bus 51 - mosley7e ch07

© 2008 Thomson/South-Western© 2008 Thomson/South-Western All rights reserved. All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Part 3

Leading

Mosley Mosley • Pietri• Pietri

Chapter 7

Motivation

Chapter 7

Motivation

© 2008 Thomson/South-Western. All rights reserved. 7–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

1.1. Identify the three levels of employee motivation.Identify the three levels of employee motivation.

2.2. Explain the relationship between performance and Explain the relationship between performance and motivation.motivation.

3.3. Understand and explain Maslow’s hierarchy of needs Understand and explain Maslow’s hierarchy of needs theory and the principle underlying his theory.theory and the principle underlying his theory.

4.4. Differentiate between Herzberg’s dissatisfiers and Differentiate between Herzberg’s dissatisfiers and motivators.motivators.

5.5. Understand and explain expectancy theory.Understand and explain expectancy theory.

6.6. Explain how supervisors can use goal-setting theory to Explain how supervisors can use goal-setting theory to motivate employees.motivate employees.

After reading and studying this chapter, you should After reading and studying this chapter, you should be able to:be able to:


Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)

7.7. Define equity theory.Define equity theory.

8.8. Define and explain reinforcement theory.Define and explain reinforcement theory.

9.9. Explain how generational differences affect motivation.Explain how generational differences affect motivation.

10.10. Identify five steps to motivating employees.Identify five steps to motivating employees.

After reading and studying this chapter, you should After reading and studying this chapter, you should be able to:be able to:


Motivation: Understanding Human Motivation: Understanding Human BehaviorBehavior• MotivationMotivation

Is the willingness of individuals and groups, as Is the willingness of individuals and groups, as influenced by various needs and perceptions, to strive influenced by various needs and perceptions, to strive toward a goal.toward a goal.

Is the result of a person’s individual perceptions, Is the result of a person’s individual perceptions, needs, and goals.needs, and goals.

Involves the integration of the needs and goals of Involves the integration of the needs and goals of individuals with the needs and goals of the individuals with the needs and goals of the organization.organization.


Historical InsightHistorical Insight

• The Hawthorne StudiesThe Hawthorne Studies

A series of productivity studies begun in 1934 at A series of productivity studies begun in 1934 at Western Electric’s Hawthorne Plant in Chicago.Western Electric’s Hawthorne Plant in Chicago.

Increased worker productivity was attributed to Increased worker productivity was attributed to improvements to psychological factors within the improvements to psychological factors within the experimental groups.experimental groups.

Research results indicated that management’s Research results indicated that management’s attention to workers and social factors operating attention to workers and social factors operating within the groups resulted in motivational conditions within the groups resulted in motivational conditions that increased work performance.that increased work performance.


EXHIBIT 7.1 The Three Levels of Motivation


Intrinsic and Extrinsic MotivationIntrinsic and Extrinsic Motivation

• Intrinsic MotivationIntrinsic Motivation Behavior that an individual produces because of the Behavior that an individual produces because of the

pleasant experiences associated with the behavior pleasant experiences associated with the behavior itself.itself. Example: Enrolling in a professional development class.Example: Enrolling in a professional development class.

• Extrinsic MotivationExtrinsic Motivation Behavior performed not for its own sake, but for the Behavior performed not for its own sake, but for the

consequences associated with it. Consequences can consequences associated with it. Consequences can include pay, benefits, job security, and working include pay, benefits, job security, and working conditions.conditions. Example: Working toward receiving a college degree.Example: Working toward receiving a college degree.


The Motivation–Performance LinkThe Motivation–Performance Link

• Factors Influencing Employee PerformanceFactors Influencing Employee Performance Direction of behaviorDirection of behavior

Level of effortLevel of effort

Persistence of effortPersistence of effort

Personal motivationPersonal motivation

Personal abilities and skillsPersonal abilities and skills

Level of organization supportLevel of organization support

External environmentExternal environment


EXHIBIT 7.2 Factors Affecting an Individual’s Job Performance


Maslow’s Hierarchy of Needs TheoryMaslow’s Hierarchy of Needs Theory

• Hierarchy of NeedsHierarchy of Needs Arrangement of people’s needs in a hierarchy, or Arrangement of people’s needs in a hierarchy, or

ranking, of importance.ranking, of importance.

• Underlying PrinciplesUnderlying Principles People’s needs can be arranged in a hierarchy, or People’s needs can be arranged in a hierarchy, or

ranking, of importance.ranking, of importance. Once a need has been satisfied, it no longer serves Once a need has been satisfied, it no longer serves

as a primary motivator of behavior.as a primary motivator of behavior.


EXHIBIT 7.3 Maslow’s Hierarchy of Needs


Maslow’s Hierarchy of Needs (cont’d)Maslow’s Hierarchy of Needs (cont’d)

• Physiological NeedPhysiological Need The need for food, water, air, and other physical necessities.The need for food, water, air, and other physical necessities.

• Safety NeedSafety Need The need for protection from danger, threat, or deprivation.The need for protection from danger, threat, or deprivation.

• Social NeedSocial Need The need for belonging, acceptance by colleagues, friendship, The need for belonging, acceptance by colleagues, friendship,

and love.and love.

• Ego NeedEgo Need The need for self-confidence, independence, appreciation, and The need for self-confidence, independence, appreciation, and

status.status.

• Self-fulfillment NeedsSelf-fulfillment Needs Needs concerned with realizing one’s potential, self-Needs concerned with realizing one’s potential, self-

development, and creativity.development, and creativity.


Qualifying the Needs Hierarchy Qualifying the Needs Hierarchy TheoryTheory1.1. Needs on one level of the hierarchy do not have to be Needs on one level of the hierarchy do not have to be

completely satisfied before needs on the next level completely satisfied before needs on the next level become important.become important.

2.2. The theory does not attempt to explain the behavior of The theory does not attempt to explain the behavior of the neurotic or the mentally disturbed.the neurotic or the mentally disturbed.

3.3. Different people have different priorities. Some are less Different people have different priorities. Some are less security oriented or achievement oriented than others.security oriented or achievement oriented than others.

4.4. Unlike the lower level needs, the two highest levels of Unlike the lower level needs, the two highest levels of needs can hardly ever be fully satisfied as new needs can hardly ever be fully satisfied as new challenges and opportunities for growth, recognition, challenges and opportunities for growth, recognition, and achievement arise.and achievement arise.


Herzberg’s TheoryHerzberg’s Theory

• Two-Factor TheoryTwo-Factor Theory Findings disproved the assumption that satisfaction Findings disproved the assumption that satisfaction

and motivation are always positively connected.and motivation are always positively connected.

• FactorsFactors Dissatisfier (Hygiene) factorsDissatisfier (Hygiene) factors

Factors that affect employees negatively, or dissatisfy them Factors that affect employees negatively, or dissatisfy them about their job, including low pay, low benefits, and about their job, including low pay, low benefits, and unfavorable working conditions.unfavorable working conditions.

Satisfier (Motivator) factorsSatisfier (Motivator) factors Factors that affect employees positively, such as recognition, Factors that affect employees positively, such as recognition,

advancement, achievement, challenging work, and being advancement, achievement, challenging work, and being one’s own boss.one’s own boss.


EXHIBIT 7.4 Herzberg’s Satisfier/Motivator and Dissatisfier/Hygiene Factors

+ Recognition “The boss says I’ve done a good job.”+ Advancement “I was promoted to team leader.”+ Challenging work “I solved a really tough job problem.”+ Being one’s own boss “I was given a free hand to do my job.”+ Work itself “I got to design the new system.”

Satisfier/Motivator Factors

– Pay “I’m not paid fairly for what I do.”– Benefits “This company doesn’t pay tuition or medical benefits.”– Working conditions “It’s so hot in the plant it’s often unbearable.” – Job security “With seasonal work I never know for sure if I’ll have a job.”– Company policy/ “We have so much red tape to go through.”

administration

Dissatisfier/Hygiene Factors


Qualifying Herzberg’s TheoryQualifying Herzberg’s Theory

• Money can be a motivating factor, especially when it is Money can be a motivating factor, especially when it is tied to recognition and achievement.tied to recognition and achievement.

• The absence of motivating factors can constitute The absence of motivating factors can constitute dissatisfaction.dissatisfaction.

• Herzberg’s findings had a built-in bias.Herzberg’s findings had a built-in bias. When asked about something positive on the job, people are When asked about something positive on the job, people are

biased toward mentioning something in which their behavior is biased toward mentioning something in which their behavior is the focal point. the focal point.

When asked about dissatisfiers, people tend to mention extrinsic When asked about dissatisfiers, people tend to mention extrinsic factors over which they have no control, such as pay or working factors over which they have no control, such as pay or working conditions.conditions.


Other Theories of MotivationOther Theories of Motivation

• Expectancy TheoryExpectancy Theory Views an individual’s motivation as a conscious effort Views an individual’s motivation as a conscious effort

involving the expectancy that a reward will be given involving the expectancy that a reward will be given for a good result.for a good result.

• Variables in Expectancy TheoryVariables in Expectancy Theory

1.1. ExpectancyExpectancy that effort will lead to a given that effort will lead to a given performance result.performance result.

2.2. Probability Probability of reward(s) associated with the of reward(s) associated with the performance result.performance result.

3.3. ValueValue of the reward to the individual. of the reward to the individual.


EXHIBIT 7.5 Expectancy Theory

Motivation = Expectancythat increased effort will lead to a given performance level

×Probabilitythat a specific performance level will lead to a given reward

×Value attached to reward

(Effort → Performance link) (Performance → Reward link)


EXHIBIT 7.6 Applying Expectancy Theory

1. Hire people who have adequate skill levels.

2. Set clear, recognizable performance goals.

3. Make sure employees know what is expected.

4. Continually stress employee training and skill development.

5. Use performance feedback and coaching to help employees gain skills.

6. Have employees share knowledge and expertise with others.

7. Give employees special jobs or assignments that stretch their abilities.

8. Celebrate performance successes.

9. Reward performance achievement.

10. Develop trust in your commitments by others; do not overpromise rewards.

11. Emphasize multiple rewards such as praise and recognition, being assigned desired work, receiving special training, attending a conference.

12. Determine what different individuals value as rewards (financial, social, being in the know, learning a new skill, etc.) and help make these happen.


Perception’s Role in Maximizing Perception’s Role in Maximizing MotivationMotivation• An employee must An employee must perceiveperceive that he or she has that he or she has

the ability and appropriate support level to the ability and appropriate support level to achieve the targeted performance level.achieve the targeted performance level.

• An employee must An employee must perceiveperceive that if he or she that if he or she does reach the performance level, he or she will does reach the performance level, he or she will receive the rewardreceive the reward

• An employee must An employee must perceiveperceive the reward to be the reward to be something of value to the employee.something of value to the employee.


Applying Expectancy Theory PrinciplesApplying Expectancy Theory Principles

• The Effort → Performance LinkThe Effort → Performance Link Help employees reach desired performance levels Help employees reach desired performance levels

through training and coaching.through training and coaching.

• The Performance → Reward LinkThe Performance → Reward Link Deliver on commitments through proper appraisals of Deliver on commitments through proper appraisals of

performance tied to specific levels of rewards.performance tied to specific levels of rewards.

• The RewardThe Reward Rewards for performance must be meaningful to Rewards for performance must be meaningful to

employeesemployees—give them —give them what they want, not what you what they want, not what you think they want.think they want.


EXHIBIT 7.7 Manager’s List of Potential Rewards

• Raises and bonuses• Social functions• Outings• A night on the town• A nice meal or lunch courtesy of the

manager• Lunch as a group that the manager

buys• Dinner• Day off or time off• Picnics for teams• Tickets to sports, special events• Direct oral praise to individual, one

to one• Direct praise to individual in

presence of others• Direct praise/recognition at group

events• Peer recognition

• Letters of recognition to file or place where customers can see them

• Passing on customer compliments and commendations in voice mail or in writing

• Written praise• Certificates and plaques• Shirts, phones, pins, hats, cups,

jackets, and so on, all with the name of the company on them

• Opportunity to attend conference, special training course

• A parking space• Additional responsibilities• Personal call or visit from CEO or

senior executive• New furnishings or equipment• Being assigned more favorable jobs• Allowing people to bid on projects/

tasks they prefer

Source: Adapted from Peter Meyer, “Can You Give Good, Inexpensive Rewards? Some Real-Life Answers,” Business Horizons, November–December, 1994, pp. 84–85. Copyright © 1994 by the Trustees of Indiana University, Kelley School of Business. Reprinted with permission.


Other Theories of Motivation (cont’d)Other Theories of Motivation (cont’d)

• Goal-Setting TheoryGoal-Setting Theory Task goals, properly set and managed, can be an Task goals, properly set and managed, can be an

important employee motivator.important employee motivator.

• Supervisors can use goal setting to motivate by:Supervisors can use goal setting to motivate by: Setting specific goals.Setting specific goals. Setting challenging but reasonably difficult goals.Setting challenging but reasonably difficult goals. Ensuring timely feedback to employees about goal Ensuring timely feedback to employees about goal

achievement.achievement. Allowing employees to participate in goal setting.Allowing employees to participate in goal setting. Making sure employees understand goal priorities.Making sure employees understand goal priorities. Reinforcing goal accomplishments.Reinforcing goal accomplishments.



• Equity TheoryEquity Theory Posits that when people find themselves in situations Posits that when people find themselves in situations

of inequity or unfairness, they are motivated to act in of inequity or unfairness, they are motivated to act in ways to change their circumstances.ways to change their circumstances. A perceived imbalance of rewards to inputs in comparison to A perceived imbalance of rewards to inputs in comparison to

others:others:– Equity: Inputs = Outcomes; Equity: Inputs = Outcomes; Inequity: Inputs Inequity: Inputs ≠ Outcomes≠ Outcomes

• Factors Determining EquityFactors Determining Equity Employee inputs into the jobEmployee inputs into the job——skill, education, skill, education,

experience, and motivation.experience, and motivation. Outputs (performance rewards)Outputs (performance rewards)——pay, advancement, pay, advancement,

recognition, or desirable job assignments.recognition, or desirable job assignments.



• Employee Options for Dealing with Perceived Employee Options for Dealing with Perceived Inequities:Inequities:

Trying to increase the reward level by appeal to Trying to increase the reward level by appeal to management or filing a grievance.management or filing a grievance.

Decreasing the input level by putting in less job effort, Decreasing the input level by putting in less job effort, taking longer breaks, or being less cooperative.taking longer breaks, or being less cooperative.

If equity cannot be restored, leaving the situation by If equity cannot be restored, leaving the situation by transfer or seeking employment elsewhere.transfer or seeking employment elsewhere.



• Reinforcement TheoryReinforcement Theory Law of effect:Law of effect:

Behavior that is rewarded tends to be repeated.Behavior that is rewarded tends to be repeated. Behavior that is punished tends to not be repeated.Behavior that is punished tends to not be repeated.

• Positive ReinforcementPositive Reinforcement Providing positive consequences to encourage Providing positive consequences to encourage

desired employee behaviors.desired employee behaviors.

• PunishmentPunishment Applying negative consequences to discourage Applying negative consequences to discourage

undesired employee behaviors.undesired employee behaviors.


EXHIBIT 7.8 How and When to Praise

Bob Nelson, author of 1001 Ways to Reward Employees, says the form of reward rated number one by employees is verbal appreciation or praise from their immediate boss. Written appreciation or praise ranked number two. Below are some guidelines regarding the effective use of praise.

1. Praise should be genuine.

2. Praise should be specific.

3. Give praise for better than expected performance.

4. Praise should be timely.

5. Give praise for its own sake, not as a secondary motive.

Source: Bob Nelson, 1001 Ways to Reward Employees (New York: Workman Publishing Co., 1993).


EXHIBIT 7.9 Characteristics of Different Generations

Traditionalists Baby Boomers Generation X Generation Y

Pre 1945 1945–1964 1965–1980 1981–Present

Age 63– Age 43–62 Age 27–42 Age 1–27

Formative Events

Great Depression World Wars

Post war Prosperity

Globalization DownsizingTech Boom

Networking9-11, World terrorism Internet

Qualities Loyal Self-sacrificing

Competitive Optimistic

Independent Individualistic Entrepreneurial Lack loyalty

Diverse Skilled Demanding Sophisticated

Assets Wisdom Experience Persistence

Social skills Tech skills Educated

Multi-tasking skills Work ethic

Lack Technology skills Technology skills Social skills Direction Focus Interpersonal skills

Value Family Patriotism

Material success Free expression Equity

Skills more than titles Work-life balance

Patriotism Family Respect

Style Directive Take charge Do what’s right

Respect authority Micromanage Proactive Work hard

Skeptical Reluctant to network Outcome focused Bend rules as needed

Plunge right in Negotiate Blend work/play Measure own success

Strategies For Managing

Respect their experience Value their loyalty Use their knowledge/ experience to help others

Give important roles Value their contributions Show respect Minimize conflict

Provide autonomy Give quick feedbacks Update their tech skills Give credit for results

Train/upgrade Assign meaningful work Use in teams Promote positive, open environment.

Source: Adapted from Susan P. Eisner, “Managing Generation Y,” SAM Advanced Management Journal 70, Autumn, 2005, v. 70, pp 4–13.


Lessons from the Theories:Lessons from the Theories:Five Steps to Motivating EmployeesFive Steps to Motivating Employees

1.1. Help make employees’ jobs interesting.Help make employees’ jobs interesting.

2.2. Provide clear performance objectives.Provide clear performance objectives.

3.3. Support employees’ performance efforts.Support employees’ performance efforts.

4.4. Provide timely performance feedback.Provide timely performance feedback.

5.5. Reward employees’ performance.Reward employees’ performance.


Important TermsImportant TermsImportant TermsImportant Terms

• baby boomer generationbaby boomer generation• dissatisfier (or hygiene) dissatisfier (or hygiene)

factorsfactors• ego (or esteem)ego (or esteem)• need equity theoryneed equity theory• expectancy theoryexpectancy theory• extrinsic motivation extrinsic motivation • Generation X Generation X • Generation Y Generation Y • goal-setting theorygoal-setting theory• hierarchy of needshierarchy of needs

• intrinsic motivationintrinsic motivation• motivationmotivation• physiological (or biological) physiological (or biological)

need need • reinforcement theoryreinforcement theory• safety (or security) needsafety (or security) need• satisfier (or motivator) factors satisfier (or motivator) factors

• self-fulfillment (or self self-fulfillment (or self

actualization) needsactualization) needs• social (or belonging) needsocial (or belonging) need• Traditional GenerationTraditional Generation

bus 51 - mosley7e ch07

Business

needs hierarchy theory

selffulfillment needs

various needs

lower level needs

highest levels of needs

levels of motivation

herzbergs theory

extrinsic motivation