Chapter 7Motivation

Learning outcomes

You should learn to:

– Define the motivation process

– Describe early motivation theories

– Explain how goals motivate people

– Identify ways to design motivating jobs

– Explain how goal-setting theory impacts performance & rewards.

Learning outcomes

– Describe the motivational implications of equity theory, expectancy theory & self-efficacy theory.

– Describe current motivation issues facing managers

– Identify management practices that are likely to lead to more motivated employees

What is Motivation?

– the processes that account for an individual's intensity, direction, and persistence of effort towards attaining a goal.

• Intensity- how hard a person tries• direction - efforts should be channeled in a direction

that benefits the organizational goals.• Persistence- determines how long a person can

maintain effort.

Unsatisfied needs creates tension that stimulates drive which leads to search behavior.

The Motivation Process

UnsatisfiedNeed

SatisfiedNeed

SearchBehavior

DrivesTensionReductionof Tension

THREE THEORIES OF MOTIVATION

• Internal– Focus on variables within individual that lead to

motivation and behavior.

• Process– Emphasize nature of interaction between

individual and environment.

• External– Focus on elements in the environment to

explain motivation and behavior.

Maslow’s Hierarchy of Needs Theory •each level in hierarchy must be satisfied before the next is activated

• once a need is substantially satisfied it no longer motivates behavior

– theory received wide recognition

– little research support for the validity of the theory

Early Theories Of Motivation

Lower-order needs - largely satisfied externally• physiological - food, drink, shelter, sexual satisfaction• safety - security and protection from physical and

emotional harm– assurance that physiological needs will be satisfied

Higher-order needs - largely satisfied internally• social - affection, belongingness, acceptance• esteem - internal factors like self-respect, autonomy

– external factors like status, recognition, attention

• self-actualization - achieving one’s potential

Maslow’s Hierarchy of Needs Theory

Maslow’s Hierarchy of Needs

Low

est t

o hi

ghes

t ord

er

McGregor’s Theory X and Theory YTheory X - assumes that workers have little ambition, dislike work, want to avoid responsibility, and need to be closely controlled

• assumed that lower-order needs dominated

Theory Y - assumes that workers can exercise self-direction, accept and actually seek out responsibility, and consider work to be a natural activity

• assumed that higher-order needs dominated

–no evidence that either set of assumptions is valid–no evidence that managing on the basis of Theory Y makes employees more motivated

Theory X/Y

• Theory X: Workers are costs

• Theory Y: Workers are assets

Herzberg’s Two-Factor Theory

Hygiene factor Motivation factor

Both are work conditions, but each addresses a different

part of an employee’s experience

Herzberg’s Motivation-Hygiene Theory

– intrinsic characteristics consistently related to job satisfaction

• motivator factors energize employees

– extrinsic characteristics consistently related to job dissatisfaction

• hygiene factors don’t motivate employees

– proposed dual continua for satisfaction and dissatisfaction

– theory enjoyed wide popularity• influenced job design

Motivation–Hygiene Theory of Motivation

Hygiene factors avoid job dissatisfaction

• Company policy and administration

• Supervision• Interpersonal relations• Working conditions• Salary• Status• Security

• Achievement• Achievement recognition • Work itself• Responsibility• Advancement• Growth

Motivation factors increase job satisfaction

Contrasting Views Of Satisfaction-Dissatisfaction

Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

Motivators Hygienes

Satisfaction Dissatisfaction

Herzberg’s View

Traditional View

Motivation-Hygiene Combinations

High M Low M

High H high motivation few complaints

low motivation few complaints

Low H high motivation many complaints

low motivation many complaints

(Motivation = M, Hygiene = H)

Implications…

• You have a RIGHT to be dissatisfied about your work conditions.

• As an employee, you have a RESPONSIBILITY to communicate your dissatisfaction and work to help improve the conditions.

• As a manager, you have a RESPONSIBILITY to continuously improve the work conditions within your control. Your best source of information about what to improve and how to improve it are your employees.

McClelland’s Theory

• Achievement

• Power

• Affiliation

3categories of needs

Three-Needs Theory - McClelland– need for achievement (nAch) - drive to

excel, to achieve in relation to a set of standards, and to strive to succeed

• do not strive for trappings and rewards of success• prefer jobs that offer personal responsibility• want rapid and unambiguous feedback• set moderately challenging goals

– avoid very easy or very difficult tasks

• high achievers don’t necessarily make good managers

– focus on their own accomplishments» good managers emphasize helping others to

accomplish their goals

– need for power (nPow)• Desire to control other persons, to influence their

behavior, or to be responsible for other people.• Personal power versus social power.

– People high in (nPower) prefer work that:• Involves control over other persons.• Has an impact on people and events.• Brings public recognition and attention.

need for affiliation (nAff): desire for friendly and close interpersonal relationships.

People high in (nAff) prefer work that:

•Involves interpersonal relationships.

•Provides for companionship

•Brings social approval.

Need Theory

What combination of needs are present in the best managers?

The managers with high in need of power.

Individual–Organizational Exchange

CONTEMPORARY THEORIES OF MOTIVATION

Self Determination Theory:Basic principles 1

• People prefer to feel they have control over their actions, so when a previously enjoyed task feels more like an obligation it undermines motivation.

• Studies then questioned whether intrinsic motivation could be undermined by the use of extrinsic rewards

• Self determination theory proposed that variations in individuals' feelings of competence and perceptions of autonomy will produce variations in intrinsic motivation.

Self Determination Theory:Basic principles 2

• Providing individuals with rewards for their participation in an already interesting activity often leads to a decrease in intrinsic motivation.

• This is called the ‘over justification effect’• Goal setting is effective in improving motivation if

rewards are provided for achieving the goals along with extrinsic rewards like verbal praise and feedback about competence.

• Rewards and deadlines diminish motivation if people see it as coercive.

• When goals are pursued because of an intrinsic interest, rather than extrinsic reasons ( money, status etc.) individuals will be more satisfied and perform better.

Self Determination Theory: Controlling and informational functions of rewards

Cognitive Evaluation Theory states that rewards are likely to serve two main functions:

•Information function. If the reward provides information about the individuals' competence then it is quite likely that intrinsic motivation can be enhanced with rewards.

•Controlling function. If the rewards are seen to be controlling behaviour (i.e., the goal is to obtain the reward rather than participate for intrinsic reasons), then withdrawal of the reward is likely to lead to subsequent decreases in intrinsic motivation.

REWARDS

Reward seen to be reason for exercise involvement [‘controlling function’]

Reward provides information about competence in exercise [‘controlling function’]

Perceived success

Perceived lack of success

Perceived success

Perceived lack of success

Intrinsic motivation likely to decline

Intrinsic motivation likely to decline

Intrinsic motivation likely to increase

Intrinsic motivation likely to decline

Possible links between rewards and intrinsic motivation in exercise

Goals: Definition and Background

• Goal – what an individual is trying to accomplish

• Management by objectives – management system incorporating

participation in decision making, goal setting, and feedback.

Goal Setting

Read an article by Latham and Locke on :

“Goal Setting-A Motivational Technique that Works”

Goal-Setting Theory

– intention to work towards a goal is a major source of job motivation

– specific goals increase performance• difficult goal, when accepted, results in higher performance than

does an easy goal• specific hard goals produce a higher level of output than does

the generalized goal of “do your best”

– participation in goal setting is useful• reduces resistance to accepting difficult goals• increases goal acceptance

Goal-Setting Theory (cont.)

– feedback is useful• helps identify discrepancies between what has

been accomplished and what needs to be done• self-generated feedback is a powerful motivator

– contingencies in goal-setting theory• goal commitment - theory presupposes that

individual is determined to accomplish the goal– most likely to occur when:

» goals are made public» individual has an internal locus of control» goals are self-set rather than assigned

Goal-Setting Theory (cont.)

– contingencies (cont.)• self-efficacy - an individual’s belief that s/he is

capable of performing a task– higher self-efficacy, greater motivation to attain goals

• national culture - theory is culture bound– main ideas align with North American cultures– goal setting may not lead to higher performance in other

cultures

MBO PROGRAMS:Putting Goal-Setting T. Into Practice

• Converting overall organizational objectives into specific objectives for organizational units and individual members.

• Four ingredients common to MBO programs:– Goal specification.– Participation in decision making.– An explicit time period.– Performance feedback.

• Failures may come from:– Unrealistic expectations regarding results.– Lack of commitment by top management.– Cultural incompatibilities.

Relationship between Goal Difficulty and Performance

Guidelines for Job Redesign

Managerial Actions for Enhancing Goal Commitment

1. Provide valued outcomes for goal accomplishment.

2. Raise employees’self-efficacy about meeting goals by:

a) Providing adequate training

b) Role modeling desired behaviors and actions

c) Persuasively communicating confidence in the

employees ability to attain the goal.

Managerial Actions for Enhancing Goal Commitment

3. Have employees make a public commitment to the goal.4. Communicate an inspiring vision and

explain how individual goals relate to accomplishing the vision.

5 Allow employees to participate in setting the goals.

Managerial Actions for Enhancing Goal Commitment

6. Behave supportively rather than punitively.7. Break a long-term goal (i.e., a yearly

goal) into short-term sub-goals.8. Ensure that employees have the resources required to accomplish the goal.

Self–EfficacyThe perception of one’s ability to perform a task successfully is really a situation-specific form of self-confidence.

Self–Efficacy Theory... Bandura

Self–Efficacy Sources

Expectancy Theory

explains motivation in terms of an

individual’s perception of the

performance process.

Two Basic Notions of Expectancy Theory

People expect certain outcomes of behavior and performance.

People believe that the effort they put forth is related to the performance they achieve and the outcomes they receive.

Key Constructs of Expectancy Theory

Valence – value or importance placed on a particular reward

Expectancy – belief that effort leads to performance

Instrumentality – belief that performance is related to rewards

states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual

• Expectancy (effort-performance linkage) - perceived probability that exerting a given amount of effort will lead to a certain level of performance

• Instrumentality (performance-reward linkage) - strength of belief that performing at a particular level is instrumental in attaining an outcome

• Valence - attractiveness or importance of the potential outcome

Expectancy Theory

Expectancy Theory (cont.)– theory emphasizes rewards

• organizational rewards must align with the individual’s wants

– no universal principle for explaining what motivates individuals

• managers must understand why employees view certain outcomes as attractive or unattractive

– most comprehensive and widely accepted explanation of employee motivation

Expectancy Model of Motivation

E I V

A General Model of Expectancy Theory

High Effort

Low Effort

Performance Goal

Performance Goal

DecisionTo Exert

Effort

Outcome 1

Outcome 2

Outcome 3

Outcome 1

Outcome 2

Outcome 3

Expectancy: “What are my

chances of reaching

my goal if I work hard?”

Expectancy: “What are my

chances of reaching my goal if I slack

off?”

Instrumentality: “What are my

chances of getting various outcomes if I achieve my

goal?

Valence: “How much do I value these outcomes?”

Simplified Expectancy Model

IndividualEffort

IndividualPerformance

AOrganizational

RewardsB

IndividualGoals

C

A = Effort-performance linkage

B = Performance-reward linkage

C = Attractiveness

Adam’s Theory of Inequity

People are motivated when they find themselves in situations of inequity or unfairness.

To look for inequity, people consider their inputs and their outcomes.

Equity Theory– proposes that employees perceive what they

get from a job (outcomes) in relation to what they put into it (inputs)

– input/outcome ratio compared with the ratios of relevant others

• equity - ratio is equal to that of relevant others• inequity - ratio is unequal to that of relevant others

– referent (relevant other) may be:• other - individuals with similar jobs• a system - includes organizational pay policies and

administrative systems• self - past personal experiences and contacts

Equity Theory (cont.)– when inequities are perceived, employees act

to correct the situation• distort either their own or others’ inputs or outputs• behave in a way to induce others to change their

inputs or outputs• behave in a way to change their own inputs or

outputs• choose a different comparison person• quit their jobs

– theory leaves some issues unclear

Equity and Inequity at Work

Equity theory and the role of social comparison.

Strategies for Resolution of Inequity

• Alter the person’s outcomes• Alter the person’s inputs• Alter the comparison other’s outputs• Alter the comparison other’s inputs• Change who is used as a comparison other• Rationalize the inequity• Leave the organizational situation

Practical Implications of the Equity Model

• Treat employees fairly.

• People make decisions concerning equity

after comparing themselves with others.

• Procedural justice influences perceptions of

organizational fairness. Be as transparent as

possible.

3 Causes of Motivational Problems

• Belief that effort will not result in performance

• Belief that performance will not result in rewards

• The value a person places on, or the preference a person has for, certain rewards

An integrated approach to motivational dynamics.

From Theory To PracticeRecognize individualdifferences

Ensure that goalsare perceived as

attainable

Check the systemfor equity

Individualizerewards

Link rewardsto performance

Suggestionsfor

MotivatingEmployees

Use goalsDon’t ignore

money

Match peopleto jobs

Designing Motivating Jobs– Job Design - the way tasks are combined

to form complete jobs• historically, concentrated on making jobs more

specialized

– Job Enlargement - horizontal expansion of job

• job scope - the number of different tasks required in a job and the frequency with which these tasks are repeated

• provides few challenges, little meaning to workers’ activities

• only addresses the lack of variety in specialized jobs

• Designing Motivating Jobs (cont.)– Job Enrichment - vertical expansion of job

• job depth - degree of control employees have over their work

–empowers employees to do tasks typically performed by their managers

• research evidence has been inconclusive about the effect of job enrichment on performance

• Designing Motivating Jobs (cont.)– Job Characteristics Model (JCM) -

conceptual framework for analyzing jobs• jobs described in terms of five core characteristics

– skill variety - degree to which job requires a variety of activities

» more variety, greater need to use different skills– task identity - degree to which job requires completion of

an identifiable piece of work– task significance - degree to which job has substantial

impact on the lives of other people– these three characteristics create meaningful work

• Designing Motivating Jobs (cont.)– JCM (cont.)

• core characteristics (cont.)– autonomy - degree to which job provides substantial

freedom, independence, and discretion in performing the work

» give employee a feeling of personal responsibility– feedback - degree to which carrying out the job results

in receiving clear information about the effectiveness with which it has been performed

» employee knows how effectively s/he is performing

Job Characteristics ModelCore Job

Dimensions

Skill VarietyTask Identity

Task Significance

Autonomy

Feedback

Experienced meaningfulness

of the work

Experienced responsibility for outcomes of work

Knowledge of the actualresults of the work

CriticalPsychological States

High Internal Work Motivation

High-QualityWork Performance

High Satisfaction with the Work

Low Absenteeismand Turnover

Personal andWork Outcomes

Strength of Employee Growth Need

Designing Motivating Jobs (cont.)– JCM (cont.)

• links between core characteristics and outcomes are moderated by the strength of the individual’s growth need

–growth need - person’s desire for self-esteem and self-actualization

• model offers specific guidance for job design

Current Issues In Motivation• Motivating a Diverse Workforce

– flexibility is the key to motivating a diverse workforce• diverse array of rewards necessary to

satisfy diverse personal needs and goals– Flexible Working Schedule

• compressed workweek - employees work longer hours per day but fewer days per week

• Motivating a Diverse Workforce (cont.)– Flexible Working Schedule (cont.)

• flexible work hours (flextime) - employees required to work a specific number of hours a week but are free to vary those hours within certain limits

– system entails common core hours when all employees are required to be on the job

– starting, ending, and lunch-hour times are flexible

• job sharing - two or more people split a full-time job• telecommuting - employees work at home and are

linked to the workplace by computer and modem

• Motivating a Diverse Workforce (cont.)– Cultural Differences in Motivation

• motivation theories developed in the U.S. and validated with American workers

• may be some cross-cultural consistencies

• Pay-for-Performance– instead of paying for time on the job, pay is adjusted

to reflect some performance measure– compatible with expectancy theory

• imparts strong performance-reward linkage– programs are gaining in popularity

• research suggests that programs affect performance

• Open-Book Management– involve employees in workplace decisions by

opening up the financial statements– workers treated as business partners– get workers to think like an owner– may also provide bonuses based on profit

improvements

• Motivating the “New Workforce”– Motivating Professionals - professionals

tend to derive intrinsic satisfaction from their work and receive high pay

• more loyal to their profession than their employer • value challenging jobs and support for their work

• Motivating the “New Workforce” (cont.)– Motivating Contingent Workers - part-time,

contract, or temporary workers• less security and stability than permanent

employees– receive fewer benefits

• display little identification or commitment to their employers

• hard to motivate contingent workers– opportunity to become a permanent employee– opportunity for training

• repercussions of mixing permanent and contingent workers when pay differentials are significant

• Motivating the “New Workforce” (cont.)– Motivating Low-Skilled, Minimum-Wage

Employees• difficult challenge to keep performance levels high• employee recognition programs

– highlight employees whose work performance has been good– encourage others to perform better– power of praise

• in service industries, empower front-line employees to address customers’ problems

– tie compensation to customer satisfaction

What are the challenges of motivation in the new workplace?

Pay for performance– Paying people for performance is consistent with:

• Equity theory.• Expectancy theory.• Reinforcement theory.

– Merit pay • Awards a pay increase in proportion to individual

performance contributions.• Provides performance contingent reinforcement.• May not succeed due to weakness in performance appraisal

system or lack of consistency in application.

What are the challenges of motivation in the new workplace?

Incentive compensation systems:– Skill-based pay.

• Links pay to the number of job-relevant skills an employee masters.

– Bonus pay plans.• One-time or lump-sum payments based on the

accomplishment of specific performance targets or some extraordinary contribution.

What are the challenges of motivation in the new workplace?

Incentive compensation systems:– Profit-sharing plans.

• Some or all employees receive a proportion of net profits earned by the organization.

– Gain-sharing plans.• Groups of employees share in any savings realized through

their efforts to reduce costs and increase productivity.

– Employee stock ownership plans.• Employees own stock in the company that employs them.