1. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-1 Essentials of Organizational Behavior, 10/e Stephen P. Robbins & Timothy A. Judge Chapter 5 Motivation Concepts

2. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-2 After studying this chapter, you should be able to: 1.Describe the three key elements of motivation. 2.Identify four early theories of motivation and evaluate their applicability today. 3.Compare and contrast goal-setting theory and self- efficacy theory. 4.Demonstrate how organizational justice is a refinement of equity theory. 5.Apply the key tenets of expectancy theory to motivating employees. 6.Explain to what degree motivation theories are culture bound.

3. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-3 What Is Motivation? The processes that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a organizational goal  Intensity – the amount of effort put forth to meet the goal  Direction – efforts are channeled toward organizational goals  Persistence – how long the effort is maintained

4. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-4 Early Theories of Motivation Maslow’s Hierarchy of Needs Theory McGregor’s Theory X and Theory Y Herzberg’s Two-Factor (Motivation-Hygiene) Theory McClellan’s Theory of Needs (Three Needs Theory)

5. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-5 Maslow’s Hierarchy of Needs Theory Self-ActualizationEsteemSocialSafetyPsychological Upper Lower

6. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Hierarchy of Five Needs Psychological – Includes hunger, thirst, shelter and other bodily needs. Safety – Includes security and protection from physical and emotional harm. Social – Includes affection, belongingness, acceptance and friendship. Esteem – Internal - Self respect,autonomy - external – Status,recognition Self actualization – Growth, self fullfillment 5-6

7. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Motivation according to this Theory Motivation is done by identifying the level of hierarchy in which the person is currently in and focus on satisfying the needs at or above level. Psychology and safety needs – low order Social,esteem and selfactualization – high order 5-7

8. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-8 Douglas McGregor’s X & Y Inherent dislike for work and will attempt to avoid it Must be coerced, controlled or threatened with punishment Employees avoid responsibility and seek formal direction Most workers place security as high priority View work as being as natural as rest or play Will exercise self-direction and self-control if committed to objectives Average person can learn to accept responsibility The ability to make innovative decision is widely dispersed Theory XTheory Y

9. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Douglas McGregor’s X & Y Theory X assumes lower –order needs dominate individuals Theory Y assumes that high order needs dominate individuals. Motivation is maximized by participative decision making, responsible and challenging jobs, good group relations 5-9

10. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Herzberg’s Two Factor Theory Individual’s relation to work is the basic and one’s attitude to work can determine success or failure. Investigation was made “what people want from their jobs?” People were surveyed on the situations at which they felt good or bad about their jobs. 5-10

11. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Some Points : Satisfied people pointed out intrinsic factors such as advancement,recognition and responsibility. Dissatisfied respondents – tended to cite factors like supervision,pay and working condition. The removal of dissatisfying characteristic from job does not necessarily make job satisfying. The removal of satisfying characteristic from job does not necessarily make job dissatisfying The opposite of satisfaction “no satisfaction” and the opposite of dissatisfaction is “no satisfaction” 5-11

12. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-12 Herzberg’s Two-Factor Theory Quality of supervisionQuality of supervision PayPay Company policiesCompany policies Physical working conditionsPhysical working conditions RelationshipsRelationships Job securityJob security Quality of supervisionQuality of supervision PayPay Company policiesCompany policies Physical working conditionsPhysical working conditions RelationshipsRelationships Job securityJob security Hygiene Factors Dissatisfied Not Dissatisfied Promotional opportunitiesPromotional opportunities Opportunities for personal growthOpportunities for personal growth RecognitionRecognition ResponsibilityResponsibility AchievementAchievement Promotional opportunitiesPromotional opportunities Opportunities for personal growthOpportunities for personal growth RecognitionRecognition ResponsibilityResponsibility AchievementAchievement Motivation Factors Satisfied Not Satisfied

13. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Hygiene factors which affect dissatisfaction Quality of supervision. Company policies Physical working conditions Relations with others Job security When the above factors are adequate people will not be dissatisfied 5-13

14. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-14 McClelland's Theory of Needs Need for Achievement (nAch) The drive to excel to achieve in relation to a set of standards to strive to succeed Need for Power (nPow) The need to make others behave in a way they would not have behaved otherwise Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships

15. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-15 McClelland's High Achievers High achievers prefer jobs with:  Personal responsibility  Feedback  Intermediate degree of risk (50/50) High achievers are not necessarily good managers High nPow and low nAff is related to managerial success

16. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall nPow The need for power nPow is the desire to have impact to be influential and in control of others. Individuals with high nPow enjoy being in charge, strive for influence over others,prefer to be placed into competitive situations. More concerned with prestige and gaining influence with others. 5-16

17. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Affialitaion - nAff Individuals with high affiliation strive for friendship,prefer cooperative situations rather than competitive ones and desire relationships that involve high degree of mutual understanding. 5-17

18. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Relationship between Achievement and Job Performance High achievers are successful in entrepreneurial efforts. High need to achieve are not good managers. They are more interested in how well they do rather than others. Sales people high in nAch do not necessarily make good sales managers and general manager in an organization does not have high nAch. The needs for affiliation and power tend to be closely related to managerial success.Best managers are high in nPow and low in nAff. Jobs that call for high achiever – management select person with High nAch. 5-18

19. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-19 Contemporary Theories of Motivation Cognitive Evaluation Theory Goal-Setting Theory  Management by Objectives Self-Efficacy Theory Equity Theory Expectancy Theory

20. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-20

21. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-21 Cognitive Evaluation Theory Proposes that the introduction of extrinsic rewards for work (pay) that was previously intrinsically rewarding tends to decrease overall motivation Verbal rewards increase intrinsic motivation, while tangible rewards undermine it

22. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Cont… If pay or extrinsic rewards are motivators they should be made contingent (dependent) on a individuals performance. Cognitive evaluation theorists argue that this will reduce the internal satisfaction that individual receives from doing a job. If cognitive evaluation theory is right then pay the employee : not to reduce their intrinsic motivation 5-22

23. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Cont… Organization gives extrinsic rewards such as pay and promotions and verbal rewards to stimulate workers performance. Verbal rewards increase the intrinsic motivation. Managers should provide intrinsic rewards in addition to extrinsic – making work more interesting and support employee growth. 5-23

24. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-24 Goal-Setting Theory Goals increase performance when the goals are:  Specific  Difficult, but accepted by employees  Accompanied by feedback (especially self- generated feedback) Contingencies in goal-setting theory:  Goal Commitment – public goals better!  Task Characteristics – simple & familiar better!  National Culture – Western culture suits best!

25. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-25 Management by Objectives (MBO) Converts overall organizational objectives into specific objectives for work units and individuals Common ingredients:  Goal specificity  Explicit time period  Performance feedback  Participation in decision making

26. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Management By Objectives It emphasizes participatively setting goals that are tangible,verifiable and measurable. Converting overall organzational objective into specific ones. Objectives cascade down the organization. MBO works from bottom up as well as top down. The result is hierarchy that links objectives at one level to the next level. 5-26

27. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall When MBO works and does not work MBO works in many business, educational, government and non profit organization. When MBO doesn’t work is  Unrealistic expectation regarding results  Lack of commitment by Top Management  An ability or unwillingness by management to allocate rewards based on goal accomplishment. 5-27

28. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-28 Self-Efficacy or Social Learning Theory Individual’s belief that he or she is capable of performing a task Low self efficacy –give up the task altogether. High self efficacy – Try harder to master the challenge Respond to negative feedback with increased efforts

29. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Ways to increase self efficacy Self-efficacy increased by:  Enactive mastery – gain experience  Vicarious modeling – see someone else do the task  Verbal persuasion – someone convinces you that you have the skills  Arousal – get energized 5-29

30. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-30 Equity Theory Employees weigh what they put into a job situation (input) against what they get from it (outcome). They compare their input-outcome ratio with the input-outcome ratio of relevant others. Your Output Your Input My Output My Input

31. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Equity Equity is said to exist if our ratio is equal to that of the relevant others with whom we compare ourselves. We perceive our situation as fair if justice prevails. When we see the ratio as unequal we experience equity tension. Under rewarded – tension creates anger Over rewarded – tension creates guilt Negative state of tension provides the motivation to do something to correct it. 5-31

32. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-32 Equity Theory and Reactions to Inequitable Pay Employees are: Paid by: PieceTime Over-Rewarded Will produce fewer, but higher- quality units Will produce more Under- Rewarded Produce large number of low quality units Produce less output or output of poorer quality Employee reactions in comparison to equitably-paid employees

33. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall The referent Comparisons Self inside – An employee’s experience in a different positions in the organization Self outside – An employee’s experiences in a situation or position outside the employee’s organization. Other –inside – Another individual or group of individual inside employee’s organization. Other –outside - Another individual or group of individual outside employee’s organization 5-33

34. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Four Moderating Variables Gender – People make comparisons with same sex. Women paid less than men.Women have less low pay expectations than men. Length of tenure – Employees with short tenure have little info about others in organization and tend to make comparison with self. Level in the organization – Upper level employees have better information about other people in the same level in other organization. Amount of education or professionalism – Like upper level employees people with high level of education make comparison with other outside companies. 5-34

35. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Theory Establishes Following Propositions Given Payment by time, over rewarded employees will produce more than will equitably paid employees. Given payment by quantity of production- over rewarded employees will produce fewer but higher quality units than will equitably paid employees. Given payment by time, under rewarded employees will produce less or poorer quality of output. Given payment by quantity of production under rewarded employees will produce a large number of low quality units in comparison with equitably paid employees. 5-35

36. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Equity Theory Focusses On… Distributive Justice – Employee’s perceived fairness of the amount and allocation of rewards among individuals. Organizational Justice – overall perception of what is fair in the workplace. Fairness is subjective – if one person feels its fair another feels its unfair. The other key element of organizational justice is the view that justice is multidimensional 5-36

37. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 2.Procedural Justice- The process used to determine the distribution of reward.Two key elements-  Process control – The opportunity to present one’s point of view about desired outcomes to decision makers.  Explanations – clear reason given by management for outcomes. 3.Interactional Justice - Individual’s perception of the degree to which he or she is treated with dignity, concern and respect. 5-37

38. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall Oucomes of Theory Distributive justice is more strongly related to satisfaction with outcomes and organizational commitment. Procedural justice relates to job satisfaction, employee trust, withdrawal from organization, job performance and citizenship behavior. 5-38

39. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-39 Equity Theory: Forms of Justice

40. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-40 Expectancy Theory Three key relationships: 1.Effort-Performance: perceived probability that exerting effort leads to successful performance 2.Performance-Reward: the belief that successful performance leads to desired outcome 3.Rewards-Personal Goals: the attractiveness of organizational outcome (reward) to the individual

41. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-41 Global Implications Are motivation theories culture-bound?  Most were developed for and by the United States  Goal-setting and expectancy theories emphasize goal accomplishment and rational individual thought  Maslow’s Hierarchy may change order  McClelland's nAch presupposes acceptance of a moderate degree of risk concern for performance  Equity theory closely tied to American pay practices  Hertzberg’s two-factor theory does seem to work across cultures

42. Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 5-42