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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning ObjectivesL01: Behaviors managers need to motivate peopleL02: Principles for setting goals that motivate employeesL03: How to reward good performance effectivelyL04: Key beliefs that affect people’s motivationL05: Ways in which people’s individual needs affect their

behavior.L06: Ways to create jobs that motivate.L07: How people assess fairness and how to achieve

fairness.L08: Identify causes and consequences of a satisfied

workforce.

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Motivating for PerformanceMotivation

forces that energize, direct and sustain a person’s efforts.

Organizations want to motivate people to:Join the organization, and stayCome to work regularlyWork hard to achieve high output and high qualityExhibit good citizenship

be committed and perform above and beyond the call of duty to help the company

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Goal Setting TheoryProposes that people have conscious goals that

energize them and direct their thoughts and behaviors toward a particular end

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Well-crafted goals are highly motivatingMeaningfulAcceptableChallenging but AttainableSpecific and quantifiable

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Stretch GoalsTargets that are exceptionally demanding, and that

some people would never even think of.Vertical stretch goals are aligned with current activities

including productivity and financial resultsHorizontal stretch goals involve people’s professional

development, such as attempting and learning new, difficult things

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Reinforcing PerformanceLaw of effect

Law formulated by Edward Thorndike in 1911Behavior that is followed by positive consequences will

likely be repeatedReinforcers

Positive consequences that motivate behaviorOrganizational behavior modification (OB mod)

Application of reinforcement theory in organizational settings

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Key Consequences of Behavior1. Positive reinforcement

applying a consequence that increases the likelihood that the person will repeat the behavior that led to it.

2. Negative reinforcement removing or withholding an undesirable consequence.

3. Punishment administering an aversive consequence.

4. Extinction withdrawing or failing to provide a reinforcing

consequence.

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What do you want to reinforce?Solid solutions NOT quick fixesRisk taking NOT risk avoidingApplied creativity NOT mindless conformityDecision action NOT analysis paralysis Smart work NOT busyworkSimplification NOT needless complicationQuietly effective behavior NOT squeaky wheelsQuality work NOT fast workLoyalty NOT turnoverWorking together NOT working against

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RewardsSupport the firm’s strategyRelate people’s performance in relation to strategic

objectivesCan be nonmonetary

intellectual challenge, greater responsibility, autonomy, recognition, flexible benefits, and greater influence over decisions

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Should you punish mistakes?AppropriateViolation of law, ethical

standards, important safety rules

When employees perform like a slacker

InappropriateWhen poor performance

is not the individual’s fault

When managers take out their frustrations on the wrong people

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How to Manage MistakesRecognize that everyone makes mistakes

Handle constructively by discussing and learning from them

Praise people who deliver based news to their bosses

Don’t punish, unsuccessful good-faith effortsEncourage people to try new things and don’t

punish them if what they try doesn’t work out.

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Performance-related BeliefsExpectancy theory

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.

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Effort Performance Outcome

Managerial Implications of Expectancy Theory1. Increase expectancies

Provide work environment that facilitates good performance

Set realistically attainable performance goals2. Identify positively valent outcomes

Understand want people want to get out of work3. Make performance instrumental toward

positive outcomes Follow good performance by personal recognition

and praise, favorable performance reviewers, pay increases, and other positive results

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Maslow’s Need Hierarchy

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Types of MotivationExtrinsic motivation

rewards given to a person by the boss, the company or some other person - EXTERNAL

Intrinsic motivation rewards a worker derives directly from performing the

job itself - INTERNAL

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Designing Motivating JobsJob rotation

changing from one routine task to another to alleviate boredom

Job enlargementGiving people additional tasks at the same time to

alleviate boredomJob enrichment

Changing a task to make it inherently more rewarding, motivating, and satisfying

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Herzberg’s two-factor theoryProposed two broad categories of factors that affect

people working on their jobsHygiene factor

Workplace characteristics that can make people dissatisfied Company policies, working conditions, pay, and supervision

Motivators Factors that make a job more motivating Additional job responsibilities, opportunities for personal

growth and recognition, and feelings of achievement

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What is empowerment?The process of sharing power with employees,

thereby enhancing their confidence in their ability to perform their jobs and their belief that

they are influential contributors to the organization.

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Equity TheoryProposes that people assess how fairly they

have been treated according to two key factors1. Outcomes – various things the person receives

on the job

2. Inputs – contributions the person makes to the organization

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How people restore equityReducing their inputsIncrease their outcomesDecrease others’ outcomesIncrease others’ inputs

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Quality of work life programsCreate workplace that enhances employee well-being

and satisfaction

Satisfy the full range of employee needs

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Feedback should…Be useful Address your employee’s request for feedback

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YOU should be able toL01: Identify the kinds of behaviors managers need

to motivate peopleL02: List principles for setting goals that motivate

employeesL03: Summarize how to reward good performance

effectivelyL04: Describe the key beliefs that affect people’s

motivation

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YOU should be able toL05: Discuss ways in which people’s individual

needs affect their behavior.L06: Define ways to create jobs that motivate.L07: Summarize how people assess fairness and

how to achieve fairness.L08: Identify causes and consequences of a

satisfied workforce.

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Test Your Knowledge

Describe the characteristics of goals that most effectively motivate people.

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Test Your Knowledge

Identify four examples of people advertently

reinforcing the wrong behaviors, or

punishing or extinguishing good behaviors

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Test Your Knowledge

Discuss the managerial implications of

expectancy theory. Relate them specifically

to expectancy theory.

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Test Your Knowledge

A difference between Maslow's Need Hierarchy and Alderfer's ERG Theory is that A) ERG theory states that various needs operate simultaneously. B) Maslow's hierarchy has more scientific validity. C) Maslow's hierarchy reminds managers that even if one need seems to motivate people, other needs may still need attention. D) ERG theory focuses on five levels of need. E) only Maslow's theory serves to remind managers of the types of reinforcers that can be used to motivate people.

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Test Your Knowledge

Compare and contrast job enlargement, job enrichment, and job rotation. Give an example

of each.

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Procedural JusticeUsing a fair process in decision making and

making sure others know that the process was as fair as possible.

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Test Your Knowledge

Describe a time when you felt unfairly treated and explain why. How did you respond to the

inequity? What other options might you have had?

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Test Your Knowledge

Identify the cause and consequences of a satisfied workforce.

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