1. Motivation Concepts & Applications Chapter # 7

2. Prof. Jahanzaib Yousaf, PCIT2 Chapter # 6 Chapter Outline Defining Motivation. Motivational Theories. Need Theories Contemporary Theories Motivating Employees Motivation & Performance Rewards

3. Motivation  The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal.  Three key elements: Intensity – how hard a person tries Direction – effort that is channeled toward, and consistent with, organizational goals Persistence – how long a person can maintain effort Prof. Jahanzaib Yousaf, PCIT3 The result of the interaction between the individual and the situation.

4. Maslow’s Hierarchy of Needs There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant. Assumptions: Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied Must move in hierarchical order Self-ActualizationEsteemSocialSafetyPhysiological Lower Order External Higher Order Internal

5. Alderfer’s ERG Theory  Three groups of core needs: Existence (Maslow: physiological and safety) Relatedness (Maslow: social and status) Growth (Maslow: esteem and self- actualization)  Removed the hierarchical assumption Can be motivated by all three at once  Popular, but not accurate, theory © 2009 Prentice-Hall Inc. All rights reserved. 6-5

6. McGregor’s Theory X and Theory Y  Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive). Managers used a set of assumptions based on their view The assumptions molded their behavior toward employees © 2009 Prentice-Hall Inc. All rights reserved. 6-6

7. Herzberg’s Two-Factor Theory Hygiene Factors Motivators AchievementResponsibilityGrowth Work Conditions Salary Company Policies Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs Extrinsic and Related to Dissatisfaction Intrinsic and Related to Satisfaction

8. Locke’s Goal-Setting Theory  Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance  Difficult Goals: Energize the person to work harder Difficulty increases persistence Force people to be more effective and efficient  Relationship between goals and performance depends on: Goal commitment (the more public the better!) Task characteristics (simple, well-learned) Culture (best match is in North America)

9. Adams’ Equity Theory  Employees compare their ratios of outcomes-to-inputs of relevant others. When ratios are equal: state of equity exists – there is no tension as the situation is considered fair When ratios are unequal: tension exists due to unfairness  Underrewarded states cause anger  Overrewarded states cause guilt Tension motivates people to act to bring their situation into equity

10. Vroom’s Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. Expectancy of performance success Instrumentality of success in getting reward Valuation of the reward in employee’s eyes

11. Motivating Employees Prof. Jahanzaib Yousaf, PCIT11

12. How Can Jobs Be Redesigned?  Job Rotation The periodic shifting of a worker from one task to another  Job Enlargement The horizontal expansion of jobs  Job Enrichment The vertical expansion of jobs

13. Guidelines for Enriching a Job

14. Alternative Work Arrangements  Flextime Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.  Job Sharing The practice of having two or more people split a 40- hour-a-week job

15. Another Alternative: Telecommuting  Telecommuting Employees do their work at home at least two days a week on a computer that is linked to their office.  Typical Telecommuting Jobs Professional and other knowledge-related tasks Routine information-handling tasks Mobile activities

16. Four Major Strategic Reward Decisions 1. What to pay? (pay structure) 2. How to pay individuals? (variable pay plans and skill- based pay plans) 3. What benefits to offer? Do we offer choice of benefits? (flexible benefits) 4. How to build recognition programs?

17. 1. What to Pay – Pay Structure  Internal equity The worth of the job to the organization Determined by job evaluations  External equity The competitiveness of the company’s pay relative to pay elsewhere in the industry Determined through pay surveys

18. 2. How to Pay - Variable Pay Programs  Types of Variable Pay Programs Piece Rate:  Workers are paid a fixed sum for each unit of production completed  Weakness: not feasible for many jobs Merit-Based:  Based on performance appraisal ratings  Gap increasing between average and top-performers  Weaknesses: validity of system based on annual appraisals, unions strongly resist Bonuses:  Rewards recent performance  Weakness: employees consider this a pay

19. 2. How to Pay - Skill-Based Pay Programs Profit Sharing:  Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability Gain Sharing:  An incentive plan in which improvements in group productivity determine the total amount of money that is allocated Employee Stock Ownership Plans (ESOPs)  Company-established benefit plans in which employees acquire stock as part of their benefits

20. 3. What Benefits to Offer - Flexible Benefits Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.  Modular Plans Predesigned benefits packages for specific groups of employees  Core-Plus Plans A core of essential benefits and a menu-like selection of other benefit options  Flexible Spending Plans Allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums

21. 4. How to Build Recognition Programs  Intrinsic Vs Extrinsic Rewards  Stimulates Motivation Personal attention given to employee Approval and appreciation for a job well done Growing in popularity and usage