1. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–18–1 Chapter 8 Motivation

2. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–28–2 Lecture outline The nature of motivation Need theories Cognitive theories Reinforcement theory Social learning theory The human resource management framework

3. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–38–3 The nature of motivation Motivation is the force energising or giving direction to behaviour. It is a complex interaction of behaviours, needs, rewards and reinforcement and cognitive activities.

4. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–48–4 The nature of motivation ability motivation environmental conditions performance = X X

5. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–58–5 Need theories Hierarchy-of-needs theory (Maslow) Argues that individual needs form a five-level hierarchy.

6. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–68–6 Hierarchy of needs Physiological Safety Belongingness Esteem Self-actualisation

7. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–78–7 Need theories Two-factor theory (Herzberg) Argues that hygiene factors are necessary to keep workers from feeling dissatisfied, but only motivators can lead workers to feel satisfied and motivated.

8. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–88–8 Need theories Two-factor theory (Herzberg) Hygiene factors Factors seeming to make individuals feel dissatisfied with their jobs Motivators Factors seeming to make individuals feel satisfied with their jobs

9. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–98–9 Need theories Two-factor theory (Herzberg) Hygiene factors - Pay - Working conditions - Supervisors - Company policies - Fringe benefits These factors help prevent dissatisfaction.

10. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–10 Need theories Two-factor theory (Herzberg) Motivators - Achievement - Responsibility - Work itself - Recognition - Growth - Advancement These factors promote satisfaction.

11. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–11 Need theories ERG theory (Alderfer) Alternative to Maslow’s hierarchy of needs theory, which argues that there are three levels of individual needs.

12. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–12 Need theories ERG theory (Alderfer) Existence needs Material and physiological desires Relatedness needs Need to be accepted and to interact Growth needs Need for creativity and productive impact

13. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–13 Need theories Acquired-needs theory (McClelland) Argues that our needs are acquired or learned on the basis of our life experiences.

14. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–14 Need theories Acquired-needs theory (McClelland) Need for achievement Desire to accomplish challenging tasks Need for affiliation Desire to have warm, friendly relationships Need for power Desire to influence and control

15. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–15 Cognitive theories Expectancy theory (Vroom) Argues that we consider three main issues (effort- performance, performance-outcome and valence) before we expend effort necessary to perform at a given level.

16. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–16 Cognitive theories Expectancy theory (Vroom) Effort-performance expectancy Our assessment of the probability our efforts will lead to the required level of performance. Performance-outcome expectancy Our assessment of the probability our successful performance will lead to desired outcomes. Valence Our assessment of anticipated value of various outcomes or rewards.

17. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–17 Cognitive theories Equity theory (Adams) Argues that we prefer situations of balance, or equity. Implications for managers: – Communication essential to assess equity/inequity perceptions in employees – Complementary to expectancy theory

18. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–18 Cognitive theories Goal-setting theory Goal-setting theory [technique] works by focusing attention and action, mobilising effort, increasing persistence, and encouraging the development of strategy to achieve goals.

19. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–19 Reinforcement theory Argues that our behaviour can be explained by consequences in the environment.

20. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–20 Reinforcement theory Types of reinforcement: Positive Uses pleasant, rewarding consequences to encourage desired behaviour. Use of shaping. Negative Uses unpleasant stimuli so that an individual will engage in the desired behaviour to stop the stimuli.

21. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–21 Reinforcement theory Types of reinforcement (contd): Extinction Stopping previously available positive outcomes from a behaviour to decrease the behaviour. Punishment Providing negative consequences to decrease or discourage a behaviour.

22. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–22 Reinforcement schedules Fixed interval: given on fixed time schedule. Uneven responses; extinction rapid if reinforcement late, or stops Fixed interval: given on fixed time schedule. Uneven responses; extinction rapid if reinforcement late, or stops Fixed ratio: given after fixed number of cases of desired behaviour. High response rates, rapid extinguishment if stopped even temporarily Fixed ratio: given after fixed number of cases of desired behaviour. High response rates, rapid extinguishment if stopped even temporarily Variable ratio: given on variable or random frequency of behaviour basis. High response rate, very slow extinguishment Variable ratio: given on variable or random frequency of behaviour basis. High response rate, very slow extinguishment Variable interval: given on variable or random time basis. High, steady response rate, slow extinguishment if stopped Variable interval: given on variable or random time basis. High, steady response rate, slow extinguishment if stopped Using reinforcement theory: encourage desired behaviour, be clear on what is desired. Use variable interval & variable ratio reinforcement. Punish moderately severely & promptly. Using reinforcement theory: encourage desired behaviour, be clear on what is desired. Use variable interval & variable ratio reinforcement. Punish moderately severely & promptly.

23. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–23 Social learning theory Social learning theory (Bandura) Argues that learning occurs through continuous reciprocal interaction of our behaviours, various personal factors and environmental forces.

24. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–24 Social learning theory Learning occurs by continuous interaction between our behaviours, personal factors and environmental forces. 3 related processes: Symbolic processes Self-control/regulation Vicarious learning

25. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–25 Motivation and strategic HRM Human resource management (HRM) Those management functions concerned with attracting, maintaining and developing people in the employment relationship.

26. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–26 The HRM framework Theories of HRM Proactive approach, link to strategic planning & cultural change View of people as capital, not cost Possibility of mutually beneficial relationship between stakeholders

27. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–27 Establishing the employment relationship Job analysis The systematic collecting and recording of information about the purpose of a job, its major duties, the conditions under which it is performed, the required contacts with others and the knowledge, skills and abilities needed to perform it effectively.

28. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–28 Establishing the employment relationship Recruitment The process of finding and attracting job candidates capable of effectively filling job vacancies.

29. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–29 Establishing the employment relationship Selection process: The decision-making system used to identify which job applicants are best suited to the vacant position. Reliability: The degree to which the decision process will measure the same thing consistently. Validity: Whether the decision process actually measures what it sets out to measure.

30. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–30 Maintaining the relationship Remuneration/benefits The financial payment to employees for their work. Training The process of equipping people with skills and competencies. Development Broad preparation of employee for future opportunities through the acquisition of new knowledge or skills. Performance management/appraisal Judgmental assessment of employee performance.

31. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–31 HRIS, Internet, intranets and extranets HRIS Human Resource Information System Internet Global connection of computer servers through which users can access stored information from their PCs Intranets Closed networks of information databases and systems within an organisation Extranets Closed networks of information systems between organisations

32. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–32 The future of work Fewer core employees Increased part-time, casual and temporary staff Teleworking Temporary agency work, short-term labour hires, on-call and contract workers

33. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–33 Terminating the relationship Retrenchment The forced termination of the employment relationship due to financial, technological or organisational circumstances. Redundancy A forced termination of the employment relationship resulting from the permanent deletion of specific positions. Dismissal Occurs when t he employer gives the required notice to terminate the employment relationship.

34. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–34 Corporate responsibility The human resource challenge: Achieving a balance of profit in conjunction with socially responsible practices HRM helps shape behaviour in organisations and promotes motivation.

35. © 2006 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management Foundations: A Pacific Rim Focus 1e by Bartol et al. 8–35 Lecture summary Understanding motivation: ability, environment and performance Need theories: Maslow, Herzberg, ERG, McClelland’s acquired needs Cognitive theories: expectancy, equity, goal setting Reinforcement theory: positive and negative reinforcement, extinction and punishment HRM: aligning with organisational goals– establishing, maintaining and managing the employment relationship