1. Motivating Self and Others
Chapter 4
Motivating Self and Others
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

2. Chapter Outline Defining Motivation Needs Theories of Motivation
Process Theories of Motivation
Responses to the Reward System
Creating a Motivating Workplace: Rewards and Job Design
Evaluating the Use of Rewards in the Workplace
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

3. Theories of Motivation
What is motivation?
How do needs motivate people?
Are there other ways to motivate people?
Do equity and fairness matter?
How can rewards and job design motivate employees?
What kinds of mistakes are made in reward systems?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

4. What Is Motivation? Motivation
The intensity, direction, and persistence of effort a person shows in reaching a goal:
Intensity: How hard a person tries
Direction: Where effort is channelled
Persistence: How long effort is maintained
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

5. Theory X and Theory Y Theory X Theory Y
Assumes that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform.
Theory Y
Assumes that employees like work, are creative, seek responsibility, and can exercise self-direction and self-control.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

6. Motivators Intrinsic Motivators Extrinsic Motivators
A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic Motivators
Motivation that comes from outside the person and includes such things as pay, bonuses, and other tangible rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

7. Needs Theories of Motivation
Basic idea
Individuals have needs that, when unsatisfied, will result in motivation
Maslow’s Hierarchy of Needs Theory
ERG Theory
McClelland’s Theory of Needs
Motivation-Hygiene Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

8. Maslow’s Hierarchy of Needs
Physiological
Includes hunger, thirst, shelter, sex, and other bodily needs.
Safety
Includes security and protection from physical and emotional harm.
Social
Includes affection, belongingness, acceptance, and friendship.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

9. Maslow’s Hierarchy of Needs
Esteem
Includes internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention.
Self-actualization
The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

10. Exhibit 4-1 Self- actualization Esteem Social Safety Physiological
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

11. Alderfer’s ERG Theory Existence Relatedness Growth
Concerned with providing basic material existence requirements.
Relatedness
Desire for maintaining important interpersonal relationships.
Growth
Intrinsic desire for personal development.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

12. McClelland’s Theory of Needs
Need for achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed.
Need for power
The need to make others behave in a way that they would not have behaved otherwise.
Need for affiliation
The desire for friendly and close interpersonal relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

13. Herzberg’s Motivation-Hygiene Theory
Hygiene factors – the sources of dissatisfaction
Extrinsic factors (context of work)
Company policy and administration
Unhappy relationship with employee’s supervisor
Poor interpersonal relations with one’s peers
Poor working conditions
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

14. Herzberg’s Motivation-Hygiene Theory
Motivators – the sources of satisfaction
Intrinsic factors (content of work)
Achievement
Recognition
Challenging, varied, or interesting work
Responsibility
Advancement
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

15. Comparison of Satisfiers and Dissatisfiers
Source: Reprinted by permission of Harvard Business Review. An exhibit from Frederick Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business Review 81, no. 1 (January 2003), p. 90. Copyright © 1987 by the President and Fellows of Harvard College; all rights reserved.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

16. Exhibit 4-2 Contrasting Views of Satisfaction and Dissatisfaction
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

17. Criticisms of Motivation-Hygiene Theory
The procedure that Herzberg used is limited by its methodology.
The reliability of Herzberg’s methodology is questioned.
Herzberg did not really produce a theory of motivation.
No overall measure of satisfaction was used.
The theory is inconsistent with previous research.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

18. Exhibit 4-3 Relationship of Various Needs Theories
Maslow
Alderfer
Herzberg
McClelland
Self-Actualization
Growth
Need for Achievement
Motivators
Esteem
Need for Power
Affiliation
Relatedness
Hygiene
Need for Affiliation
Security
Factors
Existence
Physiological
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

19. Summary: Hierarchy of Needs
Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs.
Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction.
Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases.
McClelland: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

20. Summary: Impact of Theory
Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it.
Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time.
Alderfer: Seen as a more valid version of the needs hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks.
McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

21. Summary: Support and Criticism of Theory
Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted.
Herzberg: Not really a theory of motivation. Assumes a link between satisfaction and productivity that was not measured or demonstrated.
Alderfer: Ignores situational variables.
McClelland: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

22. Process Theories of Motivation
Look at the actual process of motivation
Expectancy theory
Goal-setting theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

23. Expectancy Theory
The theory that individuals act depending on whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whether that outcome is attractive to them.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

24. Expectancy Relationships
The theory focuses on three relationships:
Effort-Performance Relationship
The perceived probability that exerting a given amount of effort will lead to performance
Performance-Reward Relationship
The degree to which the individual believes that performing at a particular level will lead to a desired outcome
Rewards-Personal Goals Relationship
The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

25. Exhibit 4-5 How Does Expectancy Theory Work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Expectancy
Instrumentality
Valence
Effort Performance Link
Performance Rewards Link
Rewards Personal Goals Link
No matter how much effort
My professor does not look
There are a lot of wonderful things
I put in, probably not possible
like someone who has $1 million
I could do with $1 million
to memorize the text in 24 hours
E=0
I=0
V=1
Conclusion: Though I value the reward, I will not be motivated to do this task.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

26. Exhibit 4-6 Steps to Increasing Motivation, Using Expectancy Theory
Improving Expectancy
Improve the ability of the
individual to perform •
Make sure employees have skills
for the task
Provide training
Assign reasonable tasks and goals
Improving Instrumentality
Improving Valence
Increase the individual ’
s belief that
performance will lead to reward
Observe and recognize performance
Deliver rewards as promised
Indicate to employees how previous
good performance led to greater
rewards
Make sure that the reward is
meaningful to the individual
Ask employees what rewards they
value
Give rewards that are valued
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

27. Goal-Setting Theory
The theory that specific and difficult goals lead to higher performance.
Goals tell an employee what needs to be done and how much effort will need to be expended.
Specific goals increase performance.
Difficult goals, when accepted, result in higher performance than do easy goals.
Feedback leads to higher performance than does nonfeedback.
Specific hard goals produce a higher level of output than does the generalized goal of “do your best.”
The specificity of the goal itself acts as an internal stimulus.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

28. How Does Goal Setting Motivate?
Direct attention
Regulate effort
Increase persistence
Encourage the development of strategies and action plans
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

29. Goals Should Be SMART For goals to be effective, they should be SMART:
Specific
Measurable
Attainable
Results-oriented
Time-bound
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

30. Exhibit 4-7 Locke’s Model of Goal Setting
Regulating effort
Inc r
easing persistence
Encouraging the development
of strategies and action plans T
ask
performance
Directing attention
Goals
motivate by
Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A. Locke.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

31. Contingency Factors in Goal Setting
Self-efficacy
An individual’s belief that he or she is capable of performing a task.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

32. Responses to the Reward System
Equity Theory
Fair Process and Treatment
Cognitive Evaluation Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

33. Exhibit 4-8 Equity Theory
Ratio of Output to Input
Person 1’s Perception
Person 1
Inequity, underrewarded
Person 2
Person 1
Equity
Person 2
Person 1
Inequity, overrewarded
Person 2
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

34. Equity Theory Main points:
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

35. Responses to Inequity Change their inputs. Change their outcomes.
Adjust perceptions of self.
Adjust perceptions of others.
Choose a different referent.
Leave the field.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

36. Fair Process and Treatment
Historically, equity theory focused on
Distributive justice.
However, equity should also consider
Procedural justice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

37. Fair Process and Treatment
Distributive Justice
Perceived fairness of the amount and allocation of rewards among individuals.
Procedural Justice
Perceived fairness of the process used to determine the distribution of rewards.
Interactional Justice
The quality of the interpersonal treatment received from a manager.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

38. Cognitive Evaluation Theory
The introduction of extrinsic rewards for work effort that was previously rewarded intrinsically will tend to decrease the overall level of a person’s motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

39. Motivators Intrinsic Extrinsic
A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic
Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

40. Four Key Rewards to Increase Intrinsic Motivation
Sense of choice
Sense of competence
Sense of meaningfulness
Sense of progress
Managers can act in ways that will build these intrinsic rewards for their employees.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

41. Exhibit 4-9 Building Blocks for Intrinsic Rewards
• Delegated authority • T
rust in workers
• Security (no punishment) for honest mistakes
• A clear purpose
• Information
• A noncynical climate
• Clearly identified passions
• An exciting vision
• Relevant task purposes
• Whole tasks
• Knowledge
• Positive feedback
• Skill recognition
• Challenge
• High, non-comparative standards
• A collaborative climate
• Milestones
• Celebrations
• Access to customers
• Measurement of improvement
Leading for Choice
Leading for Competence
Leading for Meaningfulness
Leading for Progress
Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and Commitment. Copyright © K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

42. Employee Recognition
Employee recognition programs use multiple sources and recognize both individual and group accomplishments.
In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

43. Variable-Pay Programs
A portion of an employee’s pay is based on some individual and/or organizational measure of performance.
Individual-based
Piece-rate wages, bonuses
Group-based
Gainsharing
Organizational-based
Profit sharing
Employee stock ownership plans (ESOPs)
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

44. Variable Pay Programs: Individual-Based Incentives
Piece-rate pay plans
Employees are paid a fixed sum for each unit of production completed.
Bonuses
One-time rewards for defined work rather than ongoing entitlements.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

45. Variable Pay Programs: Group-Based Incentives
Gainsharing
An incentive plan where improvements in group productivity determine the total amount of money that is allocated.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

46. Variable Pay Programs: Organizational-Based Incentives
Profit-Sharing Plans
Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability.
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which employees acquire stock as part of their benefits.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

47. Research Findings Linking variable-pay programs and expectancy theory:
Variable-pay programs seem to be consistent with expectancy theory predictions.
Employees are motivated when there is a perceived strong relationship between performance and rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

48. Motivating Beyond Productivity
Commissions beyond sales
Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets.
Leadership effectiveness
Employee satisfaction, or how the manager handles his or her employees.
New goals
All employees who contribute to specific organizational goals, such as customer satisfaction, cycle time, or quality measures.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

49. Rewards for Other Types of Performance
Knowledge workers in teams
Performance of knowledge workers and/or professional employees who work on teams.
Competency and/or skills
Abstract knowledge or competencies—for example, knowledge of technology, the international business context, customer service, or social skills.
Skill-based
Pay is based on how many skills an employee has, or how many jobs he or she can do.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

50. Exhibit 4-11 Comparing Various Pay Programs
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

51. Designing Motivating Jobs
Job Characteristic Model (JCM) is a model that identifies five core job dimensions and their relationship to personal and work outcomes.
Job Enrichment
The vertical expansion of jobs.
Employee does a complete activity.
Expands the employee’s freedom and independence, increases responsibility, and provides feedback.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

52. JCM – Core Job Dimensions
Skill variety
Task identity
Task significance
Autonomy
Feedback
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

53. JCM – Critical Psychological States
Experienced meaningfulness
Experienced responsibility for outcomes
Knowledge of the actual results
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

54. Exhibit 4-12 – Examples of High and Low Job Characteristics
Skill Variety
High variety – The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers
Low variety – A body shop worker who sprays paint eight hours a day
Task Identity
High identity – A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection
Low identity – A worker in a furniture factory who operates a lathe solely to make table legs
Task Significance
High significance – Nursing the sick in a hospital intensive care unit
Low significance – Sweeping hospital floors
Autonomy
High autonomy – A telephone installer who schedules his or her own work for the day, makes visits without supervision, and decides on the most effective techniques for a particular installation
Low autonomy – A telephone operator who must handle calls as they come according to a routine, highly specified procedure
Feedback
High feedback – An electronics factory worker who assembles a radio and then tests it to determine if it operates properly
Low feedback – An electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests it for proper operation and makes needed adjustments
Source: G. Johns, Organizational Behavior: Understanding and Managing Life at Work, 4th ed. Copyright © Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

55. Exhibit 4-13 The Job Characteristics Model
Core job
Critical
Personal and
dimensions
psychological states
work outcomes
Skill variety
Experienced
High internal
Task identity
meaningfulness
work motivation
Task significance
of the work
High-quality
Experienced
work performance
Autonomy
responsibility
for outcomes
High satisfaction
of the work
with the work
Knowledge of the
Low absenteeism
Feedback
actual results of
and turnover
Source: J. R. Hackman, G. R. Oldham, Work Design (excerpted from pages 78-80). Copyright © 1980 by Addison-Wesley Publishing Co. Reprinted by permission of Addison-Wesley Longman.
the work activities
Employee growth-
need strength
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

56. Beware the Signals That Are Sent By Rewards
Often reward systems do not reflect organizational goals:
Individuals are stuck in old patterns of rewards and recognition.
Stick to rewarding things that can be easily measured.
Organizations don’t look at the big picture.
Subunits compete with each other.
Management and shareholders focus on short-term results.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

57. Exhibit 4-14 Management Reward Follies
We hope for:
Teamwork and collaboration
Innovative thinking and risk-taking
Development of people skills
Employee involvement and empowerment
High achievement
Long-term growth; environmental responsibility
Commitment to total quality
Candor; surfacing bad news early
But we reward:
The best team members
Proven methods and not making mistakes
Technical achievements and accomplishments
Tight control over operations and resources
Another year’s effort
Quarterly earnings
Shipment on schedule, even with defects
Reporting good news, whether it’s true or not; agreeing with the manager, whether or not (s)he’s right
Source: Constructed from S. Kerr, “On the Folly of Rewarding A, While Hoping for B,” Academy of Management Executive 9, no. 1 (1995), pp. 7-14; and “More on the Folly,” Academy of Management Executive 9, no. 1 (1995), pp Reprinted by permission.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

58. Caveat Emptor: Apply Motivation Theories Wisely
Motivation Theories Are Culture-Bound
Canada and US rely on extrinsic rewards more than other countries.
Japan and Germany rarely use individual incentives.
Japan emphasizes group rewards.
China is more likely to give bonuses to everyone.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

59. Exhibit 4-15 Snapshots of Cultural Differences in Motivation
Japan:
Sales
representatives preferred being
members of a successful
team with shared goals and values, rather than financial r
ewards.
Russia:
Cotton mill employees given either valued extrinsic rewards (
North American T
-shirts with logos, childr en ’
s sweatpants, tapes of
North American music, etc.) or praise and rewards were more productive.
However
, rewards did not help for those who worked on
Satur
days.
China:
Bonuses often given to everyone, r
egar
dless of individual pr
oductivity .
Many employees expect jobs for life, rather than jobs based
on performance. M
exico :
Employees pr
efer i
mmediate feedback on their work. Therefore
daily r
ewar
ds for exceeding quotas ar
e pr
efer re d.
Canada and the United States:
Managers
ly mor
e h
eavily on extrinsic
motivators.
Japan and Germany:
Firms rarely give rewards
based on individual
performance.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

60. Can We Just Eliminate Rewards?
Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments:
Abolish Incentives.
Re-evaluate Evaluation.
Create Conditions for Authentic Motivation.
Encourage Collaboration.
Enhance Content.
Provide Choice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

61. Putting It All Together
What we know about motivating employees in organizations:
Recognize individual differences.
Employees have different needs.
Don’t treat them all alike.
Spend the time necessary to understand what’s important to each employee.
Use goals and feedback.
Allow employees to participate in decisions that affect them.
Link rewards to performance.
Check the system for equity.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

62. Summary and Implications
What is Motivation?
Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward reaching the goal.
How do needs motivate people?
All needs theories of motivation propose a similar idea: individuals have needs that, when unsatisfied, will result in motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

63. Summary and Implications
Are there other ways to motivate people?
Process theories focus on the broader picture of how someone can set about motivating another individual. Process theories include expectancy theory and goal- setting theory (and its application, management by objectives).
Do equity and fairness matter?
Individuals look for fairness in the reward system. Rewards should be perceived by employees as related to the inputs they bring to the job.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

64. Summary and Implications
5. How can rewards and job design motivate employees?
Recognition helps employees feel that they matter. Employers can use variable-pay programs to reward performance. Employers can use job design to motivate employees. Jobs that have variety, autonomy, feedback, and similar complex task characteristics tend to be more motivating for employees.
6. What kinds of mistakes are made in reward systems?
Often reward systems do not reward the performance that is expected. Also, reward systems sometimes do not recognize that rewards are culture-bound.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

65. OB at Work
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

66. For Review
What are the implications of Theories X and Y for motivation practices?
Identify the variables in expectancy theory.
Describe the four ways in which goal setting motivates.
Explain cognitive evaluation theory. How applicable is it to management practice?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

67. For Review
5. What are the pluses and minuses of variable-pay programs from an employee’s viewpoint? From management’s viewpoint?
6. What is an ESOP? How might it positively influence employee motivation?
7. Describe the five core dimensions in the JCM.
8. Describe three jobs that score high on the JCM. Describe three jobs that score low.
9. What can firms do to create more motivating environments for their employees?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

68. For Critical Thinking
1. Identify three activities you really enjoy (for example, playing tennis, reading a novel, going shopping). Next, identify three activities you really dislike (for example, visiting the dentist, cleaning the house, following a low-fat diet). Using expectancy theory, analyze each of your answers to assess why some activities stimulate your effort while others don’t.
2. Identify five different bases by which organizations can compensate employees. Based on your knowledge and experience, is performance the basis most used in practice? Discuss.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

69. For Critical Thinking
3. “Employee recognition may be motivational for the moment, but it doesn’t have any staying power. Why? Because employees can’t take recognition to Roots or The Bay!” Do you agree or disagree? Discuss.
4. “Performance can’t be measured, so any effort to link pay with performance is a fantasy. Differences in performance are often caused by the system, which means the organization ends up rewarding the circumstances. It’s the same thing as rewarding the weather forecaster for a pleasant day.” Do you agree or disagree with this statement? Support your position.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

70. For Critical Thinking
5. Your textbook argues for recognizing individual differences. It also suggests paying attention to members of diverse groups. Does this view contradict the principles of equity theory? Discuss.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

71. Breakout Group Exercises
Form small groups to discuss the following topics:
1. One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. Choose one of the available theories and indicate how the theory explains the member’s current behaviour and how the theory could be used to motivate the group member to perform more responsibly.
2. You are unhappy with the performance of one of your instructors and would like to encourage the instructor to present more lively classes. Choose one of the available theories and indicate how the theory explains the instructor’s current behaviour. How could you as a student use the theory to motivate the instructor to present more lively classes?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

72. Breakout Group Exercises
3. Harvard University recently changed its grading policy to recommend to instructors that the average course mark should be a B. This was the result of a study showing that more than 50 percent of students were receiving an A or A- for coursework. Harvard students are often referred to as “the best and the brightest,” and they pay $ (US) for their education, so they expect high grades. Discuss the impact of this change in policy on the motivation of Harvard students to study harder.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

73. Exhibit 4-16 2005 Compensation of Canada’s “Most Overpaid” CEOs
Was Paid (3-Yr Avg.)
Should Have Been Paid
Amount Overpaid
1. Ian Telfer/Robert McEwen
Goldcorp
Vancouver, BC $ $ $
2. E. Melnyk
Biovail
Mississauga, Ontario $ $ $
3. Richard Smith/David Stein
CoolBrands
Markham, Ontario $ $ $
4. Jeffrey Orr/Robert Gratton Power Financial Corporation
Montreal, Quebec $ $ $
5. Gerald Schwartz
Onex
Toronto, Ontario $ $ $
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

74. Supplemental Material
Slides for activities I do in my own classroom
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

75. Exercise on Motivation Theories
Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously, Jesse had been one of your star employees. Using the theory assigned to your group, explain what steps you might take to motivate Jesse to perform better.
Describe the plan.
Indicate how the plan relates to the theory.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

76. Theories to Apply Herzberg Motivation-Hygiene (Two-Factor) Theory
Expectancy
Goal-Setting Theory
Equity
Cognitive Evaluation Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada