MCO 101 • MANAGEMENTUnit 8B: Motivation, Leadership,

Groups and Teams

MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

LEARNING OUTCOMES:

At the end of the course, students will be able to:

• Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management

• Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process

• Examine the environment, technology, human resources, and organisations in order to achieve high performance

• Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.

MANAGEMENT 3MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

SUBJECTS DISCUSSED:

1. Management, Managers and evolution of Management theory

2. Personality traits and diversity3. Organisation, Globalisation and the resulting

environments4. Decision-making and Planning5. Structure and Strategy6. Executing and Controlling7. Human Resources Management as a function8. Motivation, Leadership, Groups and Teams9. Communication, conflicts and politics10. Operations Management. Entrepreneurship. Innovation

MANAGEMENT 4MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

TOPIC DETAILS:

After going through UNIT 8B, you should be able to:

1. explain the basics of motivation. 2. use equity theory to explain how employees’ perceptions of

fairness affect motivation.3. use expectancy theory to describe how workers’ expectations

about rewards, effort, and the link between rewards and performance influence motivation.

4. explain how reinforcement theory works and how it can be used to motivate.

5. describe the components of goal-setting theory and how managers can use them to motivate workers.

6. discuss how the entire motivation model can be used to motivate workers.

MANAGEMENT 5MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Basics of Motivation

Extrinsicand Intrinsic

Rewards

MotivatingPeople

Effortand

Performance

NeedSatisfaction

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Effort and Performance

Performance

Effort

• Initiation• Direction• Persistence

Job Performance = Motivation x Ability x Situational Constraints

• Job performance: how well someone performs the job

• Motivation: effort put forth on the job• Ability: capability to do the job• Situational Constraints: external factors

affecting performance

MANAGEMENT 7MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Need Satisfaction

• Needs: physical or psychological requirements, must be met to ensure survival and well being.

• Unmet needs motivate people• Three approaches: (1) Maslow’s Hierarchy of Needs (2)

Alderfer’s ERG Theory (3) McClelland’s Learned Needs Theory

MANAGEMENT 8MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Needs Classification

McClelland’sLearned Needs

Alderfer’sERG

Maslow’sHierarchy

Higher-Order Needs

Lower-Order Needs

Self-Actualization

Esteem

Belongingness

Safety

Physiological

GrowthRelatedness

Existence

PowerAchievementAffiliation

MANAGEMENT 9MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Extrinsic and Intrinsic Rewards

Extrinsic Rewards– tangible and visible to

others– given contingent on

performance

Intrinsic Rewards– natural rewards– associated with

performing the task for its own sake

• Good benefits

• Health insurance

• Job security

• Vacation time

• Interesting work

• Learning new skills

• Independent work situations

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Extrinsic and Intrinsic Rewards

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Motivating with the Basics

• Ask people what their needs are

• Satisfy lower-order needs first

• Expect people’s needs to change

• Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards

Extrinsicand Intrinsic

Rewards

MotivatingPeople

Effortand

Performance

NeedSatisfaction

Extrinsicand Intrinsic

Rewards

MotivatingPeople

Effortand

Performance

NeedSatisfaction

MANAGEMENT 12MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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How Perceptions and Expectations Affect MotivationEquity Theory

Componentsof

Equity Theory

Reaction toPerceivedInequity

MotivatingPeople UsingEquity Theory

COMPONENTS• Inputs: employee contributions to

the organization• Outcomes: rewards employees

receive from the organization• Referents: comparison others• Outcome/input (O/I) ratio

Outcomesself

Inputsself

Outcomesreferent

Inputsreferent

=

INEQUITY: When a person’s O/I ratio differs from their referent’s O/I

ratio

• Underreward– referent’s O/I ratio is greater

than yours– experience anger or

frustration

• Overreward– referent’s O/I ratio is less

than yours– experience guilt

MANAGEMENT 13MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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How People React to Perceived InequityMotivating with Equity Theory

•Look for and correct major inequities

•Reduce employees’ inputs

•Make sure decision-making processes are fair–distributive justice–procedural justice

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Expectancy Theory

Motivating withExpectancy

Theory

Components ofExpectancy

Theory

Valence

Expectancy

Instrumentality

• Systematically gather information to find out what employees want from their jobs

• Clearly link rewards to individual performance

• Empower employees to make decisions which enhance expectancy perceptions

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Expectancy Theory

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Reinforcement Theory

Componentsof

ReinforcementTheory

Schedules forDelivering

Reinforcement

Motivating withReinforcement

Theory

Reinforcement Theory

A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.

Motivating Reinforcement Theory

Identify, measure, analyze, intervene, and evaluate.

Don’t reinforce the wrong behavior.

Correctly administer punishment at the appropriate time.

Choose the simplest and most effective schedule of reinforcement.

Continuous Schedule

A schedule that requires a consequence to be administered following every instance of a behavior.

Variable

Interval(Time)

Fixed

Ratio(Behavior)

consequences followbehavior after a fixed time has elapsed

Consequences followbehavior after differenttimes that vary aroundan average time

Consequences follow a specific number of behaviors

Consequences followa different number ofbehaviors that vary around an average number

Variable

Interval(Time)

Fixed

Ratio(Behavior)

consequences followbehavior after a fixed time has elapsed

Consequences followbehavior after differenttimes that vary aroundan average time

Consequences follow a specific number of behaviors

Consequences followa different number ofbehaviors that vary around an average number

MANAGEMENT 17MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Reinforcement TheorySchedule – Intermittent

Variable

Interval(Time)

Fixed

Ratio(Behavior)

consequences followbehavior after a fixed time has elapsed

Consequences followbehavior after differenttimes that vary aroundan average time

Consequences follow a specific number of behaviors

Consequences followa different number ofbehaviors that vary around an average number

Variable

Interval(Time)

Fixed

Ratio(Behavior)

consequences followbehavior after a fixed time has elapsed

Consequences followbehavior after differenttimes that vary aroundan average time

Consequences follow a specific number of behaviors

Consequences followa different number ofbehaviors that vary around an average number

MANAGEMENT 18MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Goal-Setting Theory

Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort.

THE THEORY

• Goal Specificity: the clarity of goals

• Goal Difficulty: how challenging goals are

• Goal Acceptance: how well goals are agreed to or understood

• Performance Feedback: information on goal progress

MOTIVATING

• Assign specific, challenging goals

• Make sure workers truly accept organizational goals

• Provide frequent, specific performance-related feedback

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Goal-Setting Theory

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Motivating with the Integrated Model

Motivating with the Basics

Motivating with Equity Theory

Motivating with Expectancy Theory

Motivating with Reinforcement

Theory

Motivating with Goal-Setting Theory

MANAGEMENT 21MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Motivating with the Integrated Model