3Learning ObjectivesExplain 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.
4Learning ObjectivesIdentify 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.
5The Nature of Motivation The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistenceExplains why people behave the way they do in organizations
6The Nature of Motivation Direction - possible behaviors the individual could engage inEffort - how hard the individual will workPersistence - whether the individual will keep trying or give up
7Question? What behavior is performed for its own sake? Intrinsically Motivated BehaviorExtrinsically Motivated BehaviorCentrally Motivated BehaviorInherently Motivated BehaviorThe correct answer is “A” - Intrinsically Motivated Behavior. See next slide
8The Nature of Motivation Intrinsically Motivated BehaviorBehavior that is performed for its own sake.The source of the motivation that comes from actually performing the behavior.The sense of accomplishment and achievement derived from doing the work itself
9The Nature of Motivation Extrinsically Motivated BehaviorBehavior 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.
10Outcomes and Inputs Outcome Input Anything a person gets from a job or an organizationPay, job security, autonomy, accomplishmentInputAnything a person contributes to his or her job or organizationTime, effort, skills, knowledge, work behaviors
12Expectancy 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.
13Expectancy Theory Major Factors of Motivation Expectancy - the belief that effort (input) will result in a certain level of performanceInstrumentality - the belief that performance results in the attainment of outcomesValence - how desirable each of the available outcomes from the job is to a person
14Expectancy, Instrumentality, and Valence Figure 13.2
16Need Theories Need Need Theories A requirement or necessity for survival and well-being.Need TheoriesPeople are motivated to obtain outcomes at work that will satisfy their needsManagers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well.
17Maslow’s Hierarchy of Needs Self-actualizationRealize one’sfull potentialUse abilitiesto the fullestEsteemFeel goodabout oneselfPromotionsand recognitionBelongingnessSocialinteraction, loveInterpersonalrelations, partiesSafetySecurity, stabilityJob security,health insurancePhysiologicalFood, water,shelterBasic pay levelto buy itemsNeedsDescriptionExamplesLower-level needs must be satisfied before higher-level needs are addressed.Highest-level needsLowest-level needsTable 13.1
18Adequate pay for necessities Alderfer’s ERG TheoryAfter lower level needs satisfied, person seeks higher needs. Whenunable to satisfy higher needs, lower needs motivation is raised.GrowthSelf-development,creative workContinuallyimprove skillsRelatednessInterpersonalrelations, feelingsGood relations,accurate feedbackExistenceFood, water,clothing, and shelterAdequate pay for necessitiesNeedsDescriptionExamplesHighest-level needsLowest-level needsTable 13.2
19Alderfer’s ERG TheoryAs lower level needs become satisfied, a person seeks to satisfy higher-level needsA person can be motivated by needs at more than one level at the same timeWhen people experience need frustration they will focus on satisfying the needs at the next-lowest level
20Herzberg’s Motivation-Hygiene Theory Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.
21Herzberg’s Motivation-Hygiene Theory 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.
22McClelland’s Needs for Achievement, Affiliation, and Power Need for AchievementA strong need to perform challenging tasks well and meet personal standards for excellence
23McClelland’s Needs for Achievement, Affiliation, and Power Need for AffiliationConcerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each otherNeed for PowerA desire to control or influence others
24Equity Theory Equity Theory Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.
25Equity TheoryA 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.
26Outcomes < Outcomes Outcomes > Outcomes Equity TheoryConditionPerson ReferentExampleEquityOutcomes = OutcomesInputs InputsWorker contributesmore inputs but alsogets more outputsthan referentUnderpaymentOutcomes < Outcomesgets the same outputsas referentOverpaymentOutcomes > Outcomessame inputs but alsoTable 13.3
27Equity TheoryInequity 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.
28Equity TheoryRestoring 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 to leave the organization.
29Goal Setting TheoryFocuses on motivating workers to contribute their inputs to their jobs and organizationsConsiders how managers can ensure that workers focus their inputs in the direction of high performance and the achievement of organizational goals.
30Goal Setting Theory Goal What a person is trying to accomplish through his efforts and behaviorsMust be specific and difficultGoals point out what is important to the firm.Workers should be encouraged to develop action plans to attain goals.
31Goal Setting TheoryGoals motivate people to contribute more inputs to their jobsGoals help people focus their inputs in the right direction
32Learning TheoriesManagers can increase employee motivation and performance by the ways they link the outcomes that employees receive to the performance of desired behaviors in an organization and the attainment of goals
33Learning Theories Learning A relatively permanent change in person’s knowledge or behavior that results from practice or experience.
34Operant 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.
35Question?Which operant conditioning tool administers an undesired consequence to immediately stop a dysfunctional behavior?Positive reinforcementNegative reinforcementExtinctionPunishmentThe correct answer is “D” – punishment. See slide 13-39
36Operant Conditioning Tools Positive ReinforcementGives people outcomes they desire when they perform organizationally functionally behaviorsPositive reinforcers: Pay, praises, or promotions
37Operant Conditioning Tools Negative ReinforcementEliminating undesired outcomes once the functional behavior occursNegative reinforcers: criticisms, pay cuts, suspension
38Operant Conditioning Tools ExtinctionCurtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.PunishmentAdministering an undesired/negative consequence to immediately stop a dysfunctional behavior.Manager administers an undesired consequence to worker (verbal reprimand, demotion, pay cut).
39Avoiding Side Effects of Punishment Downplay the emotional element involvedTry to punish dysfunctional behaviors as soon as they occurTry to avoid punishing someone in front of others
40Organizational Behavior Modification Managers systematically apply operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors
41Organizational Behavior Modification Used to improve productivity, efficiency, attendance, punctuality, safe work practices, and customer serviceSometimes questioned because of lack of relevance to certain work behaviorsTo critics it is overly controlling and robs workers of their dignity, individuality, freedom of choice and creativity
42Steps in Organizational Behavior Modification Figure 13.4
43Social Learning Theory Proposes that motivation results not only from direct experience of rewards and punishments but also from a person’s thoughts and beliefs
44Social Learning Theory Vicarious Learning (Observational Learning)Occurs when a person becomes motivated to perform a behavior by watching another person perform the behavior and be positively reinforced for doing so
45Social Learning Theory Self-ReinforcementAny desired or attractive outcome or award that a person can give himself or herself for good performance.Self-efficacyA person’s belief about his or her ability to perform a behavior successfully.
46Pay and Motivation 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.
47Pay and Motivation Pay as a Motivator Goal Setting Theory: pay is linked to attainment of goals.Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.
48Merit Pay and Performance Merit Pay PlanA compensation plan that bases pay on based on individual, group and/or organization performance.Individual plan: when individual performance (sales) can accurately measured.
49Merit Pay and Performance Merit Pay PlanGroup plan: when group that works closely together is measured and rewarded as a group.Organization plan: when group or individual outcomes not easily measured.
50Salary 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.
51Salary Increase or Bonus? Benefits of Using BonusesDo not become permanent part of compensationAre more directly tied to current performanceProvide more flexibility in distributing rewards
52Salary Increase or Bonus? Employee Stock OptionA financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.UsesTo attract high-level managersTo motivate employee performance through ownership in the firm
53Discussion Question? Which merit pay plan is the most effective? Piece rateCommissionScanlon planProfit sharingThere is no one best answer. Students should discuss the advantages and disadvantages of each. Students should also discuss a typical firm that might use each plan.
54Examples of Merit Pay Plans Piece-rate PayEmployee’s pay is based on the number of units that the employee produces.Commission PayEmployee’s pay is based on a percentage of sales that the employee makes.Organization-based Merit PlansScanlon plan—focuses on reduced expenses or cutting costsProfit sharing—employees receive a share of an organization’s profits
55Movie Example: Mr. Holland’s Opus As a manager, is it important for Principal Jacobs to know the motivations of her subordinates?Mr. Holland’s OpusGlenn Holland (Richard Dreyfuss) has always wanted to write a great American symphony. To pay the bills he takes a job as a high school music teacher, thinking it will be a temporary place. Along the way he discovers the importance of family and providing young minds a compass. His opus is not “notes on a page”, but the thousands of young lives he has touched.In this scene, Principal Jacobs (Olympia Dukakis) is talking to Mr. Holland (Richard Dreyfuss) about his reasons for being a teacher.What is Mr. Holland’s motivation?Is Mr. Holland driven by achievement, affiliation or power?As a manager, is it important for Principal Jacobs to know the motivation of her subordinates?