managing people in organisations week 7 motivation – process theories

Managing People in Organisations

Week 7

Motivation – Process Theories

September 2005 Managing People in Organisations

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Learning Objectives

Learning ObjectivesStudents will be able to:• Describe the major process theories of motivation• Explain the relationship between motivation and

employee performance• Discuss the dilemmas and difficulties facing

managers in applying motivation theory to a work setting

• Evaluate the usefulness of McGregor's Theory X and Theory Y & Ouchi’s Theory Z


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Process Theories of Motivation

A process theory definition of

motivation:– “To motivate a worker involves that person

in decision making through which the individual desires outcomes, and sets in motion the behaviours appropriate to acquiring them.”


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Process Theories of Motivation

Content Theories• Deal with job

content• Asserts people are

motivated by needs• Treat everyone alike

Process Theories• Deal with the

process of motivation

• Asserts that people are motivated by expectations

• Every individual is different


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Process theories

• Expectancy theoryVictor VroomLyman Porter & Edward Lawler

• Equity theoryStacy Adams

• Goal-setting theoryEdwin Locke

• Additional Perspectives on Motivation– McGregor’s Theory X and Theory Y– Ouchi’s Theory Z


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Vroom’s expectancy model

• Vroom (1964) was the first person to link expectancy theory to work motivation

• This model implies that individual behaviour will be moulded by what is perceived as the available rewards on offer and their importance to the individual


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Requirement: more money

Expectation

1. If I work hard I’ll get more money

2. If I work hard all my boss will do is give me a big smile and pat on the back

Predicted outcome

1. I’ll work harder

2. It’s unlikely I’ll work harder (unless I place a high value on smiles)


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Vroom’s expectancy model

• Valence – importance (value) of the outcome for the individual

• Instrumentality – belief that good performance will lead to the achievement of valued rewards

• Expectancy – the strength of a person’s expectation that behaving in a certain way will produce the desired outcome


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Expectancy equation

Strength of motivation =

Expectancy x Instrumentality x Valence

F = E x I x V


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Porter and Lawler

• Developed Vroom’s into a theory of work motivation

• Not just motivation that produces performance – there are other variables

• Performance affects satisfaction


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Expectancy theory v content theory

1. Expectancy theory states that behaviour results from a conscious decision-making process based on expectations, measures as subjective probabilities, that the individual had about the results of different behaviours leading to performance and to rewards

2. Expectancy theory helps to explain individual differences in motivation and behaviour, unlike Maslow’s universal content theory of motivation

3. Expectancy theory provides a basis for measuring the strength of force of the individual’s motivation to behave in particular ways

4. Expectancy theory assumes that behaviour is rational, and that we are conscious of our motives. As we take into account the probable outcomes, expectancy theory attempts to predict individual behaviour


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Criticisms

• Complex

• Based on questionable assumptions

• Some items overlooked

• Statistical methods of testing theory of dubious validity


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Practical managerial consequences

• Must support link between effort and performance

• Link must be clear and visible

• Employees will concentrate on behaviours for which they are rewarded

• Money in only one motivator


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Practical managerial consequences (cont'd)

• Performance standards must be clear and unambiguous

• Rewards must be valued

• Consider a ‘flexi’ reward scheme

• Value of rewards changes over time

• Consistency important


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Adam’s equity theory

Comparison of own and others’ inputs and outputs

Perceived inequity with others

Maintenance of current motivation level and work effort

Internal tension created

Perceived equity with others

Balance (equity) restored through:•Changes to inputs•Changes to outputs•Altering perception of equity•Leaving situation•Influencing others•Changing comparators


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• Equality or fairness at work

• Two forms of equity– Distributive equity– Procedural equity


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Inequity occurs when:

Persons Outcomes < Others Outcomes

Persons Inputs Other’s Inputs

Persons Outcomes > Others Outcomes

Persons Inputs Other’s Inputs


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Perceived Inputs

• Education• Social status• Organisational

position• Qualifications• How hard the

person works

Outcomes

• Pay• Status• Promotion• Satisfaction• Job security• Fringe benefits


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strategies to resolve inequity


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Scenario:

• you work in the local pub on minimum wage and find that another barperson (Joe Bloggs) earns £1.50 per hour more than you for the same work and the same hours.

• Using the strategies above, what can you do?


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Application of strategy

Strategy1. Alter your outcomes

2. Adjust your inputs3. Alter the comparison

person’s outcomes4. Alter the comparison

person’s inputs5. Compare with someone

else6. Rationalise the inequity

7. Leave

Example1. Persuade manager to

increase your pay2. Don’t work as hard as Joe3. Persuade manager to cut

Joe’s pay4. Leave the difficult tasks to

Joe5. Z is paid the same as I am

6. Joe has worked here much longer

7. Quit


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Problems with theory

• Difficult to weight variables as they are dependent upon individual perception

• We have individual tolerance levels

• We behave differently to a perceive inequality

• The explanation for the inequality will moderate your response


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Implications for management practice

• Management must recognise that perceptions of inequality can generate tension.

• This can occur even where actual inequality is limited

• Provision of accurate information about rewards is very important


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Locke’s goal theory

Desires and wants

Goal deficiency

Behavioural response

Outcome

Feedback

Degree of commitment

Goals


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Goal setting theory

• Improved performance requires:– Challenging goals– Specific goals– Participation in goal-setting– Feedback

• In modern performance appraisal these ideas have been refined into the so called SMART objectives (Specific, Measurable, Attainable, Realistic, Time-bounded)


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Issues

• What degree of subordinate involvement is required in setting goals to achieve optimal results?

• Need to understand the process through which the behavioural impetus of the employee is maintained once the goals have been agreed

• Issues such as individual difference, personality, previous experience, etc. are among the factors that could be assumed to have an effect on the validity of the goal-setting model


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Limitations of the theory

• Some jobs are not amenable to goal setting

• Goals are subject to frequent change due to the turbulent operating business environment

• Goal setting represents an individual level process, but most tasks within an organization require groups of people to co-operate in order to achieve them


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Additional perspectives on motivation

• McGregor’s Theory X and Theory Y

• Ouchi’s Theory Z


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McGregor’s Theory X and Theory Y

The average person inherentlydislikes work

1 2 3 4 5 Work is as natural as rest to people

People must be directed to workand self-control

1 2 3 4 5 People will exercise self-discretion

People wish to avoid responsibility 1 2 3 4 5 People enjoy real responsibility

People feel that achievement atwork is irrelevant

1 2 3 4 5 Achievement is highly valued bypeople

Most people are dull anduncreative

1 2 3 4 5 Most people have imagination &creativity

Money is the only real reason forworking

1 2 3 4 5 Money is only one benefit from work

People lack the desire to improvetheir quality of life

1 2 3 4 5 People have needs to improve theirquality of life

Having an objective is a form ofimprisonment

1 2 3 4 5 Objectives are welcomed as an aid toeffectiveness


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Theory X

• The average worker is inherently lazy

• The worker lacks ambition, dislikes responsibility and must be led

• The worker is resistant to change and is indifferent to organisational needs

• Coercion and close control are required


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Theory Y

• To the average person, work is as natural as rest or play

• Motivation, potential for development, imagination and ingenuity are present in all people given proper conditions

• Coercion and close control are not required• Given proper conditions people will accept

and seek out responsibility


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Ouchi’s Theory Z

American organizations• short-term employment• explicit control

processes• individual decision

making• individual responsibility• segmented concern• quick promotion• specialised careers.

Japanese organizations • lifetime employment• implicit control

processes• collective decision

making• collective responsibility• holistic concern• slow promotion• generalist careers

managing people in organisations week 7 motivation – process theories

Documents

motivation theory

managing people

theory of work motivation

motivation process theories

motivation mcgregors

expectancy theory states

individual slide

theory y ouchis theory