1. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. Motivation: Organizational Applications Organizations: Behavior, Structure, Processes Chapter 6

3. 6-3 Learning Objectives Explain differences between social learning theory and reinforcement theory Discuss how self-managing can be useful in developing a motivation program Describe how expectancy, equity, and goal-setting theories are used to motivate employees Define intrinsic and extrinsic rewards and how these rewards influence employee motivation

4. 6-4 Learning Objectives Explain reward programs found in high-performance organizations Understand the strengths and weaknesses of nontraditional reward programs

5. 6-5 The Sage of Stock Options Stock options Have replaced salary and bonuses as the most significant part of executive pay Place a lien against the company When exercised, reduce the value of other stock shares May reward one person and distress others

6. 6-6 Learning One of the fundamental processes underlying behavior and motivation A relatively enduring change in behavior occurs as a result of practice Changes in behavior that characterize learning may be… Adaptive and promote effectiveness Non-adaptive and ineffective

7. 6-7 Social Learning Behavior is acquired through observation and imitation of others in a social context Continuous interaction of cognitive, behavioral, and environmental determinants Can be positive or negative

8. 6-8 Social Learning Social learning theory introduces… Vicarious learning (modeling) Symbolism Self-control Self-efficacy, a central part of social learning theory, has three dimensions Magnitude Strength Generality

9. 6-9 Pygmalion Effect The enhanced learning or performance that results from others having positive expectations of us.

10. 6-10 Operant Conditioning Learning that occurs as a consequence of behavior Operants are behaviors that can be controlled by altering reinforcers and the punishments that follow them Behavior modification An approach to motivation that uses principles of operant conditioning Learning by reinforcement

11. 6-11 Example of Operant Conditioning S 1 Memo instructing subordinate to prepare budget Conditioned stimulus S 1 Memo instructing subordinate to prepare budget Conditioned stimulus R 1 Preparing weekly budgets Conditioned operant response R 1 Preparing weekly budgets Conditioned operant response R 2 A sense of satisfaction Unconditioned response R 2 A sense of satisfaction Unconditioned response S 2 Receiving valued praise from superior Reinforcing stimulus S 2 Receiving valued praise from superior Reinforcing stimulus Antecedent Behavior Consequence

12. 6-12 Principles of Operant Conditioning Positive reinforcement Action that increases the likelihood of a behavior Negative reinforcement Strengthens a behavior because the behavior removes some painful or unpleasant stimulus Punishment Undesirable consequence that results in the suppression of the behavior that brought it about Extinction Decline in response rate due to non- reinforcement

13. 6-13 Behavior Modification Identify and define the specific behavior Can it be seen? Can it be measured? Measure or count occurrences of the pinpointed behavior Provides a baseline from which to determine if the behavior is changing

14. 6-14 Applied Behavior Modification Conduct ABC analysis of the behavior A = analyzing the antecedents B = pinpointing critical behaviors C = associated consequence Then Develop an action plan and strategies Evaluate the behavior

15. 6-15 Performance Analysis Questions Antecedent Do employees know what is expected? Are the standards clear? Have they been communicated? Are they realistic? Behavior Can the behavior be performed? Could employees do it if their lives depended on it? Does something prevent its occurrence?

16. 6-16 Performance Analysis Questions Consequence Are consequences weighted in favor of performance? Are improvements being reinforced? Are improvements noted, even when the employee is below company standards? Is reinforcement specific?

17. 6-17 Applied Behavior Modification Manager’s Step-by-Step Procedure Feedback to make changes Pinpoint specific behavior Pinpoint specific behavior Evaluate critical behavior Compare baseline vs. after-action behaviors Evaluate critical behavior Compare baseline vs. after-action behaviors Measure, count, and formulate baseline point for critical behaviors Measure, count, and formulate baseline point for critical behaviors Perform the ABC analysis Antecedent Behavior Consequence Perform the ABC analysis Antecedent Behavior Consequence Form action plan, strategies Positive reinforcement Negative reinforcement Extinction Punishment Form action plan, strategies Positive reinforcement Negative reinforcement Extinction Punishment

18. 6-18 ABC Analysis - Absenteeism Problem A ANTECEDENT(S) Family problems Personal health Illness Jury duty No transportation Company policies Group norm Friends visiting Injured on way to work Hangover No child care facilities Lack of proper tools/clothing A ANTECEDENT(S) Family problems Personal health Illness Jury duty No transportation Company policies Group norm Friends visiting Injured on way to work Hangover No child care facilities Lack of proper tools/clothing B BEHAVIOR(S) Staying home Shopping Oversleeping Getting up late Attending sporting event Working at home Visiting Serving on jury In emergency room At doctor’s office B BEHAVIOR(S) Staying home Shopping Oversleeping Getting up late Attending sporting event Working at home Visiting Serving on jury In emergency room At doctor’s office C CONSEQUENCE(S) Public reprimand Private reprimand Written record & reprimand Reduction in pay Suspension Firing Social isolation from group C CONSEQUENCE(S) Public reprimand Private reprimand Written record & reprimand Reduction in pay Suspension Firing Social isolation from group

19. 6-19 Reinforcement Theory Research results Strong evidence that OBM makes a positive contribution to organizational behavior Absenteeism rates, quality of production, and employee safety behaviors improve

20. 6-20 Reinforcement Theory Criticisms Bribery, not a real change in behavior Reinforcements not linked to beliefs, values, or mental processes Self-reinforcement ignored Behavior becomes too dependent on the reinforcer and won’t occur without it Perceptual differences in utilization of positive reinforcement

21. 6-21 Reinforcement Theory When expressing appreciation and reinforcing good behavior Describe the desired behavior in specific terms, not generalization Explain why the behavior is good for the organization Include a personal expression of thanks

22. 6-22 Behavioral Self-Management (BSM) Facing response alternatives that have different consequences Selecting or modifying behavior by managing Cognitive processes Causes Consequences

23. 6-23 Kafner’s Self-Regulation Model Self-reinforcement “I really did an outstanding job. The boss smiled when we were talking about my performance. He’s really a lot like Tony (previous boss).” Self-monitoring “A new boss - I wonder whether my performance will be good enough. I hope so.” Self-monitoring “A new boss - I wonder whether my performance will be good enough. I hope so.” Stage 1Stage 2Stage 3 Self-evaluation “I was considered an excellent performer by Tony (previous boss). He knew my quantity and quality of output were excellent. I need to find out what the new boss considers excellent in terms of quantity and quality.”

24. 6-24 Goal-Setting Theory: Key Concepts Goal setting The process of establishing goals Conscious goals Goals that a person is trying to achieve and is aware of when directing behavior Goal specificity Level of performance required to achieve the goal

25. 6-25 Goal-Setting Theory: Key Concepts Goal difficulty Level of performance required to achieve a goal Goal intensity Process of setting a goal or determining how to reach it Goal commitment Amount of effort used to achieve a goal

26. 6-26 Goal Setting: Core Steps 1. Specificity 2. Difficulty 3. Intensity 4. Commitment 1. Specificity 2. Difficulty 3. Intensity 4. Commitment 1. Frequency 2. Exchange of ideas 3. Modifications 1. Frequency 2. Exchange of ideas 3. Modifications 1. Discussion 2. Analysis 3. Development 4. Recycling 1. Discussion 2. Analysis 3. Development 4. Recycling Improved motivation to Perform Plan Organize Control Improved motivation to Perform Plan Organize Control Goal-Setting Attributes Intermediate Review Final Review Anticipated Results Feedback

27. 6-27 Goal Setting Research Locke and associates found that… Specific goals lead to higher output than do vague goals Achieving goals provides workers with a sense of achievement, recognition, and commitment Having a goal allows workers to compare their performance with that of others

28. 6-28 Goal Difficulty-Performance Relationship Need achievement High Job performance Low EasyModerateHard Goal difficulty

29. 6-29 Goal Difficulty-Performance Relationship Expectancy theory High Job performance Low EasyModerateHard

30. 6-30 Goal Difficulty-Performance Relationship Goal-setting theory High Job performance Low EasyModerateHard Goal difficulty A = Performance of committed person with ability B = Performance of committed person working at full capacity C = Performance of person lacking commitment B A C

31. 6-31 Participation Factor Conflicting theories Latham… when goal difficulty is held constant, there is no difference in goal commitment or performance, whether the goal is assigned or set participatively Erez… participation in goal setting is crucial to goal commitment Findings of experiments Participation had no effect on goal commitment or performance

32. 6-32 Individual Differences Participation in goal setting may increase job performance Social factor of group discussion Motivational factor of being involved in the goal-setting process Cognitive factor of information sharing

33. 6-33 Individual Differences Social and motivational factors increase Performance quantity Learning the task Goal acceptance Group commitment Satisfaction Conflicting goals Can lead to decreased performance, regardless of goal commitment, goal importance, or strategies used

34. 6-34 Criticisms of Goal Setting Goal setting Complex and difficult to sustain Works well for simple jobs, but not for complex jobs Encourages game playing. Is used as another check on employees Goal accomplishment Can become an obsession

35. 6-35 Motivation Theory: Key Conclusions Managers Can influence employee motivation Must remember that ability, competence, and opportunity all affect motivation Must continually monitor employees’ needs, abilities, goals, preferences Must channel self-motivated behavior into productive results

36. 6-36 Motivation Theory: Key Conclusions Managers Are role models who influence employee motivation Must provide incentives for employees Should establish moderately difficult goals to direct behavior Should provide jobs that offer equity, task challenge, diversity, need satisfaction Must energize, sustain, and direct motivation

37. 6-37 Organizational Reward Systems Main objectives of reward programs Getting qualified people to join the organization Keeping employees coming to work Motivating employees to achieve high levels of performance

38. 6-38 The Reward Process Feedback Motivation to exert effort Performance results: individual Ability and skill Experience Performance evaluation Satisfaction Intrinsic rewards Extrinsic rewards

39. 6-39 Lawler’s Conclusions Reward satisfaction is influenced by… How much is received and how much the person feels should be received Comparisons with others People differ in the… Rewards they desire The importance they place on them Some rewards are satisfying because they lead to other rewards

40. 6-40 Reward Packages Any reward package should be… Sufficient to satisfy basic needs Considered equitable Individually oriented

41. 6-41 Extrinsic and Intrinsic Rewards Extrinsic Rewards Salary, wages, fringe benefits Interpersonal rewards Recognition and promotions Intrinsic Rewards Completion Achievement Personal growth Autonomy

42. 6-42 Rewards, Turnover, Absenteeism Managers can… Influence employee attendance behavior Punish, establish bonuses, and allow employee participation in developing plans Absenteeism reduction is determined by… The perceived value of the rewards The amount of the rewards Whether employees see a relationship between attendance and rewards

43. 6-43 Rewards and Job Performance Key points Each person has different needs and perceptions, so outcomes have different values Managers must consider individual differences when choosing rewards Valued rewards can result in the exertion of effort and high levels of performance

44. 6-44 Commitment Attitudes Commitment to an organization involves... A sense of identification with the organization’s goals Involvement in organizational duties A feeling of loyalty for the organization

45. 6-45 Organizational Commitment Use intrinsic rewards to develop organizational commitment Provide achievement opportunities Recognize achievement when it occurs Develop intrinsic reward systems that focus on personal importance or self- esteem

46. 6-46 Reward Systems & High Performance New, innovative, but untested reward systems Cafeteria-style fringe benefits Banking time off Skill-based pay Gainsharing

47. 6-47 Reward Criticisms According to Kohn, rewards… Injure relationships Are really punishment Have a Skinner bias Ignore reason Discourage risk taking