1. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 1 MOTIVATION AND PERFORMANCE MANAGEMENT Lecture 11

2. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 2 Motivation Motivation - ‘What impels a person to action, e.g. fear, ambition or love’ To perform - ‘Carry into effect… do. Execute tricks at a public show’ Distinction between drives and motivates Baldamus (1961) - Traction

3. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 3 Evolution of motivation theory

4. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 4

5. 5 Content theories of motivation Maslow’s hierarchy of needs theory Alderfer’s existence, relatedness and growth theory (ERG) McClelland’s acquired needs theory Herzberg’s two-factor theory

6. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 6 Maslow’s hierarchy of needs Individuals have innate needs or wants which they will seek to satisfy Physiological needs Safety needs Social needs Esteem needs Self-actualization needs

7. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 7 Maslow’s hierarchy of needs Hierarchy displays the following properties: A need once satisfied is no longer a motivator A need cannot be effective as a motivator until those before it in the hierarchy have been satisfied If deprived of the source of satisfaction from a lower order need it will again become a motivator There is an innate desire to work up the hierarchy Self-actualization is not like the other needs

8. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 8 Alderfer’s ERG theory Three-level hierarchy: Existence needs Relatedness needs Growth needs

9. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 9 McClelland’s acquired needs theory Achievement Affiliation Power

10. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 10 Herzberg’s two-factor theory Motivators and hygiene factors Hygiene factors if absent cause dissatisfaction Salary Working conditions Job security Level and quality of supervision Company policies and administrative procedures Interpersonal relationships at work Motivators - motivate an individual to improve their work performance Recognition Sense of achievement Responsibility Nature of the work itself Growth Advancement

11. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 11

12. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 12 Process theories Vroom Porter and Lawler expectancy models Adam’s equity theory Locke’s goal theory Kelly’s attribution theory

13. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 13 The Vroom/Porter and Lawler expectancy models Valance Instrumentality Expectancy

14. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 14 Adam’s equity theory Relative fairness of treatment at work Equity/Inequity

15. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 15 Locke’s goal theory Intentions play a significant part in behavioural patterns Feedback Goal setting needs: Specifics Completion requirement Difficult goal/easy goals SMART objectives

16. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 16 Additional perspectives on motivation McGregor’s Theory X and Theory Y Ouchi’s Theory Z Hofstede, Trompenaurs and cultural influences on motivation Maccoby’s social theory

17. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 17 Performance management and motivation

18. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 18 Performance management and motivation

19. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 19 Performance management and motivation A balanced business scorecard Financial Innovation and learning Internal processes Customers Institute of Personnel and Development and International Labour Organization - high performance working can be defined as: Sustained market success Innovation in quality and customer satisfaction Customer and continuous improvement focus Use of self-managed work teams Viewing workplace as a source of added value Clear links between training and development and organizational objectives Support for organizational and individual learning

20. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 20 Motivation and performance: an organizational perspective Motivation is based on internal cognitive processes that are not available for direct inspection. This adds complexity for a number of reasons: Managerial assumptions Situational context Personal preference Instrumentality Bio-social basis of behaviour Motivated to do what? What is performance?

21. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 21

22. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 22 Options available to managers Pay levels and structures Incentive schemes Organizational factors Performance appraisal Management style Feedback, praise and punishment Management by example Company policies

23. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 23 Managers do not have the opportunity to adjust all the levers potentially available Availability Freedom of action Personal preference Variability Group norms