1. Motivation © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. Relationship between Motivation and Engagement, and Performance Motivation alone does not lead to high productivity and performance. P = M x A ( P is performance, M is motivation, and A is ability). Skill and technology contribute to ability. Engagement is level of commitment workers make to their employer. Commitment enhances performance. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Motivation through Need Satisfaction People expend effort toward goal because it satisfies one or more important needs. A need is a deficit within an individual. Self-interest is a driving force, referred to as “What’s in it for me?” or WIIFM. Need theory is incorporated into many explanations of motivation, including the classic ones of Maslow and Herzberg. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. Maslow’s Need Hierarchy Arranges needs into pyramid-shaped model with basic physiological needs at bottom and self- actualization at top. Lower-order needs are deficiency needs, and higher order needs are growth needs. People seek to satisfy needs at one level before moving on, in this order: physiological  safety  social  esteem  self-actualization. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. Maslow’s Need Hierarchy, continued Maslow’s need hierarchy recognized importance of satisfying worker needs for motivation. Helps explain that it is normal to be constantly searching for new satisfactions. Need hierarchy relevant in current era because so many workers have to worry about satisfying lower- level needs. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6. Specific Needs People Attempt to Satisfy 1. Achievement, power, and affiliation (explains much of job behavior) 2. Recognition (workplace provides natural opportunity for attaining recognition) 3. Need to be proud (stems from needs for self- esteem and self-fulfillment) 4. Risk taking and thrill seeking (grown in importance in high-technology era) © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. Specific Needs People Attempt to Satisfy, continued 5. Four drives or needs hardwired into our brains (extent of satisfaction influences our emotions and behavior): a. Acquire scarce goods b. Bond with people and organizations. c. Comprehend or make sense of our corner of the world d. Defend ourselves, people we care about, and our ideas from external threats. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. Herzberg’s Two-Factor Theory Job factors that satisfy and motivate people are different from those that prevent dissatisfaction. Satisfier is job factor that if present leads to satisfaction. Similarly, a motivator leads to motivation. Internal aspects of job tend to be satisfiers and motivators. Dissatisfiers or hygiene factors are noticed primarily by their absence. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9. Herzberg’s Two-Factor Theory, continued Prompted managers to ask what really motivates workers, yet not entirely true. Theory glosses over individual differences and may overstate the case for people’s interest in work. Some people are motivated and satisfied by hygiene factors such as job security and pleasant working conditions. Benefits play major role in attracting and retaining some employees. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Motivation through Goal Setting Goal setting plays important role in most motivational programs and managerial methods of motivating employees. Goal theory states that behavior is regulated by values and goals. Goal is overall condition one is trying to achieve, or conscious intention to act. Key findings about goals presented next. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. Motivation through Goal Setting, continued 1. Specific goals lead to higher performance than do generalized goals. 2. Performance generally increases in direct proportion to goal difficulty. 3. For goals to improve performance, employee must accept them. 4. Goals are more important when they are used to evaluate performance. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Motivation through Goal Setting, continued 5. Goals should be linked to feedback and rewards. 6. Group goal setting is as important as individual goal setting. Pygmalion effect states that people live up to expectations set for them. A key problem with goals is that workers might use unethical means to attain them. (Method of attainment counts.) © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Positive Reinforcement and Recognition Programs Behavior modification changes behavior by rewarding right responses and punishing or ignoring wrong response. Positive reinforcement increases probability that behavior will be repeated by rewarding people for right response. Positive reinforcement is the most effective behavior modification strategy. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. Rules for Application of Positive Reinforcement 1. State clearly what behavior will lead to a reward, and supply ample feedback. 2. Use appropriate (effective) rewards. 3. Make rewards contingent on good performance. 4. Administer rewards intermittently. 5. Administer rewards promptly. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15. Rules for Application of Positive Reinforcement, continued 6. Change rewards periodically (reward repeated too often becomes stale). 7. Make the rewards visible (seen by others and noticeable to recipient). 8. Reward the team as well as individuals. Positive reinforcement has long history of improving productivity on job including control of absenteeism. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. Recognition and Reward Programs Recognition programs are popular for employee retention. More sophisticated programs attempt to link recognition awards to performance and behavior tied to corporate objectives. Recognition rewards sometimes used as substitutes for salary increases, bonuses. Teams should also receive recognition. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. Informal Recognition Including Praise Praising workers for good performance is major type of informal recognition. Praise should describe performance rather than merely making an evaluation. Individualized praise better than generic. Praise does not cost money or much time, yet most workers feel they do not receive enough praise. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. Cross-Cultural Differences in Needs and Suitable Recognition Awards Person’s culture can influence which needs are strongest, and the most effective motivational approach to him or her. Cultural differences are helpful but should be supplemented by observations at work. One cross-cultural difference is that Americans favor gift certificates. Standard of living can influence effectiveness of given recognition award. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

19. Basic Model of Expectancy Theory Motivated behavior occurs when: 1. Person believes effort will lead to favorable performance (E  O) 2. Person believes performance will lead to a favorable outcome (P  O) 3. Outcome or reward satisfies an important need. 4. Need satisfaction intense enough. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20. Basic Model of Expectancy Theory, continued Expectancies and instrumentalities are subjective hunches, ranging from 0.0 to 1.0. Valences range (in version presented here) from - 100 to +100. In most work situations there are several possible outcomes with different valences attached to them. (Example is positive and negative aspects of promotion.) © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21. Implications for Management (of Expectancy Theory) 1. Take into account individual differences. 2. Help workers feel they are making progress toward their goals. 3. Tie rewards to worthwhile actions. 4. Give employees appropriate training and encouragement. 5. Show that performance leads to rewards. 6. Explain the meaning of outcomes. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

22. Linking Pay to Performance Including Bonuses Financial incentives more effective when linked to good performance. Merit pay links pay to performance. Granting lump sums rather than percentage increases can be more fair. Current trend is to link pay to performance that reflects business strategy. Pay for performance helps recognize, motivate, and retain best employees. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

23. Profit Sharing and Gainsharing Profit sharing gives workers supplemental income based on profitability of firm or a selected unit. (Motivation is therefore high to improve profits.) Gainsharing allows employees to participate financially in gains they have achieved. Gainsharing includes employee idea submission, and cooperation to improve productivity. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

24. Employee Stock Ownership and Stock Option Plans Possible to motivate workers by making them part- owners of the business through stock ownership. Under employee stock ownership plan (ESOP) all employees given stock. Stock options enable employees to purchase company stock at specified price at sometime in future. Many backdating scandals associated with options. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

25. Problems Associated with Financial Incentives Workers might not agree with managers about their level of contribution. Individuals are pitted against the group. Perhaps business executive siphon off too much money for themselves. Focus on compensation detracts from joy in accomplishment. Financial rewards may not lead to lasting commitment. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.