1. Chapter 13 Motivation

2. 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

3. Motivation Intrinsically Motivated Behavior –Motivation that comes from actually engaging in the behavior –The sense of accomplishment and achievement derived from doing the work itself 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

4. Inputs & Outcomes Input –Anything a person contributes to his or her job or organization Time, effort, skills, knowledge, work behaviors Outcome –Anything a person gets from a job or an organization Pay, job security, autonomy, accomplishment

5. Motivation Equation

6. Expectancy Theory 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—the desirability of an outcome

8. Expectancy Theory Motivation = Expectancy x Instrumentality x Valence 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.

9. Need Theories Need –A requirement for survival and well-being Need Theories –Focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs –Determine what needs a worker wants satisfied –Ensure that a person receives the outcomes when performing well

10. Maslow’s Needs Hierarchy Self- Actualization Esteem Affiliation Security Physiological

11. Maslow’s Hierarchy of Needs Self-actualizationSelf-actualization Realize one’s full potential full potential Realize one’s full potential full potential Use abilities to the fullest Use abilities to the fullest EsteemEsteem Feel good about oneself Feel good about oneself Promotions and recognition and recognitionPromotions BelongingnessBelongingnessSocial interaction, love Social Interpersonal relations, parties Interpersonal SafetySafety Security, stability Job security, health insurance Job security, health insurance PhysiologicalPhysiological Food, water, shelter shelter Basic pay level to buy items Basic pay level to buy items NeedsDescriptionExamples Lower-level needs must be satisfied before higher- level needs are addressed. Highest-level needs Lowest-level needs

12. Alderfer’s ERG Theory After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised. GrowthGrowthSelf-development, creative work Self-development, Continually improve skills Continually RelatednessRelatednessInterpersonal relations, feelings Interpersonal Good relations, accurate feedback Good relations, accurate feedback ExistenceExistence Food, water, clothing, and shelter Food, water, clothing, and shelter Adequate pay for necessities NeedsDescriptionExamples Highest-level needs Lowest-level needs

13. Herzberg’s Motivator - Hygeine Motivators –Factors that can lead to job satisfaction & motivation –Intrinsic Factors –Enjoying the work, challenges, autonomy, accomplishment, developmental opportunities Hygeine Factors –Factors that cause dissatisfaction –Extrinsic Factors –Working conditions, pay, job security, benefits

14. McClelland’s Need for Power, Affiliation, & Achievement Achievement –Need to perform challenging tasks well Power –Desire to control or influence others Affiliation –Concern for good interpersonal relations & being liked

15. McClelland’s Need for Power, Affiliation, & Achievement Achievement & Power –Assets for managers –Power is especially common in upper managers Affiliation –Could be a handicap for managers –Try to hard to be liked

16. Equity Theory Perceived fairness of work outcomes relative to work inputs People compare their input/output ratio with a referent other

17. Equity Theory Equity occurs when your input/output ratio equals the referent other’s ratio People are motivated to keep Equity –Keep inputs consistent when outputs are consistent –Increase inputs if you want outputs increased

18. Equity Theory Inequity exists when worker’s outcome/input ratio is not equal to referent. –Underpayment inequity: ratio is less than the referent. –Overpayment inequity: ratio is higher than the referent.

19. Equity Theory Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity Underpayment inequity –Decrease inputs, Increase outputs Overpayment inequity –Increase inputs, Decrease outputs

20. Goal-Setting Theory Goals motivate behavior when they are: –Specific – help people focus their attention in the right direction –Difficult – challenges the individual to work hard; not too difficult. –Give Feedback – allows the individual to know how effective their behaviors are

21. Learning Theories Learning – relatively permanent change in knowledge or behavior that results from practice or experience In organizations: When people learn to repeat behaviors because of rewards Operant Conditioning Social Learning Theory

22. Operant Conditioning People learn to perform behaviors that lead to desired consequences People learn to avoid behaviors that result in negative consequences

23. Four Types of Reinforcement Positive Reinforcement –Positive outcomes follows a desirable behavior Negative Reinforcement –Unpleasant event is removed when desired behavior occurs Extinction –Remove all reinforcement Punishment –Negative consequence follows an undesirable behavior

24. Four Types of Reinforcement Positive & Negative reinforcement Increase the frequency of Desirable behaviors. Extinction & Punishment Decrease the frequency of Undesirable behaviors.

25. Social Learning Theory People learn through regular social interactions Vicarious Learning –Watch someone perform a behavior and receive positive reinforcement Self-Reinforcement –Reward yourself when you have met a goal Self-Efficacy –Prohibits motivation even when positive reinforcement is present

26. Bandura’s Bobo Experiment

28. Pay as a Motivator Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high. Need Theory: pay is used to satisfy many needs. Equity Theory: pay is given in relation to inputs. Goal Setting Theory: pay is linked to attainment of goals. Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.

29. Bonus vs. Salary Increase Bonuses –Do not become permanent part of compensation –Are more directly tied to current performance Salary Increase –Gets continued next time period –May include cost-of-living (not performance related)

30. Employee Stock Options Option to buy shares of stock at a certain price at a certain point in time. Uses –To attract high-level managers –To motivate employee performance through ownership in the firm

31. Examples of Merit Pay Piece-rate Pay –Pay is based on the number of units that the employee produces. Commission Pay –Pay is based on a percentage of sales that the employee makes. Organization-based Merit Plans –Scanlon plan — reduced expenses or cutting costs –Profit sharing — employees receive a share of an organization’s profits