foundations of employee motivation 1 mcshane-olekalns-travaglione ob pacific rim 3e © 2010 the...
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Foundations of Employee Motivation
1McShane-Olekalns-Travaglione OB Pacific Rim 3e
© 2010 The McGraw-Hill Companies, Inc. All rights reserved
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Employee Motivation and Engagement at Standard Chartered
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Through goal setting, strengths-based feedback, community involvement, and fun activities in the workplace, Standard Chartered Bank has significantly improved employee engagement and motivation throughout its operations, most of which are in Asia and India.
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Motivation Defined
The forces within a person that affect the direction, intensity, and persistence of voluntary behaviour
Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction)
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Employee Engagement
Emotional and cognitive
motivation, self-efficacy to
perform the job, a clear
understanding of one’s role in
the organisation’s vision and a
belief that one has the resources
to perform the job.
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Drives and Needs
Drives (primary needs, fundamental needs, innate motives)• Neural states that energise individuals to correct deficiencies
or maintain an internal equilibrium• Prime movers of behaviour by activating emotions
Self-concept, social norms,and past experience
Drives(primary needs)
and emotionsNeeds
Decisions and behaviour
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Drives and Needs
Needs• Goal-directed forces that people experience • Drive-generated emotions directed toward goals• Goals formed by self-concept, social norms, and experience
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Self-concept, social norms,and past experience
Drives(primary needs)
and emotionsNeeds
Decisions and behaviour
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Self-Self-actualisatiactualisati
onon
PhysiologicalPhysiological
SafetySafety
BelongingnessBelongingness
EsteemEsteem
Seven categories capture most needs
Five categories placed in a hierarchy
Need toNeed toknowknow
Need for Need for beautybeauty
Maslow’s Needs Hierarchy Theory
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Maslow’s Needs Hierarchy Theory
Lowest unmet need has strongest effect
When lower need is satisfied, next higher need becomes the primary motivator
Self-actualisation – a growth need because people desire more rather than less of it when satisfied
Self-Self-actual-actual-isationisation
PhysiologicalPhysiological
SafetySafety
BelongingnessBelongingness
EsteemEsteem
Need toNeed toknowknow
Need for Need for beautybeauty
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Evaluating Maslow’s Theory
Lack of support for theory
People have different hierarchies – don’t progress through needs in the same order
Needs change more rapidly than Maslow stated
Self-Self-actual-actual-isationisation
PhysiologicalPhysiological
SafetySafety
BelongingnessBelongingness
EsteemEsteem
Need toNeed toknowknow
Need for Need for beautybeauty
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What Maslow Contributed to Motivation Theory
More holistic• Integrative view of needs
More humanistic• Influence of social
dynamics, not just instinct
More affirmational• Pay attention to strengths,
not just deficiencies
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Abraham Maslow
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What’s Wrong with Needs Hierarchy Models?
Wrongly assume that everyone has the same (universal) needs hierarchy
Instead, it is likely that each person has a unique needs hierarchy• Shaped by our self-concept –
values and social identity
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Abraham Maslow
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Learned Needs Theory
Needs are amplified or suppressed through self-concept, social norms, and past experience
Therefore, needs can be ‘learned’ (ie. strengthened or weakened through training)
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Three Learned Needs
Need for achievement• Need to reach goals, take responsibility • Want reasonably challenging goals
Need for affiliation• Desire to seek approval, conform to others’ wishes,
avoid conflict• Effective executives have lower need for social approval
Need for power• Desire to control one’s environment• Personalised versus socialised power
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Four-Drive Theory
Drive to bondDrive to bond
Drive to learnDrive to learn
• Drive to form relationships and social commitments• Basis of social identity
• Drive to satisfy curiosity and resolve conflicting information
Drive to defendDrive to defend• Need to protect ourselves• Reactive (not proactive) drive• Basis of fight or flight
Drive to acquireDrive to acquire• Drive to take/keep objects and experiences• Basis of hierarchy and status
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Features of Four Drives
Innate and hardwired• Everyone has them
Independent of each other• No hierarchy of drives
Complete set• No drives are excluded from the model
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How Four Drives Affect Motivation
1. Four drives determine which emotions are automatically tagged to incoming information
2. Drives generate independent and often competing emotions that demand our attention
3. Mental skill set relies on social norms, personal values, and experience to transform drive-based emotions into goal-directed choice and effort
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Four Drive Theory of Motivation
Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort.
Drive to acquire
Social norms
Drive to bond
Drive to learn
Drive to defend
Personal values
Past experience
Mental skill set resolves competing drive demandsMental skill set resolves
competing drive demandsGoal-directed
choice and effortGoal-directed
choice and effort
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Implications of Four Drive Theory
Provide a balanced opportunity for employees to fulfil all four drives
• Employees continually seek fulfilment of drives• Avoid having conditions support one drive more than
others
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E-to-Pexpectancy
P-to-Oexpectancy
Outcomes& valences
Outcome 1Outcome 1+ or -+ or -
EffortEffort PerformancePerformance
Outcome 3Outcome 3+ or -+ or -
Outcome 2Outcome 2+ or -+ or -
Expectancy Theory of Motivation
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Increasing E-to-P and P-to-O Expectancies
Increasing E-to-P Expectancies• Assuring employees they have competencies• Person-job matching • Provide role clarification and sufficient resources• Behavioural modelling
Increasing P-to-O Expectancies• Measure performance accurately• More rewards for good performance• Explain how rewards are linked to performance
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Increasing Outcome Valences
Ensure that rewards are valued
Individualise rewards
Minimise countervalent outcomes
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Goal Setting
The process of motivating
employees and clarifying their
role perceptions by
establishing performance
objectives.
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Effective Goal Setting Characteristics
1. Specific – measureable change within a time frame
2. Relevant – within employee’s control and responsibilities
3. Challenging – raise level of effort
4. Accepted (commitment) – motivated to accomplish the goal
5. Participative (sometimes) – improves acceptance and goal quality
6. Feedback – information available about progress toward goal
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Characteristics of Effective Feedback
1. Specific – connected to goal details
2. Relevant – relates to person’s behaviour
3. Timely – to improve link from behaviour to outcomes
4. Sufficiently frequent• Employee’s knowledge/experience• Task cycle
5. Credible – trustworthy source
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Trouble Keeping Score in NZ Hospitals
The New Zealand government
introduced a balanced
scorecard system to measure
and improve performance of
public hospitals, but many
public health staff experienced
philosophical and practical
problems with this goal setting
and feedback process.
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Balanced Scorecard
Organisational-level goal setting and feedback
Attempts to include measurable performance goals related to financial, customer, internal, and learning/growth (i.e. human capital) processes
Usually includes several goals within each process
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Feedback Through Strengths-Based Coaching
Maximising the person’s potential by focusing on their strengths rather than weaknesses
Motivational because:• People inherently seek feedback about their
strengths, not their flaws• Person’s interests, preferences, and competencies
stabilise over time
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Multisource Feedback
Received from a full circle of people around the employee
Provides more complete and accurate information
Several challenges• Expensive and time-consuming• Ambiguous and conflicting feedback• Inflated rather than accurate feedback• Stronger emotional reaction to multiple feedback
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Evaluating Goal Setting and Feedback
Goal setting has high validity and usefulness Goal setting/feedback limitations:
• Focuses employees on measurable performance• Motivates employees to set easy goals (when tied to
pay)• Goal setting interferes with learning process in new,
complex jobs
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Keeping Pay Equitable at Costco
Costco Wholesale CEO Jim Sinegal
(see photo) thinks the large wage
gap between many executives and
employees is blatantly unfair.
“Having an individual who is making
100 or 200 or 300 times more than
the average person working on the
floor is wrong,” says Sinegal, whose
salary and bonus are a much
smaller multiple of what his staff
earn.
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Organisational Justice
Distributive justice• Perceived fairness in
outcomes we receive relative to our contributions and the outcomes and contributions of others
Procedural justice• Perceived fairness of the
procedures used to decide the distribution of resources
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Elements of Equity Theory
Outcome/input ratio • inputs – what employee contributes (eg. skill)• outcomes – what employee receives (eg. pay)
Comparison other• person/people against whom we compare our ratio• not easily identifiable
Equity evaluation• compare outcome/input ratio with the comparison
other
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Correcting Inequity Feelings
Reduce our inputs Less organisational citizenship
Increase our outcomes Ask for pay increase
Increase others’ inputs Ask coworker to work harder
Reduce others’ outputsAsk boss to stop giving others preferred treatment
Change our perceptionsStart thinking that others’ perks aren’t really so valuable
Change comparison otherCompare self to someone closer to your situation
Leave the field Quit job
Actions to correct inequity Example
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Equity Sensitivity
Outcome/input preferences and reaction to various outcome/input ratios
Benevolents• tolerant of being underrewarded
Equity Sensitives• want ratio to be equal to the comparison other
Entitleds• prefer proportionately more than others
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Evaluating Equity Theory
Good at predicting situations involving unfair distribution of pay/rewards
Difficult to put into practice• Doesn’t identify comparison other• Doesn’t indicate relevant inputs or outcomes
Equity theory explains only some feelings of fairness • Procedural justice is as important as distributive
justice
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Procedural Justice
Perceived fairness of procedures used to decide the distribution of resources
Higher procedural fairness with:• Voice• Unbiased decision maker • Decision based on all information• Existing policies applied consistently• Decision maker listens to all sides• Those who complain are treated respectfully • Those who complain are given full explanation
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Foundations of Employee Motivation
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