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Foundations of Employee Motivation McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "Foundations of Employee Motivation McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 Foundations of Employee Motivation McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 5-2 Standard Chartered Bank Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths-based feedback, employee development, and other practices.

3 5-3 Motivation Defined  The forces within a person that affect the direction, intensity, and persistence of voluntary behavior.  Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction).

4 5-4 Employee Engagement  Individual’s emotional and cognitive (rational) motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals.  High absorption in the work.  High self-efficacy – believe you have the ability, role clarity, and resources to get the job done

5 5-5 Drives and Needs  Drives (primary needs, fundamental needs, innate motives) Hardwired brain characteristics (neural states) that energize individuals to maintain balance by correcting deficiencies Prime movers of behavior by activating emotions Self-concept, social norms, and past experience Drives and Emotions Needs Decisions and Behavior

6 5-6 Drives and Needs  Needs Goal-directed forces that people experience. Drive-generated emotions directed toward goals Goals formed by self-concept, social norms, and experience Self-concept, social norms, and past experience Drives and Emotions Needs Decisions and Behavior

7 5-7 Maslow’s Needs Hierarchy Theory  Seven categories – five in a hierarchy -- capture most needs  Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator  Self-actualization -- a growth need because people desire more rather than less of it when satisfied Self- actual- ization Physiological Safety Belongingness Esteem Need to know Need for beauty

8 5-8 What’s Wrong with Needs Hierarchy Models?  Maslow’s theory lacks empirical support People have different hierarchies Needs change more rapidly than Maslow stated  Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy  Instead, needs hierarchies are shaped by person’s own values and self-concept Abraham Maslow

9 5-9 What Maslow Contributed to Motivation Theory  Holistic perspective Integrative view of needs  Humanistic perspective Influence of social dynamics, not just instinct  Positive perspective Pay attention to strengths (growth needs), not just deficiencies Abraham Maslow

10 5-10 Learned Needs Theory  Needs are amplified or suppressed through self-concept, social norms, and past experience  Therefore, needs can be “learned” strengthened through reinforcement, learning, and social conditions

11 5-11 Three Learned Needs Need for achievement Need to reach goals, take responsibility Want reasonably challenging goals Need for affiliation Desire to seek approval, conform to others wishes, avoid conflict Effective executives have lower need for social approval Need for power Desire to control one’s environment Personalized versus socialized power

12 5-12 Four-Drive Theory Drive to Bond Drive to Learn Drive to form relationships and social commitments Basis of social identity Drive to satisfy curiosity and resolve conflicting information Drive to Defend Need to protect ourselves Reactive (not proactive) drive Basis of fight or flight Drive to Acquire Drive to take/keep objects and experiences Basis of hierarchy and status

13 5-13 How Four Drives Affect Motivation 1. Four drives determine which emotions are automatically tagged to incoming information 2. Drives generate independent and often competing emotions that demand our attention 3. Mental skill set relies on social norms, personal values, and experience to transform drive- based emotions into goal-directed choice and effort

14 5-14 Four Drive Theory of Motivation Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort Drive to Acquire Social norms Drive to Bond Drive to Learn Drive to Defend Personal values Past experience Mental skill set resolves competing drive demands Goal-directed choice and effort

15 5-15 Implications of Four Drive Theory Provide a balanced opportunity for employees to fulfill all four drives employees continually seek fulfilment of drives avoid having conditions support one drive more than others

16 5-16 E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - EffortPerformance Outcome 3 + or - Outcome 2 + or - Expectancy Theory of Motivation

17 5-17 Increasing E-to-P and P-to-O Expectancies  Increasing E-to-P Expectancies Develop employee competencies Match employee competencies to jobs Provide role clarity and sufficient resources Provide behavioral modeling  Increasing P-to-O Expectancies Measure performance accurately Increase rewards with desired outcomes Explain how rewards are linked to performance

18 5-18 Increasing Outcome Valences  Ensure that rewards are valued  Individualize rewards  Minimize countervalent outcomes

19 5-19 A-B-Cs of Behavior Modification Consequences What happens after behavior Co-workersthankoperator Example Behavior What person says or does Machine operator turns off power Antecedents What happens before behavior Warninglightflashes

20 5-20 Four OB Mod Consequences  Positive reinforcement – any consequence that, when introduced, increases/maintains the target behavior.  Punishment – any consequence that decreases the target behavior.  Negative reinforcement –any consequence that, when removed, increases/maintains target behavior.  Extinction – when no consequence occurs, resulting in less of the target behavior

21 5-21 Reinforcing the Healthy Walk The British municipality of Stoke- on-Trent, Staffordshire, issued pedometers to its staff and encouraged them to do more walking each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organizations also reinforce walking with financial rewards.

22 5-22 Behavior Modification in Practice  Behavior modification applications: every day to influence behavior of others company programs – attendance, safety, etc.  Behavior modification problems: Reward inflation Variable ratio schedule viewed as gambling Ignores relevance of cognitive processes in motivation and learning

23 5-23 Social Cognitive Theory  Learning behavior outcomes Observing consequences that others experience Anticipate consequences in other situations  Behavior modeling Observing and modeling behavior of others  Self-regulation People engage in intentional, purposive action – they develop goals, achievement standards, action plans People form expectancies (anticipate consequences) from others -- not just from their own experiences People reinforce their own behavior (self- reinforcement)

24 5-24 Goal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives

25 5-25 Effective Goal Setting Characteristics Specific – What, how, where, when, and with whom the task needs to be accomplished Measurable – how much, how well, at what cost Achievable – challenging, yet accepted (E-to-P) Relevant – within employee’s control Time-framed – due date and when assessed Exciting – employee commitment, not just compliance Reviewed – feedback and recognition on goal progress and accomplishment

26 5-26 Balanced Scorecard  Organizational-level goal setting and feedback  Attempts to include measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes  Usually includes several goals within each process

27 5-27 Characteristics of Effective Feedback 1. Specific – connected to goal details 2. Relevant – Relates to person’s behavior 3. Timely – to improve link from behavior to outcomes 4. Credible – trustworthy source 5. Sufficiently frequent Employee’s knowledge/experience Task cycle

28 5-28 Strengths-Based Coaching Feedback  Maximizing the person’s potential by focusing on their strengths rather than weaknesses  Motivational because: people inherently seek feedback about their strengths, not their flaws person’s interests, preferences, and competencies stabilize over time

29 5-29 Multisource Feedback  Received from a full circle of people around the employee  Provides more complete and accurate information  Several challenges expensive and time-consuming ambiguous and conflicting feedback inflated rather than accurate feedback stronger emotional reaction to multiple feedback

30 5-30 Organizational Justice Distributive justice Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others Procedural justice Perceived fairness of the procedures used to decide the distribution of resources

31 5-31 Own outcomes Your Own Outcome/Input Ratio Comparison Other’s Outcome/Input Ratio Perceptions of equity or inequity Equity Theory Own inputs Other’s outcomes Other’s inputs Compare own ratio with Other’s ratio

32 5-32 Elements of Equity Theory Outcome/input ratio inputs -- what employee contributes (e.g., skill) outcomes -- what employee receives (e.g., pay) Comparison other person/people against whom we compare our ratio not easily identifiable Equity evaluation compare outcome/input ratio with the comparison other

33 5-33 Correcting Inequity Tension Reduce our inputsLess organizational citizenship Increase our outcomesAsk for pay increase Increase other’s inputsAsk coworker to work harder Reduce other’s outputs Ask boss to stop giving preferred treatment to coworker Change our perceptions Start thinking that coworker’s perks aren’t really so valuable Change comparison other Compare self to someone closer to your situation Leave the fieldQuit job Actions to correct underreward inequity Example

34 5-34 Procedural Justice  Perceived fairness of procedures used to decide the distribution of resources  Higher procedural fairness with: Voice Unbiased decision maker Decision based on all information Existing policies consistently Decision maker listened to all sides Those who complain are treated respectfully Those who complain are given full explanation

35 Foundations of Employee Motivation

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