1. Chapter 12 Motivating Employees

2. CATEGORIES OF MOTIVATION THEORIES n Content Theories u Concerned with WHAT people need or want n Process Theories u Concerned with HOW people think and behave to get what they want n Reinforcement Theories u Concerned with the effects of REWARDS upon motivated behavior (Some consider it a Process Theory) (Some consider it a Process Theory)

3. CONTENT THEORIES n Hierarchy of Needs Theory u Maslow u Alderfer n Two-Factor Theory u Herzberg n Acquired Needs Theory u McClelland

4. MASLOW’S HIERARCHY OF NEEDS (from lowest to highest) n Physiological n Safety (Security) n Belongingness (Social) n Esteem n Self-Actualization

5. ALDERFER’S ERG THEORY n Existence n Relatedness n Growth

6. FRUSTRATION-REGRESSION PRINCIPLE (ERG Theory) n Failure to meet a higher-order need may trigger a regression to an already fulfilled lower-order need Example: Worker who cannot fulfill a need for personal growth may redirect efforts toward making money.

7. HERZBERG’S TWO- FACTOR THEORY n Hygiene Factors (mostly extrinsic, e.g., a nice office) u Influence Dissatisfaction (The best Hygiene Factors can provide is “No Dissatisfaction” – They don’t motivate.) n Motivators (mostly intrinsic, e.g., enjoyment of work responsibility, etc.) u Influence Satisfaction

8. McCLELLAND’S ACQUIRED NEEDS - Successful Top Executives: NEED LEVEL (Hi, Mod., Lo?) NEED LEVEL (Hi, Mod., Lo?) Achievement Moderate Affiliation Low Power High

9. APPLICATIONS OF CONTENT THEORIES n Job Enrichment n Flexible Work Schedules

10. PROCESS THEORIES n Goal-Setting Theory n Equity Theory n Expectancy Theory

11. GOAL-SETTING THEORY n Assumes having clear goals increases motivation n Challenges and Feedback are especially important

12. EQUITY THEORY n Unique in viewing motivation as affected by Comparisons to other people. n We don’t necessarily expect to get the same rewards as others, but we expect the Ratio of our Outcome to Input to be equivalent to that of others. n We are Motivated to correct inequity.

13. DEALING WITH INEQUITY n Change your Input n Change your Outcome n Distort (Change) your Perceptions u (of either input or outcome of you or the comparison person) n Leave the Job n Change Comparison Persons

14. EXPECTANCY THEORY n Analyzes the parts of the Motivation Process that the Leader must attend to (c.f., Path-Goal Theory) n Has the greatest Breadth of popular motivation theories

15. EXPECTANCY THEORY CONCEPTS n EXPECTANCY u Effort-Performance Relationship (E-P) (The most Unique feature of the theory) n INSTRUMENTALITY u Performance-Outcome Relationship (P-O) n VALENCE u Value of Reward If any of the three equal Zero, then there is No Motivation.

16. MAJOR ELEMENTS OF REINFORCEMENT THEORY n Stimulus u Supervisor requests faster work n Response u Employee increases or decreases speed or does nothing n Consequence u Positive Reinforcement, Negative Reinf. (Avoidance), Extinction, Punishment

17. BEHAVIORAL CONSEQUENCES n Positive Reinforcement u Receive desirable outcome (Money) n Negative Reinforcement u Avoid undesirable outcome (Prevent reprimand) n Extinction u Lack of reinforcement (Behavior ignored) n Punishment u Undesirable outcome occurs (Get fired )

18. APPLICATIONS OF REINFORCEMENT THEORY n Organizational Behavior Modification (OB MOD) n Pay for Performance (Merit Pay) n Gain Sharing n Employee Stock Ownership Plans (ESOPs) n Lump-Sum Bonuses n Pay for Knowledge

19. Minimizing Reward Problems n Measure performance accurately n Give team rewards for interdependent jobs n Ensure that rewards are valued n Beware of unintended consequences

20. Some Rewards Lower-Level Managers May Control n Recognition, such as letters of appreciation n Invitations to coffee or lunch n Recommendations for pay increases or promotions n Time off n Desirable work assignments

21. Job Simplification n Pursues efficiency by reducing the number of tasks one person must do (However, workers dislike routine and boring jobs.)

22. Job Rotation n Systematically moves employees from one job to another. (However, skill level is unchanged.)

23. Job Enlargement n Combines a series of tasks into one new, broader job.

24. Job Enrichment n Incorporates high-level motivators into the work.

25. WorkmotivationGrowthsatisfactionGeneralsatisfactionWorkeffectiveness Job Characteristics Model Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness AutonomyResponsibility Individual Differences in Growth Needs CriticalPsychologicalStates Core Job CharacteristicsOutcomes

26. Implementing Job Enrichment n Training is typically needed n Short-term performance declines are normal Dangers in Job Enrichment n Some people have low “Growth Need Strength” n Employees may expect higher pay

27. MAJOR IMPLICATIONS OF MOTIVATION THEORIES n Set Challenging, but Attainable Goals n Train and Encourage People n Provide Valued Extrinsic and Intrinsic Rewards u Recognize Individual Differences u Watch for Changes in an Individual’s Motives n Use Mainly Positive Reinforcement n Distribute Rewards Equitably