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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-2Copyright 2008 Pearson Education Canada

    LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter What Is Motivation?

    Define motivation

    Explain motivation as a need-satisfying process

    Early Theories of Motivation

    Describe the five levels in Maslows hierarchy and how Maslows

    hierarchy can be used in motivational efforts

    Discuss how Theory X and Theory Y managers approach motivation

    Describe Herzbergs motivation-hygiene theory

    Explain Herzbergs views of satisfaction and dissatisfaction

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-4Copyright 2008 Pearson Education Canada

    LEARNING OUTLINE (contd)Follow this Learning Outline as you read and study this chapter Current Issues in Motivation

    Discuss the need for flexibility with a diverse workforce

    Discuss the challenges managers face in motivating individuals

    from diverse cultures, minimum wage employees, and

    professional and technical employees

    Describe the role of money, employee recognition, pay-for-

    performance, and stock option programs Describe how flexible work, job sharing, and telecommuting

    are part of work-life programs

    Suggestions For Motivating Employees

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-5Copyright 2008 Pearson Education Canada

    What Is Motivation? Motivation

    The processes that account for an individualswillingness to exert high levels of effort to reachorganizational goals, conditioned by the effortsability to satisfy some individual need

    Effort: a measure of intensity or drive

    Direction: toward organizational goals

    Need: personalized reason to exert effort

    Motivation works best when individual needs arecompatible with organizational goals

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    Motivation Defined as the psychological forces within a person

    that determine:1) direction of behaviour in an organization;

    2) the effort or how hard people work;

    3) the persistence displayed in meeting goals.

    Intrinsic Motivation:behaviour performed for its own sake.

    Motivation comes from performing the work. Extrinsic Motivation:behaviour performed to acquire

    rewards.

    Motivation source is the consequence of an action.

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    Outcomes and Inputs Regardless of the source of motivation, people seek

    outcomes.

    Outcome:anything a person gets from a job. Examples include pay, autonomy, accomplishment.

    Organizations hire workers to obtain inputs:

    Input:anything a person contributes to their job.

    Examples include skills, knowledge, work behaviour.

    Managers thus use outcomes to motivate workers to provideinputs.

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    The Motivation Equation

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    Drives

    SearchBehaviour

    Tension Reduction

    of Tension

    Satisfied

    Need

    The Motivation Process (Exhibit 10-1)

    Unsatisfied

    Need

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition9-10

    Copyright 2008 Pearson Education Canada

    Early Theories of Motivation

    McGregors Theory X and Theory Y

    Theory X

    Employees have little ambition, dislike work, avoidresponsibility, and require close supervision

    Theory Y Employees can exercise self-direction, desire

    responsibility, and like to workMotivation is maximized by participative

    decision making, interesting jobs, and goodgroup relations

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    Theory X

    Employees

    Dislike Work

    Avoid Responsibility

    Little Ambition

    Theory Y

    EmployeesEnjoy Work

    Accept Responsibility

    Self-Directed

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    Theory X

    1.People are lazy.

    2.People lack ambition anddislike responsibility.

    3.People are self-centered/selfish.

    4.People resist change.

    5.People are gullible and not

    very bright.

    Theory Y

    1.People are energetic.

    2.People are ambitious andseek responsibility.

    3.People can be selfless.

    4.People want to contribute tobusiness growth and change.

    5.People are intelligent

    Figure 11.1: A comparison of McGregors theory X and theory Y

    Assumptions about Human Nature

    Prepared by Dr. Nguyen Huu Than

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    Important Theories of MotivationNeeds Theories

    of Motivation

    MaslowsHierarchy ofneeds

    Herzbergs 2Factor Theory

    Hackman andOldhams JobCharacteristics

    Model

    ProcessTheories ofMotivation

    VroomsExpectancyTheory

    Goal SettingTheory

    Adams EquityTheory

    ReinforcementTheory

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    Needs TheoryPeople are motivated to obtain outcomes at work to satisfy their needs.

    A need is a requirement for survival and well being.

    To motivate a person:

    1) Managers must determine what needs worker wants satisfied.

    2) Ensure that a person receives the outcomes when performing well.

    Several needs theories exist. Maslows Hierarchy of Needs.

    Herzbergs Motivator-Hygiene Theory

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1015

    Early Theories Of Motivation Hierarchy of needs theory (Maslow)

    There is a hierarchy of five human needs; as each need becomes

    satisfied, the next need becomes dominant. Physiological: food, drink, shelter, sex

    Safety: physical safety

    Social: affiliation with others, affection, friendship

    Esteem: Internal (self-respect, autonomy, and achievement);External (status, recognition, and attention)

    Self-actualization: personal growth and fulfillment

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition9-16

    Copyright 2008 Pearson Education Canada

    Early Theories of Motivation Maslows Hierarchy of Needs Theory

    Needs were categorized as five levels

    Individuals must satisfy lower-order needs before theycan satisfy higher order needs

    Satisfied needs will no longer motivate

    Motivating a person depends on knowing at what levelthat person is on the hierarchy

    Hierarchy of needs Lower-order (external): physiological, safety Higher-order (internal): social, esteem, self-actualization

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-17Copyright 2008 Pearson Education Canada

    Exhibit 10.2 Maslows Hierarchy of Needs

    Self-Actualization

    Esteem

    Social

    Safety

    Physiological

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    Maslows Hierarchy of Needs

    Self-

    Actualization

    Realize ones

    full potential

    Use abilities

    to the fullest

    Esteem Feel goodabout oneself Promotions& recognition

    BelongingnessSocial

    interaction, love

    Interpersonal

    relations, parties

    Safety Security, stability Job security,health insurance

    PhysiologicalFood, water,

    shelter

    Basic pay level

    to buy items

    Need Level Desc r ipt ion Examples

    Low er level needs mu st b e sat is f ied before higher needs are addressed.

    (Adapted)

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    Herzberg's Motivation-Hygiene TheoryMaslow saw motivation as operating across a single continuum from physiological

    needs to self-actualization needs. The Herzberg theory proposes that there are in

    reality two significantly different classes of factors and thus two different

    continuums. One class, referred to as hygienefactors, operates across a

    continuum ranging from dissatisfaction to no dissatisfaction.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-20Copyright 2008 Pearson Education Canada

    Early Theories of Motivation (contd) Herzbergs Motivation-Hygiene Theory

    Job satisfaction and job dissatisfaction are created by

    different factors Hygiene factors: extrinsic (environmental) factors thatcreate job dissatisfaction

    Motivators: intrinsic (psychological) factors that createjob satisfaction

    Attempted to explain why job satisfaction does notresult in increased performance

    The opposite of satisfaction is not dissatisfaction, butrather no satisfaction

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    Herzbergs Motivation-Hygiene Theory

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-22Copyright 2008 Pearson Education Canada

    Exhibit 10.3 Herzbergs Motivation-Hygiene Theory

    AchievementRecognitionWork ItselfResponsibilityAdvancementGrowth

    Motivators Hygiene Factors

    SupervisionCompany PolicyRelationship withSupervisorWorking ConditionsSalaryRelationship with PeersPersonal Life

    Relationship withSubordinatesStatusSecurity

    Extremely Satisfied Extremely DissatisfiedNeutral

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    Hygiene Factors (Needs)

    Pay

    Status Security

    Working conditions

    Fringe benefits

    Policies andadministration practices

    Interpersonal relations

    Environment

    Motivation Factors (Needs)

    The Job

    Meaningful and challenging

    work Recognition for accomplishment

    Feeling of achievement

    Increased responsibility

    Opportunities for growth andadvancement

    The Job itself

    Figure 10. 4: Motivation and Hygiene Factors (p. 147)

    Dissatisfaction No Job SatisfactionNo Dissatisfaction Job Satisfaction

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    Maslows Hierarchy

    Herzbergs Hygiene Factors

    Self-Actualization NeedsRealizing ones potential

    growth using creative talents

    Esteem NeedsAchievement recognition and status

    Social NeedsLove, belonging, affiliation, acceptance

    Safety Needs

    Protection against danger,freedom from fear, security

    Physiological Needs

    Survival needs, air, water, clothing, shelter, and sex

    Interpersonal Relations

    Company Policies and

    Administative Practices Working Conditions

    Supervision

    Status

    Job Security

    Pay

    Benefits

    Herzbergs Motivators

    Achievement

    Work itself

    Recognition

    Responsibility

    Opportunity for Growth and

    Advancement

    Figure 11.3: Maslow and Herzberg Related (p. 149)

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-26Copyright 2008 Pearson Education Canada

    Contemporary Theories Of Motivation

    McClellands Theory of Needs

    There are three acquired needs that motivate work

    performance

    Need for achievement (nAch)

    Need for power (nPow)

    Need for affiliation (nAff)

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    The Three-

    Needs Theory

    Affiliation

    (nAff)

    Achievement

    (aAch)Power

    (nPow)

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1028

    Contemporary Theories Of Motivation Three-needs theory (McClelland)

    The needs for achievement, power, and affiliation are major

    motives in work

    Need for achievement (nAch): the drive to excel, to achieve in relation to

    a set of standards, to strive to succeed.

    Need for power (nPow): The need to make others behave in a way thatthey would not have behaved otherwise.

    Need for affiliation (nAff): The desire for friendly and close interpersonal

    relationships.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1029

    Expectancy Theory (Vroom)

    A comprehensive theory of motivation that an

    individual tends to act in a certain way, in the

    expectation that the act will be followed by given

    outcome, and according to the attractiveness of

    that outcome to the individual.

    The extent to which individuals are motivated toperform to get a reward of value to them is based on

    their belief that their performance will result in the

    reward they want.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1030

    Expectancy Theory (contd) Emphasizes self interest in the alignment of rewards with

    employee wants.

    Addresses why employees view certain outcomes

    (rewards) as attractive or unattractive.

    Emphasizes the connections among expected behaviors,

    rewards, and organizational goals.

    Is concerned with individual perceptions and the provision

    of feedback.

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    Expectancy Theory

    3. Attractiveness relationship

    1. Effort-performance relationship

    2. Performance-rewards relationship

    Individual

    Effort

    Individual

    Performance

    Individual

    Goals

    Organizational

    Rewards

    1 2

    3

    Figure 10.10: Simplitied Expectation Theory (289)

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    Expectancy Theories of Motivation (pp. 153-154)

    Victor Vroom developed an approach to motivation known as expectancy

    theory that attempts to explainbehavior in terms of an individuals goals

    and choices and the expectations of achieving these goals. It assumes

    that people can determine which outcomes they prefer and make realistic

    estimates of the chances of obtaining them. The key concepts of theexpectancy theory are that motivation depends on:

    Expectancy - an individual's perception of the chances or probability that a particular outcome willoccur as a result of certain behavior.

    Valence - the value an individual places on a specific outcome.Expectancy theory can be stated mathematically as follows:

    Motivation = ExpectancyXValence.

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    Both factors must be present before a high level of motivation can occur. In other

    words, a high expectancy or a high valence alone will not ensure motivation. For

    example, if an employee had a low expectancy (perceived little chance) of

    receiving a pay increase but placed a high value on money, the employee would

    not be highly motivated to work hard to obtain the increase.

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    14

    E P Expectancy

    What is the probabilitythat I can perform at therequired level if I try?

    P 0 Expectancy

    What is the probabilitythat my good performancewill lead to desiredoutcomes?

    Valence

    What value do Iplace on thepotential outcomes

    Effort Performance

    Outcomes

    (e.g., bonus, praise, feelingsof accomplishments)

    Figure 11.5: Basic Components of Expectancy Theory

    Source: Kathryn M. Bartol and David C. Martin,Management(New York:

    McGraw-Hill, Inc.,1994) p. 386.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-35Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation(contd)

    Expectancy Theory

    Individuals act based on the expectation that a givenoutcome will follow and whether that outcome isattractive

    Key to the theory is understanding and managingemployee goals and the linkages among and betweeneffort, performance, and rewards

    Effort: employee abilities and training/development

    Performance: valid appraisal systems

    Rewards (goals): understanding employee needs

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-36Copyright 2008 Pearson Education Canada

    Exhibit 9.8 Simplified Expectancy Model

    C

    B

    Individual

    Effort

    Individual

    Performance

    Organizational

    Rewards

    Individual

    Goals

    A

    A

    B C

    = Effort-performance linkage

    = Performance-reward linkage

    = Attractiveness of reward

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1037

    Expectancy Relationships

    (Linkages) Effortperformance

    The perceived probability that exerting a given amount of

    effort will lead to performance

    Performancereward

    The belief that performing at a particular level will lead to

    the attainment of a desired outcome

    Attractiveness

    The importance placed on the potential outcome or reward

    that can be achieved on the job.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-38Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation (contd)

    Expectancy Relationships

    Expectancy (effort-performance linkage) The perceived probability that an individuals effort will result

    in a certain level of performance

    Instrumentality The perception that a particular level of performance will

    result in attaining a desired outcome (reward)

    Valence The attractiveness/importance of the performance reward

    (outcome) to the individual

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-39Copyright 2008 Pearson Education Canada

    Exhibit 9.9 Steps to Increasing Motivation

    Improving Expectancy

    Improve the ability of the

    individual to perform

    Make sure employees have skills

    for the task.

    Provide training.

    Assign reasonable tasks and goals.

    Improving Instrumentality

    Increase the individuals belief that

    performance will lead to reward

    Observe and recognize performance.

    Deliver rewards as promised.

    Indicate to employees how previous

    good performance led to greater

    rewards.

    Improving Valence

    Make sure that the reward is

    meaningful to the individual

    Ask employees what rewards they

    value.

    Give rewards that are valued.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1040

    Contemporary Theories Of Motivation(contd)

    Equity theory (Adams)

    Employees perceive what they get from a job situation

    (outcomes) in relation to what they put into it (inputs) and

    then compare theirinput-outcome ratio with the input-

    outcome ratios of relevant others.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-41Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation(contd)

    Equity Theory

    Proposes that employees perceive what they get from a job

    situation (outcomes) in relation to what they put in (inputs) and

    then compare their inputs-outcomes ratio with the inputs-

    outcomes ratios of relevant others

    If the ratios are perceived as equal then a state of equity (fairness)

    exists

    If the ratios are perceived as unequal, inequity exists and the person

    feels under- or over-rewarded

    When inequities occur, employees will attempt to do something to

    rebalance the ratios (seek justice)

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-42Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation(contd)

    Equity Theory (contd)

    Employee responses to perceived inequities:

    Distort own or others ratios

    Induce others to change their own inputs or outcomes

    Change own inputs (increase or decrease efforts) or outcomes(seek greater rewards)

    Choose a different comparison (referent) other (person,

    systems, or self)

    Quit their job

    Employees are concerned with both the absolute andrelative nature of organizational rewards

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    Equity TheoryPerceived Ratio

    Comparison*

    Employees

    AssessmentOutcomes A

    Inputs A

    Outcomes A

    Inputs A

    Outcomes A

    Inputs A

    Outcomes B

    Inputs B

    Outcomes B

    Inputs B

    Outcomes B

    Inputs B

    Inequity (Under-Rewarded)

    Equity

    Inequity (Over-Rewarded)

    *Where A is the emp loyee, and B is a relevant other or referent.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1044

    Contemporary Theories Of Motivation:Equity Theory (contd)

    Referent

    In equity theory, the other persons, the systems, or the

    personal experiences against which individuals compare

    themselves to assess equity.

    The choice of a particular set of referents is related to the

    information available about referents as well as to the

    perceived relevance.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-45

    Copyright 2008 Pearson Education Canada

    Exhibit 9.7 Equity Theory

    Person 1

    Inequity, under-rewarded

    Equity

    Inequity, over-rewarded

    Ratio of Output to Input Person 1 s Perception

    Person 2

    Person 1

    Person 2

    Person 1

    Person 2

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1046

    Equity Theory When employees perceive an inequity they may:

    Distort either their own or others inputs or outcomes.

    Behave so as to induce others to change their inputs or

    outcomes.

    Behave so as to change their own inputs or outcomes.

    Choose a different comparison referent.

    Quit their job.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-47

    Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation

    Reinforcement Theory

    Behaviour is influence by consequences

    Reinforcers are consequences that, when given

    immediately following a behaviour, increases the

    probability that the behaviour will be repeated

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    Reinforcement Theory

    Reinforcement theory looks at the relationship between

    behaviour and its consequences.

    Positive Reinforcement:people get desired outcomes when

    they perform needed work behaviours. Positive reinforcers:pay raises, promotions.

    Negative Reinforcement:manager eliminates undesired

    outcomes once the desired behaviour occurs.

    Worker performs to avoid an undesired outcome (Work harder oryou are fired).

    In both types of reinforcement, managers must be carefulto link the right behaviours by workers to what the organization needs.

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    Reinforcement Theory

    Extinction:used when workers are performing behaviour

    detrimental to the firm. Manager does not reward the behaviour and over time, the worker will stop

    performing it. Punishment:used when the manager does not control the

    reward the worker receives (perhaps it is outside the job). Manager administers an undesired consequence to worker (verbal

    reprimands to pay cuts).

    Punishment can lead to unexpected side-effects such as resentment, andshould be used sparingly.

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-50

    Copyright 2008 Pearson Education Canada

    Contemporary Theories of Motivation(contd) Job Characteristics Model (JCM)

    A framework for designing motivating jobs

    Five primary job characteristics:

    Skill variety: how many skills and talents are needed?

    Task identity: does the job produce a complete work?

    Task significance: how important is the job? Autonomy: how much independence does the jobholder have?

    Feedback: do workers know how well they are doing?

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1051

    Job Design And Motivation

    Job characteristics model (JCM)

    Hackman and Oldhams job description model:

    The five core job dimensions are skill variety, task identity, task

    significance, autonomy, and feedback.

    Internal rewards are obtained when:

    An employee learns (knowledge of results) through (feedback) that he

    or she personally (experienced responsibility through autonomy of

    work) has performed well on a task that he or she cares about

    (experienced meaningfulness through skill variety, task identity,

    and/or task significance).

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1053

    Core Job Dimensions Skill variety

    The degree to which the job requires a variety of activities so the

    worker can use a number of different skills and talents Task identity

    The degree to which the job requires completion of a whole and

    identifiable piece of work

    Task significance The degree to which the job affects the lives or work of other

    people

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1054

    Core Job Dimensions (contd)Autonomy

    The degree to which the job provides freedom, independence, and

    discretion to the individual in scheduling the work and indetermining the procedures to be used in carrying it out

    Feedback

    The degree to which carrying out the work activities required by the

    job results in the individuals obtaining direct and clear information

    about the effectiveness of his or her performance

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-55

    Copyright 2008 Pearson Education Canada

    Exhibit 9.6 Guidelines for Job Redesign

    Source:J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work

    (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.

    Combine tasks

    Form natural work units

    Establish client relationships

    Load v ertically

    Open f eedback channels

    Skill variety

    Task identity

    Task signif icance

    Autonomy

    Feedback

    Suggested Action Core Job Dimension

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-56

    Copyright 2008 Pearson Education Canada

    Current Issues in Motivation

    Motivating a Diverse Workforce

    Motivating a diverse workforce through

    flexibility:

    Men desire more autonomy than do women

    Women desire learning opportunities, flexible work

    schedules, and good interpersonal relations

    Interesting work ranks high in importance to almost all

    employees

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    Motivating a Diverse Workforce

    Flexibility

    Not everyone sees their job the same way- whatmotivates me may not motivate you

    Recognize differences

    People are Different

    Accommodate

    Cultural Differences

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-58

    Copyright 2008 Pearson Education Canada

    Current Issues in Motivation (contd) Motivating Minimum-Wage Employees

    Employee recognition programs

    Provision of sincere praise

    Empowerment

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    Motivating Professionals and Technical Workers

    Characteristics of professionals:

    Strong and long-term commitment to their field of expertise

    Loyalty is to their profession, not to the employer

    Have the need to regularly update their knowledge

    Dont define their workweek as 8:00 am to 5:00 pm

    Motivated by job challenges and organizational support oftheir work

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    Motivating Professional andTechnical Employees

    New assignments

    Challenges Autonomy

    Training and educational opportunities

    Recognition Simplify non-work life

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-61

    Copyright 2008 Pearson Education Canada

    Current Issues in Motivation (contd) Designing Effective Rewards Programs

    The role of money Money is normally not an employees top priority

    Employee recognition programs Giving personal attention and expressing interest, approval,

    and appreciation for a job well done

    Pay-for-performance

    Variable compensation plans that reward employees on thebasis of their performance:

    Piece rates, wage incentives, profit-sharing, and lump-sumbonuses

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1062

    Compensation Alternatives Broad-banding

    Pre-set pay level, based on the degree to which competencies exist

    and allow an employee to contribute to the organization.

    Competency-based compensation A program that pays and rewards employees on the basis of skills,

    knowledge, or behaviors they possess

    Stock options

    A program that allows employees to purchase company stock at a

    fixed price and profit when company performance increases its

    stock value.

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    Competency-Based Compensation

    Skills

    Knowledge

    Abilities

    Behaviour

    i.e.: leadership, decision making, problem

    solving, etc.

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    Pay-for-Performance

    Piece rate

    Gainsharing

    Wage-incentive

    Profit-sharing Bonuses

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    Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 9-66

    Copyright 2008 Pearson Education Canada

    Current Issues in Motivation (contd)

    Improving Work-Life Balance Compressed workweek

    Longer daily hours, but fewer days

    Flexible work hours (flextime) Specific weekly hours with varying arrival, departure, lunch

    and break times around certain core hours during which allemployees must be present

    Job Sharing

    Two or more people split a full-time job

    Telecommuting

    Employees work from home using computer links

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    Entrepreneurs and Motivation Motivation for entrepreneurs is critical

    Gradual process

    Job redesign

    Delegation

    Employee empowerment is key motivational tool

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    1068

    Employee Empowerment:

    How Entrepreneurs Motivate Employees

    Giving employees power by:

    Allowing them to complete the whole job.

    Having employees work together across departments andfunctions in the organization.

    Using participative decision making in which employees

    provide input into decisions.

    Delegating decisions and duties, turning over theresponsibility for carrying them out to employees.

    Redesigning their jobs so they have discretion over the way

    they do their work.

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    Additional Suggestions for

    Motivating Employees

    _ Recognize individuals differences

    _ Match people to jobs

    _ Use goals and make it attainable

    _ Use recognition

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    Further Suggestions for

    Motivating Employees

    _ Individualize rewards

    _ Link rewards to performance

    _ Check the system for equity

    _ Dont ignore money