1. Chapter 19 Motivation in Organizations

2. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 2 Learning Outcomes: Motivation in Organizations Relate motivational programs for organizations to the relevant motivational theory. Describe MBO. Explain the significance of recognition programs. Sight the merits of quality circles. Discuss the various variable pay programs. Differentiate between profit sharing and gain sharing.

3. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 3 Motivation in Organizations If you want to motivate people, first think about their needs. Knowing this, how would one go about finding out what your people’s needs are?

4. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 4 Motivational Programs for Organizations Motivational Programs Management by objectives Recognition programs Quality circles Variable pay programs Theory Goal-setting theory Positive reinforcement Participative management Expectancy theory and Equity theory

5. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 5 Management by Objectives MBO is a motivational program based on goal setting. The goal(s) should: be mutually agreed upon. be difficult, but achievable (realistic). have a defined time frame. be measurable (objective and budgeted). provide means for feedback.

6. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 6 Linking MBO and Goal-Setting Theory Goal-setting theory demonstrates that: hard goals result in a higher level of individual performance. specific hard goals, when accepted and achievable, result in a higher level of performance than do no goals or generalized goals. feedback, positive or negative, on one’s performance leads to higher productivity.

7. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 7 Management by Objectives In an MBO program, good goals are SMART goals: Specific Measurable Attainable Results-oriented Time-related

8. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 8 Motivation in Organizations Recognition programs: recognition is one of the most powerful workplace motivators.

9. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 9 Recognition Programs Employee recognition programs are consistent with the reinforcement theory, rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition.

10. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 10 Recognition Programs Employee recognition programs use multiple sources and recognize both individual and team accomplishments. In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money.

11. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 11 Merits of Quality Circles Quality circles or employee involvement programs are forms of participative management and are good ways to get people involved. People are motivated based on their need to belong and socialize with others.

12. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 12 Variable Pay in Organizations Key Point: Variable pay programs convert fixed costs into variable costs. Variable pay programs: piece work plans. commission sales. gain-sharing programs. profit-sharing programs.

13. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 13 Variable-Pay Programs Evidence supports the linkage of variable pay programs with the expectancy theory and the equity theory, especially for operative employees working under piece-rate systems. Group and organization-wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.

14. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 14 Motivating Contingent Workers There is no simple solution to motivating contingent workers. The greatest motivating factor is the opportunity to gain permanent employment. Motivation is also increased if the employee sees that the job he or she is doing for the organization can develop salable skills. Some are motivated by the freedom and work variety that temporary employment provides.

15. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 15 Motivating the Professional The evidence shows professionals being motivated by the work itself. The challenge and problem-solving of the job provide the incentive to perform at a higher level. Professionals like the autonomy to follow their interests and to structure their own work. Reward with educational opportunities. Recognize their contributions.

16. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 16 Summary All of these programs start with the needs of the people that one is trying to motivate. Learn their needs and then design your motivational programs based on these needs.

17. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 17 Summary Management by objectives (MBO) is a motivational program based on the goal-setting theory. A goal that is difficult but achievable, mutually agreed to, specific, and provides feedback will provide stronger motivation than an easy goal such as “do your best.”

18. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 18 Summary Recognition programs provide strong motivational reinforcement in the workplace. Quality circles are a form of participative management based on the theory that workers are more motivated if they can participate in the decisions of the organization. Variable pay programs such as piece work, gain-sharing and profit-sharing offer incentives as a means to motivate workers.