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Management Principles Craig W. Fontaine, Ph.D. Motivation.

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1 Management Principles Craig W. Fontaine, Ph.D. Motivation

2  Some definitions: Performance is a product of motivation and ability moderated by situation constraints Ability is an individual’s capacity to perform certain tasks Situational constraints refers to factors in the workplace that hinder performance Motivation……….. The Context of Motivation

3 Defining Motivation Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

4 The Nature of Motivation (cont’d)  Intrinsic Motivation –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  Extrinsic Motivation –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.

5 Theories of Motivation

6 Hierarchy of Needs Theory (Maslow) Hierarchy of Needs Theory There is a hierarchy of five needs—physiological, safety, social, esteem, and self- actualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming.

7 Maslow’s Hierarchy of Needs Lower-Order Needs Needs that are satisfied externally; physiological and safety needs. Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs. Source: Motivation and Personality, 2nd ed,, by A.H. Maslow, Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.

8 Copyright © by Houghton Mifflin Company. All rights reserved. Maslow’s Hierarchy of Needs Self- actualization Esteem Social Safety PhysiologyFood Achievement Status Friendship Stability Job Friends Pension Base NEEDS General ExamplesOrganizational Examples job Challenging title at work plan salary

9 Alderfer’s ERG Theory  ERG Theory is slightly different then Need Theory (Maslow) –People’s needs are grouped into three overlapping categories— existence, relatedness, and growth. –Maslow’s hierarchy is collapsed into three levels: Existence needs related to physiological and safety needs. Relatedness needs that are similar to social and esteem by others. Growth needs encompass needs for self-esteem and self- actualization. –ERG theory assumes that: Multiple needs can be operative at one time (there is no absolute hierarchy of needs – Unlike Need Theory If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (Frustration Regression).

10 Physiological Safety & Security Social Esteem SA Existence Relatedness Growth Need Theory compared to ERG Theory

11 Theory X and Theory Y (Douglas McGregor) Theory X Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform. Theory Y Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

12  Naturally indolent (Lazy)  Lack ambition, dislike responsibility, and prefer to be led  Inherently self-centered and indifferent to organizational needs  Naturally resistant to change  Gullible, not bright, ready dupes Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. Assumptions of Theory X

13  Experiences in organizations result in passive and resistant behaviors; they are not inherent  Motivation, development potential, capacity for assuming responsibility, readiness to direct behavior toward organizational goals are present in people  Management’s task—arrange conditions and operational methods so people can achieve their own goals by directing efforts to organizational goals Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. Assumptions of Theory Y

14 Herzberg’s Motivation-Hygiene Theory  Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with 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.

15 The Two-Factor Theory of Motivation Satisfaction No satisfaction Motivation Factors Achievement Recognition The work itself Responsibility Advancement and growth DissatisfactionNo dissatisfaction Hygiene Factors Supervisors Working conditions Interpersonal relations Pay and security Company policies and administration

16 Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

17 Contrasting Views of Satisfaction and Dissatisfaction

18 David McClelland’s Theory of Needs nAch nPow nAff Need for Achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed. Need for Affiliation The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise.

19  Goal-Setting Theory The theory that specific and difficult goals, with feedback, lead to higher performance.  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-Setting Theory (Edwin Locke)

20  Other considerations –Acceptance The extent to which persons accept a goal as their own. –Commitment The extent to which an individual is personally interested in reaching a goal. Goal-Setting Theory (continued)

21 Reinforcement Theory Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated. Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated. The assumption that behavior is a function of its consequences.

22 Reinforcement Theory and Learning  Reinforcement Theory –Based on the idea that behavior is a function of its consequences. Behavior that results in pleasant consequences (reward) is likely to be repeated. Behavior that results in unpleasant consequences (punishment) is less likely to be repeated. “Responses that produce a satisfying effect in a particular situation become more likely to occur again in that situation, and responses that produce a discomforting effect become less likely to occur again in that situation” From: Edward Thorndike’s “Law of Effect”

23 Types of Reinforcement in Organizations  Positive Reinforcement –A reward or other desirable consequence that follows behavior.  Avoidance (Negative Reinforcement) –Rather than receiving a reward following a desirable behavior, the person is given the opportunity to avoid an unpleasant consequence.  Extinction –Decreases the frequency of behavior by eliminating a reward or desirable consequence that follows that behavior.  Punishment –An unpleasant, or aversive, consequence that results from behavior.

24 Types of Reinforcement – Examples of Use  Positive Reinforcement and avoidance can be used to motivate desired behaviors by employees

25  Extinction and Punishment can be used to change undesired employee Types of Reinforcemene – Example of Use

26 Schedules of Reinforcement Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated. Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated.

27 Schedules of Reinforcement (cont’d) Fixed-Interval Schedule Rewards are spaced at uniform time intervals. Variable-Interval Schedule Rewards are initiated after a fixed or constant number of responses.

28 Schedules of Reinforcement (cont’d) Fixed-ratio

29 2– Intermittent Schedules of Reinforcement

30 Intermittent Schedules of Reinforcement (cont’d)

31 Related Aspects of Learning  Reinforcement Generalization –The process of recognizing relationships between behavior and reinforcement in different settings.  Social Learning –Occurs when people observe the behaviors of others, recognize their consequences, and alter their own behaviors as a result.

32 Equity Theory  Adams proposed that a worker’s motivation is based on social comparison.  Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.  There can be: Equity Underpayment Overpayment

33 Equity Theory (cont’d) Condition Person ReferentExample EquityEquity Outcomes = Outcomes Inputs Inputs Outcomes = Outcomes Inputs Inputs Worker contributes more inputs but also gets more outputs than referent Worker contributes more inputs but also gets more outputs than referent Underpayment Equity Underpayment Equity Outcomes < Outcomes Inputs Outcomes < Outcomes Inputs Worker contributes more inputs but also gets the same outputs as referent Worker contributes more inputs but also gets the same outputs as referent OverpaymentEquityOverpaymentEquity Outcomes > Outcomes Inputs Inputs Outcomes > Outcomes Inputs Inputs Worker contributes same inputs but also gets more outputs than referent Worker contributes same inputs but also gets more outputs than referent

34 Responses to Perceptions of Equity and Inequity

35 Equity Theory – Related Concepts Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals. Procedural Justice The perceived fairness of the process to determine the distribution of rewards.

36  A cognitive theory, assumes workers to be a rational decision maker who will expend energy on activities that lead to desired rewards  Three basics elements: Expectancy an individuals perception that their effort (E) will result in performance (P) Instrumentality an individual’s perception that performance will lead to desired outcome (O) Valance the value the individual places on outcome (V) Expectancy Theory

37 OutcomeEffortPerformance InstrumentalityExpectancy Basic Concepts of Expectancy Theory Valance

38 Expectancy Theory Relationships Summary  Effort–Performance Relationship –The probability that exerting a given amount of effort will lead to performance.  Performance–Reward Relationship –The belief that performing at a particular level will lead to the attainment of a desired outcome.  Rewards–Personal Goals Relationship –The degree to which organizational rewards satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.

39 The Porter-Lawler Model The model predicts that satisfaction is determined by the perceived equity of intrinsic and extrinsic rewards for high-level performance. Reference: Figure from Porter, Lyman W., and Edward E. Lawler, Managerial Attitudes and Performance. Copyright © Reproduced by permission of the publisher, McGraw- Hill, Inc.

40 Summary and Implications for Managers  Need Theories Maslow’s hierarchy, Two factor, ERG, & McClelland’s  Goal Setting Theory Clear and difficult goals often lead to higher levels of employee productivity.  Reinforcement Theory Good predictor of quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates.  Equity Theory Strongest when predicting absence and turnover behaviors. Weakest when predicting differences in employee productivity.  Expectancy Theory Focus on performance variables It is a “rational” model so be careful when using it This theory may be better applied to employees with greater discretion in their jobs (i.e., as opposed to semi-skilled positions)

41 Popular Motivational Strategies  Empowerment and Participation –Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. –Participation The process of 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.

42 Specific Actions that Empower Provide more freedom of access to resources Provide more freedom of access to people Allow independent judgment Assign nonroutine jobs Reduce the number of approval steps Reduce the number of rules Increase signature authority at all levels Define jobs more broadly as projects Actions That Empower Employees


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