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Driving My Company G105 Enterprise Skills Problem 04: Motivation 6 th Presentation

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Page 1: Driving My Company (enterprise Skill)

Driving My CompanyG105 Enterprise Skills

Problem 04: Motivation

6th Presentation

Page 2: Driving My Company (enterprise Skill)

Learning Objectives

1. Describe and compare the contemporary theories of motivation

2. Apply the motivation theories to structure work and rewards to motivate staff

3. Explain how to provide feedback and modify behaviours through rewards and punishment

Page 3: Driving My Company (enterprise Skill)

Problem Analysis

Harris the Employer

No Improvement

in Performance!

$500 bonus for everyone:

Sourcing; Sales; Admin

How?

Page 4: Driving My Company (enterprise Skill)

© 2007 Prentice Hall, Inc. All rights reserved. 16–4

What Is Motivation?

• Motivation

–Motivation is an internal process by which a person’s efforts are

energized, directed, and sustained towards attaining a goal.

–may be intrinsic, extrinsic, or both.

Intrinsic Motivation

• Drives behaviour performed for the sake of activity itself

• Comes from internal desire such as:

• interest

• need for challenge

• personal satisfaction

Extrinsic Motivation

• Drives behaviour performed for external rewards or to avoid punishment

• Comes from outside the person:

• salary and other tangibles

• intangible rewards such as praises from the boss

Money is but one motivator. People are motivated by different things. Harris needs to find out what works for his staff, beyond monetary rewards.

Page 5: Driving My Company (enterprise Skill)

Motivation

• Rewards and punishments are used by organisations to motivate.

• Effectiveness of rewards varies – explained by motivation theories.

Content Theories

(focus on: Needs)

• Hierarchy of Needs (Maslow)

• 2-Factor Theory (Herzberg)

• 3 Needs Theory (McClelland)

Process Theories

(focus on: Cognitive

Process)

• Expectancy Theory (Vroom)

• Equity Theory (Adams)

• Goal Setting Theory (Locke)

Reinforcement Theories

(focus on:

Consequences)

• Operant Conditioning(Skinner)

• Organisation Behaviour Modification (Luthans& Kreitner)

Page 6: Driving My Company (enterprise Skill)

Limitations & Assumptions

Whenever we apply motivation theories, we have to keep in mind the following limitations & assumptions:

1.Motivation theories assume that we know what motivates other people, and what their needs, wants, priorities, and values are (which in reality is not true)

2.Motivation is a very complex issue involving many factors:

i. A motivator that works for one person may not work for another ;

ii. What works for a person at one point in time may not work in the future; &

iii. No single motivator is likely to work on its own.

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Maslow’s Hierarchy of Needs

• Lower level needs must be satisfied first before higher level needs are ‘activated’.

• Satisfied needs cease to motivate. the money may cater to

lower level needs that no longer motivate

Harris’ employees

• Unsatisfied needs can cause frustration/stress lower

needs take precedence.

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Herzberg’s Two-Factor Theory

To motivate staff, Harris’ focus should be on the increasing

motivators while maintaining adequacy in the hygiene factors.

Hygiene Factors

• inadequacy results in frustration and lack of motivation

• beyond adequacy, does not motivate

• extrinsic factors / context of work

• e.g. flat $500

Motivating Factors

• source of motivation

• intrinsic factors / content of work

• e.g. differentiate the bonus amount = achievement & recognition of good performance

Page 9: Driving My Company (enterprise Skill)

McClelland’s Three Acquired

Needs TheoryDavid McClelland’s research indicates that individuals are motivated

based on three major needs:

To motivate his staff, Harris must understand what needs his

employees are motivated by and structure work, assign roles, provide

rewards, and behave accordingly to meet those needs.

nAch

• The drive to excel, to achieve a set of standards, to strive to succeed

• E.g.

• Set stretch goals

• Provide timely performance feedback

nPow

• The need to make others behave in a way they would not have behaved otherwise

• E.g.

• Give titles & assign leadership roles

• Listen to feedback

nAff

• The desire for friendly & close interpersonal relationships

• E.g.

• Praise, lunch together

• Show care & concern

Page 10: Driving My Company (enterprise Skill)

Expectancy Theory

Effort PerformanceOutcome /

Reward

E to P Expectancy

(Expectancy)belief that effort will

influence performance

positively

•Provide periodic

feedback to strengthen

expectancy

P to O Expectancy

(Instrumentality)likelihood of being rewarded

for performance

•Not effective as $500 is given

regardless of performance

•Could differentiate amount

to strengthen instrumentality

by relating it to performance-

related goals or criteria (e.g.

sales targets, cost reduction,

on time billing)

Valencepreference for

Reward

•Is $500

attractive?

•Differentiate

amount to

improve valence

• Expectancy, Instrumentality and Valence must be high to motivate staff to work towards the reward

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Equity Theory

• Most highly-motivated employees are those who perceive their rewards are equal to their contributions.

• When people feel fairly treated, they are more likely to be motivated; when they feel unfairly treated, they will be easily de-motivated

Individual’s outcomes relational partner’s outcomes

Individual’s own inputs relational partner’s inputs

Differentiate bonus amount

so that those who work

harder & perform better are

better compensated

Ensure employees’

compensation are in line

with industry’s

Page 12: Driving My Company (enterprise Skill)

Goal Setting Theory

Harris would have to ensure that each element of the goal-setting theory must be

present to motivate staff.

S.M.A.R.T Goals

Goal Directed Effort

Performance Satisfaction

Goal

Acceptance

Goal Commitment

Organisational

Support

Individual Traits

& Abilities

Intrinsic

Rewards

Extrinsic Rewards

Put in more effort

to discuss & set

goals with staffSpend time to provide feedback;

Make sure staff are confident of own abilities;

provide training if necessary.

Page 13: Driving My Company (enterprise Skill)

Reinforcement Theories

Consequences of Behaviour

Behaviours

Antecedents

Desired

Org Behaviours

+ve reinforcement

-ve reinforcement

Undesired

Org Behaviours

Extinction

Punishment

Set out the

expectations clearly

to his staffMap out the consequences of their behaviours

Page 14: Driving My Company (enterprise Skill)

OB Mod

Four Alternative Consequences

Punishment

Positive Reinforcement

e.g. differentiate the bonus amounts

Negative Reinforcement

Extinction

e.g. remove bonus for those who have

not been performing

+ve-ve

Application

Withdrawal

Man

ag

er’s

Use

Consequence Consequence

Page 15: Driving My Company (enterprise Skill)

Operant Conditioning

• A behaviour is a function of its consequence. – A behaviour that is reinforced/rewarded will be repeated & vice-versa.

• Schedules of Reinforcement: C

on

tin

uo

us

Pa

rtia

l Fixed Interval

Variable Interval

Fixed Ratio

Variable Ratio → most effective for steady & long-term change

* Don’t just depend on year-end bonus

* Time rewards to follow immediately after performance

Page 16: Driving My Company (enterprise Skill)

Integrating Contemporary Theories of Motivation

© 2007 Prentice Hall, Inc. All rights reserved.

Page 17: Driving My Company (enterprise Skill)

Harris can…

1. Set the right expectations (behaviours, performance goals, and rewards).

2. Understand the different needs of his staff and provide rewards that satisfy those

needs or are valued by your staff.

3. Focus on the motivators to encourage staff to perform better – provide growth

opportunity, recognition, etc. Be creative in coming up with motivators.

4. Set goals, together with his staff, that are attainable if the staff puts in the effort

and ensure that the link between performance and rewards is clear.

5. Be equitable - fair compared to other companies selling OEM computer parts, &

between high performers and mediocre performers within his company (e.g. top

salesman vs purchaser who just reissues purchase contracts without review).

6. Time rewards to follow immediately after performance but use a variable ratio

schedule.

7. Differentiate rewards between high performers, mediocre performers, and poor

performers, so that high performers are rewarded and those who aren’t are

punished or at least not rewarded.

8. Make sure that the motivators and processes he put in place to motivate his staff

are aligned and do not work against one another.

Page 18: Driving My Company (enterprise Skill)

Conclusion

Rewards and punishments are used to motivate staff but their effectiveness varies. The motivation theories explain why some

are motivated while others are not.

Using the theories, Harris can:

•structure his rewards based on the needs of the staff.

•ensure all elements that influence how the staff view the

rewards have been considered in structuring the rewards.

•reinforce the right behaviours of the staff.

Page 19: Driving My Company (enterprise Skill)

EXTENDED LEARNING

Page 20: Driving My Company (enterprise Skill)

• Expectancy (E to P Expectancy) is the belief that increased effort will lead to

increased performance i.e. if I work harder then this will be better. <For e.g., If I

study an extra hour every day, I will improve my exam score by 1 grade.> This

is affected by such things as:

– Having the right resources available (e.g. raw materials, time)

– Having the right skills to do the job

– Having the necessary support to get the job done (e.g. supervisor support,

or correct information on the job)

Effort PerformanceOutcome /

Reward

E to P Expectancy

(Expectancy)belief that effort will

influence performance

Positively

Expectancy Theory

Page 21: Driving My Company (enterprise Skill)

• Instrumentality (P to O Expectancy) is the belief that if you perform well that

a valued outcome will be received i.e. if I do a good job, there is something in it

for me. This is affected by such things as:

– Clear understanding of the relationship between performance and

outcomes – e.g. the rules of the reward ‘game’

– Trust in the people who will take the decisions on who gets what outcome

– Transparency of the process that decides who gets what outcome

Effort PerformanceOutcome /

Reward

P to O Expectancy

(Instrumentality)likelihood of being rewarded

for performance

Expectancy Theory

Page 22: Driving My Company (enterprise Skill)

• Valence (Outcome) is the importance that the individual places upon the

expected outcome. For example, if I am mainly motivated by money, I might

not value offers of additional time off.

Effort PerformanceOutcome /

Reward

Valencepreference for

Reward

Expectancy Theory

Page 23: Driving My Company (enterprise Skill)

• Individuals change their level of effort according to the value they place on the

outcomes they receive from the process and on their perception of the strength

of the links between effort and outcome.

• So, if I perceive that any one of these is true:

– My increased effort will not increase my performance;

– My increased performance will not increase my rewards; or

– I don’t value the rewards on offer

...then Expectancy theory suggests that I will not be motivated.

• This means that even if an organisation achieves two out of three, that

employees would still not be motivated; all three are required for positive

motivation. Expectancy, Instrumentality and Valence must be high

to motivate staff to work towards the reward.

Effort PerformanceOutcome /

Reward

E to P Expectancy (Expectancy)belief that effort will

influence performance Positively

P to O Expectancy (Instrumentality)likelihood of being rewarded

for performance

Valencepreference for

Reward

Expectancy Theory

Page 24: Driving My Company (enterprise Skill)

Goal Setting Theory

• Goal setting theory assumes behavior results from a person’s conscious goals and intentions.

• Goal setting is motivating if the goals are Specific, Measureable, Attainable, Realistic and Time Bound.

• Research suggests that specific challenging goals have been shown to lead to high performance only if people accept and are committed to the goal.

• The resulting goal-directed effort turns into performance when the individual has the abilities to do the job and there are sufficient resources and support from the organisation.

• The satisfaction that the individual gets is based on his performanceas well as his level of abilities (how hard he had to try) and his satisfaction with the support from the organisation.

• His satisfaction can be from intrinsic or extrinsic rewards.

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• In order to generate high performance,

1. Goals should be specific, rather than vague.

2. Feedback should be provided (especially workers giving feedback on their own outputs).

3. The individuals should be committed to the goals.

4. The individuals should believe in their own ability to accomplish the goals.

Goal Setting Theory

Page 26: Driving My Company (enterprise Skill)

Operant Conditioning

• Schedules of Reinforcement:

• Continuous reinforcement means that the behavior is followed by a consequence each time it occurs.

• Intermittent schedules are based either on the passage of time (interval schedules) or the number of correct responses emitted (ratio schedules).

Co

nti

nu

ou

s

Pa

rtia

l Fixed Interval

Variable Interval

Fixed Ratio

Variable Ratio

Page 27: Driving My Company (enterprise Skill)

• The consequence can be delivered based on the same amount of passage of time or the same number of correct responses (fixed) or it could be based on a slightly different amount of time or number of correct responses that vary around a particular number (variable).

• This results in an four classes of intermittent schedules.

Interval - refers to time period

Ratio refers to no. of correct responses

Operant Conditioning

Note: Continuous reinforcement is actually a specific example of a fixed ratio

schedule with only one response emitted before a consequence occurs.

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• Fixed interval -- the first correct response after a

set amount of time has passed is reinforced. The

time period required is always the same.

• Variable interval -- the first correct response

after a set amount of time has passed is reinforced.

After the reinforcement, a new time period (shorter

or longer) is set with the average equaling a

specific number over a sum total of trials

• Fixed ratio -- a reinforcer is given after a specified

number of correct responses. This schedule is best

for learning a new behavior

• Variable ratio -- a reinforcer is given after a set

number of correct responses. After reinforcement

the number of correct responses necessary for

reinforcement changes. This schedule is best for

maintaining behavior.

Interval - refers to time periodRatio refers to no. of correct responses

Operant Conditioning

Note: Continuous reinforcement is

actually a specific example of a

fixed ratio schedule with only one

response emitted before a

consequence occurs.

Page 29: Driving My Company (enterprise Skill)

References

Textbooks

1. McShane S. L. and Von Glinow M. A. (2009) Organizational Behavior: Essentials, 2nd ed. McGraw-Hill/Irwin.

2. Huczynski, A. and Buchanan, D. (2001) Organizational Behaviour: An introductory text, 4th ed. Essex: Financial Times/Prentice Hall.

3. Ivancevich, J. M. and Matteson, M. R. (2002) Organizational Behaviour and Management, 6th ed. McGraw-Hill.

4. Miner, J. B. (2005) Organizational Behavior I: Essential theories of motivation and leadership. New York: M.E. Sharpe, Inc.

5. Newstrom, J. W. (2007) Organizational Behavior: Human behaviour at work, 12th ed. McGraw-Hill/Irwin.

6. Robbins, S. P. (2001) Organizational Behavior, 9th ed. Prentice-Hall International.

Websites

1. Adams’ Equity Theory. http://www.mindtools.com/pages/article/newLDR_96.htm Retrieved on 12 Apr 2010.

2. Employee Motivation. Theory and Practice. http://www.accel-team.com/motivation/ Retrieved on 12 Apr 2010.

3. Expectancy Theory of Motivation. http://www.arrod.co.uk/archive/concept_vroom.php. Retrieved on 12 Apr 2010.

4. Motivation & Employee Productivity. www.cobracm.org/Quality/Fordham/Motivation%20&%20Advanced%20Motivation.ppt .Retrieved on 12 Apr 2010.

5. Psychology 101. Chapter 4: Learning Theory and Behavioural Psychology. http://allpsych.com/psychology101/reinforcement.html. Retrieved on 12 Apr 2010.

6. The 2 Factor Hygiene and Motivation Theory. http://accel-team.com/human_relations/hrels_05_herzberg.html. Retrieved on 12 Apr 2010.

7. Two-Factor Theory. http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html. Retrieved on 12 Apr 2010.

8. David McClelland’s Motivational Needs Theory. http://www.businessballs.com/davidmcclelland.htm. Retrieved on 12 Apr 2010.