MOTIVATION.

MOTIVATION

What are we going to cover
What is motivation Nature / characteristics of motivation Classification of motivation What are motives Classification of motives Theories of Work Motivation Maslow's theory of need hierarchy

Theories of Work Motivation Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model Morale - Definition Relationship with productivity Morale Indicators

What is motivation? Motivation is a Latin word, which means to move. It is the willingness of an individual to respond to organisational requirements. Koontz O’Donnell defines it as “ a general term applying to the entire class of drives, desires, needs wishes & similar forces that induce an individual or a group of people at work.”

What is motivation? It can also be defined as “a willingness to expend energy to achieve a goal or a reward. It is a force that activates dormant energies & sets in motion the action of people. It is the function that kindles a burning passion for action among the human beings of an organisation.” Performance = Ability x Motivation

What is motivation? It is a process which starts with a physiological or psychological deficiency or need that activates or a drive that is aimed at a goal or incentive. Needs: are created when there is a deprivation or deficiency. Here, a physiological or psychological imbalance exists. Drives or motives: Drives are deficiencies with direction. They are action oriented & provide a thrust towards achieving an incentive or goal.

What is motivation? Incentive or goal: Attaining an incentive will restore the balance. After achieving the goal, needs & drives will be reduced. Needs Drives Incentive or motives or Goal

Nature / characteristics of motivation
Unending process: human wants keep changing & increasing. A psychological concept: deals with the human mind. Whole individual is motivated: as it is based on psychology of the individual.

Motivation may be financial or non-financial: Financial includes increasing wages, allowance, bonus, perquisites etc. Motivation can be positive or negative: positive motivation means use of incentives - financial or non-financial. Egs. of positive motivation: confirmation, pay rise, praise etc. Negative motivation means emphasizing penalties. It is based on force of fear. Eg. demotion, termination.

Motivation: motivation & job satisfaction are different. Motivation is goal-oriented behaviour. Job satisfaction is the outcome of job performance.

Classification of motivation
Positive and negative Financial and non – financial Extrinsic and intrinsic: Extrinsic motivation is available only after completion of the job. Eg. increase in wages, rest periods, holidays etc. Intrinsic motivation is available at the time of performance of a job. Eg. praise, recognition, delegation of authority & responsibility.

What are motives? A motive is an inner state that energizes, activates, or moves & directs, channels behaviour towards goals.

Classification of motives
Motives can be classified as: Primary motives General motives Secondary motives

Primary motives: Also called physiological / biological / unlearned motives. 2 criteria for the motive to be primary are that they should be unlearned & physiological. Eg. hunger, thirst, sleep, avoidance of pain, sex & material concern. Primary motives tend to reduce the tension or stimulation.

General motives: Are ones which are unlearned but are not physiologically based. These needs induce the person to increase the amount of stimulation. Eg. curiosity, manipulation, activity & affection

Secondary motives: These are the most important w.r.t. the study of O.B. A motive must be learned in order to be a secondary one. These drives are closely tied to the learning concepts, such as motives for power, achievement, affiliation referred to as n Pow, n Ach, n Aff. Security & status are also secondary motives.

Examples of key secondary needs: Need for Achievement: Doing better than competitors Attaining a difficult goal Solving a complex problem Need for power: Controlling people & activities Being in a position of authority over others Defeating an opponent

Need for affiliation: Being liked by many people Working with people who are friendly & co-operative Participating in pleasant social activities Need for security: Having a secure job Having protection against illness & disability Avoiding tasks or decision with a risk of failure & blame

Need for status: Working for the right company in the right job Having a degree from the right university Having the right privileges

Theories of Work Motivation
Maslow's theory of need hierarchy: Abraham Maslow, an American psychologist, viewed the motivation of human beings as arising from levels of hierarchy of needs. According to him, each one of us is a ‘wanting’ being.

His basic assumptions were: All human needs cannot be satisfied, because, if one need is satisfied, another arises. A satisfied need does not motivate behaviour. eg. need for food motivates only till one gets food.

Some needs are innate (natural / inherent) eg. the need for food & water; while some are acquired from social experiences eg. need for social esteem. Human beings attempt to satisfy their needs in a specific order, based on hierarchy.

Maslow’s hierarchy of needs Self actualization needs Esteem needs Social needs Safety & security needs Physiological needs

Maslow explained each level of hierarchy as follows: Physiological needs: These are necessary to sustain life. They include food, water, clothing, shelter. These needs have the highest potency for motivation. A person who lacks these will be motivated by these.

Safety needs: When physiological needs are reasonably satisfied, safety needs begin to manifest themselves. These needs include protection from physical dangers, such as fire or accident. Economic security, security of income against contingencies such as sickness, injury, non-hostile working atmosphere are also safety needs.

Social needs: When physiological & safety needs are reasonably satisfied, social needs become important motivators. Man is a social being & wants to receive & give acceptance, friendship & affection. He feels the need for belonging, for being an accepted member of a formal or an informal group.

Esteem needs: When the first three needs are essentially satisfied, esteem needs become dominant. The person must feel important & must also receive recognition from others, as that recognition supports the feelings of personal worth. Thus feelings of self-esteem, self-confidence, prestige & power are produced which are related to enhancing competence, knowledge & achievement.

Self actualization needs: At the summit of the hierarchy is the need to realize one’s potentialities so as to satisfy what Maslow referred to as ‘the desire to become everything that one is capable of becoming.’ Thus the person becomes interested in self-fulfillment, self-development, & creativity in the broadest sense of the term.

Criticisms of Maslow’s theory: Hierarchy cannot be regarded as rigid. For some people, the levels may not be clearcut & may tend to overlap. Some individuals may lack ambition & may remain at the primary levels of the hierarchy concerned only with physiological & safety needs.

The order suggested by Maslow may not be applicable to everybody. A single need cannot motivate an individual. There may be several & that too in combinations, existing. Hence the theory may not have universal validity.

To be continued ….. Theories of Work Motivation Morale - Definition
Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model Morale - Definition Relationship with productivity Morale Indicators

Motivation

Theories of Work Motivation – contd. Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model – also imp, not written in syll. Morale - Definition Effects of Morale Relationship of morale with productivity Morale Indicators

Herzberg's two-factor theory: Frederick Herzberg, in the late 1950s conducted a study on motivation. He and his associates used semi-structured interviews to elicit from 200 engineers & accountants in Pittsburgh area, the factors which satisfy or dissatisfy the workers.

His study revealed that factors responsible for job satisfaction are quite different from those responsible for job dissatisfaction. Certain factors give job satisfaction, but absence of these does not mean job dissatisfaction. It only means no job satisfaction. Similarly, certain factors cause job dissatisfaction, but absence of these does not mean job satisfaction. It only means no job dissatisfaction.

According to Herzberg, motivational factors are responsible for job satisfaction; and Hygiene or Maintenance factors are responsible for job dissatisfaction.

Motivational factors: The presence of these factors motivates workers & at the same time, absence of these does not cause dissatisfaction.

Hygiene or Maintenance factors: The presence of these factors maintains motivation at zero level, but absence of these factors causes serious dissatisfaction. In other words, presence of these factors prevents dissatisfaction. Maintaining motivation at zero level thus prevents negative motivation, hence they are called maintenance factors.

Motivators Hygiene factors Achievement Co. policy & admn. Work itself Interpersonal relations Recognition Supervision Responsibility Money Advancement Job security Possibility of growth Status Working conditions

Herzberg’s framework is compatible with Maslow’s need hierarchy. Maslow’s lower order needs are analogous to Herzberg’s hygiene factors & his upper level needs correspond to Herzberg’s motivators. Herzberg’s theory was also challenged by the thought that there exists a tendency of people to attribute good results to their own effort & blame others for poor results.

Douglas Mc Gregor’s X & Y theory: Theory X : This theory assumes that most people prefer to be directed, are not interested in assuming responsibility & want safety above all. Accompanying this philosophy is the belief that work is inherently distasteful to most people & people are motivated by money & the threat of punishment.

Managers who accept Theory X assumptions, attempt to structure, control & closely supervise their subordinates. Theory Y: This theory assumes that people are not by nature lazy & unreliable. Man can be self-directed & creative at work, if properly motivated.

Managers who accept this theory, attempt to help their employees mature, by exposing them to progressively less control, allowing them to assume more self-control. Employees are able to achieve the satisfaction of social esteem & self-actualization needs with this kind of environment.

Theory X Theory Y 1. Workers dislike to work by themselves. 1. Workers feel that work is as natural as play. 2. Workers are not ready to accept responsibility. 2. Workers are ready to accept responsibility if proper motivation is available to them. 3. Workers prefer to be directed by others. 3. Workers are directed by themselves.

Theory X Theory Y 4. Workers are unambitious. 4. Workers are ambitious. 5. Workers by nature resist change & want security. 5. Workers are ready to cope up with changes. 6. Workers lack creativity & fail to solve organisational problems. 6. Workers have a high degree of creativity & succeed in solving organisational problems.

Theory X Theory Y 7. Focus is on the lower level needs of workers i.e. physiological & safety 7. Focus is on both the lower level needs & higher level needs of workers i.e. social, esteem & self-actualisation. 8. Strict control is necessary to achieve organisational objectives. 8. Workers exercise self- control & self-direction to achieve organisational objectives.

Theory X Theory Y 9. Authority is not delegated. 9. Authority is delegated. 10. Autocratic leadership is followed. 10. Democratic leadership is followed.

Vroom’s Expectancy theory: The model is built around the concepts of valence, instrumentality & expectancy & is commonly called VIE theory. By valence, Vroom means the strength of an individual’s preference for a particular outcome.

Valence is positive when a person prefers attaining the outcome to not attaining it. Valence is zero when the individual is indifferent towards the outcome. Valence is negative when a person prefers not attaining the outcome to attaining it.

Another major input into the valence is the instrumentality of the first level outcome in obtaining a desired second level outcome. Eg. person would be motivated towards superior performance because of the desire to be promoted. The superior performance (first level outcome) is seen as being instrumental in obtaining a promotion (second level outcome).

Another important variable is Expectancy. It relates efforts to first level outcomes; while instrumentality relates first level & second level outcomes. So, expectancy is the probability (ranging from 0 to 1) that a particular action or effort will lead to a particular first level outcome. Instrumentality refers to the degree to which a first level outcome will lead to a desired second level outcome.

Strength of motivation to perform a certain act will depend on the algebraic sum of the products of the valences of outcome (which include instrumentality) times the expectancies. Motivational force F: F = ∑ Valence x Expectancy

VIE theory Instrumentalities Expectancy Second level First level outcomes outcomes Outcome 1 a Outcome 1 Outcome 1 b Motivational Force F Outcome 2 a Outcome 2 Outcome 2 b Outcome 2 c

Eg. of VIE theory Instrumentalities Expectancy that the Second level workers First level outcomes will achieve outcomes the orgnal Personal goals goals Production i.e. money, standard recognition, Motivation i.e. the security Of organisational workers goal

This model can clarify the relationship between individual & organisational goals. Eg. suppose workers are given a certain standard of production. By measuring the worker’s output, mgt can determine how imp. their personal goals are, the instrumentality of the organisational goal in attaining their personal goals & the worker’s expectancies that their effort & ability will accomplish the organisational goals.

If the output is below standard, it may be that workers do not give high importance to the second level outcome; or they may not see the first level outcome being instrumental in achieving the second level outcome; or they may think that their efforts will not accomplish the first level outcome. Anyone or a combination of these possibilities will result in low motivation, according to Vroom.

Morale

What is Morale? The dictionary meaning is mood & spirit. High morale means an enthusiastic, confident feeling with respect to individual or group achievement. In employment, morale refers to the participative attitudes towards achievement of organisational objectives. It means team spirit & togetherness of people for a common purpose.

What is Morale? It is defined as the capacity of a group of people to pull together persistently (i.e. tirelessly, patiently) & consistently (again & again) in the pursuit of a common purpose.

What is Morale? It consists of 3 different aspects:
Feeling of being accepted by one’s work group Sharing common goals with one’s group Having confidence in the desirability of these goals.

What is Morale? Individual & group morale: An individual’s morale is related with knowing one’s expectations & living up to them. It reflects the individual’s attitude towards life. Group morale reflects the group feeling – a group assessment of conditions – esprit de corps (team spirit)

Effects of Morale Relationship of morale with productivity: There are various schools of thought on this concept. Some believe that high morale is related to high productivity & vice-versa. Some believe that morale is not related to productivity.

Effects of Morale Miller & Form have given 4 combinations of morale & productivity: High productivity – high morale Low productivity – high morale High productivity – low morale Low productivity – low morale

Effects of Morale High productivity – high morale: this situation occurs when group goals (pride in work group, group recognition) & individual goals (freedom on work, good wages, job interest) are satisfied leading to high motivation, high productivity & high morale.

Effects of Morale Low productivity – high morale: individual goals only are satisfied. Individual behaviour is determined by informal groups causing restriction of output, where supervisors lack technical & administrative skills & where workers lack adequate skills.

Effects of Morale High productivity – low morale: in this situation, supervisor is only able to increase productivity through his skills or planning ability by use of penalty (loss of pay or loss of job) rather than motivating the workers. Low productivity – low morale: occurs when opposite factors to situation 1 arise.

Morale Indicators Organisation itself: goals, public reputation, organisational structure Nature of work: routine or specialised, stress Level of satisfaction: is determined by – opportunity for advancement, job security, opportunity to learn, use new ideas, co-operation of fellow employees, working hours, recognition, communication.

Morale Indicators Supervision received: high rate of turnover indicates a poor leadership. Perception of the self: Morale of employees who lack self-confidence or who suffer from a poor physical or mental health is generally low. Employee’s perception of past awards & future opportunities for rewards: whether fair, satisfactory

Morale Indicators Employee’s age: Earlier belief was that there exists a U shaped relation between age & morale – initially high, then low & again high. But, today it is believed that there is a direct relationship – high morale with high age, because of stability, serious attitude towards work, reliability, less absenteeism, sense of responsibility.

Morale Indicators Employee’s educational level & occupational level:
Inverse relation exists between educational level & morale. Higher the education, less satisfaction – because employee compares his attainment with others. But a high educational level gives the opportunity to be high in the ladder, hence satisfaction must be derived by the individual.

Morale Indicators Occupational level: also influences morale. Eg. executives are more satisfied than managers, managers are more satisfied than the subordinates etc.

To sum up….. A manager’s success depends on how well he can motivate his subordinates & boost their morale to give their best & also keep them satisfied. Motivation is one of the key tools for the success of any enterprise.

McClelland Achievement Motivation Theory

What is Motivation? The word 'motivation' comes from the Latin word meaning 'to move‘ External motivation: bonus, work conditions (getting the office with the window) An inner (self-motivation) or outer drive to meet a need or goal

Why is Motivation Important?
It is one of the three key elements in performance Performance = f {Ability x Motivation x Opportunity} Ability refers to a natural talent to do something mental or physical Motivation is not a stable individual characteristic. Motivation is not a trait. Opportunity refers to the different situations that workers may find themselves in.

McClelland's Achievement Motivation
McClelland's Achievement Motivation Theory is based upon the idea that people have an achievement need. An achievement need is the need to be successful and to receive recognition for your success.

3 characteristics of people
Need for Achievement - doing innovative, new, interesting and challenging things. Need for Affiliation - the need for feedback / contact with others. Need for Power - the need for responsibility, or to be responsible for others.

McClelland's experiment
-- The Thematic Apperception Test (TAT) -- It consisted of showing individuals a series of pictures and asking them to give brief descriptions of what was happening in the pictures. The responses were analysed in terms of the presence or absence of certain themes. The themes McClelland and his associates were looking for revolved around the following motivators: achievement, affiliation and power.

THEMATIC APPERCEPTION TEST
The Thematic Apperception Test or TAT is amongst the most widely used, researched, and taught psychological tests TAT was developed by the American psychologist Henry A. Murray and Christina D. Morgan at during the 1930s to explore the underlying dynamics of personality, such as internal conflicts, dominant drives and interests and motives.

It uses a standard series of 31 provocative yet ambiguous pictures about which the subject must tell a story. A subject is asked questions such as: What dialogue might be carried on between characters? How might the "story" continue after the picture shown? For this reason, the TAT is also known as the 'picture interpretation technique'.

Today, the TAT is widely used as a tool for research around areas of psychology such as dreams, fantasies and what motivates people to choose their occupation. Sometimes it is used in a psychiatric context to assess disordered thinking, in forensic examinations to evaluate crime suspects or to screen candidates for high-stress occupations.

THE NEXT FEW SLIDES WILL CONTAIN SOME PICTURES.
THEIR MEANING WILL DIFFER FROM PERSON TO PERSON AS THEY WILL BE INTEPRETED ACOORDING TO INDIVIDUAL PERCEPTION

Achievement The need for achievement is characterised by the wish to take responsibility for finding solutions to problems, master complex tasks, set goals, get feedback on level of success.

THE NEED FOR ACHIEVEMENT (N-ACH)
The n-ach person is 'achievement motivated' and therefore: seeks achievement, attainment of realistic but challenging goals, advancement in the job. There is a strong need for feedback as to achievement and progress, accompained with a need for a sense of accomplishment.

Affiliation The need for affiliation is characterised by a desire to belong, an enjoyment of teamwork, a concern about interpersonal relationships, and a need to reduce uncertainty.

THE NEED FOR AFFILIATION (N-AFFIL)
The n-affil person is 'affiliation motivated', He has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. These people are team players.

Power (Influence) The need for power is characterised by a drive to control and influence others, a need to win arguments, a need to persuade and prevail.

THE NEED FOR AUTHORITY AND POWER (N-POW)
The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective to make an impact. There is a strong need to lead and for their ideas to prevail. There is also motivation and need towards increasing personal status and prestige.

TYPES OF POWER A persons need for power is of two types PERSONAL POWER
Those who need Personal Power want to direct others, which is often perceived as undesirable.

INSTITUTIONAL POWER Persons who need Institutional power or Social Power want to organise the efforts of others to further the goals of the organisation. Managers with high need for institutional power tend to be more effective managers as compared to those with high Personal Power.

Need for Achievement and Entrepreneurship
McClelland further described the profile of an entrepreneur as someone high in achievement motivation and low in power motivation, while good managers have high power motivation and low achievement motivation.

What Is Motivation? Direction Intensity Persistence
Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward the attainment of a goal. Intensity is concerned with how hard a person tries. This is the element most of us focus on when we discuss the topic of motivation. However, unless effort is channeled in a direction that benefits the organization, high intensity is no guarantee of favorable job-performance outcomes. Quality of effort, therefore, is just as important as intensity of effort. Finally, persistence (how long a person can maintain effort) is important. A motivated person stays with a task long enough to achieve his or her goal. Persistence

Why Rewards Often Fail to Motivate
Too much emphasis on monetary rewards Rewards lack an “appreciation effect” Extensive benefits become entitlements Counterproductive behavior is rewarded Too long a delay between performance and rewards Too many one-size-fits-all rewards Use of one-shot rewards with a short-lived motivational impact Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

Contingent Consequences in Operant Conditioning
Nature of Consequences Punishment Behavioral outcome: Target behavior occurs less often. Negative Reinforcement Behavioral outcome: Target behavior occurs more often. Punishment (Response Cost) Behavioral outcome: Target behavior occurs less often. Positive Reinforcement Behavioral outcome: Target behavior occurs more often. (no contingent consequence) Extinction Behavioral outcome: Target behavior occurs less often Positive or Pleasing Negative or Displeasing Contingent Presentation Behavior-Consequence Relationship Contingent Withdrawal

Schedules of Reinforcement
Schedule Description Continuous Reinforcer follows every response (CRF) Intermittent Reinforcer does not follow every response Fixed ratio (FR) A fixed number of responses must be emitted before reinforcement occurs. Variable ratio (VR) A varying or random number of responses must be emitted before reinforcement occurs. Fixed interval (FI) The first response after a specific period of time has elapsed is reinforced Variable interval (VI) The first response after varying or random periods of time have elapsed is reinforced.

Self Esteem Social Safety Physiological
Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological According to Abraham Maslow, within every human being, the following hierarchy of needs exists. The first three are deficiency needs because they must be satisfied if the individual is to be healthy and secure. The last two are growth needs because they are related to the development and achievement of one’s potential. As each of these needs becomes substantially satisfied, the next higher need becomes dominant. 1. Physiological. Hunger, thirst, shelter, sex, and other survival needs. 2. Safety. Security, stability, and protection from physical or emotional harm. 3. Social. Social interaction, affection, companionship, and friendship. 4. Esteem. Self-respect, autonomy, achievement, status, recognition, and attention. 5. Self-actualization. Growth, self-fulfillment, and achieving one’s potential.

Herzberg’s Two-Factor Theory
Hygiene Factors Motivational Factors Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Career Advancement Personal growth Recognition Responsibility Achievement Frederick Herzberg asked workers to describe situations in which they felt either good or bad about their jobs. His findings are called motivation-hygiene theory. Herzberg asserted that intrinsic factors are related to job satisfaction whereas extrinsic factors are associated with dissatisfaction. So, he called company policy, supervision, interpersonal relations, working conditions, and salary hygiene factors. When these factors are adequate, people will not be dissatisfied; however, they will not be satisfied either. He believed that achievement, recognition, the work itself, growth, and responsibility are motivational because people find them intrinsically rewarding. High Job Dissatisfaction Job Satisfaction High

Alderfer’s ERG Theory Existence Growth Relatedness

The Theory of Needs Need for Achievement Need for David Power
(nAch) The Theory of Needs David McClelland Need for Power (nPow) David McClelland proposed that three learned needs motivate behavior. The need for achievement (nAch) is the need to excel, to achieve in relation to a set of standards, to succeed. The need for power (nPow) is the need to make others behave in ways in which they would not have behaved otherwise. The need for affiliation (nAff) is the desire for interpersonal relationships. He believed that these needs are acquired from the culture of a society. Need for Affiliation (nAff)

Cognitive Evaluation Intrinsic Motivators Extrinsic Motivators

The Job Characteristics Model
Core job characteristics *Skill variety *Task identity *Task significance *Autonomy *Feedback from job Critical psychological states *Experienced meaningfulness of the work *Experienced responsibility for outcomes of the work *Knowledge of the actual results of the work activities Outcomes *High internal work motivation *High growth satisfaction *High general job satisfaction *High work effectiveness Moderators 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions

Approaches to Job Design
1. The Mechanistic Approach focuses on identifying the most efficient way to perform a job. Employees are trained and rewarded to perform their jobs accordingly. 2. Motivational Approaches these techniques (job enlargement, job rotation, job enrichment, and job characteristics) attempt to improve employees’ affective and attitudinal reactions and behavioral outcomes. 3. Biological and Perceptual- Motor Approaches Biological techniques focus on reducing employees’ physical strain, effort, fatigue, and health complaints. The Perceptual-Motor Approach emphasizes the reliability of work outcomes by examining error rates, accidents, and workers’ feedback about facilities and equipment.

Skills and Best Practices: Applying the Job Characteristics Model
Diagnose the level of employee motivation and job. satisfaction and consider redesigning jobs when motivation ranges from low to moderate. Determine whether job redesign is appropriate in a given context. Redesign jobs by including employees’ input.

Equity Theory Ratio Employee’s Comparison* Perception Outcomes A
Inputs A Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) *Where A is the employee, and B is a relevant other or referent. Equity Theory Workers compare their job inputs and outcomes with others. There are three possible perceptions: inequity due to being under-rewarded, equity, or inequity due to being over-rewarded. Equity theory proposes that inequity creates tension, and that this tension can cause an employee to seek fairness. There are four referents that an employee can use: (1) Self-inside: an employee’s experiences in a different position inside the organization. (2) Self-outside: an employee’s experiences in a position outside of the organization. (3) Other-inside: an employee’s perception of persons inside the organization. (4) Other-outside: an employee’s perception of persons outside of the organization. Workers who perceive an inequity will react in one of the six following ways: change inputs, change outcomes, distort perceptions of self, distort perceptions of others, choose a different referent, or leave the field. Equity theory establishes four propositions relating to inequitable pay. First, given payment by time, over-rewarded employees will produce more than those paid equitably. Second, given payment by quantity of production, over-rewarded employees will produce fewer, but higher quality units, than will equitably paid employees. Third, given payment by time, under-rewarded employees will produce less or poorer quality of output. Fourth, given payment by quantity of production, under-rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.

Negative and Positive Inequity
A. An Equitable Situation Other Self $2 1 hour = $2 per hour $4 2 hours = $2 per hour

Negative and Positive Inequity (cont)
$2 1 hour = $2 per hour $3 = $3 per hour B. Negative Inequity Self Other

Negative and Positive Inequity (cont)
C. Positive Inequity Other Self $3 1 hour = $3 per hour $2 1 hours = $1 per hour

Organizational Justice
Distributive Justice: The perceived fairness of how resources and rewards are distributed. Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice: The perceived fairness of the decision maker’s behavior in the process of decision making.

Research into Equity Distributive Justice Procedural Amount and
Allocation of Rewards Perceived Fairness of the Distribution Process

Equity Sensitivity Benevolents Sensitives Entitleds
Equity Sensitivity is an individual’s tolerance for negative and positive equity. Benevolents Sensitives Entitleds

Motivation Theories Are Culture Bound
Hierarchy of Needs Need for Achievement Equity Theory

Expectancy Theory Individual Effort Individual Performance
Organizational Rewards 1 2 3 3. Rewards-personal goals relationship 1. Effort-performance relationship 2. Performance-rewards relationship Expectancy theory argues that an employee will be motivated to produce more when he or she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards; and that the rewards will satisfy the employee’s personal goals. This theory focuses on three relationships. 1. The effort-performance relationship is the probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. The performance-rewards relationship is the degree to which an individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. The rewards-personal goals relationship is the degree to which the rewards of an organization satisfy an individual’s personal goals or needs and the attractiveness of those rewards. Personal Goals

Vroom’s Expectancy Theory Concepts
Expectancy: Belief that effort leads to a specific level of performance Instrumentality: A performance  outcome perception. Valence: The Value of a reward or outcome

Managerial Implications of Expectancy Theory
Determine the outcomes employees value. Identify good performance so appropriate behaviors can be rewarded. Make sure employees can achieve targeted performance levels. Link desired outcomes to targeted levels of performance. Make sure changes in outcomes are large enough to motivate high effort. Monitor the reward system for inequities.

Organizational Implications of Expectancy Theory
Reward people for desired performance, and do not keep pay decisions secret. Design challenging jobs. Tie some rewards to group accomplishments to build teamwork and encourage cooperation. Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and oucomes that lead to high effort and goal attainment. Monitor employee motivation through interviews or anonymous questionnaires. Accommodate individual differences by building flexibility into the motivation program.

Goal-Setting Theory Specificity Challenge Feedback Participation
Commitment Self-efficacy Characteristics Culture

Insights from Goal-Setting Research
Difficult Goals Lead to Higher Performance. - Easy goals produce low effort because the goal is too easy to achieve. - Impossible goals ultimately lead to lower performance because people begin to experience failure. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. - Goal specificity pertains to the quantifiability of a goal. - Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. Feedback Enhances The Effect of Specific, Difficult Goals. - Goals and feedback should be used together.

Insights from Goal-Setting Research (continued)
Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective. - Managers should set goals by using a contingency approach. Different methods work in different situations. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. - Difficult goals lead to higher performance when employees are committed to their goals. - Difficult goals lead to lower performance when employees are not committed to their goals. - Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation.

Guidelines for Writing “SMART” Goals
Specific Measurable Attainable Results oriented Time bound

An Integrative Model of Motivation
High nAch Equity Comparison O O IA IB Ability Opportunity Performance Appraisal Criteria Individual Effort Individual Performance Organization Rewards Personal Goals Performance Appraisal System Reinforcement Dominant Needs Goals Direct Behavior

Special Motivation Issues
Professionals Contingent workers Diversified workforce Low-skilled service workers Highly repetitive tasks

MOTIVATION

What is motivation ? It is a result of interaction between the individual and the situation The word “Motivation” has been derived from a Latin word “movere” meaning “to move”. Stephen Robbins defines motivation as “the process that accounts for an individual’s intensity, direction and persistence of effort towards attaining a goal”

Intensity – Direction – Persistence –
What is motivation ? Intensity – Direction – Persistence – How hard? Where are the efforts going ? How long?

What is motivation ? According to Fred Luthans “ motivation is a process that starts with physiological and psychological deficiency or need that activates a behavior or a drive that is aimed at a goal or incentive” Needs : are created where there is physiological or psychological imbalance. Drives : or motives are set up to alleviate needs Incentives : are anything that will alleviate a need & reduce the drive.

Primary Motives General Motives Secondary Motives
Types of motives Primary Motives General Motives Secondary Motives

Primary Motives Primary Motives are unlearned and physiologically based. These motives not necessarily take precedence over general and secondary motive. E.g. Hunger, thirst, avoidance of pain, maternal concerns and physical needs.

General Motives General Motives are unlearned but not physiologically based. Unlike primary motives, they induce the amount of stimulation. E.g. Curiosity, manipulation, activity and affection.

Secondary Motives Secondary Motives are learned and not physiologically based. E.g. Power, achievement, affiliation security and status.

Secondary Motive – Power motive
Need for power Influencing people to change their attitudes or behavior Controlling people and activities Being in a position of authority over others. Gaining control over information & resources Defeating an opponent or enemy.

Secondary Motive – Achievement motive
Need for achievement Doing better than competitors Attaining or surpassing a difficult goal Solving a complex problem Carrying out a challenging assignment successfully Developing a better way to do something.

Secondary Motive – Affiliation motive
Need for affiliation Being liked by many people Being accepted as a part of the group / team Maintaining harmonious relations and avoiding conflicts Participating in pleasant social activities.

Secondary Motive – Security motive
Need for security Having a secure job Being protected against loss of income Having protection against illness or disability Avoiding tasks or decisions with a risk of failure and blame. Security is basically based on fear or loss of something.

Secondary Motive – Status motive
Status is defined as “relative ranking” that a person holds in the group, organization or society. Status may be high or low

Secondary Motive – Status motive
Need for status Having the right car and clothes Working for the right job and right company Having a degree from the right university Living in the right neighborhood and having the membership of the right club Having executive privileges.

THEORIES OF MOTIVATION

Herzberg’s two-factor theory. Victor Vroom’s theory.
Maslow’s hierarchy of needs Theory. Herzberg’s two-factor theory. Victor Vroom’s theory. Porter and Lawler’s theory.

Abraham Maslow’s hierarchy of needs theory
It is based on the following propositions; Man is a wanting being Satisfied need is not a motivator The needs of a man has hierarchy or importance.

Abraham Maslow’s hierarchy of needs theory
Self Actualization Lower order needs Higher order needs Esteem needs Social Needs Safety Needs Physiological Needs

Few weaknesses It states that lower level people are able to satisfy lower order needs and higher level people are able to satisfy higher order needs It ignores the fact that an act may be motivated by several needs and not any single need.

Fredrick Herzberg’s Two-factor Theory
He conducted a motivational study on 200 accountants and engineers He made use of critical incident method for analyzing data Questions : When did you feel particularly good about your job? When did you feel exceptionally bad about your job ?

Frederick Herzberg’s Two-factor Theory
The good feelings = Job experience / job content The bad feelings = Job surroundings / job context Job content factors = Motivators Job context factors = Hygiene

Hygiene Factors Motivators
Company policy and administration Supervision Salary Interpersonal relationships Working conditions. Achievement Recognition Work itself Responsibility Advancement. Hygiene factors prevent dissatisfaction, but do not lead to satisfaction.

There is always a question regarding the samples used by Herzberg
Few weaknesses There is always a question regarding the samples used by Herzberg Low-complexity job workers Age The varied situations may affect preferences for motivators.

Victor Vroom’s Expectancy theory of motivation
Expectancy theory argues that the strength of the tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. An employee will be motivated to exert high level of effort when he/she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards such as a bonus, salary increments or promotion; and that the rewards will satisfy the employee’s personal goals.

Vroom’s Expectancy theory
This theory focuses on three relationships; Valence : Effort – performance Expectancy : Performance – reward Instrumentality : Rewards – personal goals Let us see the applicability If I give a max. effort, will it be recognized in my performance appraisal? If I get a good performance appraisal, will it lead to organizational rewards? if I am rewarded, are the rewards the ones that I find personally attractive?

Weakness Like other theories, this too is a model that helps managers understand certain aspects of motivation, but it does not give practical solutions to solve motivational problems.

EXTRINSIC INTRINSIC Pay Benefits Promotions Transfers Insurance
Feeling of responsibility Achievement Constant learning Taking challenges

Value of reward Abilities Perceived Equitable rewards Intrinsic rewards Effort Performance (accomplish -ments) Satisfaction Extrinsic rewards Perceived effort-reward probability Role perception

Motivating Self and Others
Chapter 4 Motivating Self and Others

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? This material is found at the beginning of the chapter.

What is Motivation? Motivation
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Material pertinent to this discussion is found on page 103. You could motivate the discussion by asking students “what motivates them?” Get them to think about motivating themselves—how do they give themselves rewards for doing things. Ask them to identify things where it’s hard for them to feel motivated, and then bear these in mind as you continue on with the lecture You could also have the students complete the “Learning About Yourself” exercise, (Pg. 134) which has them evaluate what motivates them. Coin exercise

Theory X and Theory Y Theory X Theory Y
Material pertinent to this discussion is found on page 103. Douglas McGregor concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mold his or her behaviour toward employees according to these assumptions. Theory X suggests that: 1) Employees inherently dislike work and, whenever possible, will attempt to avoid it. 2) Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. 3) Employees will avoid responsibilities and seek formal direction whenever possible. 4) Most workers place security above all other factors associated with work and will display little ambition. Theory Y suggests that: 1) Employees can view work as being as natural as rest or play. 2) People will exercise self-direction and self-control if they are committed to the objectives. 3) The average person can learn to accept, even seek, responsibility. 4) The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. There is no evidence to confirm that either set of assumptions is valid. Either Theory X or Theory Y assumptions may be appropriate in a particular situation. Students are often familiar with Theory X and Y. Ask them which they think makes more sense, and have them provide the evidence. You might also ask what their tendency would be if they were going to be a manger.

Motivators Intrinsic Extrinsic
Material pertinent to this discussion is found on page 104. You might point out that people really vary along these dimensions. Some are very externally driven—which means that they can become frustrated if they don’t get the rewards they expect. You might lead a discussion on the value of intrinsic motivation

Needs Theories of Motivation
Basic idea: Individuals have needs that, when unsatisfied, will result in motivation Maslow’s Hierarchy of Needs Motivation-Hygiene theory Alderfer’s ERG theory McClelland’s Theory of Needs Material pertinent to this discussion is found on page 104. The early needs theories, developed in the 1950s, are heavily attacked and now questionable in terms of validity. However, these are probably the best known explanations for employee motivation, and they do represent the foundation from which contemporary theories have grown. Also, practising managers use these theories in explaining employee motivation

Maslow’s Hierarchy of Needs
Physiological Safety Social Esteem Self-actualization Material pertinent to this discussion is found on pages Abraham Maslow's theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization. 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

Exhibit 4-1 Maslow’s Hierarchy of Needs
Physiological Safety Social Esteem Self- actualization

Herzberg’s Motivation-Hygiene Theory
Hygiene factors - necessary, but not sufficient, for healthy adjustment Extrinsic factors; context of work Motivators - the sources of satisfaction Intrinsic factors; content of work

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.

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

Alderfer’s ERG Theory Existence Relatedness Growth

McClelland’s Theory of Needs
Need for Achievement Need for Power Need for Affiliation

Exhibit 4-4 Summarizing the 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

Summary: Hierarchy of Needs
Maslow Herzberg Alderfer McClelland

Summary: Impact of Theory

Summary: Support and Criticism of Theory

Process Theories of Motivation
Look at the actual process of motivation Expectancy theory Goal-setting theory

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.

Expectancy Relationships
The theory focuses on three relationships: Effort-performance relationship Performance-reward relationship Rewards-personal goals relationship

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.

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

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 hard goals produce a higher level of output than does the generalized goal of “do your best.”

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

Copyright © 2007 Pearson Education Canada
Goals Should Be SMART For goals to be effective, they should be SMART: Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada

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

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

Management by Objectives
A program that encompasses Specific goals Participative decision-making Explicit time period Performance feedback

Cascading Objectives Overall Organizational Objectives Divisional
XYZ Company Consumer Products Division Industrial Products Divisional Departmental Individual Production Sales Customer Service Marketing Research Develop Cascading Objectives

Responses to the Reward System
Equity Theory Fair Process

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.

Exhibit 4-7 Equity Theory
Person 1 Inequity, underrewarded Equity Inequity, overrewarded Ratio of Output to Input Person 1’s Perception Person 2

Responses to Inequity Change Inputs Change Outcomes
Adjust Perceptions of Self Adjust Perceptions of Others Choose a Different Referent Leave the Field

Fair Process and Treatment
Historically, equity theory focused on: Distributive justice However, equity should also consider Procedural justice

Distributive Justice Procedural Justice Interactional Justice

Motivators Intrinsic Extrinsic

Four Key Rewards to Increase Intrinsic Motivation
Choice Competence Meaningfulness Progress

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.

Variable-Pay Programs
A portion of an employee’s pay is based on some individual and/or organizational measure of performance. Individual-based Group-based Organizational-based

Exhibit 4-11 Comparing Various Pay Programs

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 Material pertinent to this discussion is found on pages

JCM – Core Job Dimensions
Skill variety Task identity Task significance Autonomy Feedback

JCM – Critical Psychological States
Experienced meaningfulness Experienced responsibility for outcomes Knowledge of the actual results

Exhibit 4-12 – Examples of High and Low Job Characteristics
Skill Variety Task Identity Task Significance Autonomy Feedback Material pertinent to this illustration is found on page 133.

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 Material pertinent to this illustration is found on page 134. 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

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. Organizations don’t look at the big picture. Management and shareholders focus on short-term results. Material pertinent to this discussion is found on pages

Exhibit 4-10 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 Commitment to total quality Candor But we reward: The best individual team members Proven methods and no mistakes Technical achievements and accomplishments Tight control over operations, resources Another year’s efforts Quarterly earnings Shipment on schedule, even with defects Reporting good news

Why Do Managers Engage in Reward Follies?
Stuck in old patterns of rewards and recognition Don’t look at the big picture Focus on short-term results Material pertinent to this discussion is found on page 125.

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. China is more likely to give bonuses to everyone. Material pertinent to this discussion is found on pages

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.

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. Material pertinent to this discussion is found on pages

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. Material pertinent to this discussion is found on pages

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. Material pertinent to this discussion is found on pages

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. Material pertinent to this discussion is found on page 140.

Summary Need Theories Goal Setting Theory Expectancy Theory
Be aware that individuals differ in their levels and types of needs Goal Setting Theory Clear and difficult goals lead to higher levels of employee productivity. Expectancy Theory Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover. Material pertinent to this discussion is found on pages

Summary Equity Theory Cognitive Evaluation Theory
Strongest when predicting absence and turnover behaviours. Weakest when predicting differences in employee productivity. Cognitive Evaluation Theory When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation. Material pertinent to this discussion is found on pages

Chapter 4 Motivating Self and Others

Questions for Consideration 1. What is motivation? 2. How do needs motivate people? 3. Are there other ways to motivate people? 4. Do equity and fairness matter? 5. Are there tips for motivating people for different goals? 6. How do you motivate for individual differences? 7. What kinds of mistakes are made in reward systems? 8. Do motivational theories work the same in every country? 9. Could rewards be overrated?

What is Motivation? Motivation
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Intensity: how hard a person tries Direction: where effort is channeled Persistence: how long effort is maintained Material pertinent to this discussion is found on page 103.

Theory X and Theory Y Theory X Theory Y
The assumption 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 The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction and self-control. Material pertinent to this discussion is found on page 103. Theory Y suggests that: 1) Employees inherently dislike work and, whenever possible, will attempt to avoid it. 2) Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. 3) Employees will avoid responsibilities and seek formal direction whenever possible. 4) Most workers place security above all other factors associated with work and will display little ambition. 1) Employees can view work as being as natural as rest or play. 2) People will exercise self-direction and self-control if they are committed to the objectives. 3) The average person can learn to accept, even seek, responsibility. 4) The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.

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. Material pertinent to this discussion is found on page 104.

Needs Theories of Motivation
Basic idea: Individuals have needs that, when unsatisfied, will result in motivation Maslow’s hierarchy of needs Herzberg’s two factor theory (motivation-hygiene theory) Alderfer’s ERG theory McClelland’s theory of needs Material pertinent to this discussion is found on page 104. The early needs theories, developed in the 1950s, are heavily attacked and now questionable in terms of validity. However, these are probably the best known explanations for employee motivation, and they do represent the foundation from which contemporary theories have grown. Also, practising managers use these theories in explaining employee motivation

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 Material pertinent to this discussion is found on pages Abraham Maslow's theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization.

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-fulfilment Material pertinent to this discussion is found on pages

Exhibit 4-1 Maslow’s Hierarchy of Needs
Physiological Safety Social Esteem Self- actualization Material pertinent to this discussion is found on pages

Hygiene factors - necessary, but not sufficient, for healthy adjustment 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 Material pertinent to this discussion is found on pages Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, "What do people want from their jobs?" Factors affecting job attitudes were tabulated and classified. Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad.

Motivators - the sources of satisfaction Intrinsic factors; content of work Achievement Recognition Challenging, varied or interesting work Responsibility Advancement Material pertinent to this discussion is found on pages

Exhibit 4-2 Contrasting Views of Satisfaction and Dissatisfaction
Traditional view Dissatisfaction Satisfaction Herzberg's view Material pertinent to this illustration is found on pages Herzberg’s data suggest that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Herzberg proposed the existence of a dual continuum: The opposite of "Satisfaction" is "No Satisfaction" and the opposite of Dissatisfaction" is "No Dissatisfaction." Traditional view saw the continuum as Satisfaction to Dissatisfaction. Herzberg saw it otherwise. 1) People could have no dissatisfaction, but still not be satisfied 2) Conditions that eliminate dissatisfaction do not bring about satisfaction 3) Satisfaction is created after all dissatisfaction is eliminated. Motivators No Satisfaction Satisfaction Hygiene Factors Dissatisfaction No dissatisfaction

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 Material pertinent to this discussion is found on pages People were asked what made them feel exceptionally good and bad about their jobs. When things are going well, people tend to take credit themselves. Contrarily, they blame failure on the external environment. Since raters had to make interpretations, it is possible that they contaminated the findings by interpreting one response in one manner while treating another similar response differently. The theory, to the degree that it is valid, provides an explanation of job satisfaction, rather than how to motivate. In other words, individuals may dislike parts of their jobs, yet still think the jobs are acceptable. The motivation-hygiene theory ignores situational variables.

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 This is supplemental material. It is referred to in exhibits on pages ERG Theory is the reworking of Maslow's needs hierarchy by Clayton Alderfer of Yale, to align it more closely with empirical research. He argues that there are three groups of core needs, Existence, Relatedness, and Growth. Besides substituting three needs for five, the ERG theory differs from Maslow’s in that it demonstrates that more than one need may be operative at the same time and if the gratification of a higher-level need is stifled, the desire to satisfy a lower-level need increases. As well, this is an example of OB humour: an “erg” is used in physics and is a measure of energy or work.

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 This is supplemental material. It is referred to in exhibits on pages David McClelland proposes three needs as being important in organizational settings for understanding motivation. These are need for achievement (nAch), to achieve in relation to set of standards, need for power (nPow), the need to make others behave in a way that they would not have behaved otherwise, and need for affiliation (nAff), the desire for friendly and close interpersonal relationships.

Exhibit 4-4 Summarizing the Various Needs Theories
Maslow Alderfer Herzberg McClelland Self-Actualization Growth Need for Achievement Motivators Esteem Need for Power Affiliation Relatedness Material pertinent to this illustration is found on page 106. Hygiene Need for Affiliation Security Factors Existence Physiological

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. Material pertinent to this discussion is found on page 107.

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 need 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. Material pertinent to this discussion is found on page 107.

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. Material pertinent to this discussion is found on page 107.

Process Theories of Motivation
Look at the actual process of motivation Expectancy theory Goal-setting theory Material pertinent to this discussion is found on page 108.

Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Material pertinent to this discussion is found on pages This theory concerns an attractiveness, performance-reward and effort-performance linkage. The likelihood a person will act in a certain way depends on the strength of his or her expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

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. Material pertinent to this discussion is found on pages

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 Material pertinent to this illustration is found on pages This is a good exhibit to use in class. Ask students questions like: -What if I asked you to write a paper? -A book? -To change the oil in your car? -To build a car? Have them relate their responses in terms of expectancy theory. E=0 I=0 V=1 Conclusion: Though I value the reward, I will not be motivated to do this task.

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 Material pertinent to this illustration is found on pages

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. Material pertinent to this discussion is found on page 110. This theory is based on the idea that specific and difficult goals lead to higher performance. The work of Edwin Locke (1960s) proposes that intentions to work toward a goal are a major source of work motivation.

Management by Objectives
A program that encompasses Specific goals Participative decision-making Explicit time period Performance feedback Material pertinent to this discussion is found on page Management by objectives emphasizes participatively set goals that are tangible, verifiable, and measurable. The idea was originally proposed by Peter Drucker more than forty years ago as a means of using goals to motivate people rather than to control them. Its appeal lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members. The model conceptualizes a "cascading" of objectives down through the organization. For the individual employee, MBO provides specific personal performance objectives. MBO is a popular technique found in business, health care, educational, government, and non-profit organizations. Failures often are the result of unrealistic expectations regarding results, lack of top management commitment, and an inability or unwillingness by management to allocate rewards based on goal accomplishment.

Responses to the Reward System
Equity Theory Fair Process Material pertinent to this illustration is found on page 112. Equity Theory: Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. Fair Process: Concern for fairness in the process of distributing rewards.

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. Material pertinent to this discussion is found on pages

Exhibit 4-7 Equity Theory
Person 1 Inequity, underrewarded Equity Inequity, overrewarded Ratio of Output to Input Person 1’s Perception Person 2 Material pertinent to this illustration is found on pages

Equity Comparisons Self-inside Self-outside Other-inside Other-outside
Material pertinent to this discussion is found on pages • Self-inside: An employee’s experiences in a different position inside his or her current organization. • Self-outside: An employee’s experiences in a situation or position outside his or her current organization. • Other-inside: Another individual or group of individuals inside the employee’s organization. •Other-outside: Another individual or group of individuals outside the employee’s organization.

Responses to Inequity Change Inputs Change Outcomes
Adjust Perceptions of Self Adjust Perceptions of Others Choose a Different Referent Leave the Field Material pertinent to this discussion is found on pages • Change their inputs (for example, don’t exert as much effort); • Change their outcomes (for example, individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality); • Adjust perceptions of self (for example, “I used to think I worked at a moderate pace but now I realize that I work a lot more slowly than everyone else”); • Adjust perceptions of others (for example, “Mike’s job isn’t as desirable as I previously thought it was”); • Choose a different referent (for example, “I may not make as much as my brother-in-law, but I’m doing a lot better than my Dad did when he was my age”); • Leave the field (for example, quit the job).

Historically, equity theory focused on: Distributive justice However, equity should also consider Procedural justice Material pertinent to this discussion is found on page 114.

Fair Process Distributive Justice Procedural 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 another Material pertinent to this discussion is found on page 114.

Motivating to Show People Matter
Employee Recognition Programs Programs that use multiple sources and recognizes both individual and group accomplishments. Linking Programs and Reinforcement Theory Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition. Employee Recognition Programs in Practice In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry. Material pertinent to this discussion is found on page 115.

Variable Pay Programs A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance. Individual-based Piece-rate wages, bonuses Workers are paid a fixed sum for each unit of production completed. Group-based Gainsharing: an incentive plan where improvements in group productivity determine the total amount of money that is allocated. Material pertinent to this discussion is found on page

Variable Pay Programs Organizational-based
Profit-sharing: 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. Material pertinent to this discussion is found on pages

Exhibit 4-8 Comparing Various Pay Programs
Material pertinent to this illustration is found on pages

Variable-Pay Programs
Linking variable-pay plans and expectancy theory Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems. Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization. Material pertinent to this discussion is found on page 119.

Rewards for Other Types of Performance
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. Material pertinent to this discussion is found on page 120.

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. Material pertinent to this discussion is found on page 120.

Motivating Specific Groups
Professionals Contingent workers Low-skilled service workers Unionized employees Public sector employees Material pertinent to this discussion is found on pages

Motivating Professionals
How are “professionals” different? Receive a great deal of “intrinsic” satisfaction from their work. Strong and long-term commitment to their field of expertise Well paid/ Chief reward is work itself. Value support More focused on work as central life interest. Material pertinent to this discussion is found on pages The typical employee of the 1990s is a highly-trained professional with a college degree, who receives a great deal of satisfaction from his or her work. These employees have a strong and long-term commitment to their field of expertise. Their loyalty is more to their profession than to their employer. Job challenge and support motivates these employees not necessarily money.

Motivating Professionals
How do we motivate professionals? Provide challenging projects Give them autonomy in follow interests and structure work. Reward with educational opportunities. Recognize their contributions. Material pertinent to this discussion is found on pages

Motivating Contingent Workers
No simple solutions to motivating contingent workers. Contingent or temporary workers have little or no job security/stability, therefore they don’t identify with the organization or display the commitment of permanent employees. Contingent or temporary workers are typically provided with little or no health care, pensions, or similar benefits. Material pertinent to this discussion is found on pages The number of Canadians relying on temporary jobs has grown tremendously. These workers do not have the security or stability that permanent employees have. They do not identify with the organization or display the commitment that other employees do. For them, motivation may consist of an opportunity for permanent status or the opportunity for training to enhance their skills. When employing both regular and contingent workers, the organization must pay attention to equity issues.

Motivating Contingent Workers
Greatest motivating factor is the opportunity to gain permanent employment. Motivation is also increased if the employee sees that the job he or she is doing for the firm can develop salable skills. Material pertinent to this discussion is found on pages

Motivating Low-Skilled Service Workers
Many 15- to 24-year-olds have “McJobs” with pay levels near minimum wage To motivate Employees want more respect Make jobs more appealing Raise pay levels Find unusual ways to motivate: Flexible work schedules Broader responsibility for inventory, scheduling, and hiring Creation of a “family” atmosphere among employees Material pertinent to this discussion is found on pages Service sector jobs, which were once regarded as either a temporary after-school job or a stepping stone to a career have become permanent positions for many young people. These jobs are often referred to as McJobs. Pay levels are often little above minimum wage. One of the most challenging motivation problems in industries such as retailing and fast food is: How do you motivate individuals who are making very low wages and who have little opportunity to significantly increase their pay in either their current jobs or through promotions?

Motivating Unionized Employees
Constraints of contract affect some forms of rewards Some unions against pay-for-performance Additional ideas Create better work environments Show appreciation Provide opportunities for training and advancement Listen to employees concerns Material pertinent to this discussion is found on page 124.

Motivating Public Sector Employees
Special challenge Much work is service-oriented, harder to measure productivity Hard to link rewards to performance What to do Goal setting helps Goal difficulty and goal specificity help improve motivation Material pertinent to this discussion is found on page 124.

Exhibit 4-10 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 Commitment to total quality Candor But we reward: The best individual team members Proven methods and no mistakes Technical achievements and accomplishments Tight control over operations, resources Another year’s efforts Quarterly earnings Shipment on schedule, even with defects Reporting good news Material pertinent to this illustration is found on pages A recent survey suggests that three themes seem to account for some of the biggest obstacles in dealing with the folly. First, individuals are unable to break out of old ways of thinking about reward and recognition practices. This is demonstrated in such things as an emphasis on quantifiable behaviours, to the exclusion of non-quantifiable behaviours; employees having an entitlement mentality (i.e., they don’t support changing the reward system because they are comfortable with the current behaviours that are rewarded), and management being reluctant to change the existing performance system. A second factor is that organizations often don’t look at the big picture of their performance system. Consequently, rewards are allocated at subunit levels, with the result that units often compete against each other. Finally, both management and shareholders often focus on short-term results, rather than rewarding employees for planning for longer ranges.

Why Do Managers Engage in Reward Follies?
Stuck in old patterns of rewards and recognition Stick to rewarding things that can be easily measured Don’t look at the big picture Subunits compete with each other Focus on short-term results Material pertinent to this discussion is found on page 125.

Cross-Cultural Differences in Motivation
Canada and US rely on extrinsic rewards more than other countries Japan and Germany rarely use individual incentives Japan emphasizes group rewards China more likely to give bonuses to everyone Material pertinent to this discussion is found on pages

Exhibit 4-11 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. Material pertinent to this illustration is found on pages

Are Rewards Overrated? Cognitive Evaluation Theory
Allocating extrinsic rewards for behaviour that had been previously intrinsically rewarded tends to decrease the overall level of motivation. Material pertinent to this discussion is found on page 127. Alfie Kohn argues that people are actually punished by rewards, doing inferior work when they are enticed by money, grades, or other incentives. His extensive review of incentive studies concluded that “rewards usually improve performance only at extremely simple–indeed, mindless–tasks, and even then they improve only quantitative performance.”

Abolishing 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 Collaboration Content Choice Material pertinent to this discussion is found on pages Abolish incentives. Pay people generously and fairly, make sure people don’t feel exploited, and then make sure that pay is not on their minds. Re-evaluate evaluation. Rather than making performance appraisals look and feel like a punitive effort—who gets raises, who gets promoted, who is told they’re performing poorly—the performance evaluation system might be structured more like a two-way conversation to trade ideas and questions, done continuously, not as a competition. Create the conditions for authentic motivation. A noted economist recently summarized the evidence about pay for productivity as follows: “Changing the way workers are treated may boost productivity more than changing the way they are paid.” Collaboration. People are more likely to perform better in well-functioning groups where they can get feedback and learn from each other. Content. People are generally the most motivated when their jobs give them an opportunity to learn new skills, provide variety in the tasks that are performed, and enable them to demonstrate competence. Choice. “We are most likely to become enthusiastic about what we are doing—and all else being equal, to do it well—when we are free to make decisions about the way we carry out a task.”

Summary Need Theories Goal Setting Theory Expectancy Theory
Be aware that individuals differ in their levels and types of needs Goal Setting Theory Clear and difficult goals lead to higher levels of employee productivity. Expectancy Theory Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover. Material pertinent to this discussion is found on pages

Summary Equity Theory Cognitive Evaluation Theory
Strongest when predicting absence and turnover behaviours. Weakest when predicting differences in employee productivity. Cognitive Evaluation Theory When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation. Material pertinent to this discussion is found on pages

Implications Recognize Individual Differences Use Goals and Feedback
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 Material pertinent to this discussion is found on pages

Implications Link Rewards to Performance Check the System for Equity
Employees must perceive a clear linkage. Check the System for Equity Material pertinent to this discussion is found on pages

OB at Work

For Review 1. What are the implications of Theories X and Y for motivation practices? 2. Identify the variables in expectancy theory. 3. Relate goal-setting theory to the MBO process. How are they similar? Different? 4. What are the pluses and minuses of variable-pay programs from an employee’s viewpoint? From management’s viewpoint? Material pertinent to this discussion is found on page 132.

For Review 5. What is an ESOP? How might it positively influence employee motivation? 6. What motivates professional employees? 7. What motivates contingent employees? 8. Explain cognitive evaluation theory. How applicable is it to management practice? 9. What can firms do to create more motivating environments for their employees? Material pertinent to this discussion is found on page 132.

For Critical Thinking 1. Identify three activities you really enjoy. Next, identify three activities you really dislike. Using the expectancy model, analyze why some activities stimulate your effort while others don’t. 2. Identify five different criteria by which organizations can compensate employees. Based on your knowledge and experience, is performance the criterion most used in practice? Discuss. Material pertinent to this discussion is found on page 132.

For Critical Thinking 3. “Recognition may be motivational for the moment but it doesn’t have any staying power. Why? Because they don’t take recognition at Safeway 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. 5. Your text 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. Material pertinent to this discussion is found on page 132.

OB at Work

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? Material pertinent to this discussion is found on page 136.

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. Material pertinent to this discussion is found on page 136.

Exhibit 4-12 2002 Compensation of Canada’s Five Best-Paid CEOs
Rank on share return CEO and Company 2002 To tal Compensation past 3 years ( $000’ s) (out of 150) 1. Jozef Straus 148 JDS Uniphase Corp. Exhibit prepared for Ethical Dilemma Exercise, page 137. 2. Eugene Melnyk 28 Biovail Corp. 3. G erald Schwartz 49 266 46 O nex Corp. 4. P eter C. Godsoe 20 365 40 Scotiabank 5. Fir oz A. Rasul 19 354 137 Ballar d Power Systems Inc.

Supplemental Material
Slides for activities I do in my own classroom

Exercise on Motivation Theories
Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously Jesse has 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 This is the exercise I conduct in class in order to elicit discussion of the theories. This means that I lecture less, and the students have to think more. The exercise often takes a good part of the class. The theories considered appear on the next slide.

Theories to Apply Herzberg Motivation-Hygiene (Two-Factor) Theory
Expectancy Goal-Setting Theory Equity Cognitive Evaluation Theory Theories to apply for the exercise described on the previous slide. Some thoughts for the debriefing: Herzberg: Something about the conditions of the workplace may be having a negative impact; or Jesse may need more pay or recognition that before. Expectancy: Jesse may be feeling that no matter what is done, it doesn’t get rewarded any more, and thus doesn’t see a connection between performance and reward. Goal-Setting: Work with Jesse to develop goals Equity: Jesse may be feeling that others are getting rewarded the same for doing less work, and so has started doing less work too. Cognitive Evaluation Theory: perhaps new rewards have been put in place, and Jesse’s starting to feel that performance isn’t as intrinsically motivating as before. Based on these starting points, then evaluate students’ plans for change.

Motivation and Emotion
Internal processes that: 1. 2. 3. G uide A ctivate Chapter 10 S ustain

Motivation Physiological Cognitive Hunger Sexual motivation Expectancy
Self-fulfillment

Theories of Motivation
Drive Theory Arousal Theory Expectancy Theory Goal-Setting Theory p. 377

Drive Theory Biological needs arising within our bodies create unpleasant states of arousal Hunger, thirst, fatigue, etc. Homeostasis- balanced physiological state Motivation is basically a process in which various biological needs PUSH us to actions

Drive Theory: An Overview

Arousal Theory Optimization NOT Minimization
Arousal: our general level of activation May fluctuate Biological influences?? Sensation seekers Yerkes-Dodson law

Yerkes-Dodson law There is a relationship between, optimal performance and the level of arousal necessary.

Expectancy Theory Behavior is determined by expectations (desirable outcomes). Thoughts about future PULL your behavior. Incentives: almost anything we have learned to value.

Work Motivation: in the REAL world

Goal-Setting Wood & Locke(1990) Feedback can improve performance.
Specific Challenging Attainable Feedback can improve performance. Take life in strides…

Maslow’s Needs Hierarchy

Physiological responses Subjective feelings Expressive reactions
Emotions Physiological responses Subjective feelings Expressive reactions

How do we respond? Cannon – Bard James – Lange Earliest theory
Simultaneous occurrence . James – Lange More preferred Interpretations determine emotions Facial feedback hypothesis

Why go to scary movies? Schacter – Singer Opponent-Process
Two stage theory Dutton & Aron (1974) Opponent-Process Every action has an equal and opposite reaction

The Emotional Brain Anterior vs. Posterior Right vs. Left
Pleasant – Unpleasant Arousal Right vs. Left Avoidence – withdrawl Positive affect - Rewards

Speaking without Words
1. Nonverbal Cues 2. Gestures 3. Body language

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