1. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 1 Chapter 13 Motivating for Performance

2. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 2 Motivating For Performance Motivation forces that energize, direct, and sustain a person’s efforts highly motivated people, with adequate ability and understanding of the job, will be highly productive managers must know what behaviors they want to motivate people to exhibit

3. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 3 Setting Goals Goal setting theory people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end Goals that motivate goals should be acceptable to employees goals should be challenging but attainable goals should be specific, quantifiable, and measurable Limitations of goal setting individualized goals create competition and reduce cooperation single productivity goals interfere with other dimensions of performance

4. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 4 Reinforcing Performance Law of effect behavior that is followed by positive consequences will likely be repeated Reinforcers positive consequences that motivate behavior Organizational behavior modification (OB Mod) application of reinforcement theory in organizational settings influences people’s behavior and improves performance by systematically managing work conditions and the consequences of people’s actions

5. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 5 Reinforcing Performance (cont.) Consequences of behavior positive reinforcement - applying valued consequences that increase the likelihood that a person will repeat the behavior that led to it negative reinforcement - removing or withholding an undesirable consequence can involve the threat of punishment punishment - administering an aversive consequence extinction - withdrawing or failing to provide a reinforcing consequence Reward system has to support the firm’s strategic intent

6. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 6 Behavior Positive reinforcement or negative reinforcement Same behavior likely to be repeated Same behavior less likely to be repeated Punishment or extinction The Consequences Of Behavior

7. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 7 Performance-Related Beliefs Expectancy theory proposes that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome effort-to-performance link expectancy - employees’ perception of the likelihood that their efforts will enable them to attain their performance goals performance-to-outcome link instrumentality - perceived likelihood that performance will be followed by a particular outcome valence - value an outcome holds for the person contemplating it for motivation to be high, expectancy, instrumentalities, and total valence of all outcomes must all be high

8. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 8 OutcomeEffortPerformance InstrumentalityExpectancy Basic Concepts Of Expectancy Theory

9. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 9 Performance-Related Beliefs (cont.) Expectancy theory (cont.) managerial implications of expectancy theory increase expectancies provide a work environment that facilitates good performance set realistically attainable performance goals identify positively valent outcomes understand what people want to get out of work make performance instrumental toward positive outcomes good performance should be followed by personal recognition and praise, favorable performance reviews, and other positive results

10. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 10 Understanding People’s Needs Content theories indicate the kinds of needs that people want to satisfy the extent to which and the ways in which a person’s needs are met or not met affect her/his behavior on the job Maslow’s need hierarchy human needs are organized into five major types physiological - food, water, sex, and shelter safety or security - protection against threat and deprivation social - friendship, affection, belonging, and love ego - independence, achievement, freedom, recognition, and self- esteem self-actualization - realizing one’s potential

11. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 11 Understanding People’s Needs (cont.) Maslow’s need hierarchy (cont.) postulates that people satisfy these needs one at a time, from bottom to top people motivated to satisfy lower needs before they try to satisfy higher needs once satisfied, a need is no longer a powerful motivator not altogether accurate theory of human motivation nonetheless, made three major contributions identified important need categories helped to think in terms of lower- and higher-level needs increased salience of personal growth and self-actualization

12. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 12 Alderfer’s ERG theory postulates that people have three basic need sets Existence needs - material and physiological desires Relatedness needs - involve relationships with other people satisfied by the process of mutually sharing thoughts and feelings Growth needs - motivate people to productivity or creativity satisfied by fully utilizing personal capacities and developing new capacities postulates that several different needs can be operating at once has greater scientific support than Maslow’s hierarchy both theories remind managers of the types of reinforcers or rewards that can be used to motivate people Understanding People’s Needs (cont.)

13. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 13 Growth Self- actualization Comparison Of Maslow’s Need Hierarchy And ERG Theory Relatedness Ego Social Existence Safety Physiological Maslow Alderfer

14. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 14 Understanding People’s Needs (cont.) McClelland’s needs achievement - strong orientation toward accomplishment and an obsession with success and goal attainment affiliation - strong desire to be liked by other people power - desire to influence or control other people personalized power - negative force expressed through the manipulation and exploitation of others socialized power - positive force channeled toward the constructive improvement of organizations and societies managerial success associated with low need for affiliation and moderate to high need for power

15. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 15 Understanding People’s Needs (cont.) Need theories: International perspectives need importance varies from country to country not all people are motivated by the same needs achievement, growth, and self-actualization are profoundly important in the U.S. and other Anglo-American countries these needs are not universally important, however

16. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 16 Designing Motivating Jobs Rewards may be available from the nature of the job extrinsic reinforcers - reinforcers given to a person by the boss, the company, or some other person intrinsic reward - derived directly from performing the job itself essential to the motivation underlying creativity the result of a challenging problem the result of work that is exciting in and of itself ‘mechanistic’ approach to job design - characterizes a demotivating job highly specialized, simple and routine results in employee dissatisfaction, absenteeism, and turnover

17. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 17 Designing Motivating Jobs (cont.) Job rotation changing from one routine task to another to alleviate boredom can benefit everyone when done properly Job enlargement giving people additional tasks at the same time to alleviate boredom additional tasks at the same level of responsibility Job enrichment changing a task to make it inherently more rewarding, motivating, and satisfying adds higher levels of responsibility

18. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 18 Designing Motivating Jobs (cont.) Herzberg’s two-factor theory distinguished between two broad categories of factors that affect people working on their jobs hygiene factors - characteristics of the workplace make people unhappy will not make people truly satisfied motivators - characteristics of the job itself when present, jobs presumed to be both satisfying and motivating theory has been widely criticized nevertheless, highlights the distinction between extrinsic and intrinsic rewards reminds managers that worker motivation depends on more than extrinsic rewards

19. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 19 Designing Motivating Jobs (cont.) The Hackman and Oldham model of job design well designed jobs produce three critical psychological states meaningfulness - believe that work is important to other people responsibility - feel personally responsible for how the work turns out knowledge of results - know how well the job was performed psychological states produced by five core job dimensions skill variety - different job activities involving several skills task identity - completion of a whole, identifiable piece of work task significance - important impact on the lives of others autonomy - independence and discretion in making decisions feedback - information about job performance

20. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 20 Designing Motivating Jobs (cont.) The Hackman and Oldham model of job design (cont.) effective job enrichment increases all five core dimensions effectiveness of a job enrichment program depends on a person’s growth need strength growth need strength - degree to which individuals want personal and psychological development

21. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 21 Skill variety Task identity Task significance Autonomy Feedback Experienced meaningfulness of the work Experienced responsibility for work outcomes Knowledge of results Employee growth need strength Core job dimensions Critical psychological states The Hackman And Oldham Model Of Job Enrichment Personal and work outcomes High internal work motivation High-quality work performance High job satisfaction Low absenteeism and turnover

22. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 22 Designing Motivating Jobs (cont.) Empowerment process of sharing power with employees, thereby enhancing their beliefs about being influential contributors employees perceive meaning in work employees feel competent employees derive a sense of self-determination employees believe they have an impact on important decisions empowering environment provides information required to perform at one’s best knowledge available about how to use the information employees have the power to make decisions employees receive rewards for contributions

23. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 23 Specific actions to empower Provide more freedom of access to resources Provide more freedom of access to people Allow independent judgment Assign nonroutine jobs Reduce the number of approval steps Reduce the number of rules Increase signature authority at all levels Define jobs more broadly as projects Actions That Empower Employees

24. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 24 Achieving Fairness Equity theory two factors used to assess how fairly one has been treated outcomes - various things the person receives on the job inputs - contributions the person makes to the organization people expect the outcomes they receive to be proportional to the inputs they provide people also pay attention to the outcomes and inputs of others Assessing equity equity exists when the ratios are equal assessments of equity are subjective perceptions or beliefs

25. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 25 Achieving Fairness (cont.) Restoring equity inequity causes dissatisfaction and leads to attempts to restore balance to the relationship a variety of behavioral and perceptual options may be used to restore equity alter Person’s ratio reduce inputs - give less effort, perform at lower levels, quit increase outcomes - request higher grade, better pay alter Other’s ratio decrease outcomes increase inputs

26. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 26 Achieving Fairness (cont.) Fair process procedural justice - using a fair process in decision making and making sure others know that the process was as fair as possible fair processes make unfair outcomes more palatable explain how a decision is made make an unbiased decision offer a chance to voice complaints collaborate in making decision

27. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 27 Job Satisfaction Correlates of job satisfaction job satisfaction is unrelated to job performance the greater the job dissatisfaction: the higher turnover the higher absenteeism the lower corporate citizenship the more grievances and lawsuits the higher the probability of a strike the more likely that stealing and/or vandalism will occur the poorer the mental and physical health of the workers

28. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 28 Job Satisfaction (cont.) Quality of work life (QWL) programs designed to create a workplace that enhances employee well-being goal is to satisfy the full range of employee needs organizations differ drastically in their attention to QWL in assessing the effects of QWL, productivity is defined broadly to include turnover, absenteeism, accidents, theft, sabotage, creativity, and quality of work

29. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 29 Quality of Work Life Constitutionalism Minimum infringe- ments on personal and family needs Chance for personal growth and security Jobs develop human capacities Socially responsible organizational actions Safe and healthy environment Adequate and fair compensation Supportive social environment Categories Of Quality Of Life

30. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 13 - 30 Job Satisfaction (cont.) Psychological contracts a set of perceptions of what employees owe their employers, and what their employers owe them has important implications for employee satisfaction/motivation historically, this relationship has been stable in many companies now, mergers, layoffs, and other disruptions have undermined the ‘old deal’ versus Benefits provided by the organization Benefits promised by the organization Contributions provided by the employee Contributions promised by the employee