1. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 CHAPTER 12 Work Motivation and Rewards Management and Organisational Behaviour 7th Edition

2. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.2 The meaning of motivation The driving force within individuals by which they attempt to achieve some goal in order to fulfil some need or expectation The degree to which an individual wants and chooses to engage in certain behaviour

3. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.3 Common characteristics underpinning definitions of motivation Motivation is typified as an individual phenomenon Motivation is described, usually, as intentional Motivation is multifaceted The purpose of motivational theories is to predict behaviour Mitchell

4. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.4 A basic motivational model Figure 12.1

5. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.5 Intrinsic & extrinsic motivation Extrinsic motivation Related to tangible rewards, e.g. salary, security, promotion, conditions of work Intrinsic motivation Related to psychological rewards, e.g. a sense of challenge and achievement, receiving appreciation

6. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.6 Higher set of motivational needs system Attachment / affiliation – the need for engagement & sharing, a feeling of community and a sense of belonging Exploration / assertion – the ability to play & work, a sense of fun & enjoyment, the need for self-assertion & the ability to choose Kets de Vries

7. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.7 Broad classification for motivation at work Economic rewards – such as pay, fringe benefits, pension rights, security (instrumental orientation) Intrinsic satisfaction – derived from the nature of work itself (personal orientation) Social relationships – such as friendships, group working, status & dependency (relational orientation)

8. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.8 The needs & expectation of people at work Figure 12.2

9. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.9 Culture & motivating factors Identification Equity Equality Consensus Instrumentality Rationality Development Group dynamics Internalisation Cartwright

10. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.10 A basic model of frustration Figure 12.3

11. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.11 Factors influencing frustration The level & potency of need The degree of attachment to the desired goal The strength of motivation The perceived nature of the barrier or blocking agent The personality characteristics of the individual

12. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.12 Ways managers can reduce potential frustrations Effective recruitment, selection & socialisation Training & development Job design & work organisation Equitable personnel policies Recognition & rewards Effective communications Participative styles of management Attempting to understand the individual’s perception of the situation

13. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.13 Money as a motivator Rational – economic concept Taylor asserted that what workers wanted from employers was high wages ‘Theory M’ (Weaver) – based on direct cash rewards for above average performance In a survey of HR managers 62% of respondents had a problem retaining minimum wage workers strictly on pay. Other incentives were needed to keep workers in a job

14. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.14 Motivation other than money Historically loyalty was bought & employees offered gradual progression up the hierarchy, a decent salary & job security in return for a hard day’s work Increasingly motivation is based on values rather than purely a financial reward Grayson & Hodges

15. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.15 Main theories of work motivation Figure 12.4

16. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.16 Maslow’s hierarchy of needs Figure 12.5

17. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.17 Relating Maslow’s model to work situations There are a few problems doing this – People do not necessarily satisfy their needs, especially higher-level needs, just through work There is doubt about the time that elapses between satisfying lower-level & emergence of higher-level needs Some rewards or outcomes may satisfy more than one need The motivating factors may not be the same for each person

18. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.18 Applying Maslow’s hierarchy Table 12.1 Source: Steers, R.M. and Porter, L.W., Motivation and Work Behaviour, Fifth edition, McGraw-Hill (1991) p.35. Reproduced with permission from The McGraw-Hill Companies Inc.

19. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.19 Applying Maslow’s hierarchy Table 12.1 Source: Steers, R.M. and Porter, L.W., Motivation and Work Behaviour, Fifth edition, McGraw-Hill (1991) p.35. Reproduced with permission from The McGraw-Hill Companies Inc.

20. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.20 Alderfer’s modified approach Existence needs – concerned with sustaining human existence & survival and covers physiological & safety needs of a material nature Relatedness needs – concerned with relationships to the social environment and covers love or belonging, affiliation, and meaningful interpersonal relationships Growth needs – concerned with the development of potential and covers self-esteem & self-actualisation

21. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.21 Herzberg – two factor theory Figure 12.6

22. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.22 McClelland’s achievement motivation theory Based on four arousal-based & socially developed motives – Achievement Power Affiliative Avoidance

23. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.23 Stages in developing achievement drive Striving to attain feedback on performance Developing models of achievement by seeking to emulate people who have performed well Attempting to modify self-image & to see themselves as needing challenges & success Controlling day-dreaming & thinking about themselves in more positive terms McClelland

24. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.24 Process theories of motivation Expectancy-based models – Vroom and Porter & Lawler Equity theory – Adams Goal theory – Locke Attribution theory – Heider and Kelley

25. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.25 Basic model of expectancy theory Figure 12.8

26. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.26 Lawler’s expectancy model Figure 12.10

27. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.27 Implications for managers of expectancy theories Managers need to – Use rewards appropriate in terms of individual performance Attempt to establish clear relationships between effort-performance & rewards, as perceived by the individual Establish clear procedures for the evaluation of individual levels of performance Pay attention to intervening variables Minimise undesirable outcomes that may be perceived to result from a high level of performance, e.g. industrial accidents

28. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.28 Behaviour as a consequence of inequity Six broad types of possible behaviour as consequences of inequity – Changes to input levels Changes to outcomes Cognitive distortion of inputs & outcomes Leaving the field Acting on others Adams

29. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.29 Practical implications of equity theory It provides managers with another explanation of how beliefs & attitudes affect job performance It emphasises the need for managers to pay attention to employees’ perceptions of what is fair & equitable Managers benefit by allowing employees to participate in decisions about important work outcomes Kreitner et al.

30. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.30 Practical implications of equity theory Employees should be given the opportunity to appeal against decisions that affect their welfare Employees are more likely to accept & support organisational change when they believe it is implemented fairly Kreitner et al.

31. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 12.31 Locke’s theory of goal setting Figure 12.12