1. MotivationMotivation Initiation / Arousal Arousal Effort / Persistence PersistenceDirectionDirection

2. CATEGORIES OF MOTIVATION THEORIES n Content (Need) Theories n Reinforcement Theory n Process Theories

3. Alderfer’s ERG Theory Maslow’s Need Hierarchy Content Theories of Motivation Self- Actualization Esteem Belongingness Safety Physiological Growth Relatedness Existence Herzberg’s Theory Motivators HygieneFactors Need for Achievement Need for Power Affiliation McClelland’s Learned Needs

4. Extrinsic and Intrinsic Rewards n Extrinsic Rewards u Tangible and visible to others u Have limitations n Intrinsic Rewards u Natural rewards from performing the task

5. Self Actualizatio n Needs Esteem Needs Belongingness Needs Safety Needs Physiological Needs Maslow’s Needs Hierarchy Challenging projects, opportunities for innovation and creativity, training Important projects, recognition, prestigious office location Good coworkers, peers, superiors, customers Job security; benefits, like life insurance; safety regulations Basic pay, work space, heat, water, company cafeteria Potential Means of Fulfillment at work

6. MASLOW’S HIERARCHY Country Differences n Self-Actualization u Highest in U.S., Hong Kong, India n Security u Highest in Germany, Mexico, Japan n Social u Highest in Sweden, Singapore n Security and Social u Tied for highest in France, Chile

7. GROWTHNEEDS RELATEDNESSNEEDS EXISTENCENEEDS Satisfaction-ProgressionPrinciple ALDERFER’S ERG THEORY Frustration-RegressionPrinciple

8. HERZBERG’S TWO FACTOR THEORY Resolve Dissatisfaction Promote Satisfaction Hygiene Factors Motivators Pay Working Conditions Supervisors Company Policies BenefitsAchievementResponsibility Work itself Recognition Growth & Achievement Neutral (neither dissatisfied nor satisfied)

9. Herzberg’s Findings 010 20 30 40504050 Achievement Recognition Work itself Responsibility Advancement Growth Motivators Hygiene Factors Company Policy & Administration Supervision Relationship with supervisor Work conditions Pay

10. Why Workers Quit n Limited Advancement Potential - 41% n Lack of Recognition - 25% n Low Salary / Benefits - 15% (USA Today - 12-16-98)

11. McCLELLAND’S ACQUIRED NEEDS - Successful Top Executives: NEED LEVEL NEED LEVEL Achievement Moderate Affiliation Low Power High

12. McCLELLAND’S ACQUIRED NEEDS n High Achievers Prefer: u Personal Responsibility u High Feedback u Moderate Risks n Those High in Power Motive: u Take High Risks

13. MAJOR ELEMENTS OF REINFORCEMENT THEORY n Stimulus u Supervisor requests faster work n Response u Employee increases or decreases speed or does nothing n Consequence u Positive Reinforcement, Negative Reinf. (Avoidance), Extinction, Punishment

14. BEHAVIORAL CONSEQUENCES To Motivate Employees to Continue Desired Behaviors To Motivate Employees to Cease Undesirable Behaviors Positive Reinforcement (Good outcome if you continue) Negative Reinforcement (Bad outcome if you don’t continue) Extinction (No outcome whether you continue or not) Punishment (Bad outcome if you don’t stop)

15. PositiveReinforcement NegativeReinforcementPunishment EncouragesImmaturity Effect on Maturity/Development IncreasesBehavior Effect on Behavior CONSEQUENCES OF BEHAVIOR Extinction Encourages Maturity Decreases Behavior

16. APPLICATIONS OF REINFORCEMENT THEORY n Pay for Performance (Merit Pay) n Gain Sharing n Employee Stock Ownership Plans (ESOPs) n Pay for Knowledge n Organizational Behavior Modification (OB MOD)

17. STEPS IN OB MOD n Before Intervention: u Measure Base Rate u Identify Stimuli and Consequences n Intervention: u Set New Goal u Modify Stimuli and/or Consequences u Reward Progress toward Goal u Extinguish or Punish Competing Behaviors

18. Some Rewards Lower-Level Managers May Control n Recognition, such as letters of appreciation n Invitations to coffee or lunch n Recommendations for pay increases or promotions n Time off n Desirable work assignments

19. How to Effectively Shape Behavior with Reinforcement  Define desired behavior patterns specifically.  Measure performance accurately.  Reinforce behavior as quickly as possible.  Use valued reinforcement. n Give individual rewards for independent jobs. n Give team rewards for interdependent jobs. n Beware of unintended consequences (rewarding the wrong thing).

20. PROCESS THEORIES n Goal-Setting Theory n Equity Theory n Expectancy Theory

21. GOAL-SETTING THEORY n Assumes goals are motivating

22. Criteria for Effective Goals n Specific n Measurable n Attainable, but challenging n Relevant n Time-based n Rewards (for achievement)

23. Motivating with Goal-Setting Theory  Make sure workers truly accept organizational goals  Provide frequent, specific performance- related feedback

24. Applying Goal-Setting Theory n Management by Objectives (MBO) Setting goals Setting goals Developing action plans Developing action plans Reviewing progress Reviewing progress Appraising overall performance Appraising overall performance

25. Benefits of MBO n Clarity (people know what to do) n Commitment (are motivated to do it) n Coordination (people work toward same things) n Fairness (objective evaluations)

26. Limitations of MBO n Difficulty choosing relevant, measurable goals n Rigidity (sometimes need to change goals) n People skills required n Time required n Paperwork n Frequently “sold” as a cure-all

27. EXPECTANCY THEORY n Analyzes the parts of the Motivation Process that the Leader must attend to (cf., Path-Goal Theory of Leadership) n Has the greatest Breadth of popular motivation theories

28. EXPECTANCY THEORY E P (Expectancy) What is the probability that I can perform at the required level if I try? P O (Intrumentality) What is the probability that my good performance will lead to desired outcomes? Valence What value do I place on the potential outcome? EffortPerformance Outcomes

29. MULTIPLICATIVE RELATIONSHIP If any of the three (Expectancy, Instrumentality, or Valence) equal Zero, then there is No Motivation.

30. Applying Expectancy Theory n Increase Expectancy: u Enhance employees’ skills u Build up employees’ confidence n Increase Instrumentality u Clearly link rewards to performance n Increase Valences u Find out what employees want from their jobs

31. EQUITY THEORY n Unique in viewing motivation as affected by Comparisons to other people. n We expect the Ratio of our Outcome to Input to be equivalent to that of others. n We are Motivated to correct inequity.

32. Equity Theory Concepts n Inputs u employee contributions to the organization n Outcomes u rewards employees receive from the organization n Referents u comparison others n Outcome/input (O/I) ratio Outcomes self Inputs self Outcomes other Inputs other =

33. Consequences Of Inequity PerceivedInequity Dissatisfaction Under-reward Motivation to Change Tension Anger Over-reward Tension Guilt

34. How People React to Perceived Inequity n Reduce inputs n Increase outcomes n Rationalize inputs or outcomes n Change the referent person n Leave

35. Applying Equity Theory  Look for and correct major inequities  Change outcomes given  Have employees change input  Make sure processes are fair:  Distributive Justice  The perceived fairness of how resources and rewards are distributed. (Do people get what they deserve?)  Procedural Justice  The perceived fairness of the process and procedures used to make allocation decisions. (Are the rules fair? Are they followed? Are decisions unbiased? Are they made without errors?)

36. Possible Sources of Dissatisfaction with Assembly Line Jobs in an Auto Plant Repetitiveness Involvement with only a Portion of the Total Production Cycle Limited Social Interaction with Others in the Workplace Lack of Control over the Job Physical Discomfort

37. Approaches to Job Design n Biological u Make work safe, comfortable n Perceptual/Motor u Design equipment, layout, etc. to fit humans n Mechanistic u Job Simplification n Motivational u Make work more satisfying (Intrinsic motiv.) F Rotation, Enlargement F Enrichment - incorporates high-level motivators into work.

38. WorkmotivationGrowthsatisfactionGeneralsatisfactionWorkeffectiveness Job Characteristics Model Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness AutonomyResponsibility Individualdifferences CriticalPsychologicalStates Core Job CharacteristicsOutcomes

39. Job Enrichment Techniques n Increase Job Demands n Provide New Learning Experiences n Assign Responsibility for Clients or Customers rather than specialized tasks n Provide Work Scheduling Freedom n Provide Feedback, including opportunity to check one’s own work

40. Implementing Job Enrichment n Training is typically needed n Short-term performance declines are normal Dangers in Job Enrichment n Some people have low “Growth Need Strength” n Employees may expect higher pay

41. Comparing Techniques is Difficult n MBO, Job Design, OB Mod all can increase: u Clarity of Goals u Feedback u Rewards

42. MAJOR IMPLICATIONS OF MOTIVATION THEORIES n Set Challenging, but Attainable Goals n Train and Encourage People n Provide Valued Extrinsic and Intrinsic Rewards u Recognize Individual Differences u Watch for Changes in an Individual’s Motives n Use Mainly Positive Reinforcement n Distribute Rewards Equitably.