1. Motivation and Performance
Chapter Thirteen
Motivation and Performance

2. The Nature of Motivation
The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence
Explains why people behave the way they do in organizations
Performance is function of ability, effort, situational factors 2

3. The Nature of Motivation
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
Extrinsically Motivated Behavior
Behavior that is performed to acquire material or social rewards or to avoid punishment.
Prosocially motivated behavior
behavior performed to benefit or help others
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes from actually performing the behavior.
The sense of accomplishment and achievement derived from doing the work itself
Extrinsically Motivated Behavior
Behavior that is performed to acquire material or social rewards or to avoid punishment.
The source of the motivation is the consequences of the behavior and not the behavior itself. 3

4. Outcomes and Inputs Outcome Input
Anything a person gets from a job or an organization
Pay, job security, autonomy, accomplishment
Input
Anything a person contributes to his or her job or organization
Time, effort, skills, knowledge, work behaviors 4

5. The Motivation Equation
Figure 13.1

6. Expectancy, Instrumentality, and Valence
Figure 13.2

7. Need Theories Need Theories Need
People are motivated to obtain outcomes at work that will satisfy their needs
Need
A requirement or necessity for survival and well-being.
Managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well. 7

8. Maslow’s Hierarchy of Needs
Self-
actualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Needs
Description
Examples
Lower-level needs must be satisfied before higher-level needs are addressed.
Highest-level needs
Lowest-level needs
Table 13.1 8

9. Adequate pay for necessities
Alderfer’s ERG Theory
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
Growth
Self-development,
creative work
Continually
improve skills
Relatedness
Interpersonal
relations, feelings
Good relations,
accurate feedback
Existence
Food, water,
clothing, and shelter
Adequate pay for necessities
Needs
Description
Examples
Highest-level needs
Lowest-level needs
As lower level needs become satisfied, a person seeks to satisfy higher-level needs
A person can be motivated by needs at more than one level at the same time
When people experience need frustration they will focus on satisfying the needs at the next-lowest level
Table 13.2 9

10. Herzberg’s Motivation-Hygiene Theory
Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.
Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction. 10

11. Herzberg’s Motivation-Hygiene Theory
Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work.
Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security.

12. McClelland’s Needs for Achievement, Affiliation, and Power
Need for Achievement
A strong need to perform challenging tasks well and meet personal standards for excellence

13. McClelland’s Needs for Achievement, Affiliation, and Power
Need for Affiliation
Concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other
Need for Power
A desire to control or influence others

14. Equity Theory Equity Theory
Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.
A relative outcome to input ratio comparison to oneself or to another person (referent) perceived as similar to oneself.
Equity exists when a person perceives that their outcome/input ratio to be equal to the referent’s ratio.
If the referent receives more outcomes, they should also give more inputs to achieve equity.
Inequity exists when worker’s outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent.
Workers feel they are not getting the outcomes they should for their inputs.
Overpayment inequity: ratio is higher than the referent.
Workers feel they are getting more outcomes than they should for their inputs.
Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity.
In underpayment, workers may reduce input levels to correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent person and readjust their ratio perception.
If inequity persists, workers will often choose to leave the organization. 14

15. Outcomes < Outcomes Outcomes > Outcomes
Equity Theory
Condition
Person Referent
Example
Equity
Outcomes = Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
Underpayment
Outcomes < Outcomes
gets the same outputs
as referent
Overpayment
Outcomes > Outcomes
same inputs but also
Table 13.3

16. Goal Setting Theory Goal
What a person is trying to accomplish through his efforts and behaviors
Must be specific and difficult
Goals point out what is important to the firm.
Workers should be encouraged to develop action plans to attain goals.
Focuses on motivating workers to contribute their inputs to their jobs and organizations
Considers how managers can ensure that workers focus their inputs in the direction of high performance and the achievement of organizational goals.
Goals motivate people to contribute more inputs to their jobs
Goals help people focus their inputs in the right direction 16

17. Learning Theories
Managers can increase employee motivation and performance by the ways they link the outcomes that employees receive to the performance of desired behaviors in an organization and the attainment of goals
Learning
A relatively permanent change in person’s knowledge or behavior that results from practice or experience. 17

18. Operant Conditioning Theory
People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.
Linking specific behaviors to the attainment of specific outcomes can motivate high performance and prevent behaviors that detract from organizational effectiveness. 18

19. Operant Conditioning Tools
Positive Reinforcement
Gives people outcomes they desire when they perform organizationally functional behaviors
Negative Reinforcement
Eliminating undesired outcomes once the functional behavior occurs
Positive Reinforcement
Gives people outcomes they desire when they perform organizationally functionally behaviors
Positive reinforcers: Pay, praises, or promotions
Negative Reinforcement
Eliminating undesired outcomes once the functional behavior occurs
Negative reinforcers: criticisms, pay cuts, suspension 19

20. Operant Conditioning Tools
Extinction
Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.
Punishment
Administering an undesired/negative consequence to immediately stop a dysfunctional behavior.
Manager administers an undesired consequence to worker (verbal reprimand, demotion, pay cut). 20

21. Avoiding Side Effects of Punishment
Downplay the emotional element involved
Try to punish dysfunctional behaviors as soon as they occur
Try to avoid punishing someone in front of others

22. Organizational Behavior Modification
Managers systematically apply operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors
Used to improve productivity, efficiency, attendance, punctuality, safe work practices, and customer service
Sometimes questioned because of lack of relevance to certain work behaviors
To critics it is overly controlling and robs workers of their dignity, individuality, freedom of choice and creativity 22

23. Steps in Organizational Behavior Modification
Figure 13.4

24. Social Learning Theory
Proposes that motivation results not only from direct experience of rewards and punishments but also from a person’s thoughts and beliefs 24

25. Social Learning Theory
Vicarious Learning (Observational Learning)
Occurs when a person becomes motivated to perform a behavior by watching another person perform the behavior and be positively reinforced for doing so 25

26. Social Learning Theory
Self-reinforcement
Any desired or attractive outcome or award that a person can give himself or herself for good performance.
Self-efficacy
A person’s belief about his or her ability to perform a behavior successfully. 26

27. Pay and Motivation Pay as a Motivator
Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high.
Need Theories: pay is used to satisfy many needs.
Equity Theory: pay should be given in relation to inputs. 27

28. Pay and Motivation Pay as a Motivator
Goal Setting Theory: pay should be linked to attainment of goals.
Learning Theory: outcomes (pay) should be distributed upon performance of functional behaviors.

29. Merit Pay and Performance
Merit Pay Plan
A compensation plan that bases pay on performance.
Clarification: Merit pay typically based on individual performance, as assessed via performance appraisal
Typically results in base-pay increase
Pay-for-performance plans can be based on individual, group, or organizational performance
Can result in base-pay increases or one-time payments
One-time payments likely to have more motivational value than base-pay increases
Regardless, requires performance measurement to be valid to have motivational value (expectancy theory)
Merit Pay Plan
Group plan: when group that works closely together is measured and rewarded as a group.
Organization plan: when group or individual outcomes not easily measured.
Piece-rate Pay
Employee’s pay is based on the number of units that the employee produces.
Commission Pay
Employee’s pay is based on a percentage of sales that the employee makes.
Organization-based Merit Plans
Scanlon plan—focuses on reduced expenses or cutting costs
Profit sharing—employees receive a share of an organization’s profits 29

30. Awards and Performance

31. Salary Increase or Bonus?
Employee Stock Option
A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.
Uses
To attract high-level managers
To motivate employee performance through ownership in the firm 31