1. Managing People in Organisations Week 7 Motivation – Process Theories

2. September 2005Managing People in Organisations2 Learning Objectives Students will be able to: Describe the major process theories of motivation Explain the relationship between motivation and employee performance Discuss the dilemmas and difficulties facing managers in applying motivation theory to a work setting Evaluate the usefulness of McGregor's Theory X and Theory Y & Ouchi’s Theory Z

3. September 2005Managing People in Organisations3 Process Theories of Motivation A process theory definition of motivation: –“To motivate a worker involves that person in decision making through which the individual desires outcomes, and sets in motion the behaviours appropriate to acquiring them.”

4. September 2005Managing People in Organisations4 Process Theories of Motivation Content Theories Deal with job content Asserts people are motivated by needs Treat everyone alike Process Theories Deal with the process of motivation Asserts that people are motivated by expectations Every individual is different

5. September 2005Managing People in Organisations5 Process theories Expectancy theory Victor Vroom Lyman Porter & Edward Lawler Equity theory Stacy Adams Goal-setting theory Edwin Locke Additional Perspectives on Motivation –McGregor’s Theory X and Theory Y –Ouchi’s Theory Z

6. September 2005Managing People in Organisations6 Vroom’s expectancy model Vroom (1964) was the first person to link expectancy theory to work motivation This model implies that individual behaviour will be moulded by what is perceived as the available rewards on offer and their importance to the individual

7. September 2005Managing People in Organisations7 Requirement: more money Expectation 1.If I work hard I’ll get more money 2.If I work hard all my boss will do is give me a big smile and pat on the back Predicted outcome 1.I’ll work harder 2.It’s unlikely I’ll work harder (unless I place a high value on smiles)

8. September 2005Managing People in Organisations8 Vroom’s expectancy model Valence – importance (value) of the outcome for the individual Instrumentality – belief that good performance will lead to the achievement of valued rewards Expectancy – the strength of a person’s expectation that behaving in a certain way will produce the desired outcome

9. September 2005Managing People in Organisations9 Expectancy equation Strength of motivation = Expectancy x Instrumentality x Valence F = E x I x V

10. September 2005Managing People in Organisations10 Porter and Lawler Developed Vroom’s into a theory of work motivation Not just motivation that produces performance – there are other variables Performance affects satisfaction

11. September 2005Managing People in Organisations11

12. September 2005Managing People in Organisations12 Expectancy theory v content theory 1.Expectancy theory states that behaviour results from a conscious decision-making process based on expectations, measures as subjective probabilities, that the individual had about the results of different behaviours leading to performance and to rewards 2.Expectancy theory helps to explain individual differences in motivation and behaviour, unlike Maslow’s universal content theory of motivation 3.Expectancy theory provides a basis for measuring the strength of force of the individual’s motivation to behave in particular ways 4.Expectancy theory assumes that behaviour is rational, and that we are conscious of our motives. As we take into account the probable outcomes, expectancy theory attempts to predict individual behaviour

13. September 2005Managing People in Organisations13 Criticisms Complex Based on questionable assumptions Some items overlooked Statistical methods of testing theory of dubious validity

14. September 2005Managing People in Organisations14 Practical managerial consequences Must support link between effort and performance Link must be clear and visible Employees will concentrate on behaviours for which they are rewarded Money in only one motivator

15. September 2005Managing People in Organisations15 Practical managerial consequences (cont'd) Performance standards must be clear and unambiguous Rewards must be valued Consider a ‘flexi’ reward scheme Value of rewards changes over time Consistency important

16. September 2005Managing People in Organisations16 Adam’s equity theory Comparison of own and others’ inputs and outputs Perceived inequity with others Maintenance of current motivation level and work effort Internal tension created Perceived equity with others Balance (equity) restored through: Changes to inputs Changes to outputs Altering perception of equity Leaving situation Influencing others Changing comparators

17. September 2005Managing People in Organisations17 Adam’s equity theory Equality or fairness at work Two forms of equity –Distributive equity –Procedural equity

18. September 2005Managing People in Organisations18 Inequity occurs when: Persons Outcomes< Others Outcomes Persons InputsOther’s Inputs Persons Outcomes> Others Outcomes Persons InputsOther’s Inputs

19. September 2005Managing People in Organisations19 Adam’s equity theory Perceived Inputs Education Social status Organisational position Qualifications How hard the person works Outcomes Pay Status Promotion Satisfaction Job security Fringe benefits

20. September 2005Managing People in Organisations20 strategies to resolve inequity

21. September 2005Managing People in Organisations21 Scenario: you work in the local pub on minimum wage and find that another barperson (Joe Bloggs) earns £1.50 per hour more than you for the same work and the same hours. Using the strategies above, what can you do?

22. September 2005Managing People in Organisations22 Application of strategy Strategy 1.Alter your outcomes 2.Adjust your inputs 3.Alter the comparison person’s outcomes 4.Alter the comparison person’s inputs 5.Compare with someone else 6.Rationalise the inequity 7.Leave Example 1.Persuade manager to increase your pay 2.Don’t work as hard as Joe 3.Persuade manager to cut Joe’s pay 4.Leave the difficult tasks to Joe 5.Z is paid the same as I am 6.Joe has worked here much longer 7.Quit

23. September 2005Managing People in Organisations23 Problems with theory Difficult to weight variables as they are dependent upon individual perception We have individual tolerance levels We behave differently to a perceive inequality The explanation for the inequality will moderate your response

24. September 2005Managing People in Organisations24 Implications for management practice Management must recognise that perceptions of inequality can generate tension. This can occur even where actual inequality is limited Provision of accurate information about rewards is very important

25. September 2005Managing People in Organisations25 Locke’s goal theory Desires and wants Goal deficiency Behavioural response Outcome Feedback Degree of commitment Goals

26. September 2005Managing People in Organisations26 Goal setting theory Improved performance requires: –Challenging goals –Specific goals –Participation in goal-setting –Feedback In modern performance appraisal these ideas have been refined into the so called SMART objectives (Specific, Measurable, Attainable, Realistic, Time-bounded)

27. September 2005Managing People in Organisations27 Issues What degree of subordinate involvement is required in setting goals to achieve optimal results? Need to understand the process through which the behavioural impetus of the employee is maintained once the goals have been agreed Issues such as individual difference, personality, previous experience, etc. are among the factors that could be assumed to have an effect on the validity of the goal- setting model

28. September 2005Managing People in Organisations28 Limitations of the theory Some jobs are not amenable to goal setting Goals are subject to frequent change due to the turbulent operating business environment Goal setting represents an individual level process, but most tasks within an organization require groups of people to co-operate in order to achieve them

29. September 2005Managing People in Organisations29 Additional perspectives on motivation McGregor’s Theory X and Theory Y Ouchi’s Theory Z

30. September 2005Managing People in Organisations30 McGregor’s Theory X and Theory Y

31. September 2005Managing People in Organisations31 Theory X The average worker is inherently lazy The worker lacks ambition, dislikes responsibility and must be led The worker is resistant to change and is indifferent to organisational needs Coercion and close control are required

32. September 2005Managing People in Organisations32 Theory Y To the average person, work is as natural as rest or play Motivation, potential for development, imagination and ingenuity are present in all people given proper conditions Coercion and close control are not required Given proper conditions people will accept and seek out responsibility

33. September 2005Managing People in Organisations33 Ouchi’s Theory Z American organizations short-term employment explicit control processes individual decision making individual responsibility segmented concern quick promotion specialised careers. Japanese organizations lifetime employment implicit control processes collective decision making collective responsibility holistic concern slow promotion generalist careers