presentation chapter 13.ppt · 2018. 9. 5. · 1 chapter 13 motivation and performance learning...

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CHAPTER 13CHAPTER 13

Motivation and Performance

LEARNING OBJECTIVES

To explain what motivationmotivation is and why managers need to be concernedabout itabout it.To describe from the perspectives of expectancyexpectancy theorytheory and equityequity

theorytheory what managers should do to have a highly motivated workforce.To explain how goalsgoals andand needsneeds motivate people and what kinds of

goals are especially likely to result in high performance.To identify the motivation lessons that managers can learn from operantoperant

conditioningconditioning theorytheory and socialsocial learninglearning theorytheory..

MGT-101 Yiannos Rossides2

conditioningconditioning theorytheory and socialsocial learninglearning theorytheory..To explain why and how managers can use paypay as a major motivation

tool.

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1. Definitions

• Even if an organization implements the best strategy and employsan appropriate organizational architecture and structure, still it mightan appropriate organizational architecture and structure, still it mightnot be effective because organizational members might not bemotivated to perform at a high level.

• Motivation Defined as the psychological forces acting on an individual that

determine: Direction of behavior—possible behaviors the individual could engage in.

Eff t h h d th i di id l ill k


Effort—how hard the individual will work. Persistence—whether the individual will keep trying or give up

It is important because it explains why people behave the waythey do in organizations

1. Definitions

MotivationMotivation cancan comecome fromfrom IntrinsicIntrinsic oror ExtrinsicExtrinsic sourcessources::

I t i i M ti ti• Intrinsic Motivation Behavior that is performed for its own sake.

The source of the motivation comes from actually engaging in the behavior. ie. Aschool teacher who really likes teaching.

The sense of accomplishment and achievement derived from doing the work itself.ie. A manager who helps his organization to achieve its goals and gain competitiveadvantage.

Remember job characteristics model from Chapter 9 ?


e e be job c a acte st cs ode o C apte 9

• Extrinsic Motivation Behavior that is performed to acquire material or social rewards or to avoid

punishment. The source of the motivation is the consequences of the behavior and not the

behavior itself. Ie. A stockbroker motivated by receiving high commission andstatus that goes along with the job.

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Sources of Motivation

PersonalPersonal Nat re of theNat re of thePersonal Personal CharacteristicsCharacteristics

Nature of theNature of theJobJob

Individual Individual MotivationMotivation


Nature of the Nature of the OrganizationOrganization

1. Definitions

People join and are motivated to work in organizations to receivecertain outcomesoutcomes:

• Outcome Anything a person gets from a job or an organization

Pay, job security, autonomy, accomplishment.

Organizations hire people to obtain important inputsinputs:

• Input A thi t ib t t hi h j b i ti


Anything a person contributes to his or her job or organization Time, effort, skills, knowledge, work behaviors.

• Managers use outcomes to motivate people to contribute their inputs to the organization.

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Fig. 13-1 The Motivation Equation


2. Expectancy Theory

• States that motivation will be high when workers believe: High levels of effort will lead to high performance. Hi h f ill l d t th tt i t f d i d t High performance will lead to the attainment of desired outcomes.

• Major Factors of Motivation Expectancy—the belief that effort (input) will result in a certain level of

performance. EffortEffort willwill resultresult inin aa levellevel ofof performanceperformance.. Instrumentality—the belief that performance results in the attainment of

outcomes. PerformancePerformance leadsleads toto outcomesoutcomes.. Valence—how desirable each of the available outcomes from the job is to a

person. HowHow desirabledesirable anan outcomeoutcome isis toto aa personperson..


• Motivation is highest when expectancy, instrumentality, and valencelevels are high. If one of the values is low, motivation will be low. Workers do not believe they can perform well. Workers do not believe that performance and rewards are closely linked. Workers do not value the rewards offered for performance.

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Fig. 13-2 Expectancy, Instrumentality & Valence


Fig. 13-3 Expectancy Theory


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3. Need Theories

• Need A requirement for survival and well being A requirement for survival and well-being.

• Need Theories Theories of motivation that focus on what needs people are trying

to satisfy at work and what outcomes will satisfy those needs. Based on the premise that people are motivated to obtain

outcomes at work to satisfy their needs. Managers must determine what needs a worker wants satisfied and ensure


Managers must determine what needs a worker wants satisfied and ensurethat a person receives the outcomes when performing well.

3. Need TheoriesMaslow’s Hierarchy of Needs

(Table 13-1)NeedsNeeds DescriptionDescription ExamplesExamples

HighestHighest levellevel SelfSelf--actualizationactualization

Realize one’sRealize one’sfull potentialfull potential

Use abilities Use abilities to the fullestto the fullest

EsteemEsteemFeel good Feel good

about oneselfabout oneselfPromotionsPromotions

and recognitionand recognition

BelongingnessBelongingnessSocial Social

interaction, loveinteraction, loveInterpersonal Interpersonal

relations, partiesrelations, parties

Job securityJob security

HighestHighest--level level needsneeds


SafetySafety Security, stabilitySecurity, stabilityJob security, Job security,

health insurancehealth insurance

PhysiologicalPhysiologicalFood, water, Food, water,

sheltershelterBasic pay level Basic pay level

to buy itemsto buy items

LowerLower--level needs must be satisfied level needs must be satisfied before higherbefore higher--level needs are addressed.level needs are addressed.

LowestLowest--level level needsneeds

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3. Need Theories

Alderfer’s ERG Theory• As lower level needs become satisfied, a

person seeks to satisfy higher-level needs• A person can be motivated by needs at

more than one level at the same timeWhen people experience need frustration


• When people experience need frustrationthey will focus on satisfying the needs atthe next-lowest level

Table 13-2 Alderfer’s ERG Theory

NeedsNeeds DescriptionDescription ExamplesExamplesHighestHighest--levellevel

GrowthGrowthSelfSelf--development,development,

creative workcreative workContinuallyContinually

improve skillsimprove skills

RelatednessRelatednessInterpersonal Interpersonal

relations, feelingsrelations, feelingsGood relations,Good relations,

accurate feedbackaccurate feedback

ExistenceExistenceFood, water, Food, water,

clothing and shelterclothing and shelterAdequate payAdequate payfor necessitiesfor necessities

HighestHighest--level level needsneeds

LowestLowest--levellevel


AfterAfter lowerlower levellevel needsneeds areare satisfied,satisfied, personperson seeksseeks higherhigher needsneeds.. WhenWhenunableunable toto satisfysatisfy higherhigher needs,needs, lowerlower needsneeds motivationmotivation isis raisedraised..BelievesBelieves thatthat aa personperson cancan bebe motivatedmotivated byby needsneeds atat moremore thanthan oneonelevellevel atat thethe samesame timetime..

clothing, and shelterclothing, and shelter for necessitiesfor necessitiesLowestLowest level level needsneeds

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3. Need TheoriesHerzberg’s Motivator-Hygiene

Theory• Focuses on outcomes that lead to higher

motivation and job satisfaction and thosemotivation and job satisfaction, and thoseoutcomes that can prevent dissatisfaction.MotivatorMotivator needsneeds relate to the nature of the work itself—autonomy,

responsibility, interesting work.HygieneHygiene needsneeds are related to the physical and psychological

context of the work—comfortable work environment, pay, jobsecurity.


y Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene

needs does NOT lead to motivation or job satisfaction. To have high motivation and job satisfaction, motivator needs must be

satisfied.

• Need for Achievement

3. Need TheoriesMcClelland’s Needs for

Achievement, Affiliation and Power

A strong need to perform challenging tasks well and meetpersonal standards for excellence.

• Need for AffiliationA concern for good interpersonal relations, being liked, and

getting along.


g g g

• Need for PowerA desire to control or influence others.

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4. Adam’s Equity Theory

• Focuses on people’s perceptions of the fairness(or lack of fairness) of their work outcomes in(or lack of fairness) of their work outcomes inproportion to their work inputs. Motivation is influenced by the comparison of one’s own

outcome/input ratio with outcome/input ratio of a referent (anotherperson or group of people who are perceived to be similar tooneself).

In such a case, one’s perceptions of outcomes and inputs (and not


, p p p (any objective indicator) are key.

Equity exists when a person perceives that their outcome/inputratio to be equal to the referent’s ratio. If the referent receives more outcomes, they should also give more inputs to

achieve equity.

Condition Person Referent Example

Table 13-3: Equity Theory

EquityEquityOutcomesOutcomes = = OutcomesOutcomes

Inputs InputsInputs Inputs

Worker contributesWorker contributesmore inputs but alsomore inputs but alsogets more outputsgets more outputs

than referentthan referent

UnderpaymentEquity

Outcomes < OutcomesInputs Inputs

Worker contributesmore inputs but also

gets the same outputsas referent


OverpaymentOverpaymentEquityEquity

OutcomesOutcomes > > OutcomesOutcomesInputs InputsInputs Inputs

Worker contributesWorker contributessame inputs but alsosame inputs but also

gets more outputsgets more outputsthan referentthan referent

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• Inequity exists when worker’s outcome/input ratio is not equal toreferent.

4. Adam’s Equity Theory

Underpayment inequity: ratio is less than the referent. Workers feel they are not getting the outcomes they should for their inputs.

Overpayment inequity: ratio is higher than the referent. Workers feel they are getting more outcomes than they should for their inputs.

• Restoring Equity: Inequity creates tension in workers causing them toattempt to restore equity. In underpayment, workers may reduce input levels to correct (rebalance) the ratio or

seek a raise


seek a raise. In overpayment, workers may change the referent person and readjust their ratio

perception. If inequity persists, workers will often choose to leave the organization.

5. Goal – Setting Theory

• Focuses on identifying the types of goals that are effective inproducing high levels of motivation and explaining why goals haveth ff tthese effects. Considers how managers can ensure that workers focus their inputs in the

direction of high performance and the achievement of organizational goals.• Goal

What a person is trying to accomplish.• Characteristics of Motivating Goals

Specific and not vague in providing direction. Diffi lt b t t i ibl t tt i


Difficult but not impossible to attain. Accepted and committed to by workers. Feedback on goal attainment is important.

• Goals point out what is important to the firm. Workers should be encouraged to develop action plans to attain goals.

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• Theories that focus on increasing motivationand performance by linking outcomes to

6. Learning Theories

and performance by linking outcomes toperformance and the attainment of goals.

• Learning A relatively permanent change in person’s knowledge or

behavior that results from practice or experience.


6. Learning TheoriesOperant Conditioning Theory

• Operant Conditioning People learn to perform behaviors that lead to desired consequences and learn not

t f b h i th t l d t d i dto perform behaviors that lead to undesired consequences. Linking specific behaviors to the attainment of specific outcomes can motivate high

performance and prevent behaviors that detract from organizational effectiveness.

Operant Conditioning Tools used by management are:i. Positive Reinforcement > Getting desired outcomes for performing

needed work behaviors> Positive reinforcers: Pay, praises, orpromotions

ii. Negative Reinforcement > Eliminating undesired outcomes once thed i d b h i N ti i f i i i


desired behavior occurs > Negative reinforcers: criticisms, pay cuts,suspension

iii. Extinction > Curtailing the performance of a dysfunctional behavior byeliminating whatever is reinforcing it. > Behavior is not rewarded and overtime, the worker stops performing it.

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iv. Punishment > Administering an undesired/negativeconsequence to immediately stop a dysfunctional behavior. >

6. Learning TheoriesOperant Conditioning Theory

q y p yManager administers an undesired consequence to worker (verbalreprimand, demotion, pay cut).

• Organizational Behavior Modification (OB MOD) The systematic application of operant conditioning techniques to

organizationally functional behaviors and discourage dysfunctionalbehaviors.

Improves productivity, attendance, punctuality and other behaviors that areifi bj i d bl


specific, objective and countable. Has been criticized for ethicality of application and effects on workers. Appears to be effective in promoting organizational efficiency.

Fig. 13-4 Steps in OB Modification


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6. Learning TheoriesSocial Learning Theory

• A theory that takes into account how learningand motivation are influenced by people’sand motivation are influenced by people sthoughts and beliefs and their observations ofother people’s behavior.

• It extends operant conditioning’s contribution tounderstanding of motivation by explaining:

i. Vicarious Learning (Observational Learning) L i th t h l i ti t d t f


Learning that occurs when a learner is motivated to perform abehavior by watching another person perform and be rewarded. People are motivated to imitate models who are highly competent, expert,

receive attractive reinforcers, and are friendly or approachable.

ii. Self-Reinforcement A d i d tt ti t d th t i

6. Learning TheoriesSocial Learning Theory

Any desired or attractive outcome or award that a person can givehimself or herself for good performance. “The self-management of behavior” i.e. having dinner out

iii. Self-efficacy A person’s belief about his or her ability to perform a behavior

successfully.


y Influences motivation both when managers provide reinforcement and when

workers themselves provide it.

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7. Pay and Motivation

• Managers can use pay to motivate employees toperform at a high level and achieve their goalsperform at a high level and achieve their goals. EachEach ofof thethe theoriestheories describeddescribed earlierearlier stressesstresses thethe importanceimportance ofof

paymentpayment andand suggestssuggests thatthat paypay shouldshould bebe basedbased onon performanceperformance:: Expectancy: pay is an instrumentality (and outcome), must be high for

motivation to be high. Need Theory: pay is used to satisfy many needs. Equity Theory: pay is given in relation to inputs.


q y y p y g p Goal Setting Theory: pay is linked to attainment of goals. Learning Theory: outcomes (pay), is distributed upon performance of

functional behaviors.

• Merit Pay Plan refers to a compensation plan that bases payon individual, group and/or organization performance.


, g p / g p Individual plan: when individual performance (sales) can accurately measured. Group plan: when group that works closely together is measured and rewarded as

a group. Organization plan: when group or individual outcomes not easily measured.

• Salary Increase or Bonus? > Motivational Value of a Bonus IsHigher When: Salary levels are unrelated to current performance. > Changes in other


y p gcompensation items (cost of living, seniority) are not having a large effect inincreasing compensation. > Salaries rarely change and performance does.

• Benefits of Using Bonuses Do not become permanent part of compensation, are more directly tied to current

performance and provide more flexibility in distributing rewards.

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In addition to pay increases and bonuses, high-level managers andti ti i l t k ti


executives are sometimes given employee stock options.

• Employee Stock OptionA financial instrument that entitles the bearer to buy shares of an

organization’s stock at a certain price during a certain period of timeor under certain conditions.

UsesT tt t hi h l l


To attract high-level managers To motivate employee performance through ownership in the firm

• Examples of Merit Pay Plans:i. Piece-rate Pay Employee’s pay is based on the number of units that the employee

produces.ii. Commission Pay


y Employee’s pay is based on a percentage of sales that the employee

makes.iii. Organization-based Merit Plans Scanlon plan—focuses on reduced expenses or cutting costs Profit sharing—employees receive a share of an organization’s profits

Review Questions1 Abraham Maslow developed a needs hierarchy model of


1. Abraham Maslow developed a needs hierarchy model ofmotivation. State and briefly describe the different kinds ofneeds in this model and give examples where appropriate tosupport your answer.

2. Define the operant conditioning theory and briefly discuss themajor operant conditioning tools used by management, usingexamples where appropriate to support your answer.

presentation chapter 13.ppt · 2018. 9. 5. · 1 chapter 13 motivation and performance learning...

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