1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–1 CHAPTER 12 MOTIVATION

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–2 MOTIVATION Defined as the psychological forces within a person that determine: 1) direction of behavior in an organization; 2) the effort or how hard people work; 3) the persistence displayed in meeting goals. Intrinsic Motivation: behavior performed for its own sake. Motivation comes from performing the work. Extrinsic Motivation: behavior performed to acquire rewards. Motivation source is the consequence of an action.

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–3 NATURE OF MOTIVATION ability motivation environmental conditions performance = X X

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–4 NEEDS THEORIES Hierarchy-of-needs theory (Maslow) Two-factor theory (Herzberg) ERG theory (Aldefer) Acquired-needs theory (McClelland)

5. Need theories=content theories Fulfillment of needs Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–5

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–6 MASLOW THEORY Physiological: basic ; food, shelter, water Safety: desire to be safe, secure, free from threats Belongingness: desire to affiliate with and be accepted by others Esteem: positive self-image and have contributions valued Self-actualisation: developing capabilities and reaching full potential

7. Important Points for Maslow Needs at one level do not need to be satisfied As needs on one level are fulfilled they cease to act as motivators and tension develops Shortcomings: Number of categories of needs Not same hierarchy for everyone Individuals may work to satisfy several needs at once. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–7

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–8 Hierarchy of Needs Self- Actualization Self- Actualization Realize one’s full potential Realize one’s full potential Use abilities to the fullest Use abilities to the fullest Esteem Feel good about oneself Feel good about oneself Promotions & recognition Promotions & recognition Belongingness Social interaction, love Social interaction, love Interpersonal relations, parties Interpersonal relations, parties Safety Security, stability Job security, health insurance Job security, health insurance Physiological Food, water, shelter Food, water, shelter Basic pay level to buy items Basic pay level to buy items Need LevelDescriptionExamples Lower level needs must be satisfied before higher needs are addressed.

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–9 NEEDS THEORIES Two-factor theory (Herzberg) Herzberg’s theory argues that hygiene factors are necessary to keep workers from feeling dissatisfied, but only motivators can lead workers to feel satisfied and motivated.

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–10 NEEDS THEORIES Hygiene factors 1. Factors seeming to make individuals feel dissatisfied with their jobs 2. Associated with job circumstance Motivators 1. Factors seeming to make individuals feel satisfied with their jobs 2. Associated with job content

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–11 NEEDS THEORIES Achievement Responsibility Work itself Recognition Growth Advancement Pay Working Conditions Supervisors Company Policies Fringe benefits Hygiene factors Motivators These factors help prevent dissatisfaction. These factors promote satisfaction.

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–12 NEEDS THEORIES ERG theory (Alderfer) Alternative to Maslow’s hierarchy of needs theory, which argues that there are three levels of individual needs. 1. Existence: material and physiological desires e.g. pay, fringe benefits, physical working conditions, desire to have productive impact on surroundings 2. Relatedness: relationships with significant others 3. Growth needs: creativity, innovation, and have productive impact on surroundings

13. Principles of ERG Individuals are concerned with fulfilling more than one need at a time, once one group of needs is fulfilled the satisfaction-progression principle applies. Some individuals needs may occur in a different order than that outlined in erg A frustration-regression principle applies if we are continually frustrated in our attempts to satisfy higher needs, will concentrate on more attainable lower-level needs Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–13

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–14 Alderfer’s ERG After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised. Growth Self-development, creative work Self-development, creative work Worker continually improves skills Worker continually improves skills Relatedness Interpersonal relations, feelings Interpersonal relations, feelings Good relations, feedback Good relations, feedback Existence Food, water, shelter Food, water, shelter Basic pay level to buy items Basic pay level to buy items Lowest Highest Need LevelDescriptionExamples

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–15 NEEDS THEORIES Acquired-needs theory (McClelland) Theory stating that our needs are acquired or learned on the basis of our life experiences.

16. 11–16 NEEDS THEORIES Acquired needs theory (McClelland) Need for achievement Desire to accomplish challenging tasks Achieve results through own efforts Feedback; High nAch: competitive surroundings Need for affiliation Desire to have warm, friendly relationships Involved with professions with interactions Need for power Desire to influence & control personal power: try to dominate others for the sake of demonstrating their ability to exercise power. institutional power: working with others to solve problems and further organizational goals.

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–17 NEEDS THEORIES Acquired needs theory Developed by David McClelland Cites the needs for achievement, power, and affiliation as major motives in work Developed by David McClelland Cites the needs for achievement, power, and affiliation as major motives in work Need for achievement—drive to excel Need for power—influence others’ behaviour Need for affiliation—desire for friendly and close interpersonal relationships Need for achievement—drive to excel Need for power—influence others’ behaviour Need for affiliation—desire for friendly and close interpersonal relationships

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–18 Classification of Needs by Four Theories of Motivation Maslow’s Needs Hierarchy Theory Alderfer’s ERG TheoryHerzberg’s Two-Factor Theory McClelland’s Manifest Needs Theory Self-actualizationPower EsteemAchievement Social RelatednessAffiliation Safety Physiological Growth Motivators Hygienes Existence

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–19 How Organizations Meet Employee Needs Method: Challenge Autonomy Leadership positions Authority Responsibility Pay and Prestige Coffee breaks Sports teams Social events Work teams Working conditions (safe/clean/attractive) Job security – seniority Employee benefits Base Pay Growth (esteem / self-actualization / motivators / achievement / power) Need: Relatedness (social / hygiene / affiliation) Existence (physiological / safety / hygiene)

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–20 COGNITIVE THEORIES Attempt to isolate thinking patterns used in deciding whether or not to behave in a certain way. Thought process: 1. Expectancy theory 2. Equity theory 3. Goal-setting theory

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–21 COGNITIVE THEORIES Expectancy theory (Vroom) Developed by Victor Vroom and is a very popular theory of work motivation. Vroom suggests that motivation will be high when workers feel: – High levels of effort lead to high performance. – High performance will lead to the attainment of desire outcomes. Consists of three areas: – Expectancy, Instrumentality, & Valence Motivation = Expectancy x Valence Expectancy: person’s perception of his or her ability (probability) to accomplish an objective – The higher one’s expectancy, the better the motivation Valence: the value a person places on the outcome or reward – The higher the value (importance) of the outcome or reward, the better the motivation

22. Three main issues of expectancy theory Effort-performance expectancy : assessing the probability of our efforts that will lead to the required performance level. Evaluate own ability and consider the contextual factors Performance-outcome expectancy: assessing the probability of successful performance that will lead to certain outcomes.. Rewards will be considered. Valence refers to assessment of anticipated value of various outcomes or rewards. If available rewards interest us, valance is high. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–22

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–23 Expectancy, Instrumentality, & Valence EffortEffortExpectancy:Person’s perception that their effort will result in performanceExpectancy:Person’s perception that their effort will result in performanceInstrumentality perception that performance results in outcomesInstrumentality perception that performance results in outcomes Valence: How desired are the outcomes from a jobValence: How desired are the outcomes from a jobPerformancePerformanceOutcomesOutcomes

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–24 Expectancy Theory High Expectancy (Worker knows that if they try, they can perform) High Expectancy (Worker knows that if they try, they can perform)HighInstrumentality (Worker perceives that high performance leads to outcomes) HighInstrumentality (Worker perceives that high performance leads to outcomes) High Valence (Worker desires the outcomes resulting from high performance) High Valence (Worker desires the outcomes resulting from high performance) High Motivation: should have high e-p. provide training to provide expertise. training to provide expertise.High Motivation: should have high e-p. provide training to provide expertise. training to provide expertise.

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–25 COGNITIVE THEORIES Equity theory (Adams) Considers worker’s perceptions of the fairness of work outcomes in proportion to their inputs.  Adams notes it is the relative rather than the absolute level of outcomes a person receives. The Outcome/input ratio is compared by worker with another person called a referent. The referent is perceived as similar to the worker.  Equity exists when a person perceives their outcome/input ratio to be equal to the referent’s ratio. If the referent receives more outcomes, they should also give more inputs to achieve equity.

26. Inputs: educational background, skills, experiences, hours worked, performance results Outcomes: pay, bonuses, praise, parking places, office space, work assignment. Inequity: perception that the level of input is not matched with the outcomes. Under-reward: is when our input/output ratio seen to be less than that of a comparison Over-reward: is when our input/output ratio is seen to be greater than that of a comparison other. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–26

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–27 COGNITIVE THEORIES Goal-setting theory Goal-setting theory [technique] works by focusing attention & action, mobilising effort, increasing persistence, & encouraging the development of strategy to achieve goals.

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–28 REINFORCEMENT THEORY Theory arguing that our behaviour can be explained by consequences in the environment. Behavior can be controlled through the use of rewards Behavior is learned through experiences of positive and negative consequences TYPES: Positive Reinforcement Avoidance Reinforcement Extinction Punishment

29. Reinforcement theory Operant conditioning theory Relies on law of effect: which states that behaviors having pleasant or positive consequences are most likely to be repeated. Positive reinforcement and negative are aimed at increasing a behavior. Extinction and punishment focus on decreasing a behavior Skinner argued that positive reinforcement and extinction encourage individual growth, whereas negative reinforcement and punishment foster immaturity in individuals. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–29

30. Positive reinforcement Aimed at increasing a desired behavior Pleasant rewarding consequence to encourage behavior Shaping is the successive rewarding of behaviors that closely approximate the desired response until the actual desired response is made. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–30

31. Negative reinforcement Increasing a desired behavior. Provides unpleasant stimuli so that an individual will engage in the desired behavior in order to stop the unpleasant stimuli. The person must be engaged in the desired behavior to get rid of the unpleasant condition. May foster immature behavior Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–31

32. Punishment Providing negative consequences in order to discourage a behavior. Difference between negative reinforcement and punishment Punishment aims to decrease an undesirable behavior Applied after individual has engaged in an undesirable behavior. Negative reinforcement aims to increase desirable behavior. Occurs before individual engages in desirable behavior. 11–32

33. Extinction Involves withholding previously available positive consequences associated with a behavior in order to decrease that behavior. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–33

34. Schedules of reinforcement; basis for and timing if positive reinforcement. Continuous schedule is when the desired behavior is rewarded each time it occurs. Rapid extinction: desired behavior stops immediately Partial : reward intermittently Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–34

35. Fixed interval: Plant manager visits at 8: 00 am and praise efforts Fixed ratio: reinforcer provided after fixed number of occurrences of desired behavior. e.g. special rewards for innovative ideas- five implemented ideas. Variable interval: reinforcer is administered after a varying or random time schedule that averages out to a predetermined time frequency. Visiting 5 times a day at random time Variable ratio: varying number of occurances. Reinforcer pattern averages out to a predetermined ratio of occurrences per reinforcement. Special award given on ratio average of one award to per 5 ideas. 11–35

36. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–36 REINFORCEMENT THEORY Fixed interval: given on fixed time schedule. Uneven responses; extinction rapid if reinforcement late, or stops Fixed interval: given on fixed time schedule. Uneven responses; extinction rapid if reinforcement late, or stops Fixed ratio: given after fixed number of cases of desired behaviour. High response rates, rapid extinguishment if stopped even temporarily. Fixed ratio: given after fixed number of cases of desired behaviour. High response rates, rapid extinguishment if stopped even temporarily. Variable ratio: given on variable or random frequency of behaviour basis. High response rate, very slow extinguishment Variable ratio: given on variable or random frequency of behaviour basis. High response rate, very slow extinguishment Variable interval: given on variable or random time basis. High, steady response rate, slow extinguishment, if stopped Variable interval: given on variable or random time basis. High, steady response rate, slow extinguishment, if stopped Using reinforcement theory: Using positive reinforcement encourage desired Behaviour. Different patterns of rewarding affect the time required to learn and the degree Of persistance. Use variable interval & variable ratio reinforcement. Punish moderately severely & promptly. Using reinforcement theory: Using positive reinforcement encourage desired Behaviour. Different patterns of rewarding affect the time required to learn and the degree Of persistance. Use variable interval & variable ratio reinforcement. Punish moderately severely & promptly.

37. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–37 Giving Praise Management by Objectives (MBO) Job Enrichment Job Design Motivation Techniques

38. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–38 SOCIAL LEARNING THEORY Social learning theory (Bandura) Theory arguing that learning occurs through continuous reciprocal interaction of our behaviours, various personal factors and environmental forces.

39. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 11–39 SOCIAL LEARNING THEORY Learning occurs by continuous interaction between our behaviours, personal factors and environmental forces, viz.: Symbolic processes Self-control/regulation Vicarious learning