1. Ch. 13 Outline Motivating for Performance
Setting Goals
Reinforcing Performance
Performance Related Beliefs
Understanding People’s Needs
Designing Motivating Jobs
Achieving Fairness
Job Satisfaction

2. Motivating for Performance
Motivation refers to forces that energize, direct, and sustain a person’s efforts
Managers must motivate people to
Join the organization
Remain in the organization
Come to work regularly
Perform
Exhibit good citizenship

3. Motivation—An Alternate Definition
The willingness to exert high levels of effort to reach organizational goals conditioned by the effort’s ability to satisfy some individual need.

4. Motivating for Performance
Motivation refers to forces that energize, direct, and sustain a person’s efforts
Managers must motivate people to
Join the organization
Remain in the organization
Come to work regularly
Perform
Exhibit good citizenship

5. Setting Goals
Goal setting is perhaps the most important, valid, and useful single approach to motivating performance
Goal setting theory states that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end
Goal setting works for any job in which people have control over their performance

6. Transformational Leadership
The transformational leader motivates people to transcend their personal interests for the good of the group
The transformational process moves beyond the more traditional transactional approach to leadership
Transactional leaders manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered

7. Goals that Motivate The most powerful goals are meaningful
Goals for noble purposes, that appeal to people’s ‘higher’ values are extra motivating
Goals should be acceptable to employees, that is they do not conflict with personal values
Goals should be challenging but attainable

8. Stretch Goals
Stretch goals are targets that are particularly demanding, sometimes even though to be impossible
There are two types of stretch goals
Vertical stretch goals are aligned with current activities including productivity and financial resources
Horizontal stretch goals involve people’s professional development
Stretch goals can generate a major shift away from mediocrity and toward tremendous achievement

9. Limitations of Goal Setting
If people lack relevant ability and knowledge it might be better to urge them to do their best or set a goal to learn rather than a specific performance level
People focused on their own goals may not help others attain their goals
Goals can generate manipulative game-playing and unethical behavior

10. Reinforcing Performance
The law of effect states that behavior t that is followed by positive consequences will likely be repeated
This concept led to countless investigations into the effects of positive consequences called reinforcers
Reinforcers are positive consequences that motivate behavior

12. Managing Rewards and Punishment
Managers must identify which kinds of behaviors they will reinforce and which they discourage
The reward system has to support the firm’s strategy, defining people’s performance in ways that pursue strategic objectives
Innovative managers use non-monetary rewards including: intellectual challenge, greater responsibility, autonomy, recognition, etc

13. Providing Feedback
Most managers don’t provide enough useful feedback and most people don’t receive or ask for feedback enough
Feedback can com e in many forms
Customers feedback
Statistics on the work performed
Performance reviews
Do not be afraid of receiving feedback; actively seek it
Think: it’s up to me to get the feedback I need so that I can improve my performance and my behavior

14. Performance-Related Beliefs
Expectancy theory states that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome
People develop two important beliefs linking these three events
Expectancy, which links effort to performance
Instrumentality, which links performance to outcomes

15. Performance-Related Beliefs
Expectancy is the employees’ perception of the likelihood that their efforts will enable them to attain their performance goals
Instrumentality is the perceived likelihood that performance will be followed by a particular outcome
Outcome is a consequence a person receives for his or her performance
Valence is the value an outcome holds for the person contemplating it
The first belief, expectancy, is people’s perceived likelihood that their efforts will enable them to attain their performance goals. An expectancy can be high (up to 100 percent), such as when a student is confident that if she studies hard she can get a good grade on the final. An expectancy can also be low (down to a 0 percent likelihood), such as when a suitor is convinced that his dream date will never go out with him. All else equal, high expectancies create higher motivation than do low expectancies. The example about the sales contest illustrates how performance results in some kind of outcome, or consequence, for the person. Actually, it often results in several outcomes. For example, turning in the best sales performance could lead to (1) a competitive victory, (2) the free trip to Hawaii, (3) feelings of achievement, (4) recognition from the boss, (5) prestige throughout the company, and (6) resentment from other salespeople. Instrumentality is the perceived likelihood that performance will be followed by a particular outcome. Like expectancies, instrumentalities can be high (up to 100 percent) or low (approaching 0 percent). For example, you can be fully confident that if you do a good job you’ll get a promotion, or you can feel that no matter how well you do, the promotion will go to someone else. Also, each outcome has an associated valence. Valence is the value the person places on the outcome.

17. Implications of Expectancy Theory for Managers
For motivation to be high, expectancy, instrumentalities, and total valence of all outcomes must all b high
This leads to three management responses
Increase expectancies – provide a work environment that facilitates good performance, and set realistically attainable performance goals
Identify positively valiant outcomes – understand what people want to get out of work
Make performance instrumental toward positive outcomes – follow good performance with positive outcomes

18. Understanding People’s Needs
Content theories are a second type of motivation theory
Content theories indicate the kinds of needs that people want to satisfy
People have different needs energizing and motivating them toward different goals and reinforcers
The ways in which a person’s needs are met, or not met, at work affect his or her behavior on the job
So far we have focused on processes underlying motivation. The manager who appropriately applies goal-setting, reinforcement, and expectancy theories is creating essential motivating elements in the work environment. But characteristics of the person also affect motivation.

19. Maslow’s need Hierarchy
The need hierarchy illustrates Maslow’s conception of people satisfying their needs in a specified order from bottom to top
1. Physiological (food, water, sex, and shelter).
2. Safety or security (protection against threat and deprivation).
3. Social (friendship, affection, belonging, and love).
4. Ego (independence, achievement, freedom, status, recognition, and self-esteem).
5. Self-actualization (realizing one’s full potential, becoming everything one is
capable of being).

20. Alderfer’s ERG Theory
This is a human needs theory developed by Alderfer postulating that people have three basic sets of needs which can operate simultaneously
Existence needs are all material and physiological desires
Relatedness needs involve relationships with other people
Growth needs motivate people to productively or creatively change themselves or their environment
ERG theory proposes that several different needs can be operating at once. Thus, whereas Maslow would say that self-actualization is important to people only after other sets of needs are satisfied, Alderfer maintains that people—particularly working people in our postindustrial society—can be motivated to satisfy both existence and growth needs at the same time. Maslow’s theory is better known to American managers than Alderfer’s, but ERG theory has more scientific support. Both have practical value in that they remind managers of the types of reinforcers or rewards that can be used to motivate people. Regardless of whether the manager prefers the Maslow or the Alderfer theory of needs, he or she can motivate people by helping them satisfy their needs, and particularly by offering opportunities for self-actualization and growth.

21. Designing Motivating Jobs
Managers should design their organizations around both intrinsic and extrinsic motivators that matter to the organizational members
Extrinsic rewards are given to a person by the boss, the company, or some other person
Intrinsic rewards are derived directly from performing the job itself
Intrinsic rewards are essential to the motivation underlying creativity. A challenging problem, a chance to create something new, and work that is exciting in and of itself can provide intrinsic motivation that inspires people to devote time and energy to the task. So do managers who allow people some freedom to pursue the tasks that interest them most. The opposite situations result in routine, habitual behaviors which interfere with creativity.66 A study in manufacturing facilities found that employees initiated more applications for patents, made more novel and useful suggestions, and were rated by their managers as more creative when their jobs were challenging and their managers did not control their activities closely.67 On the other hand, some jobs and organizations create environments that quash creativity and motivation.

22. Job Rotation, Enlargement, and Enrichment
Job rotation allows workers who spend all their time in one routine task move from one task to another
Job enlargement is similar to job rotation in that people are given different tasks to do; however job enlargement means that the worker has multiple tasks at the same time
Job enrichment means that jobs are restructured or redesigned by adding higher levels of responsibility

23. Herzberg’s Two Factor Theory
The two factor theory distinguished between two broad categories of factors that affect people working on their jobs
Hygiene factors are characteristics of the workplace
Motivators describe the job itself, that is, what people do at work
The first category, hygiene factors, are characteristics of the workplace: company policies, working conditions, pay, coworkers, supervision, and so forth. These factors can make people unhappy if they are poorly managed. If they are well managed, and viewed as positive by employees, the employees will no longer be dissatisfied. However, no matter how good these factors are, they will not make people truly satisfied or motivated to do a good job. According to Herzberg, the key to true job satisfaction and motivation to perform lies in the second category: the motivators. The motivators describe the job itself, that is, what people do at work. Motivators are the nature of the work itself, the actual job responsibilities, opportunity for personal growth and recognition, and the feelings of achievement the job provides. When these factors are present, jobs are presumed to be both satisfying and motivating for most people.

24. Herzberg’s Two-Factor Theory
Hygiene Factors
Motivational Factors
Working conditions
Pay and security
Company policies
Supervisors
Interpersonal relations
Achievement
Recognition
Responsibility
Work itself
Personal growth
Frederick Herzberg asked workers to describe situations in which they felt either good or bad about their jobs. His findings are called motivation-hygiene theory.
What Herzberg called hygiene factors are associated with dissatisfying experiences. The potential sources of dissatisfaction include working conditions, company policies, and job security. Management can lessen worker dissatisfaction by improving hygiene factors that concern employees, but such improvements seldom influence satisfaction. On the other hand, managers can help employees feel more motivated and, ultimately, more satisfied by paying attention to motivators such as achievement, recognition, responsibility, and other personally rewarding factors.
Herzberg’s theory is related to Maslow’s hierarchy of needs: The motivators closely resemble the higher-level needs, and the hygiene factors resemble the lower-level needs.
High
Job Dissatisfaction
Job Satisfaction
High