1. Foundations of Employee Motivation Chapter 5

2. 5-2 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Learning Objectives 5.1 Define employee engagement 5.2 Explain the role of human drives and emotions in employee motivation and behaviour 5.3 Summarise Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory and discuss their implications for motivating employees 5.4 Discuss expectancy theory model, including its practical implications

3. 5-3 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Learning Objectives continued 5.5 Outline organisational behaviour modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation 5.6 Describe the characteristics of effective goal setting and feedback 5.7 Summarise equity theory and describe ways to improve procedural justice

4. 5-4 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Standard Chartered Bank Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths- based feedback, employee development and other practices

5. 5-5 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Motivation Defined The forces within a person that affect the direction, intensity and persistence of voluntary behaviour Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction )

6. 5-6 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Employee Engagement Individual’s emotional and cognitive (logical) motivation, particularly a focused, intense, persistent and purposive effort toward work-related goals High absorption in the work High self-efficacy: believe you have the ability, role clarity and resources to get the job done

7. 5-7 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Drives and Needs Drives (primary needs) –Hardwired brain characteristics (neural states) that energise individuals to maintain balance by correcting deficiencies –Prime movers of behaviour by activating emotions

8. 5-8 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Drives and Needs continued Needs –Goal-directed forces that people experience. –Drive-generated emotions directed toward goals –Goals formed by self-concept, social norms, and experience

9. 5-9 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Maslow’s Needs Hierarchy Theory

10. 5-10 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Maslow’s Needs Hierarchy Theory continued Seven categories—five in a hierarchy—capture most needs Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator Self-actualisation—a growth need because people desire more rather than less of it when satisfied

11. 5-11 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e What’s Wrong with Needs Hierarchy Models? Maslow’s theory lacks empirical support –People have different hierarchies –Needs change more rapidly than Maslow stated Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy Instead, needs hierarchies are shaped by person’s own values and self-concept

12. 5-12 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e What Maslow Contributed to Motivation Theory Holistic perspective –Integrative view of needs Humanistic perspective –Influence of social dynamics, not just instinct Positive perspective –Pay attention to strengths (growth needs), not just deficiencies

13. 5-13 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Learned Needs Theory Needs are amplified or suppressed through self-concept, social norms and past experience Therefore, needs can be ‘learned’ –Strengthened through reinforcement, learning and social conditions

14. 5-14 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Three Learned Needs Need for achievement –Need to reach goals, take responsibility –Want reasonably challenging goals Need for affiliation –Desire to seek approval, conform to others’ wishes, avoid conflict –Effective executives have lower need for social approval Need for power –Desire to control one’s environment –Personalised versus socialised power

15. 5-15 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Four-Drive Theory Drive to Bond Drive to Comprehend Drive to form relationships and social commitments Basis of social identity Drive to satisfy curiosity To understand environment and self Drive to Defend Need to protect ourselves Reactive (not proactive) drive Basis of fight or flight Drive to Acquire Drive to take/keep objects and experiences Basis of hierarchy and status

16. 5-16 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e How Four Drives Affect Motivation Four drives determine which emotions are automatically tagged to incoming information Drives generate independent and often competing emotions that demand our attention Mental skill set relies on social norms, personal values and experience to transform drive-based emotions into goal-directed choice and effort

17. 5-17 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Four-Drive Theory of Motivation Social norms, personal values and experience transform drive-based emotions into goal-directed choice and effort

18. 5-18 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Implications of Four-Drive Theory Provide a balanced opportunity for employees to fulfil all four drives –Employees continually seek fulfilment of drives –Avoid having conditions support one drive more than others

19. 5-19 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Expectancy Theory of Motivation

20. 5-20 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Increasing E–to–P and P–to–O Expectancies Increasing E–to–P Expectancies –Develop employee competencies –Match employee competencies to jobs –Provide role clarity and sufficient resources –Provide behavioural modelling Increasing P–to–O Expectancies –Measure performance accurately –Increase rewards with desired outcomes –Explain how rewards are linked to performance

21. 5-21 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Increasing Outcome Valences Ensure that rewards are valued Individualise rewards Minimise countervalent outcomes

22. 5-22 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e A-B-Cs of Behaviour Modification

23. 5-23 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Four OB Mod Consequences Positive reinforcement: consequence that, when introduced, increases/maintains the target behaviour Punishment: consequence that decreases the target behaviour Negative reinforcement: consequence that, when removed, increases/maintains target behaviour Extinction: when no consequence occurs, resulting in less of the target behaviour

24. 5-24 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Reinforcing the Healthy Walk The British municipality of Stoke-on-Trent, Staffordshire, issued pedometers to its staff and encouraged them to walk more each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organisations also reinforce walking with financial rewards

25. 5-25 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Behaviour Modification in Practice Behaviour modification applications: –Every day to influence behaviour of others –Company programs: attendance, safety, etc. Behaviour modification problems: –Reward inflation –Variable ratio schedule viewed as gambling –Ignores relevance of cognitive processes in motivation and learning

26. 5-26 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Social Cognitive Theory Learning behaviour outcomes –Observing consequences that others experience –Anticipating consequences in other situations Behaviour modelling –Observing and modelling behaviour of others Self-regulation –Intentional, purposive action: develop goals, achievement standards, action plans –Form expectancies (anticipate consequences) from others, not just from own experiences –Reinforce own behaviour (self-reinforcement)

27. 5-27 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Goal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives

28. 5-28 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Effective Goal Setting Characteristics Specific—what, how, where, when and with whom the task needs to be accomplished Measurable—how much, how well, at what cost Achievable—challenging, yet accepted (E–to–P) Relevant—within employee’s control Time-framed—due date and when assessed Exciting—employee commitment, not just compliance Reviewed—feedback and recognition on goal progress and accomplishment

29. 5-29 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Balanced Scorecard Organisational-level goal setting and feedback Attempts to include measurable performance goals related to financial, customer, internal and learning/growth (i.e., human capital) processes Usually includes several goals within each process

30. 5-30 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Characteristics of Effective Feedback 1.Specific—connected to goal details 2.Relevant—relates to person’s behaviour 3.Timely—to improve link from behaviour to outcomes 4.Credible—from trustworthy source 5.Sufficiently frequent –Employee’s knowledge and/or experience –Task cycle

31. 5-31 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Strengths-Based Coaching Feedback Maximising the person’s potential by focusing on their strengths rather than weaknesses Motivational because: People inherently seek feedback about their strengths, not their flaws Person’s interests, preferences and competencies stabilise over time

32. 5-32 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Multisource Feedback Received from a full circle of people around the employee Provides more complete and accurate information Several challenges –Expensive and time-consuming –Ambiguous and conflicting feedback –Inflated rather than accurate feedback –Stronger emotional reaction to multiple feedback

33. 5-33 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Organisational Justice Distributive justice Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others Procedural justice Perceived fairness of the procedures used to decide the distribution of resources

34. 5-34 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Equity Theory

35. 5-35 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Elements of Equity Theory Outcome/input ratio –Inputs: what employee contributes (e.g. skill) –Outcomes: what employee receives (e.g. pay) Comparison other –Person/people against whom we compare our ratio –Not easily identifiable Equity evaluation –Compare outcome/input ratio with the comparison other

36. 5-36 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Correcting Inequity Tension Reduce our inputsLess organisational citizenship Increase our outcomesAsk for pay increase Increase other’s inputsAsk co-worker to work harder Reduce other’s outputs Ask boss to stop giving preferred treatment to co-worker Change our perceptions Start thinking that co-worker’s perks aren’t really so valuable Change comparison other Compare self to someone closer to your situation Leave the fieldQuit job Actions to correct under-reward inequity Example

37. 5-37 Copyright © 2013 McGraw-Hill Australia Pty Ltd McShane, Olekalns, Travaglione, Organisational Behaviour, 4e Procedural Justice Perceived fairness of procedures used to decide the distribution of resources Greater procedural fairness with: –Voice –Unbiased decision maker –Decision based on all information –Apply existing policies consistently –Decision maker listened to all sides –Those who complain are treated respectfully –Those who complain are given full explanation

38. Foundations of Employee Motivation Chapter 5