1. Chapter 7 Motivation

2. Learning outcomes You should learn to: Define the motivation process
Describe early motivation theories
Explain how goals motivate people
Identify ways to design motivating jobs
Explain how goal-setting theory impacts performance & rewards.

3. Learning outcomes
Describe the motivational implications of equity theory, expectancy theory & self-efficacy theory.
Describe current motivation issues facing managers
Identify management practices that are likely to lead to more motivated employees

4. What is Motivation?
the processes that account for an individual's intensity, direction, and persistence of effort towards attaining a goal.
Intensity- how hard a person tries
direction - efforts should be channeled in a direction that benefits the organizational goals.
Persistence- determines how long a person can maintain effort.
Unsatisfied needs creates tension that stimulates drive which leads to search behavior.

5. The Motivation Process
Unsatisfied
Need
Tension
Drives
Search
Behavior
Satisfied
Need
Reduction
of Tension

6. THREE THEORIES OF MOTIVATION
Internal
Focus on variables within individual that lead to motivation and behavior.
Process
Emphasize nature of interaction between individual and environment.
External
Focus on elements in the environment to explain motivation and behavior. 3

7. Early Theories Of Motivation
Maslow’s Hierarchy of Needs Theory
each level in hierarchy must be satisfied before the next is activated
once a need is substantially satisfied it no longer motivates behavior
theory received wide recognition
little research support for the validity of the theory

8. Maslow’s Hierarchy of Needs Theory
Lower-order needs - largely satisfied externally
physiological - food, drink, shelter, sexual satisfaction
safety - security and protection from physical and emotional harm
assurance that physiological needs will be satisfied
Higher-order needs - largely satisfied internally
social - affection, belongingness, acceptance
esteem - internal factors like self-respect, autonomy
external factors like status, recognition, attention
self-actualization - achieving one’s potential

9. Maslow’s Hierarchy of Needs
Lowest to highest order 2 5 2 4 6 2

10. McGregor’s Theory X and Theory Y
Theory X - assumes that workers have little ambition, dislike work, want to avoid responsibility, and need to be closely controlled
assumed that lower-order needs dominated
Theory Y - assumes that workers can exercise self-direction, accept and actually seek out responsibility, and consider work to be a natural activity
assumed that higher-order needs dominated
no evidence that either set of assumptions is valid
no evidence that managing on the basis of Theory Y makes employees more motivated

11. Theory X/Y
Theory X: Workers are costs
Theory Y: Workers are assets

12. Herzberg’s Two-Factor Theory
Hygiene factor
Motivation factor
Both are work conditions, but each addresses a different part of an employee’s experience

13. Herzberg’s Motivation-Hygiene Theory
intrinsic characteristics consistently related to job satisfaction
motivator factors energize employees
extrinsic characteristics consistently related to job dissatisfaction
hygiene factors don’t motivate employees
proposed dual continua for satisfaction and dissatisfaction
theory enjoyed wide popularity
influenced job design

14. Motivation–Hygiene Theory of Motivation
Achievement
Achievement recognition
Work itself
Responsibility
Advancement
Growth
Motivation factors increase job satisfaction
Hygiene factors avoid job dissatisfaction
Company policy and administration
Supervision
Interpersonal relations
Working conditions
Salary
Status
Security 10 13

15. Contrasting Views Of Satisfaction-Dissatisfaction
Traditional View
Satisfaction Dissatisfaction
Herzberg’s View
Motivators
Hygienes
Satisfaction No Satisfaction
No Dissatisfaction Dissatisfaction

16. Motivation-Hygiene Combinations
(Motivation = M, Hygiene = H)

17. Implications…
You have a RIGHT to be dissatisfied about your work conditions.
As an employee, you have a RESPONSIBILITY to communicate your dissatisfaction and work to help improve the conditions.
As a manager, you have a RESPONSIBILITY to continuously improve the work conditions within your control. Your best source of information about what to improve and how to improve it are your employees.

18. McClelland’s Theory
3categories of needs
Achievement
Power
Affiliation

19. Three-Needs Theory - McClelland
need for achievement (nAch) - drive to excel, to achieve in relation to a set of standards, and to strive to succeed
do not strive for trappings and rewards of success
prefer jobs that offer personal responsibility
want rapid and unambiguous feedback
set moderately challenging goals
avoid very easy or very difficult tasks
high achievers don’t necessarily make good managers
focus on their own accomplishments
good managers emphasize helping others to accomplish their goals

20. need for power (nPow) People high in (nPower) prefer work that:
Desire to control other persons, to influence their behavior, or to be responsible for other people.
Personal power versus social power.
People high in (nPower) prefer work that:
Involves control over other persons.
Has an impact on people and events.
Brings public recognition and attention.

21. need for affiliation (nAff): desire for friendly and close interpersonal relationships.
People high in (nAff) prefer work that:
Involves interpersonal relationships.
Provides for companionship
Brings social approval.

22. Need Theory
What combination of needs are present in the best managers? The managers with high in need of power.

23. Individual–Organizational Exchange

24. CONTEMPORARY THEORIES OF MOTIVATION

25. Self Determination Theory: Basic principles 1
People prefer to feel they have control over their actions, so when a previously enjoyed task feels more like an obligation it undermines motivation.
Studies then questioned whether intrinsic motivation could be undermined by the use of extrinsic rewards
Self determination theory proposed that variations in individuals' feelings of competence and perceptions of autonomy will produce variations in intrinsic motivation.

26. Self Determination Theory: Basic principles 2
Providing individuals with rewards for their participation in an already interesting activity often leads to a decrease in intrinsic motivation.
This is called the ‘over justification effect’
Goal setting is effective in improving motivation if rewards are provided for achieving the goals along with extrinsic rewards like verbal praise and feedback about competence.
Rewards and deadlines diminish motivation if people see it as coercive.
When goals are pursued because of an intrinsic interest, rather than extrinsic reasons ( money, status etc.) individuals will be more satisfied and perform better.

27. Self Determination Theory: Controlling and informational functions of rewards
Cognitive Evaluation Theory states that rewards are likely to serve two main functions:
Information function. If the reward provides information about the individuals' competence then it is quite likely that intrinsic motivation can be enhanced with rewards.
Controlling function. If the rewards are seen to be controlling behaviour (i.e., the goal is to obtain the reward rather than participate for intrinsic reasons), then withdrawal of the reward is likely to lead to subsequent decreases in intrinsic motivation.

28. Possible links between rewards and intrinsic motivation in exercise
REWARDS  
Reward seen to be reason for exercise involvement [‘controlling function’]
Reward provides information about competence in exercise [‘controlling function’]
Perceived success
Perceived lack of success
Intrinsic motivation likely to decline
Intrinsic motivation likely to increase

29. Goals: Definition and Background
what an individual is trying to accomplish
Management by objectives
management system incorporating participation in decision making, goal setting, and feedback.

30. Goal Setting Read an article by Latham and Locke on :
“Goal Setting-A Motivational Technique that Works”

31. Goal-Setting Theory
intention to work towards a goal is a major source of job motivation
specific goals increase performance
difficult goal, when accepted, results in higher performance than does an easy goal
specific hard goals produce a higher level of output than does the generalized goal of “do your best”
participation in goal setting is useful
reduces resistance to accepting difficult goals
increases goal acceptance

32. Goal-Setting Theory (cont.)
feedback is useful
helps identify discrepancies between what has been accomplished and what needs to be done
self-generated feedback is a powerful motivator
contingencies in goal-setting theory
goal commitment - theory presupposes that individual is determined to accomplish the goal
most likely to occur when:
goals are made public
individual has an internal locus of control
goals are self-set rather than assigned

33. Goal-Setting Theory (cont.)
contingencies (cont.)
self-efficacy - an individual’s belief that s/he is capable of performing a task
higher self-efficacy, greater motivation to attain goals
national culture - theory is culture bound
main ideas align with North American cultures
goal setting may not lead to higher performance in other cultures

34. MBO PROGRAMS: Putting Goal-Setting T. Into Practice
Converting overall organizational objectives into specific objectives for organizational units and individual members.
Four ingredients common to MBO programs:
Goal specification.
Participation in decision making.
An explicit time period.
Performance feedback.
Failures may come from:
Unrealistic expectations regarding results.
Lack of commitment by top management.
Cultural incompatibilities.

35. Relationship between Goal Difficulty and Performance

36. Guidelines for Job Redesign

37. Managerial Actions for Enhancing Goal Commitment
1. Provide valued outcomes for goal accomplishment.
2. Raise employees’self-efficacy about meeting goals by:
Providing adequate training
Role modeling desired behaviors and actions
Persuasively communicating confidence in the employees ability to attain the goal.

38. Managerial Actions for Enhancing Goal Commitment
3. Have employees make a public commitment to the goal.
4. Communicate an inspiring vision and explain how individual goals relate to accomplishing the vision.
5 Allow employees to participate in setting the goals.

39. Managerial Actions for Enhancing Goal Commitment
6. Behave supportively rather than punitively.
7. Break a long-term goal (i.e., a yearly goal) into short-term sub-goals.
8. Ensure that employees have the resources required to accomplish the goal.

40. Self–Efficacy Self–Efficacy Theory... Bandura
The perception of one’s ability to perform a task successfully is really a situation-specific form of self-confidence.

41. Self–Efficacy Sources

42. Expectancy Theory
explains motivation in terms of an individual’s perception of the performance process.

43. Two Basic Notions of Expectancy Theory
People expect certain outcomes of behavior and performance.
People believe that the effort they put forth is related to the performance they achieve and the outcomes they receive. 24

44. Key Constructs of Expectancy Theory
Valence – value or importance placed on a particular reward
Expectancy – belief that effort leads to performance
Instrumentality – belief that performance is related to rewards 24

45. Expectancy Theory
states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual
Expectancy (effort-performance linkage) - perceived probability that exerting a given amount of effort will lead to a certain level of performance
Instrumentality (performance-reward linkage) - strength of belief that performing at a particular level is instrumental in attaining an outcome
Valence - attractiveness or importance of the potential outcome

46. Expectancy Theory (cont.)
theory emphasizes rewards
organizational rewards must align with the individual’s wants
no universal principle for explaining what motivates individuals
managers must understand why employees view certain outcomes as attractive or unattractive
most comprehensive and widely accepted explanation of employee motivation

47. Expectancy Model of Motivation25

48. A General Model of Expectancy Theory
Outcome 1
High Effort
Performance
Goal
Outcome 2
Expectancy: “What are my chances of reaching my goal if I work hard?”
Outcome 3
Instrumentality: “What are my chances of getting various outcomes if I achieve my goal?
Decision
To Exert
Effort
Valence: “How much do I value these outcomes?”
Expectancy: “What are my chances of reaching my goal if I slack off?”
Notes:
Topic: Vroom’s expectancy theory .
The figure in the above slide depicts a general model of Vroom’s theory.
It outlines variables that influence and individual’s level of motivation
Source: Organizational Behavior 1 Ed. Kinicki & Kreitner, BPI/Irwin, Pp
Outcome 1
Low Effort
Outcome 2
Performance
Goal
Outcome 3

49. Simplified Expectancy Model
Individual
Effort
Performance A
Organizational
Rewards B
Individual
Goals C A
= Effort-performance linkage B
= Performance-reward linkage C
= Attractiveness

50. Adam’s Theory of Inequity
People are motivated when they find themselves in situations of inequity or unfairness.
To look for inequity, people consider their inputs and their outcomes.

51. Equity Theory
proposes that employees perceive what they get from a job (outcomes) in relation to what they put into it (inputs)
input/outcome ratio compared with the ratios of relevant others
equity - ratio is equal to that of relevant others
inequity - ratio is unequal to that of relevant others
referent (relevant other) may be:
other - individuals with similar jobs
a system - includes organizational pay policies and administrative systems
self - past personal experiences and contacts

52. Equity Theory (cont.)
when inequities are perceived, employees act to correct the situation
distort either their own or others’ inputs or outputs
behave in a way to induce others to change their inputs or outputs
behave in a way to change their own inputs or outputs
choose a different comparison person
quit their jobs
theory leaves some issues unclear

53. Equity and Inequity at Work19

54. Equity theory and the role of social comparison.

55. Strategies for Resolution of Inequity
Alter the person’s outcomes
Alter the person’s inputs
Alter the comparison other’s outputs
Alter the comparison other’s inputs
Change who is used as a comparison other
Rationalize the inequity
Leave the organizational situation 7 7 7 3 20 7

56. Practical Implications of the Equity Model
Treat employees fairly.
People make decisions concerning equity after comparing themselves with others.
Procedural justice influences perceptions of organizational fairness. Be as transparent as possible.

57. 3 Causes of Motivational Problems
Belief that effort will not result in performance
Belief that performance will not result in rewards
The value a person places on, or the preference a person has for, certain rewards

58. An integrated approach to motivational dynamics.

59. From Theory To Practice
Recognize
individual
differences
Ensure that goals
are perceived as
attainable
Check the system
for equity
Individualize
rewards
Link rewards
to performance
Suggestions
for
Motivating
Employees
Use goals
Don’t ignore
money
Match people
to jobs

60. Designing Motivating Jobs
Job Design - the way tasks are combined to form complete jobs
historically, concentrated on making jobs more specialized
Job Enlargement - horizontal expansion of job
job scope - the number of different tasks required in a job and the frequency with which these tasks are repeated
provides few challenges, little meaning to workers’ activities
only addresses the lack of variety in specialized jobs

61. Designing Motivating Jobs (cont.)
Job Enrichment - vertical expansion of job
job depth - degree of control employees have over their work
empowers employees to do tasks typically performed by their managers
research evidence has been inconclusive about the effect of job enrichment on performance

62. Designing Motivating Jobs (cont.)
Job Characteristics Model (JCM) - conceptual framework for analyzing jobs
jobs described in terms of five core characteristics
skill variety - degree to which job requires a variety of activities
more variety, greater need to use different skills
task identity - degree to which job requires completion of an identifiable piece of work
task significance - degree to which job has substantial impact on the lives of other people
these three characteristics create meaningful work

63. Designing Motivating Jobs (cont.)
JCM (cont.)
core characteristics (cont.)
autonomy - degree to which job provides substantial freedom, independence, and discretion in performing the work
give employee a feeling of personal responsibility
feedback - degree to which carrying out the job results in receiving clear information about the effectiveness with which it has been performed
employee knows how effectively s/he is performing

64. Job Characteristics Model
Critical
Psychological States
Personal and
Work Outcomes
Core Job
Dimensions
High Internal Work Motivation
Experienced meaningfulness
of the work
Skill Variety
Task Identity
Task Significance
High-Quality
Work Performance
Autonomy
Experienced responsibility for outcomes of work
High Satisfaction with the Work
Feedback
Knowledge of the actual
results of the work
Low Absenteeism
and Turnover
Strength of Employee Growth Need

65. Designing Motivating Jobs (cont.)
JCM (cont.)
links between core characteristics and outcomes are moderated by the strength of the individual’s growth need
growth need - person’s desire for self-esteem and self-actualization
model offers specific guidance for job design

66. Current Issues In Motivation
Motivating a Diverse Workforce
flexibility is the key to motivating a diverse workforce
diverse array of rewards necessary to satisfy diverse personal needs and goals
Flexible Working Schedule
compressed workweek - employees work longer hours per day but fewer days per week

67. Motivating a Diverse Workforce (cont.)
Flexible Working Schedule (cont.)
flexible work hours (flextime) - employees required to work a specific number of hours a week but are free to vary those hours within certain limits
system entails common core hours when all employees are required to be on the job
starting, ending, and lunch-hour times are flexible
job sharing - two or more people split a full-time job
telecommuting - employees work at home and are linked to the workplace by computer and modem

68. Motivating a Diverse Workforce (cont.)
Cultural Differences in Motivation
motivation theories developed in the U.S. and validated with American workers
may be some cross-cultural consistencies
Pay-for-Performance
instead of paying for time on the job, pay is adjusted to reflect some performance measure
compatible with expectancy theory
imparts strong performance-reward linkage
programs are gaining in popularity
research suggests that programs affect performance

69. Motivating the “New Workforce”
Open-Book Management
involve employees in workplace decisions by opening up the financial statements
workers treated as business partners
get workers to think like an owner
may also provide bonuses based on profit improvements
Motivating the “New Workforce”
Motivating Professionals - professionals tend to derive intrinsic satisfaction from their work and receive high pay
more loyal to their profession than their employer
value challenging jobs and support for their work

70. Motivating the “New Workforce” (cont.)
Motivating Contingent Workers - part-time, contract, or temporary workers
less security and stability than permanent employees
receive fewer benefits
display little identification or commitment to their employers
hard to motivate contingent workers
opportunity to become a permanent employee
opportunity for training
repercussions of mixing permanent and contingent workers when pay differentials are significant

71. Motivating the “New Workforce” (cont.)
Motivating Low-Skilled, Minimum-Wage Employees
difficult challenge to keep performance levels high
employee recognition programs
highlight employees whose work performance has been good
encourage others to perform better
power of praise
in service industries, empower front-line employees to address customers’ problems
tie compensation to customer satisfaction

72. What are the challenges of motivation in the new workplace?
Pay for performance
Paying people for performance is consistent with:
Equity theory.
Expectancy theory.
Reinforcement theory.
Merit pay
Awards a pay increase in proportion to individual performance contributions.
Provides performance contingent reinforcement.
May not succeed due to weakness in performance appraisal system or lack of consistency in application.

73. What are the challenges of motivation in the new workplace?
Incentive compensation systems:
Skill-based pay.
Links pay to the number of job-relevant skills an employee masters.
Bonus pay plans.
One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution.

74. What are the challenges of motivation in the new workplace?
Incentive compensation systems:
Profit-sharing plans.
Some or all employees receive a proportion of net profits earned by the organization.
Gain-sharing plans.
Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity.
Employee stock ownership plans.
Employees own stock in the company that employs them.