1. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

2. 12 Chapter Motivation McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3. Learning Objectives After reading this chapter, you should be able to: Understand the basic approaches to motivation. Use goal setting to increase employee effort. Improve performance and solve worker performance problems by applying various motivation models. Use reinforcement principles to achieve higher performance. Differentiate between motivation and other possible influences on performance. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

4. Motivation Categories of Theories:  Content theories of motivation seek to understand what underlies and drives motivation  Process theories of motivation seek to understand what steps can be taken to improve and maintain motivation Types of Motivation: Intrinsic motivation- comes from the personal satisfaction of the work itself Extrinsic motivation – comes from the rewards that are linked to job performance, such as a paycheck McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

5. Content View of Motivation Maslow’s Hierarchy of Needs Alderfer’s ERG Theory McClelland’s Need Theory Herzberg’s Two- Factor Theory McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

6. Maslow’sHierarchy of Needs Self-actualization Esteem Needs Social Needs Safety Needs Physiological Needs McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

7. Alderfer’s ERG Theory Existence Growth Relationships McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

8. McClelland’sNeedsTheoryMcClelland’sNeedsTheory Need for Achievement(nAch) Achievement(nAch) Power(nPow) Power(nPow) Affiliation(nAff) Affiliation(nAff) McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

9. Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Career Advancement Personal growth Recognition Responsibility Achievement Career Advancement Personal growth Recognition Responsibility Achievement High Job Dissatisfaction Job Satisfaction 0 McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

10. Process View of Motivation Goal-Setting Theory Equity Theory Reinforcement Theory Expectancy Theory McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

11. Goal-Setting Theory Effective Goals are:  Accepted by employees  Challenging and realistic  Specific, quantifiable, and measurable McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

12. MBO: Cascading of Objectives OrganizationalObjectives DivisionalObjectives DepartmentalObjectives IndividualObjectives The XYZ Company Consumer Products Industrial Products DevelopmentResearchMarketingCustomerServiceSalesProduction McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

13. Equity Theory Personal Outcomes Others’ Outcomes Others’ Outcomes InputsInputs versus McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

14. Inequity occurs when the ratio is not equivalent and creates cognitive dissonance To restore equity, people may use one of the following: :  Reduce inputs by cutting back on the effort, and if the imbalance becomes too great, to leave the firm  Influence the outcome, such as persuade the boss for a raise  Decrease others’ outcomes, such as spread rumors about others  Increase effort level if they think they are getting more than they deserve Equity Theory (continued) McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

15. Reinforcement Theory ConsequencesConsequences RewardsRewards No Rewards PunishmentPunishment BehaviorBehavior ReinforcementReinforcement McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

16. Expectancy Theory of Motivation Expectancies Effort Effortperformance Performance Performanceoutcome Valences Motivation Ability Performance McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

17. Motivation by Design Job Enlargement Job Rotation Job Enrichment Job Characteristics Model McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

18. Applications of Management Perspectives — For the Manager Effective managers understand the factors that influence motivation and use them as levers to energize employees toward organizational goals. Effective motivation requires much more sophistication than kicking workers harder to get more out of them. Long-term effectiveness requires managers to considers the needs and perceptions of workers as well as characteristics of the work environment. Managers should be able to apply the motivation theories to analyze and solve motivation difficulties. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

19. Applications of Management Perspectives — For Managing Team A critical issue is how the teams are structured. If the team is given responsibility for a project or area, they can move beyond their individual concerns and be motivated to contribute to the common goal. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

20. Applications of Management Perspectives — For the Individual As individual performers, we should understand our own needs. It is also helpful to clearly understand motivation process in the work environment. It is important to clarify and manage your personal instrumentalities and valences. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.