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Chapter 5 Motivation at Work
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Motivation Willingness to exert high levels of effort toward organizational goals. Conditioned by the effort’s ability to satisfy some individual need.
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The Basic Motivation Behavior Sequence
Ability Motivation Effort Performance Outcomes (rewards)
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What Motivates People at Work?
External Incentives Vary by the individual Self-interest Economic gain Social Interpersonal 4
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What Motivates People at Work?
Internal needs Variables within the individual Enlightened self-interest Individual interests & benefits Protestant work ethic Hierarchy of needs Cultural differences affect motivation 3
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Early Motivation Theories
Psychological theories emphasized internal needs; ignored individual diversity Economic theories emphasized extrinsic incentives; technology was a force multiplier Process theory emphasized nature of interaction between individual and the environment External theories focused on environmental elements such as, behavioral consequences 7 7 7 3 5 7
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Maslow’s Hierarchy of Needs
Physiological Safety & Security Love (Social) Esteem SA 2 5 2 4 6 2
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Motivational Theories X & Y
Physiological Safety & Security Love (Social) Esteem SA Theory Y - a set of assumptions of how to manage individuals motivated by higher-order needs Theory X - a set of assumptions of how to manage individuals motivated by lower-order needs 2 5 2 7 5 2
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McGregor’s Assumptions About People Based on Theory X
Naturally indolent 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. 7 8
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McGregor’s Assumptions About People Based on Theory Y
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. 8 9
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Alderfer’s ERG Theory Growth Relatedness Existence SA Esteem
Physiological Safety & Security Love (Social) Esteem SA Growth Relatedness Existence 10
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How Financial Rewards Meet Needs
Develop a talent you have always wanted to explore. A pay raise that recognizes your value to the firm. Purchase equipment to join a sports team. Purchase an insurance policy. Food, clothing, rent. Self Actualizaton Esteem Social Security Physiological
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Organizational Examples
Self Actualization Esteem Social Security Physiological Challenging Work - Opportunity to Grow Job Title – Recognition Friends at Work - Sports Teams Pension Plan - Insurance Salary to Purchase Basic Needs
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Diagnose Employees’ Needs and Find Ways of Motivating Them by Satisfying the Needs
ALDERFER’S HIERARCHY OF NEEDS MASLOW’S HIERARCHY OF NEEDS Self- Actualization Growth Esteem Relatedness Belongingness and Love Existence Safety and Security Physiological
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Herzberg’s Two-Factor Theory
Hygiene Factor - work condition related to dissatisfaction caused by discomfort or pain maintenance factor contributes to employee’s feeling not dissatisfied contributes to absence of complaints Motivation Factor - work condition related to the satisfaction of the need for psychological growth job enrichment leads to superior performance & effort 9 11
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Motivation-Hygiene Theory of Motivation
Hygiene factors avoid job dissatisfaction Company policy & administration Supervision Interpersonal relations Working conditions Salary Status Security Hygiene factors must be present to avoid job dissatisfaction Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission. 10 12
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Motivators Worker Satisfaction
Motivators Worker Satisfaction. Hygiene Factors Worker Dissatisfaction. HYGIENE FACTORS MOTIVATORS Job Dissatisfaction No Job Dissatisfaction No Job Satisfaction Job Satisfaction Pay Status Security Working Conditions Fringe Benefits Policies and Administrative Practices Interpersonal Relations Meaningful Work Challenging Work Recognition for Accomplishments Feeling of Achievement Increased Responsibility Opportunities for Growth and Advancement The Job Itself
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Motivation-Hygiene Theory of Motivation
Motivation factors increase job satisfaction Hygiene factors avoid job dissatisfaction Company policy & administration Supervision Interpersonal relations Working conditions Salary Status Security Hygiene factors must be present to avoid job dissatisfaction Achievement Achievement recognition Work itself Responsibility Advancement Growth Salary? Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission. 10 13
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Resultant Job Conditions (Motivation = M, Hygiene = H)
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Manifest Need Theory: Need for Achievement
Need for Achievement - a manifest (easily perceived) need that concerns individuals’ issues of excellence, competition, challenging goals, persistence, and overcoming difficulties 6 6 6 2 15 6
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Manifest Need Theory: Need for Power
Need for Power - a manifest (easily perceived) need that concerns an individual’s need to make an impact on others, influence others, change people or events, and make a difference in life 6 6 6 2 16 6
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Manifest Need Theory: Need for Affiliation
Need for Affiliation - a manifest (easily perceived) need that concerns an individual’s need to establish and maintain warm, close, intimate relationships with other people 6 6 6 2 17 6
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3 Motivational Need Theories
[ Maslow Alderfer McClelland Self Actualization ] Need for Achievement Higher Order needs Esteem self interpersonal Growth Need for Power ] Belongingness [ Need for affiliation Relatedness Lower Order needs Safety & security interpersonal physical ] Existence Physiological 18
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Motivational Theory of Social Exchange
Equity Outcomes = Outcomes Inputs Inputs Negative Outcomes < Outcomes Inequity Inputs Inputs Positive Outcomes > Outcomes Inequity Inputs Inputs Person Comparison Other 19
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Strategies for Resolution of Inequity
Alter the person’s outcomes Alter the person’s inputs Alter the comparison other’s outputs Alter the comparison other’s inputs Change who is used as a comparison other Rationalize the inequity Leave the organizational situation 7 7 7 3 20 7
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Managers Can Help Employees Perceive Their Work Situation As Equitable
A’s outputs A’s Inputs B’s outputs B’s Inputs A’s outputs A’s Inputs B’s outputs B’s Inputs Inequity = Problem with Motivation Equity = No Problem with Motivation
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Employee Responses to Perceived Inequities
What happens when inequities exist? If person A believes an inequity exists and her ratio is too small, she may reduce her inputs ask for more outputs change her comparison person rationalize that equity exists leave the situation If person B believes an inequity exists, and his ratio is too large, he may increase his inputs ask for reduced outputs change his comparison person Table 4-1
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New Perspectives on Equity Theory
Equity Sensitive I prefer an equity ratio equal to that of my comparison other 21
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New Perspectives on Equity Theory
Benevolent I am comfortable with an equity ratio less than that of my comparison other 22
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New Perspectives on Equity Theory
Entitled I am comfortable with an equity ratio greater than that of my comparison other 23
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Expectancy Theory of Motivation: Key Constructs
Valence - value or importance placed on a particular reward Expectancy - belief that effort leads to performance Instrumentality - belief that performance is related to rewards 24
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Expectancy Model of Motivation
Performance Reward Effort Perceived effort- probability Perceived value of reward performance- reward probability “If I work hard, will I get the job done?” “What rewards will I get when the job is done?” do I value?” 25
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Determinants of Performance
Individual Differences Job Performance Work Effort (Motivation) Organizational Support
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Reward System Organization provides inducements
pay, benefits, vacation, status In return for individual contributions time, effort, knowledge, skills, creativity Inducements Show Lincoln electric video Stop at report cared: 3, ,000 How many of you would like to work at LE? WHY? Pros of LE: pay at risk, highly motivated How many of you would be uncomfortable at LE? WHY? Cons: low cooperation, push machines to max, may get wrong ix of products Update on LE: finance problems in due to global expansion had to decide whether to pay bonus in US for operations that went well Guess? They still paid bonus Update in WSJ: can’t find emps with right skills Individuals Organization Contributions 13
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What is an effective reward?
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A Reward Is Effective When It Is...
available performance contingent timely reversible valuable 15
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What Types of Rewards Are Available in Organizations?
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Types of Rewards Economic rewards Non-economic rewards money benefits
perks Non-economic rewards prestige job content
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Multiple Means of Pay Merit Pay Creative Pay Practices
Skill based pay Gain-sharing plans lump-sum pay increases Flexible benefit plans Managing pay as an extrinsic reward
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Some Rules for Effective Rewards
Differentiate the rewards Reward promptly Give feedback Give positive feedback publicly Give negative feedback privately Match consequences and behaviors 19
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Individual & Situation Factors Affect Motivation & Performance
Ability Commitment Feedback Complexity Situational Constraints Demands Made on Employee Specified Goals PERFORMANCE Attention Effort Persistence
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