1. M A N A G E M E N T M A N A G E M E N T 1 st E D I T I O N 1 st E D I T I O N Gulati | Mayo | Nohria Gulati | Mayo | Nohria Chapter 18 Chapter 18 MOTIVATION MOTIVATION INDIVIDUALPERSPECTIVE ©South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook

2. Learning Objectives Differentiate between intrinsic and extrinsic rewards and describe how they influence motivationDifferentiate between intrinsic and extrinsic rewards and describe how they influence motivation Outline the five primary content theories of motivation and describe how they are similar or differentOutline the five primary content theories of motivation and describe how they are similar or different Describe the primary process theories of motivation and what each one attempts to measureDescribe the primary process theories of motivation and what each one attempts to measure Explain the different ways in which desired behavior is reinforced within an organization and the role that job design plays in channeling motivationExplain the different ways in which desired behavior is reinforced within an organization and the role that job design plays in channeling motivation © South-Western, a part of Cengage Learning 18–2

3. MotivationMotivation © South-Western, a part of Cengage Learning18–3 Facilitate or motivate task performance that include pay, promotions, fringe benefits, and job security Extrinsic rewards Associated with “doing the job,” include interesting and challenging work, self-direction and responsibility, variety, opportunities to use one’s skills and abilities, and sufficient feedback regarding one’s efforts Intrinsic rewards The desire, stimulus, or incentive to pursue a particular course of action

4. Content Theories © South-Western, a part of Cengage Learning18–4 Acquired needs theory ERG theory Study of incentives and needs that motivate people to perform in a certain way Hierarchy of needs theory Two-factor theory Four-drive theory

5. Maslow’s Hierarchy of Needs Theory © South-Western, a part of Cengage Learning18–5 Individuals have multiple needs that must be fulfilled in a specific hierarchical order to ensure the greatest level of satisfaction Required for survival—food, water, shelter, and oxygen Secure and protected physical and emotional environment Affiliation such as family, friendships, and intimacy Self-image, self-confidence, achievement, and respect Physiological needs Safety needs Belongingness needs Esteem Needs Desire to grow and develop into the best person he or she can be Self- Actualization

6. Aldefer’s ERG Theory © South-Western, a part of Cengage Learning18–6 Individuals are motivated by three primary needs: existence (basic physical needs), relatedness (connection with others), and growth (personal development)

7. Herzberg’s Two-Factor Theory Conditions that simultaneously act as drivers of satisfaction and dissatisfaction are:Conditions that simultaneously act as drivers of satisfaction and dissatisfaction are: –Hygiene factors: Comprise the makeup of the work environment and are a potential source of dissatisfaction Physiological needsPhysiological needs Safety needsSafety needs Belongingness needsBelongingness needs –Motivators: Direct consequences of doing the job and the primary cause of satisfaction on the job 18–7 © South-Western, a part of Cengage Learning

8. Acquired Needs Theory © South-Western, a part of Cengage Learning18–8 Need to set, meet, and exceed goals Need for achievement Need to seek opportunities for personal aggrandizement (personalized power) or to make an impact on and influence others (socialized power) Need for power Need to interact, socialize, and develop friendships Need for affiliation Individuals are driven or motivated by following three types of needs

9. Four-Drive Theory © South-Western, a part of Cengage Learning18–9 Fulfilling four drives—the drive to acquire, the drive to bond, the drive to comprehend, and the drive to defend—underlies motivation, and that the degree to which these are satisfied directly affects employees’ emotions and behaviors

10. Process Theories of Motivation © South-Western, a part of Cengage Learning18–10 Expectancy theory Why do people behave in certain ways to satisfy their needs and how do they evaluate their overall level of satisfaction after they have attempted to fulfill their needs Goal-setting theory Equity theory

11. Goal-Setting Theory © South-Western, a part of Cengage Learning18–11 People use the knowledge and skills they have attained from other activities and apply them to meet new goals Difficult goals make employees want to work harder whether the goals are set by management or the employee Goals direct attention and effort toward goal-relevant activities and away from goal-irrelevant activities Tight deadlines for goal completion lead to a more rapid work pace Setting goals that are difficult, but achievable, is a significant motivator of performance 1 2 3 4

12. Expectancy Theory © South-Western, a part of Cengage Learning18–12 Evaluation of whether putting in effort will lead to high performance Evaluation of whether successful performance will lead to a desired reward Evaluation of whether the available outcomes are attractive Effort to performance expectancy Effort to performance expectancy Performance to outcome expectancy Valance Employees expect that high effort should lead to good performance and that good performance, in turn, should lead to reward

13. Equity Theory © South-Western, a part of Cengage Learning18–13 People will compare their circumstances with those of similar others and that this behavior motivates them to seek fairness in the way they are rewarded for performance Key to all comparisons is perception

14. Reinforcing Motivation © South-Western, a part of Cengage Learning18–14 Punishment Reinforcement theory Extinction Individual Behavior and Performance Positive reinforcement Negative reinforcement + – Both positive and negative reinforcement increase behavior while punishment and extinction decrease behavior Theory of operant conditioning Theory of operant conditioning

15. Reinforcement and Conditioning © South-Western, a part of Cengage Learning18–15 Explains that both positive and negative reinforcements can induce certain behaviors Reinforcement theory Act of rewarding a desired behavior Positive reinforcement Act of removing an aversive condition in response to a desired behavior Negative reinforcement Act of presenting an aversive stimulus in response to an undesired behavior Punishment Idea that a behavior stops because it has ceased to be rewarded or punished Extinction

16. Employee Engagement and Empowerment © South-Western, a part of Cengage Learning18–16 Employees inherently dislike work and need to be constantly monitored and evaluated to ensure that they do what is expected Theory X Employees are motivated to do their best and to work to their potential Theory Y

17. Self-EfficacySelf-Efficacy The belief that one has the capabilities to accomplish organizational goalsThe belief that one has the capabilities to accomplish organizational goals Enhanced when employees are:Enhanced when employees are: –Encouraged to expand their repertoire of skills –Given opportunities to grow and develop in the organization Grows when individuals complete more complex tasksGrows when individuals complete more complex tasks 18–17 © South-Western, a part of Cengage Learning

18. KEY TERMS © South-Western, a part of Cengage Learning 18–18 Acquired needs theory Content theories ERG theory Equity theory Expectancy theory Extinction Extrinsic rewards Four-drive theory Goal-setting theory Hierarchy of needs theory Hygiene factors Intrinsic rewards MotivationMotivators Need for achievement Need for affiliation Need for power Negative reinforcement Positive reinforcement Process theories Punishment Reinforcement theory Self-efficacy Theory of operant conditioning Theory X Theory Y Two-factor theory