1. Chapter 5: Motivation Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. What is Motivation? Motivation is defined as a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence. »Motivation is a critical consideration because job performance is largely a function of two factors: motivation and ability. 5-2

3. Expectancy Theory Expectancy theory describes the cognitive process that employees go through to make choices among different voluntary responses. »Employee behavior is directed toward pleasure and away from pain or, more generally, toward certain outcomes and away from others. 5-3

4. Expectancy Theory, Cont’d Expectancy represents the belief that exerting a high level of effort will result in the successful performance of some task. »Expectancy is a subjective probability, ranging from 0 to 1 that a specific amount of effort will result in a specific level of performance (abbreviated E → P). »Self-efficacy is defined as the belief that a person has the capabilities needed to execute the behaviors required for task success. –Past accomplishments, vicarious experiences, verbal persuasion, emotional cues 5-4

5. Expectancy Theory, Cont’d Instrumentality represents the belief that successful performance will result in some outcome(s). Instrumentality is a set of subjective probabilities, each ranging from 0 to 1 that successful performance will bring a set of outcomes (abbreviated P → O). Valence reflects the anticipated value of the outcomes associated with performance (abbreviated V). »Can be positive, negative, or zero 5-5

6. Expectancy Theory, Cont’d What exactly makes some outcomes more “positively valenced” than others? In general, outcomes are deemed more attractive when they help satisfy needs. »Needs can be defined as cognitive groupings or clusters of outcomes that are viewed as having critical psychological or physiological consequences. 5-6

7. Expectancy Theory, Cont’d Extrinsic motivation is motivation that is controlled by some contingency that depends on task performance. Intrinsic motivation is motivation that is felt when task performance serves as its own reward. Meaning of money — the degree to which they view money as having symbolic, not just economic, value. »Achievement, respect, and freedom 5-7

8. Expectancy Theory, Cont’d Total “motivational force” to perform a given action can be described using the following formula: Motivational Force = E  P x Σ[(P  O) x V] The Σ symbol in the equation signifies that instrumentalities and valences. Motivational force equals zero if any one of the three beliefs is zero. 5-8

9. Goal Setting Theory Goal setting theory views goals as the primary drivers of the intensity and persistence of effort. »Assigning employees specific and difficult goals will result in higher levels of performance. »Why do specific and difficult goals have such positive effects? –Assignment of a specific and difficult goal shapes people’s own self-set goals — the internalized goals that people use to monitor their own task progress. –Goals trigger the creation of task strategies, defined as learning plans and problem-solving approaches used to achieve successful performance. 5-9

10. Goal Setting Theory, Cont’d Moderators on Task Performance »Feedback consists of updates on employee progress toward goal attainment. »Task complexity reflects how complicated the information and actions involved in a task are, as well as how much the task changes. »Goal commitment is defined as the degree to which a person accepts a goal and is determined to try to reach it. 5-10

11. Equity Theory Equity theory acknowledges that motivation doesn’t just depend on your own beliefs and circumstances but also on what happens to other people. »Employees create a “mental ledger” of the outcomes (or rewards) they get from their job duties. 5-11

12. Equity Theory, Cont’d You compare your ratio of outcomes and inputs to the ratio of some comparison other — some person who seems to provide an intuitive frame of reference for judging equity. “Cognitive calculus” »Ratio of outcomes to inputs is balanced between you and your comparison other. 5-12

13. Equity Theory, Cont’d “Cognitive calculus,” cont’d »Your ratio of outcomes to inputs is less than your comparison other’s ratio. –Any imbalance in ratios triggers equity distress — an internal tension that can only be alleviated by restoring balance to the ratios. »Your ratio of outcomes to inputs is greater than your comparison other’s ratio. »Change your comparison other. 5-13

14. Psychological Empowerment Psychological empowerment reflects an energy rooted in the belief that work tasks contribute to some larger purpose. »Meaningfulness captures the value of a work goal or purpose, relative to a person’s own ideals and passions. »Self-determination reflects a sense of choice in the initiation and continuation of work tasks. »Competence captures a person’s belief in his or her capability to perform work tasks successfully. »Impact reflects the sense that a person’s actions “make a difference”—that progress is being made toward fulfilling some important purpose. 5-14

15. Designing Compensation Systems Do the elements provide difficult and specific goals for channeling work effort? »Lump sum bonuses and gainsharing have been credited with improvements in employee productivity. Consider the correspondence between individual performance levels and individual monetary outcomes. Merit pay represents the most common element of organizational compensation plans. 5-15

16. How Important is Motivation? Strongest performance effect is self-efficacy / competence; people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities. Difficult goals are the second most powerful motivating force. The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance. Perceptions of equity have a somewhat weaker effect on task performance. 5-16