1. Chapter 9
Motivation
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2. Learning Objectives After studying the chapter, you should be able to:
Explain what motivation is and why managers need to be concerned about it.
Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.
Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.
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3. Learning Objectives (cont’d)
Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory.
Explain why and how managers can use pay as a major motivation tool.
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4. The Nature of Motivation
The psychological forces acting on an individual that determine:
Direction—possible behaviors the individual could engage in.
Effort—how hard the individual will work.
Persistence—whether the individual will keep trying or give up.
Explains why people behave the way they do in organizations.
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5. The Nature of Motivation (cont’d)
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes from actually engaging in the behavior.
The sense of accomplishment and achievement derived from doing the work itself
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6. The Nature of Motivation (cont’d)
Extrinsically Motivated Behavior
Behavior that is performed to acquire material or social rewards or to avoid punishment.
The source of the motivation is the consequences of the behavior and not the behavior itself.
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7. Sources of Motivation Personal Characteristics Nature of the Job
Individual Motivation
Nature of the Organization
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8. Outcomes and Inputs Outcome Input
Anything a person gets from a job or an organization:
Pay, job security, autonomy, accomplishment.
Input
Anything a person contributes to his or her job or organization:
Time, effort, skills, knowledge, work behaviors.
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9. The Motivation Equation
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Figure 9.1

10. Expectancy Theory Motivation will be high when workers believe:
High levels of effort will lead to high performance.
High performance will lead to the attainment of desired outcomes.
Major Factors of Motivation
Expectancy—the belief that effort (input) will result in a certain level of performance.
Instrumentality—the belief that performance results in the attainment of outcomes.
Valence—how desirable each of the available outcomes from the job is to a person.
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11. Expectancy, Instrumentality, and Valence
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Figure 9.2

12. Expectancy Theory in Practice
Expectancy: Effort will result in a level of performance.
Employees will work work hard if they believe they can attain high performance—organizations must provide the resources that support performance.
Instrumentality: Performance leads to outcomes.
Workers are only motivated if they think performance leads to an outcome—managers must link performance to outcomes.
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13. Expectancy Theory in Practice
Valence: How desirable an outcome is to a person.
Workers have preferences for outcomes—managers must determine which outcomes are valued.
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14. Expectancy and Motivation
Motivation is highest when expectancy, instrumentality, and valence levels are high.
If one of the values is low, motivation will be low:
Workers do not believe they can perform well.
Workers do not believe that performance and rewards are closely linked.
Workers do not value the rewards offered for performance.
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15. Expectancy Theory Figure 9.3
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Figure 9.3

16. Need Theories Need Need Theories
A requirement for survival and well-being.
Need Theories
Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs.
Basis premise is that people are motivated to obtain outcomes at work to satisfy their needs.
Managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well.
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17. Maslow’s Hierarchy of Needs
Self-
actualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Needs
Description
Examples
Lower-level needs must be satisfied before higher-level needs are addressed.
Highest-level needs
Lowest-level needs
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Table 9.1

18. Herzberg’s Motivation-Hygiene Theory
Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.
Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work.
Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security.
Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.
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19. McClelland’s Needs for Achievement, Affiliation, and Power
Need for Achievement
A strong need to perform challenging tasks well and meet personal standards for excellence.
Need for Affiliation
A concern for good interpersonal relations, being liked, and getting along.
Need for Power
A desire to control or influence others.
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20. Adam’s Equity Theory
Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.
A relative outcome to input ratio comparison to oneself or to another person (referent) perceived as similar to oneself.
Equity exists when a person perceives that their outcome/input ratio to be equal to the referent’s ratio.
If the referent receives more outcomes, they should also give more inputs to achieve equity.
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21. Outcomes < Outcomes Outcomes > Outcomes
Equity Theory
Condition
Person Referent
Example
Equity
Outcomes = Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
Underpayment
Outcomes < Outcomes
gets the same outputs
as referent
Overpayment
Outcomes > Outcomes
same inputs but also
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Table 9.2

22. Equity Theory (cont’d)
Inequity exists when worker’s outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent.
Workers feel they are not getting the outcomes they should for their inputs.
Overpayment inequity: ratio is higher than the referent.
Workers feel they are getting more outcomes than they should for their inputs.
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23. Equity Theory (cont’d)
Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity.
In underpayment, workers may reduce input levels to correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent person and readjust their ratio perception.
If inequity persists, workers will often choose leave the organization.
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24. Goal Setting Theory
Focuses on identifying the types of goals that are effective in producing high levels of motivation and explaining why goals have these effects.
Considers how managers can ensure that workers focus their inputs (efforts) in the direction of high performance and the achievement of organizational goals.
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25. Goal Setting Theory (cont’d)
What a person is trying to accomplish.
Characteristics of Motivating Goals
Specific and not vague in providing direction
Difficult but not impossible to attain
Accepted and committed to by workers
Feedback on goal attainment is important.
Goals point out what is important to the firm.
Workers should be encouraged to develop action plans to attain goals.
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26. Learning Theories
Theories that focus on increasing motivation and performance by linking outcomes to performance and the attainment of goals.
Learning
A relatively permanent change in person’s knowledge or behavior that results from practice or experience.
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27. Operant Conditioning Theory
People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.
Linking specific behaviors to the attainment of specific outcomes can motivate high performance and prevent behaviors that detract from organizational effectiveness.
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28. Operant Conditioning Tools
Positive Reinforcement
Getting desired outcomes for performing needed work behaviors.
Positive reinforcers: pay, praises, or promotions.
Negative Reinforcement
Eliminating undesired outcomes once the desired behavior occurs.
Negative reinforcers: criticisms, pay cuts, suspension.
Is not the same as punishment.
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29. Operant Conditioning Tools (cont’d)
Extinction
Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.
Behavior is not rewarded and over time, the worker stops performing it.
Punishment
Administering an undesired/negative consequence to immediately stop a dysfunctional behavior.
Manager administers an undesired consequence to worker (verbal reprimand, demotion, pay cut).
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30. Guidelines for Administering Punishment
Downplay the emotional element involved in punishment.
Punish the behavior, not the person.
Punish behaviors as soon as possible after they occur.
Swift punishment increases the connection between punishment and behavior.
Avoid punishing someone in front of others.
People learn for punishment of others.
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31. Social Learning Theory
A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior.
Vicarious Learning (Observational Learning)
When a learner is motivated to perform a behavior by watching another person perform and be rewarded.
People are motivated to imitate models who are highly competent, expert, receive attractive reinforcers, and are friendly or approachable.
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32. Social Learning Theory (cont’d)
Conditions for Social Learning
The learner observes the model performing the behavior.
The learner accurately perceives the model’s behavior.
The learner remembers the behavior.
The learner has the skills and abilities needed to perform the behavior.
The learner sees or knows that the model is positively reinforced for the behavior.
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33. Social Learning Theory (cont’d)
Self-Reinforcement
Any desired or attractive outcome or award that a person can give himself or herself for good performance.
“The self-management of behavior”
Self-efficacy
A person’s belief about his or her ability to perform a behavior successfully.
Influences motivation both when managers provide reinforcement and when workers themselves provide it.
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34. Pay and Motivation Pay as a Motivator Expectancy
Pay is an instrumentality (and outcome)
Expectancy must be high for motivation to be high.
Need Theory
Pay is used to satisfy many needs.
Equity Theory
Pay is given in proportion to inputs.
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35. Pay and Motivation Pay as a Motivator (cont’d) Goal Setting Theory
Pay is linked to attainment of goals.
Learning Theory
The distribution of outcomes (pay) is contingent upon the performance of functional behaviors.
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36. Merit Pay and Performance
Merit Pay Plan
A compensation plan that bases pay on individual, group and/or organization performance.
Individual plan: when individual performance (sales) can accurately measured.
Group plan: when group that works closely together is measured and rewarded as a group.
Organization plan: when group or individual outcomes are not easily measured.
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37. Salary Increase or Bonus?
Motivational Value of a Bonus Is Higher When:
Salary levels are unrelated to current performance.
Changes in other compensation items (cost of living, seniority) are not having a large effect in increasing compensation.
Salaries rarely change and performance does.
Benefits of Using Bonuses
Do not become permanent part of compensation.
Are more directly tied to current performance.
Provide more flexibility in distributing rewards.
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38. Salary Increase or Bonus? (cont’d)
Employee Stock Option
A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.
Uses:
To attract high-level managers.
To motivate employee performance through ownership in the firm.
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39. Examples of Merit Pay Plans
Piece-rate Pay
Employee’s pay is based on the number of units that the employee produces.
Commission Pay
Employee’s pay is based on a percentage of sales that an employee makes personally.
Organization-based Merit Plans
Scanlon plan—focuses on reduced expenses or cutting costs.
Profit sharing—employees receive a share of an organization’s profits.
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