1. Leading Through Motivation
We Will:
Provide you with a thorough understanding of the dynamics of motivation and the ways in which rewards can be used to motivate employees.
Examine the Content, Process, and Reinforcement Theories of Motivation, and
Take a look at the connection between Motivation and Compensation.

2. Motivation and Rewards
MOTIVATION is the term used to describe the forces within the individual that account for the level, direction, and persistence of effort expended at work.

3. Motivation and Rewards
A REWARD is a work outcome of positive value to the individual.
EXTRINSIC REWARDS are externally administered (e.g., pay and verbal praise); the motivational stimulus originates outside the person.
INTRINSIC REWARDS are self-administered; they occur "naturally" as a person performs a task. The feelings of competency, personal development, and self-control people experience in their work.

4. Rewards and Performance
Both Intrinsic and Extrinsic rewards can help the manager to lead effectively through motivation, and to achieve maximum motivational impact, it is necessary to:
Respect diversity and individual differences.
Clearly understand what people want from work.
Allocate rewards to satisfy the interests of both individuals and the organization.

5. Three Types of Motivation Theory
Content Theory
Needs are physiological and psychological deficiencies that an individual feels some compulsion to eliminate.
Process Theory
People give meaning to rewards and the work opportunities available to them.
Reinforcement Theory
People's behavior is influenced by its environmental consequences.

6. Content Theories of Motivation
Maslow's Hierarchy of Needs Theory
Lower Order Needs
Physiological
Safety
Social
Higher Order Needs
Esteem
Self-actualization

7. Hierarchy of Needs Theory
Deficit Principle
Holds that a satisfied need is not a motivator of behavior; people act to satisfy needs in which a deficit exists.
Progression Principle
Holds that the five needs exist in a strict hierarchy of prepotency such that a need at one level doesn't become activated until the next lower-level need is satisfied.

8. Alderfer's ERG Theory
An extension of Maslow's theory that proposes the existence of three needs as opposed to five.
Existence Needs: Desires for physiological and material well-being.
Relationship Needs: Desires for satisfying interpersonal relationships.
Growth Needs: Desires for continued psychological growth and development.

9. Alderfer's ERG Theory ERG Theory
Does not assume that lower-level needs must be satisfied before higher-level needs become activated and,
This theory includes a unique "frustration-regression" principle whereby an already satisfied lower-level need becomes reactivated when a higher-level need is frustrated.

10. Herzberg's Two-Factor Theory
Hygiene Factors
Working Conditions
Interpersonal Relations
Organizational Policies
Quality of Supervision
Base Wage or Salary
Improvements in Hygiene Factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction.

11. Herzberg's Two-Factor Theory
Satisfier Factors
Sense of Achievement
Feeling of Recognition
Sense of Responsibility
Opportunity for Advancement
Feelings of Personal Growth
Improvements in Satisfier Factors can increase job satisfaction; they will not prevent job dissatisfaction.

12. McClelland's Acquired-Needs Theory
David McClelland proposes that people acquire needs through their life experiences.
He uses a Thematic Apperception Test (TAT) to measure the strengths of three acquired needs:
Achievement - Power - Affiliation

13. McClelland's Acquired-Needs Theory
Need for Achievement (nAch)
The desire to do something better or more efficiently, to solve problems, or to master complex tasks.
Need for Power (nPower)
The desire to control other persons, to influence their behavior, or to be responsible for other people. A finer distinction can be made between:

14. McClelland's Acquired-Needs Theory
The need for Personal Power and,
The need for Social Power
Need for Affiliation (nAff)
The desire to establish and maintain friendly and warm relations with other persons.

15. The Need Profile of Successful Executives
The most important need for executive success is the need for social power.
Persons with a high need for affiliation may not make the best managers.
While nPower is often accompanied by a high need for achievement the later need in itself is not consistently associated with executive success.

16. Process Theories of Motivation
Equity Theory
Asserts that when people believe that they have been treated inequitably in comparison to others, they eliminate the discomfort and restore equity.

17. Process Theories of Motivation
Equity Theory (cont)
Perceived Equity - occurs whenever a person perceives that their personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other.
Perceived Inequity - occurs whenever one's rewards/input ratio is perceived to be unequal...

18. Expectancy Theory
“People will do what they can do when they want to do it.” The question is ‘what makes them want to do it?’
Vroom suggests that the motivation to work depends on the relationships between the following three expectancy factors:

19. Expectancy Theory
Expectancy: A person's belief that working hard will result in a desired level of task performance.
Instrumentality: A person's belief that successful task performance will be followed by rewards and other potential outcomes.
Valence: The value a person assigns to possible rewards and other work-related outcomes.

20. Expectancy Theory Multiplier Effect
Implies that for motivation to be high, Expectancy, Instrumentality and Valence must be high.
Motivation =
Expectancy x Instrumentality x Valence
A zero at any location on the right side of the equation will result in zero motivation.

21. Expectancy Theory To Maximize Expectancy Select workers with ability
Train workers to use ability
Support work effort
Clarify performance goals

22. Expectancy Theory To Maximize Instrumentality
Clarify psychological contracts
Communicate performance-outcome possibilities
Demonstrate what rewards are contingent on performance
To Maximize Valence
ID needs and adjust rewards to match

23. Goal-Setting Theory
The basic premise is that well-set and well-managed task goals are important sources for motivation.
Task goals, in the form of clear and desirable performance targets,
Provide direction,
Energize persistent long-term work efforts,
Clarify performance expectations, and
Serve as a basis for feedback.

24. Goal-Setting Theory Set Specific Goals Set Challenging Goals
Build Goal Acceptance and Commitment
Clarify Goal Priorities
Reward Goal Accomplishment
Management-by-Objectives ( MBO ) is one example of a goal-setting system which promotes participation.

25. Reinforcement Theory
Unlike the prior motivation theories which rely on cognitive explanations of behavior, reinforcement theory focuses instead on the impact which external environmental consequences have on behavior.
The law of effects states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not likely to be repeated.

26. Reinforcement Theory Operant Conditioning
A term popularized by B. F. Skinner, is the process of controlling behavior by manipulating its consequences; i.e., learning by reinforcement.

27. Reinforcement Theory Organizational Behavior Modification
Involves the application of operant conditioning techniques to influence human behavior in work settings. (Reinforcing desirable behaviors while denying reinforcement for unwanted behaviors.)

28. Reinforcement Theory There Are Two Types of Reinforcement:
Positive Reinforcement
Increases the frequency of a behavior through the contingent presentation of a desirable consequence.
Negative Reinforcement
Increases the frequency of a behavior through the contingent removal of an undesirable consequence.

29. Reinforcement Theory
Punishment: decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence.
Extinction: decreases the frequency of a behavior through the contingent removal of a pleasant consequence.

30. Positive Reinforcement
Law of Contingent Reinforcement
In order for a reward to have maximum reinforcing value, it must be delivered only if the desired behavior is exhibited.
Law of Immediate Reinforcement
The more immediate the delivery of a reward after the occurrence of a desirable behavior, the greater the reinforcing value of the reward.

31. Positive Reinforcement
Shaping
The creation of a new behavior by the positive reinforcement of successive approximations of the desired behavior.
Intermittent reinforcement only rewards behavior periodically.
Continuous reinforcement administers a reward each time a desired behavior occurs.

32. Guidelines for Positive Reinforcement and Punishment
Clearly identify desired work behaviors
Maintain diverse inventory of rewards
Inform everyone what must be done to get rewards.
Recognize individual differences when allocating rewards.
Follow the laws of immediate and contingent reinforcements.

33. Guidelines for Positive Reinforcement and Punishment
Tell the person what is being done wrong.
Tell the person what is right.
Make sure the punishment matches the behavior.
Administer the punishment in private.
Follow the laws of immediate and contingent reinforcement.

34. The Ethics of Operant Behavior Modification
There is considerable debate over the ethics of using OB MOD to influence behavior.
But as the text notes, "the real question may be not whether it is ethical to control behavior, but whether it is ethical not to control behavior well enough that the goals of both the organization and the individual are well served."

35. An Integrated Model of Individual Motivation
Motivation leads to Effort which, along with appropriate Abilities and Organizational Support, lead to Performance.
This model illustrates how Rewards for performance, when they are perceived as Equitable and possess Reinforcement Value, can produce satisfaction.

36. MOTIVATION and COMPEN$ATION
Incentive Compensation Systems
Bonus systems in which employees at all levels participate.
Bonus Pay Plans
Profit-Sharing Plans
Gain-Sharing Plans
Employee Stock Ownership Plans

37. MOTIVATION and COMPEN$ATION
Pay for Knowledge
Skill-based pay ties pay to the number of job-relevant skills an employee masters.
Entrepreneurial pay requires individuals to put part of their pay at risk, in return for the right to pursue entrepreneurial ideas, and share in any resulting profits.