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2. 2 Chapter 3 Motivation Motivation

3.  2007 McGraw-Hill Ryerson Ltd. 3 Learning Outcomes After reading the material in this chapter, you should be able to: 1.Contrast Maslow’s, McClelland’s, & Alderfer’s need theories. 2.Describe how to motivate employees through job design. 3.Describe the practical lessons derived from equity theory.

4.  2007 McGraw-Hill Ryerson Ltd. 4 Learning Outcomes 4.Explain Vroom’s expectancy theory. 4.Identify five practical lessons to be learned from goal-setting research.

5.  2007 McGraw-Hill Ryerson Ltd. 5 FUNDAMENTALS OF EMPLOYEE MOTIVATION What is Motivation? Motivation represents “those psychological processes that cause the arousal, direction, and persistence of voluntary actions that are goal directed.”

6.  2007 McGraw-Hill Ryerson Ltd. 6 FUNDAMENTALS OF EMPLOYEE MOTIVATION (cont’d) Three Broad Theoretical Approaches to Motivating Employees at Work: 1.Need Theories 1.Need Theories – meeting employees’ needs to induce employees’ motivation to do the job 2.Job Characteristics Model 2.Job Characteristics Model – motivating employees through the way jobs are designed 3.Process Theories 3.Process Theories – understanding employees’ thought processes & using this knowledge to guide managerial actions to motivate employees

7.  2007 McGraw-Hill Ryerson Ltd. 7 Need Theories of Motivation Needs Needs are physiological or psychological deficiencies that arouse behaviour.  Maslow’s Need Hierarchy Theory  McClelland’s Need Theory  Alderfer’s ERG Theory

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9. 9 Maslow’s Need Hierarchy –Physiological Includes hunger, thirst, shelter, sex and other bodily needs –Safety Includes security and protection from physical and emotional harm –Love Includes affection, belongingness, acceptance, and friendship

10.  2007 McGraw-Hill Ryerson Ltd. 10 Maslow’s Need Hierarchy Esteem –Includes internal esteem factors such as self- respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention Self-actualization –The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment

11.  2007 McGraw-Hill Ryerson Ltd. 11 Focuses on three specific needs:  Need for Achievement – similar to Maslow’s self-actualization need  Need for Affiliation – similar to Maslow’s social need  Need for Power – similar to Maslow’s esteem need McClelland’s Need Theory

12.  2007 McGraw-Hill Ryerson Ltd. 12 McClelland’s Need Theory Need for Achievement –Achievement-motivated people Prefer working on tasks of moderate difficulty Prefer situations in which performance is due to their efforts rather than other factors, such as luck Desire feedback on their successes and failures

13.  2007 McGraw-Hill Ryerson Ltd. 13 McClelland’s Need Theory (cont’d) Need for Affiliation –Affiliation-motivated people Prefer spending more time maintaining social relationships, joining groups, and wanting to be loved Are not always the most effective managers –Because they have a hard time making difficult decisions & worry about being disliked

14.  2007 McGraw-Hill Ryerson Ltd. 14 McClelland’s Need Theory (cont’d) Need for Power –Power-motivated people Desire to influence, coach, teach, or encourage others to achieve Like to work & are concerned with discipline & self-respect Can be top managers if their high need for power is coupled with a low need for affiliation

15.  2007 McGraw-Hill Ryerson Ltd. 15 1.Existence 1.Existence – relate to physiological well-being 2.Relatedness 2.Relatedness – relate to interpersonal relationships 3.Growth 3.Growth – relate to achieving one’s full potential Unlike Maslow, Alderfer believed that more than one need might motivate at any one time. Frustration-regression component, in which frustration of a higher-order need can influence the strength of lower-order needs. E.g. An employee may request more pay (existence need) if he is experiencing difficulty with interpersonal relationships (relatedness need) at work. Alderfer’s ERG Theory

16.  2007 McGraw-Hill Ryerson Ltd. 16 MOTIVATING EMPLOYEES THROUGH JOB DESIGN Job Design Job Design is changing the content and/or process of a specific job to increase job satisfaction and performance. Job design also attempts to lower absenteeism and turnover.

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18.  2007 McGraw-Hill Ryerson Ltd. 18 Two Types of Motivation Intrinsic (internal) motivation Motivation caused by positive internal feelings that are generated by doing a job well. Enhanced by: Experienced meaningfulness of work Experienced responsibility for outcomes Knowledge of the actual results of the work activities Extrinsic (external) motivation Motivation that is dependent on external factors, such as incentive pay or compliments.

19.  2007 McGraw-Hill Ryerson Ltd. 19 Three Ways to Redesign Jobs 1.Job Enlargement 1.Job Enlargement – adding variety to a job by combining tasks of comparable difficulty 2.Job Rotation 2.Job Rotation – moving employees from one specialized job to another 3.Job Enrichment 3.Job Enrichment – building achievement, recognition, stimulating work, responsibility, and advancement into a job

20.  2007 McGraw-Hill Ryerson Ltd. 20 Herzberg’s Motivator-Hygiene Model Motivators No Satisfaction Satisfaction Jobs that do not offer achievement, Jobs offering achievement recognition, stimulating work, recognition, stimulating work responsibility, & advancement. responsibility, & advancement Hygiene Factors Dissatisfaction No Dissatisfaction Jobs with poor company policies, Jobs with good company policies and administration, technical and administration, technical supervision, salary, interpersonal supervision, salary, inter- relationships with supervisors personal relationships with & working conditions supervisors & working conditions

21.  2007 McGraw-Hill Ryerson Ltd. 21 Process theories Process theories focus on the cognitive/ thought processes that can lead to motivation. 1.Equity Theory 2.Expectancy Theory 3.Goal-setting Theory PROCESS THEORIES OF MOTIVATION

22.  2007 McGraw-Hill Ryerson Ltd. 22 Equity Theory Equity theory holds that motivation is a function of fairness in social exchanges. There are two primary components in the employee- employer exchange: 1. Inputs (employee provides) – education, training, experience, effort expended, loyalty 2. Outcomes (employer provides) – pay/bonuses, promotion, status symbols, recognition

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24.  2007 McGraw-Hill Ryerson Ltd. 24 Practical Lessons from Equity Theory 1.Another explanation of how beliefs & attitudes affect job performance 2.Managers need to pay attention to employee’s perceptions of what is fair & equitable 3.Managers benefit from allowing employees to participate in making decisions about important work outcomes

25.  2007 McGraw-Hill Ryerson Ltd. 25 Practical Lessons from Equity Theory 4.Employees need right to appeal decisions that affect their welfare 5.Employees are more likely to support organizational change when they believe it is implemented fairly and when it produces equitable outcomes

26.  2007 McGraw-Hill Ryerson Ltd. 26 Expectancy Theory of Motivation According to victor Vroom’s expectancy theory, motivation boils down to the decision of how much effort to exert in a specific task situation. This choice is based on a two-stage sequence of expectations: Effort → Performance and Performance → Outcome

27.  2007 McGraw-Hill Ryerson Ltd. 27 Expectancy Theory’s Three Key Concepts Effort → Performance  Expectancy – an individual’s belief that a particular degree of effort will be followed by a particular level of performance. This is an Effort → Performance expectation Performance → Outcome  Instrumentality – a person’s belief that a particular outcome is determined by accomplishing a specific level of performance. This is a Performance → Outcome perception  Valence – the positive or negative value people place on outcomes

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29.  2007 McGraw-Hill Ryerson Ltd. 29 Table 3-1 Managerial and Organizational Implications of Expectancy Theory Implications for ManagersImplications for Organizations Determine the outcomes employees value. Reward people for desired performance, & do not keep pay decisions secret. Identify good performance so appropriate behaviours are rewarded. Design challenging jobs. Make sure employees can achieve targeted levels of performance. Tie some rewards to group accomplishments to build teamwork. Link desired outcomes to targeted levels of performance. Reward managers for creating, monitoring, & maintaining expectancies, instrumentalities, & outcomes that lead to high effort & goal attainment. Make changes in outcomes large enough to motivate high effort. Monitor employee motivation through interviews or anonymous surveys. Monitor reward system for inequities.Accommodate individual differences.

30.  2007 McGraw-Hill Ryerson Ltd. 30 Motivation through Goal Setting Goals Goals motivate the individual by:  directing attention  regulating effort  increasing persistence  fostering strategies and action plans

31.  2007 McGraw-Hill Ryerson Ltd. 31 Insights from Goal-Setting Research 1.Difficult goals lead to higher performance. 2.Specific difficult goals lead to higher performance for simple rather than complex tasks. 3.Feedback enhances the effect of specific, difficult goals. 4.Participative goals, assigned goals, and self-set goals are equally effective. 5.Goal commitment and monetary incentives affect goal-setting outcomes.

32.  2007 McGraw-Hill Ryerson Ltd. 32 S S pecific M M easurable A A ttainable R R esults oriented T T ime bound Guidelines for Writing “SMART” Goals