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Motivating Employee Performance Copyright © Houghton Mifflin Company. All rights reserved.16–1.

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Presentation on theme: "Motivating Employee Performance Copyright © Houghton Mifflin Company. All rights reserved.16–1."— Presentation transcript:

1 Motivating Employee Performance Copyright © Houghton Mifflin Company. All rights reserved.16–1

2 Copyright © Houghton Mifflin Company. All rights reserved.16–2 The Nature of Motivation Motivation –The set of forces that cause people to behave in certain ways. –The goal of managers is to maximize desired behaviors and minimize undesirable behaviors. The Importance of Motivation in the Workplace –Individual Performance is determined by: Motivation—the desire to do the job. Ability—the capability to do the job. Work environment—the resources to do the job.

3 Copyright © Houghton Mifflin Company. All rights reserved.16–3 Historical Perspectives on Motivation The Traditional Approach  Workers are interchangeable tools of production.  Frederick Taylor (Scientific Management)  Assumptions:  Managers know more than workers.  Economic gain (money) is the primary motivation for performance.  Work is inherently unpleasant.

4 Historical Perspectives on Motivation Copyright © Houghton Mifflin Company. All rights reserved.16–4 The Human Relations Approach  Emphasized role of social processes in workplace.  Assumptions:  Employees want to feel useful and and important.  Employees have strong social needs, more important than money.  Maintaining the appearance of employee participation is important.

5 © 2010 South-Western, Cengage Learning, Inc. All rights reserved.16–5 Historical Perspectives on Motivation The Human Resource Approach   Emphasized value of employees to organization   Assumptions:   Employee contributions are important and valuable to the employee and the organization.   Employees want to and are able to make genuine contributions. .  Management’s job is to encourage participation and create a work environment that motivates employees.

6 Copyright © Houghton Mifflin Company. All rights reserved.16–6 Motivation Theories –Maslow’s Hierarchy of Needs –Herzberg’s Two-Factor Theory –McClelland’s 3-Needs Theory (Achievement, Power, and Affiliation) –Expectancy Theory –Equity Theory –Goal-Setting Theory –Reinforcement Theory –Motivational Strategies (empowerment participation, alternative work arrangements.) This chapter has many theories, these are the ones you need to know: (You do not need to distinguish between content, process, and reinforcement perspectives.)

7 Copyright © Houghton Mifflin Company. All rights reserved.16–7 Maslow’s Hierarchy of Needs

8 Copyright © Houghton Mifflin Company. All rights reserved.16–8 Satisfaction and dissatisfaction are influenced by two independent sets of factors. Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction. Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction. Theory assumes that motivation is a two-step process: Ensuring that the hygiene factors are not deficient and not blocking motivation. Giving employees the opportunity to experience motivational factors through job enrichment. The Two-Factor Theory (Herzberg)

9 Copyright © Houghton Mifflin Company. All rights reserved.16–9 The Two-Factor Theory of Motivation

10 Three Needs Theory The need for achievement The desire to accomplish a goal or task more effectively than in the past. Assume personal responsibility, set moderately difficult goals, desire specific and immediate feedback. 10% of population. The need for affiliation The desire for human companionship and acceptance. The need for power The desire to be influential in a group and to be in control of one’s environment. Copyright © Houghton Mifflin Company. All rights reserved.16–10

11 Copyright © Houghton Mifflin Company. All rights reserved.16–11 Expectancy Theory Motivation depends on how much we want something and how likely we are to get it. Elements of Expectancy Theory Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead to a high level of performance. Performance-to-Outcome Expectancy The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting. Valence An index of how much an individual values a particular outcome. It is the attractiveness of the outcome to the individual.

12 Copyright © Houghton Mifflin Company. All rights reserved.16–12 Equity Theory outcomes (self) inputs (self) = outcomes (other) inputs (other) Feeling equitably rewarded – maintain performance Feeling under-rewarded – try to reduce inequity Increase or Decrease inputs: try harder or slack off Change outcomes: demand raise Distort ratios by altering perceptions of self or others Quit Change comparison Feeling over-rewarded Increase or decrease inputs Distort ratios Help object person gain more outcomes People are motivated to seek social equity in the rewards they receive for performance. Equity is the belief that treatment received is fair relative to the treatment received by others.

13 Copyright © Houghton Mifflin Company. All rights reserved.16–13 Goal-Setting Theory Characteristics of Goals Goal difficulty Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals. Goals should be difficult but attainable. Goal specificity Clarity and precision of the goal. Goals vary in their ability to be stated specifically Goal acceptance The extent to which persons accept a goal as their own. Goal commitment The extent to which an individual is personally interested in reaching a goal. Setting goals influence the behavior of people in organizations.

14 Copyright © Houghton Mifflin Company. All rights reserved.16–14 Reinforcement Theory Positive reinforcement Strengthens behavior with rewards or positive outcomes after a desired behavior is performed. Avoidance Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed. Punishment Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed. Extinction Weakens undesired behavior by simply ignoring or not reinforcing that behavior. Behavior is a function of its consequences.

15 Copyright © Houghton Mifflin Company. All rights reserved.16–15 Reinforcement (cont’d) Behavior modification (OB mod) A method for applying the basic elements of reinforcement theory in an organizational setting. Consistently applied reinforcement helps maintain employee motivation by: encouraging (rewarding) positive behaviors discouraging (punishing) dysfunctional behaviors in an organization.

16 Copyright © Houghton Mifflin Company. All rights reserved.16–16 Popular Motivational Strategies Empowerment Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. Participation Giving employees a voice in making decisions about their work. Areas of participation for employees: Making decisions about their jobs. Decisions about administrative matters (e.g., work schedules). Participating in decision making about broader issues of product quality. Alternate work arrangements Compressed workweek, flextime, job sharing, telecommuting

17 Copyright © Houghton Mifflin Company. All rights reserved.16–17 Reward Systems to Motivate Merit Reward Systems –Base a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization. Employees who make greater contributions are given higher pay than those who make lesser contributions. Incentive Reward Systems –Incentive pay plans Piece-rate systems Sales commissions –Other forms of incentives Non-monetary incentives (perks)

18 Copyright © Houghton Mifflin Company. All rights reserved.16–18 Reward Systems to Motivate Executive Compensation –Standard forms of executive compensation Base salary Incentive pay (bonuses) –Special forms of executive compensation Stock option plans Executive perks –Criticism of executive compensation Excessively large compensation amounts Compensation not tied to overall performance of the organization Earnings gap between executive pay and typical employee pay


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