1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 18 Employee Motivation

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Discuss the nature of human motivation and explain the basic motivational process. Identify important human needs and discuss two theories that attempt to outline the way in which those needs motivate people. Describe employee motivation from the perspectives of expectancy, satisfaction, equity, goal setting, and participation.

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Discuss reinforcement processes, including kinds of reinforcement and schedules of reinforcement. Identify several kinds of rewards, indicate how reward systems can be effective in motivation, and describe several new reward systems.

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Human Motivation Historical Perspectives – Motivation: set of processes that determine behavioral choices. – Traditional view: employees worked only for economic reasons.

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Human Motivation Historical Perspectives – Human relations view: social forces primary determinants of motivation. – Human resources view: people resources (assets) that can benefit organization.

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Human Motivation

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Important Human Needs The Need Hierarchy – Maslow’s need hierarchy (Figure 18-3): humans have variety of different needs. Physiological Security Social Esteem Self-actualization

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Important Human Needs

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Important Human Needs Affiliation, Achievement, and Power – Affiliation need: work with others, make friends in workplace, socialize. – Achievement need: excel or accomplish some goal or task more effectively than in past. – Power need: desire to control situation and behavior of others.

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complex Models of Employee Motivation The Expectancy Model – Motivation: function of how much we want something and how likely we are to get it. – Motivation leads to effort and with ability and environmental forces leads to performance. – Performance has multiple outcomes. – Employee must choose how much effort to exert.

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complex Models of Employee Motivation Performance and Satisfaction – Performance rewarded leads to satisfaction. – Performance occurs before satisfaction. – Performance, through reward system, leads to satisfaction rather than reverse. – Raises notion of equity.

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complex Models of Employee Motivation Equity in the Workplace – Equity means fairness; major factor in determining employee motivation. – Employees contribute education, experience, expertise, time, effort. – In return, they receive pay, security, recognition. – For equity to exist, people must perceive that proportion of all rewards and contributions equal.

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complex Models of Employee Motivation Goal Setting Theory – Goal setting: way to increase employee motivation. – Goals specific and moderately difficult. – Important part of motivational process.

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complex Models of Employee Motivation High-Involvement Management – When employees given greater voice in how things are done they: Become more committed to goals of organization Are willing to make greater contributions to success of business. – Involves total approach. – Way of tapping potential in diverse organizations.

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reinforcement Processes Kinds of Reinforcement – Future behavior shaped by consequences of current behavior. – Positive reinforcement: reward, or desirable outcome, given after particular behavior. – Avoidance or negative reinforcement: increases likelihood that someone will repeat a desirable behavior, but uses different perspective.

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reinforcement Processes Kinds of Reinforcement – Extinction: used to weaken behavior, especially behavior previously reinforced. – Punishment: used to change behavior; reprimands, discipline, fines.

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reinforcement Processes Schedules of Reinforcement – Continuous reinforcement – Fixed-interval – Variable-interval – Fixed-ratio – Variable-ratio

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reward Systems and Motivation Kinds of Rewards – Reward: anything organization provides in exchange for services. – Base pay, benefits, holidays; not tied to performance. – Pay increases, incentives, bonuses, promotions, status symbols, attractive job assignments; rewards in truest sense.

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reward Systems and Motivation Effective Reward Systems – Satisfy basic needs of employees. – Comparable to those other organizations offer. – Distributed in fair and equitable fashion. – Multifaceted. See Table 18.1: Characteristics of Effective Reward Systems.

20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reward Systems and Motivation New Reward Systems – Tie pay more directly to performance. – All-salaried workforce. – Skill-based job evaluation systems.

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. An Integrated View Manager determines if employees have knowledge, skills, abilities to do their jobs. If not, training provided. Manager looks into reward structure to understand if rewards employees receiving are meaningful to them. – See Figure 18.10: The motivation process in organizations.

22. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Motivation: set of processes that determine behavioral choices. Motivation begins with needs, drives, forces that initiate behavior. Existence of needs leads to efforts to satisfy those needs. Early theories emphasized needs and need hierarchy; limited value to practicing managers.

23. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Dominant theory today: expectancy model. Holds that motivation function of how much we want something and how likely we think we are to get it. Satisfaction does not cause performance. Performance properly rewarded leads to satisfaction; key element is equity.

24. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Goal setting and high-involvement management ingredients in motivation. Reinforcement processes: future behavior shaped by consequences of current behavior. Four kinds of reinforcement: – Positive reinforcement – Avoidance – Extinction – Punishment

25. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Rewards both extrinsic and intrinsic. Effective reward system has four characteristics: – Satisfy basic needs. – Comparable to those used elsewhere. – Distributed equitably. – Multifaceted.