1. 1-1 Motivation

2. 1-2 Motivation Background Theories ●Traditional approach –Frederick Taylor – incentive pay –People can be motivated to do anything if the pay is right ●Human Relations approach –Make people feel important and in control ●Human Resources approach –Encourage participation –Create productive work environment

3. 1-3 Content Perspectives ●Looks to answer, “what factors motivate people?” ●Maslow’s Hierarchy of Needs –Physiological – lowest level –Security –Belongingness –Esteem –Self-actualization – highest level ●ERG Theory (3 levels) –Existence needs –Relatedness needs –Growth needs –May regress if higher needs not met

4. 1-4 Hertzberg’s Two-Factor Theory ●Motivation Factors (satisfiers – address 2 nd ) –Achievements –Recognition –The work itself –Responsibility –Advancement & growth ●If have these, then one will be more satisfied and motivated ●Hygiene Factors (dissatisfiers – address 1 st ) –Work conditions –Pay and security –Supervisors –Interpersonal relations –Policies and admin ●If don’t have these, one is dissatisfied

5. 1-5 Individual Needs Practice ●Need for achievement –Want visible recognition –10% of U.S. population ●Need for affiliation –Want to acceptance and to belong ●Need for power –Want to control others

6. 1-6 Expectation Theory ●Motivation depends upon: –How much we want something –How likely we think we are to get it ●Examples –VP job, mail clerk, supervisory job ●Effort -> Performance -> Outcomes/Valences –Effort-to-Performance Expectancy (0-1) –Performance-to-Outcome Expectancy (0-1) –Range of outcomes and values (valences)  E.g. pay raise, time off, promotion, praise ●Examples

7. 1-7 Porter-Lawler Extension of Expectation Theory ●Say good performance may lead to satisfaction ●Performance leads to –Extrinsic rewards (pay and promotion) –Intrinsic rewards (self-esteem) ●One then compares rewards to effort put in –If rewards are equitable with the effort –Then employee is satisfied

8. 1-8 Equity Theory ●People are motivated to seek social equity in their rewards –Treatment needs to be fair –People compare output/input ●Don’t need to have same outcomes –As long as outcome relative to input is same ●If one feels things are not equitable –May reduce input

9. 1-9 Goal Setting Theory ●Assumes behavior is a result of conscious goals –Is it? ●Goal characteristics –Goal difficulty –Goal specificity –(think SMART goals)

10. 1-10 Behavior Modification ●Positive reinforcement –Awards, praise, raises ●Negative reinforcement –Reprimands –Punishment –Employee will practice avoidance ●Can do on certain schedules –Most powerful is a variable-ratio schedule

11. 1-11 Applying the Theories ●Empowerment –Let workers set own goals, make decisions ●Empowerment –Give workers a say in decisions –Boss becomes a ‘coach’ –Must be  Sincere  Committed  Patient

12. 1-12 Alternative Work Arrangements ●Compressed work schedule –E.g. 40 hours in 4 days –Nine-eighty – 80 hours in 9 days ●Flexible work schedules –Core hours ●Job sharing ●Telecommuting

13. 1-13 Reward Systems ●Merit pay ●Incentive plans –Piece-rate incentive –Part of compensation at risk  Sales commissions  Bonuses –May have corporate and individual components ●Time off ●Many people want visible rewards

14. 1-14 Team and Group Awards ●Gainsharing plans –Share cost savings with employees ●Awards –Plaque –Parking places ●Profit sharing ●ESOP ●Stock options

15. 1-15 Executive Compensation ●Base salary ●Bonus ●Deferred compensation ●Stock ●Stock options ●Golden parachutes