) Elements of Expectancy Theory (cont’d) –Valence An index of how much an individual values a particular outcome.An index of how much an individual values a particular outcome. It is the attractiveness of the outcome to the individual.It is the attractiveness of the outcome to the individual. –Attractive outcomes have positive valences and unattractive outcomes have negative valences. –Outcomes to which an individual is indifferent have zero valences. –For motivated behavior to occur: Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero. The sum of the valences must be greater than zero.The sum of the valences must be greater than zero. Elements of Expectancy Theory (cont’d) –Valence An index of how much an individual values a particular outcome.An index of how much an individual values a particular outcome. It is the attractiveness of the outcome to the individual.It is the attractiveness of the outcome to the individual. –Attractive outcomes have positive valences and unattractive outcomes have negative valences. –Outcomes to which an individual is indifferent have zero valences. –For motivated behavior to occur: Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero. The sum of the valences must be greater than zero.The sum of the valences must be greater than zero.

19. Copyright © by Houghton Mifflin Company. All rights reserved. 16–19 Process Perspectives on Motivation (cont’d) The Expectancy Model of Motivation Environment MotivationEffortPerformance Ability Outcome Valence OutcomeValence OutcomeValence Figure 16.4

20. Copyright © by Houghton Mifflin Company. All rights reserved. 16–20 Process Perspectives on Motivation (cont’d) The Porter-Lawler Extension of Expectancy Theory –Assumptions: If performance in an organization results in equitable and fair rewards, people will be more satisfied.If performance in an organization results in equitable and fair rewards, people will be more satisfied. High performance can lead to rewards and high satisfaction.High performance can lead to rewards and high satisfaction. –Types of rewards: Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions).Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions). Intrinsic rewards are outcomes that are internal to the individual (e.g., self-esteem and feelings of accomplishment).Intrinsic rewards are outcomes that are internal to the individual (e.g., self-esteem and feelings of accomplishment). The Porter-Lawler Extension of Expectancy Theory –Assumptions: If performance in an organization results in equitable and fair rewards, people will be more satisfied.If performance in an organization results in equitable and fair rewards, people will be more satisfied. High performance can lead to rewards and high satisfaction.High performance can lead to rewards and high satisfaction. –Types of rewards: Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions).Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions). Intrinsic rewards are outcomes that are internal to the individual (e.g., self-esteem and feelings of accomplishment).Intrinsic rewards are outcomes that are internal to the individual (e.g., self-esteem and feelings of accomplishment).

21. Copyright © by Houghton Mifflin Company. All rights reserved. 16–21 Process Perspectives on Motivation (cont’d) The Porter-Lawler Extension of Expectancy Theory Intrinsic rewards (outcomes) Performance Perceived equity Satisfaction Extrinsic rewards (outcomes) Figure 16.5

22. Copyright © by Houghton Mifflin Company. All rights reserved. 16–22 Process Perspectives on Motivation (cont’d) Equity Theory –People are motivated to seek social equity in the rewards they receive for performance. –Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others. –Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people. Equity Theory –People are motivated to seek social equity in the rewards they receive for performance. –Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others. –Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people. outcomes (self) inputs (self) = outcomes (other) inputs (other)

23. Copyright © by Houghton Mifflin Company. All rights reserved. 16–23 Process Perspectives on Motivation (cont’d) Equity Theory (cont’d) –Conditions of and reactions to equity comparisons: Feeling equitably rewarded.Feeling equitably rewarded. –Maintain performance and accept comparison as fair estimate. Feeling under-rewarded—try to reduce inequity.Feeling under-rewarded—try to reduce inequity. –Change inputs by trying harder or slacking off. –Change outcomes by demanding a raise. –Distort the ratios by altering perceptions of self or of others. –Leave situation by quitting the job. –Change comparisons by choosing another object person. Feeling over-rewarded.Feeling over-rewarded. –Increase or decrease inputs. –Distort ratios by rationalizing. –Help the object person gain more outcomes. Equity Theory (cont’d) –Conditions of and reactions to equity comparisons: Feeling equitably rewarded.Feeling equitably rewarded. –Maintain performance and accept comparison as fair estimate. Feeling under-rewarded—try to reduce inequity.Feeling under-rewarded—try to reduce inequity. –Change inputs by trying harder or slacking off. –Change outcomes by demanding a raise. –Distort the ratios by altering perceptions of self or of others. –Leave situation by quitting the job. –Change comparisons by choosing another object person. Feeling over-rewarded.Feeling over-rewarded. –Increase or decrease inputs. –Distort ratios by rationalizing. –Help the object person gain more outcomes.

24. Copyright © by Houghton Mifflin Company. All rights reserved. 16–24 Process Perspectives on Motivation (cont’d) Goal-Setting Theory –Assumptions Behavior is a result of conscious goals and intentions.Behavior is a result of conscious goals and intentions. Setting goals influence the behavior of people in organizations.Setting goals influence the behavior of people in organizations. Characteristics of Goals –Goal difficulty Extent to which a goal is challenging and requires effort.Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals.People work harder to achieve more difficult goals. Goals should be difficult but attainable.Goals should be difficult but attainable. –Goal specificity Clarity and precision of the goal.Clarity and precision of the goal. Goals vary in their ability to be stated specifically.Goals vary in their ability to be stated specifically. Goal-Setting Theory –Assumptions Behavior is a result of conscious goals and intentions.Behavior is a result of conscious goals and intentions. Setting goals influence the behavior of people in organizations.Setting goals influence the behavior of people in organizations. Characteristics of Goals –Goal difficulty Extent to which a goal is challenging and requires effort.Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals.People work harder to achieve more difficult goals. Goals should be difficult but attainable.Goals should be difficult but attainable. –Goal specificity Clarity and precision of the goal.Clarity and precision of the goal. Goals vary in their ability to be stated specifically.Goals vary in their ability to be stated specifically.

25. Copyright © by Houghton Mifflin Company. All rights reserved. 16–25 Process Perspectives on Motivation(cont’d) Characteristics of Goals (cont’d) –Acceptance The extent to which persons accept a goal as their own.The extent to which persons accept a goal as their own. –Commitment The extent to which an individual is personally interested in reaching a goal.The extent to which an individual is personally interested in reaching a goal. Characteristics of Goals (cont’d) –Acceptance The extent to which persons accept a goal as their own.The extent to which persons accept a goal as their own. –Commitment The extent to which an individual is personally interested in reaching a goal.The extent to which an individual is personally interested in reaching a goal.

26. Copyright © by Houghton Mifflin Company. All rights reserved. 16–26 Process Perspectives on Motivation (cont’d) The Expanded Goal-Setting Theory of Motivation Goal-Directed Effort Organizational support Performance Satisfaction Extrinsic Rewards Individual abilities and traits Goal commitment Goal difficulty Goal specificity Intrinsic Rewards Goal acceptance Figure 16.6 Source: Reprinted by permission of the publisher, from Organizational Dynamics, Autumn/1979, copyright © 1979, copyright © 1979 by American Management Association, New York. All rights reserved. (http://www.amanet.org)

27. Copyright © by Houghton Mifflin Company. All rights reserved. 16–27 Reinforcement Perspectives on Motivation Reinforcement Theory –The role of rewards as they cause behavior to change or remain the same over time. –Assumes that: Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated. Reinforcement Theory –The role of rewards as they cause behavior to change or remain the same over time. –Assumes that: Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.

28. Copyright © by Houghton Mifflin Company. All rights reserved. 16–28 Reinforcement Perspectives on Motivation (cont’d) Kinds of Reinforcement in Organizations –Positive reinforcement Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.Strengthens behavior with rewards or positive outcomes after a desired behavior is performed. –Avoidance Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed.Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed. –Punishment Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed. –Extinction Weakens undesired behavior by simply ignoring or not reinforcing that behavior.Weakens undesired behavior by simply ignoring or not reinforcing that behavior. Kinds of Reinforcement in Organizations –Positive reinforcement Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.Strengthens behavior with rewards or positive outcomes after a desired behavior is performed. –Avoidance Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed.Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed. –Punishment Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed. –Extinction Weakens undesired behavior by simply ignoring or not reinforcing that behavior.Weakens undesired behavior by simply ignoring or not reinforcing that behavior.

29. Copyright © by Houghton Mifflin Company. All rights reserved. 16–29 Reinforcement Perspectives on Motivation (cont’d) Providing Reinforcement in Organizations –Reinforcement schedules Fixed interval schedule—reinforcement applied at fixed time intervals, regardless of behavior.Fixed interval schedule—reinforcement applied at fixed time intervals, regardless of behavior. Variable interval—reinforcement applied at variable time intervals.Variable interval—reinforcement applied at variable time intervals. Fixed ratio —reinforcement applied after a fixed number of behaviors, regardless of time.Fixed ratio —reinforcement applied after a fixed number of behaviors, regardless of time. Variable Ratio—reinforcement applied after a variable number of behaviors, regardless of time.Variable Ratio—reinforcement applied after a variable number of behaviors, regardless of time. –Behavior modification (OB mod) A method for applying the basic elements of reinforcement theory in an organizational setting.A method for applying the basic elements of reinforcement theory in an organizational setting. Specific behaviors are tied to specific forms of reinforcement.Specific behaviors are tied to specific forms of reinforcement. Providing Reinforcement in Organizations –Reinforcement schedules Fixed interval schedule—reinforcement applied at fixed time intervals, regardless of behavior.Fixed interval schedule—reinforcement applied at fixed time intervals, regardless of behavior. Variable interval—reinforcement applied at variable time intervals.Variable interval—reinforcement applied at variable time intervals. Fixed ratio —reinforcement applied after a fixed number of behaviors, regardless of time.Fixed ratio —reinforcement applied after a fixed number of behaviors, regardless of time. Variable Ratio—reinforcement applied after a variable number of behaviors, regardless of time.Variable Ratio—reinforcement applied after a variable number of behaviors, regardless of time. –Behavior modification (OB mod) A method for applying the basic elements of reinforcement theory in an organizational setting.A method for applying the basic elements of reinforcement theory in an organizational setting. Specific behaviors are tied to specific forms of reinforcement.Specific behaviors are tied to specific forms of reinforcement.

30. Copyright © by Houghton Mifflin Company. All rights reserved. 16–30 Popular Motivational Strategies Empowerment and Participation –Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. –Participation The process of giving employees a voice in making decisions about their work.The process of giving employees a voice in making decisions about their work. –Areas of Participation for Employees Making decisions about their jobs.Making decisions about their jobs. Decisions about administrative matters (e.g., work schedules).Decisions about administrative matters (e.g., work schedules). Participating in decision making about broader issues of product quality.Participating in decision making about broader issues of product quality. Empowerment and Participation –Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. –Participation The process of giving employees a voice in making decisions about their work.The process of giving employees a voice in making decisions about their work. –Areas of Participation for Employees Making decisions about their jobs.Making decisions about their jobs. Decisions about administrative matters (e.g., work schedules).Decisions about administrative matters (e.g., work schedules). Participating in decision making about broader issues of product quality.Participating in decision making about broader issues of product quality.

31. Copyright © by Houghton Mifflin Company. All rights reserved. 16–31 Popular Motivational Strategies (cont’d) Techniques and Issues in Empowerment –Using work teams Collections of employees empowered to plan, organize, direct, and control their work.Collections of employees empowered to plan, organize, direct, and control their work. –Changing the overall method of organizing the firm by becoming more decentralized. –Conditions necessary for empowerment: Organization must be sincere about spreading power to lower levels.Organization must be sincere about spreading power to lower levels. Organization must be committed to empowering workers.Organization must be committed to empowering workers. Organization must be systematic and patient in its efforts to empower workers.Organization must be systematic and patient in its efforts to empower workers. Organization must be prepared to increase its commitment to training.Organization must be prepared to increase its commitment to training. Techniques and Issues in Empowerment –Using work teams Collections of employees empowered to plan, organize, direct, and control their work.Collections of employees empowered to plan, organize, direct, and control their work. –Changing the overall method of organizing the firm by becoming more decentralized. –Conditions necessary for empowerment: Organization must be sincere about spreading power to lower levels.Organization must be sincere about spreading power to lower levels. Organization must be committed to empowering workers.Organization must be committed to empowering workers. Organization must be systematic and patient in its efforts to empower workers.Organization must be systematic and patient in its efforts to empower workers. Organization must be prepared to increase its commitment to training.Organization must be prepared to increase its commitment to training.

32. Copyright © by Houghton Mifflin Company. All rights reserved. 16–32 Popular Motivational Strategies (cont’d) New Forms of Working Arrangements –Variable Work Schedules Compressed work schedule—Working a full forty-hour week in less than five days.Compressed work schedule—Working a full forty-hour week in less than five days. Flexible work schedules (flextime)—Allowing employees to select, within broad parameters, the hours they will work.Flexible work schedules (flextime)—Allowing employees to select, within broad parameters, the hours they will work. Job sharing—When two part-time employees share one full-time job.Job sharing—When two part-time employees share one full-time job. Telecommuting—Allowing employees to spend part of their time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology.Telecommuting—Allowing employees to spend part of their time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology. New Forms of Working Arrangements –Variable Work Schedules Compressed work schedule—Working a full forty-hour week in less than five days.Compressed work schedule—Working a full forty-hour week in less than five days. Flexible work schedules (flextime)—Allowing employees to select, within broad parameters, the hours they will work.Flexible work schedules (flextime)—Allowing employees to select, within broad parameters, the hours they will work. Job sharing—When two part-time employees share one full-time job.Job sharing—When two part-time employees share one full-time job. Telecommuting—Allowing employees to spend part of their time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology.Telecommuting—Allowing employees to spend part of their time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology.

33. Copyright © by Houghton Mifflin Company. All rights reserved. 16–33 Using Reward Systems to Motivate Performance Reward System –The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. Effects of Organizational Rewards –Effect of Rewards on Attitudes Satisfaction is influenced by how much is received and how much the person thinks should have been received.Satisfaction is influenced by how much is received and how much the person thinks should have been received. Satisfaction is affected by comparison with others.Satisfaction is affected by comparison with others. The rewards of others are often misperceived.The rewards of others are often misperceived. Overall job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards.Overall job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards. Reward System –The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. Effects of Organizational Rewards –Effect of Rewards on Attitudes Satisfaction is influenced by how much is received and how much the person thinks should have been received.Satisfaction is influenced by how much is received and how much the person thinks should have been received. Satisfaction is affected by comparison with others.Satisfaction is affected by comparison with others. The rewards of others are often misperceived.The rewards of others are often misperceived. Overall job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards.Overall job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards.

34. Copyright © by Houghton Mifflin Company. All rights reserved. 16–34 Using Reward Systems to Motivate Performance (cont’d) Effects of Organizational Rewards (cont’d) –Effect of Rewards on Behaviors Extrinsic rewards affect employee satisfaction and reduce turnover.Extrinsic rewards affect employee satisfaction and reduce turnover. Rewards influence patterns of attendance and absenteeism.Rewards influence patterns of attendance and absenteeism. Employees tend to work harder for rewards based on performance.Employees tend to work harder for rewards based on performance. –Effect of Rewards on Motivation Employees will work harder when performance will be measured.Employees will work harder when performance will be measured. Employees will work harder if performance is closely followed by rewards.Employees will work harder if performance is closely followed by rewards. Effects of Organizational Rewards (cont’d) –Effect of Rewards on Behaviors Extrinsic rewards affect employee satisfaction and reduce turnover.Extrinsic rewards affect employee satisfaction and reduce turnover. Rewards influence patterns of attendance and absenteeism.Rewards influence patterns of attendance and absenteeism. Employees tend to work harder for rewards based on performance.Employees tend to work harder for rewards based on performance. –Effect of Rewards on Motivation Employees will work harder when performance will be measured.Employees will work harder when performance will be measured. Employees will work harder if performance is closely followed by rewards.Employees will work harder if performance is closely followed by rewards.

35. Copyright © by Houghton Mifflin Company. All rights reserved. 16–35 Using Reward Systems to Motivate Performance (cont’d) Designing Effective Reward (cont’d) –Reward system must meet an individual’s needs. –Rewards should compare favorably with other organizations. –Distribution of rewards must be perceived to be equitable. –Reward system must recognize different needs. New Approaches –Merit system A reward system whereby people get different pay raises at the end of the year depending on their overall job performance.A reward system whereby people get different pay raises at the end of the year depending on their overall job performance. –Incentive system A reward system whereby people get different pay amounts at each pay period in proportion to what they do.A reward system whereby people get different pay amounts at each pay period in proportion to what they do. Designing Effective Reward (cont’d) –Reward system must meet an individual’s needs. –Rewards should compare favorably with other organizations. –Distribution of rewards must be perceived to be equitable. –Reward system must recognize different needs. New Approaches –Merit system A reward system whereby people get different pay raises at the end of the year depending on their overall job performance.A reward system whereby people get different pay raises at the end of the year depending on their overall job performance. –Incentive system A reward system whereby people get different pay amounts at each pay period in proportion to what they do.A reward system whereby people get different pay amounts at each pay period in proportion to what they do.