1. Chapter 13 Motivating Employees To Improve Job Performance

2. EMPLOYEE MOTIVATION (Book Definitions) Motivation: the psychological process that gives behavior purpose and direction. Alternative Definition: Motivation: is an inner drive that directs individuals behavior towards goals.

3. EMPLOYEE MOTIVATION (continued) Factors to Consider In the Motivation Job Performance Linkage u Individual motivational factors (Needs, satisfaction, expectations, goals) u Individual ability to get the job done (Depends on availability of resources and capability of employees) u Its a waste of time trying to motivate workers if they don’t have tools and capabilities.

4. EMPLOYEE MOTIVATION (continued) Some situations don’t make it easy to motivate people u Situational factors that help motivate - see below u Challenging and interesting work u Opportunity for participation and self management u Desired rewards

5. EMPLOYEE MOTIVATION (continued) For Discussion: Which of these factors has overriding importance in your worklife? Why?

6. Chapter Outline I. Motivation Theories u Maslow’s Need Hierarchy Theory u Herzberg’s Two-Factor Theory u Expectancy Theory u Goal-Setting Theory

7. MASLOW’S NEEDS HIERARCHY THEORY “Maslow’s message was simply this: people always have needs, and when one need is relatively fulfilled, others emerge in a predictable sequence to take its place.” (Preponent need is most motivating)

8. MASLOW’S NEEDS HIERARCHY THEORY (continued) Highest level u Self-actualization needs (being everything one is capable of becoming) u Esteem needs (Self-respect; self-confidence) u Love needs (Social acceptance and affection) u Safety needs (Protection from the elements) u Physiological needs (Life-sustaining needs) Lowest level (Forms a pyramid of needs)

9. Source: Data for diagram drawn from A. H. Maslow, “A Theory of Human Motivation,” Psychological Review, 50 (July 1943): 370-396. Maslow’s Hierarchy of Needs Theory

10. MASLOW’S NEEDS HIERARCHY THEORY (continued) For Discussion: Which level of needs primarily drives you at this point in your life? Explain.

11. HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) “The elimination of dissatisfaction is not the same as truly motivating an employee. To satisfy and motivate employees, an additional element is required: meaningful, interesting, and challenging work.”

12. HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) (continued) Dissatisfiers come from the job context or situation ( Money, fellow workers, superiors, etc.) Satisfiers come from job content or the work itself u Achievement u Recognition u Work itself u Responsibility u Advancement u Growth

13. HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) (continued) For Discussion: 1.Describe the worst job you ever had. What roles did Herzberg’s dissatisfiers and satisfiers play? 2.Describe the best job you ever had. What roles did Herzberg’s dissatisfiers and satisfiers play?

14. EXPECTANCY THEORY OF MOTIVATION Expectancy theory: assumes motivational strength is determined by perceived probabilities of success. Expectancy: one’s belief or expectation that one thing will lead to another.

15. EXPECTANCY THEORY OF MOTIVATION (continued) Three Key Perceptions in Expectancy Theory 1. Perceived effort-performance probability (expectancy) - You have the tools and are capable 2. Perceived value of rewards. (valence) - You value the reward 3. Perceived performance-reward probability (instrumentality) - oragnziation recognizes you’re doing a good job and gives you reward

16. A Basic Expectancy Model

17. Expectancy Equation u Expectancy Probability X’s Instrumentality Probability X’s Valence of Reward = Motivational Force For example.4 x.3 x 3 =.36 Motivational force Expectacy Ranges from 0.0 to 1.0 Instrumentality Ranges from 0.0 to 1.0 Valence or Value of reward can be some number like plus or minus 10 where plus 10 is best reward you can think of and -10 is worst punishment you can think of.

18. Another way to get people motivated is found in GOAL-SETTING THEORY Goal setting: process of improving individual or group job performance with formally stated objectives, deadlines, or quality standards.

19. GOAL-SETTING THEORY How Goals Improve Performance 1. Goals need to be: u Specific u Difficult u Participatively set 2. Goals motivate by: u Directing attention u Encouraging effort u Encouraging persistence u Fostering goal-attainment strategies and action plans

20. A Model of How Goals Can Improve Performance

21. GOAL-SETTING THEORY (continued) For Discussion: 1. Goal-setting to “just do your best.” How do you interpret this advise in light of the model in? 2. How do you use goals to improve your performance at school, at work, in sports, or elsewhere? (Give a specific goal you have on grades; on teams.? researchers say it is a mistake to tell someone

22. Personal and Social Equity Theory of how people are motivated

23. Chapter Outline (continued) II. Motivation Through Job Design u Strategy One: Fitting People to Jobs u Strategy Two: Fitting Jobs to People

24. JOB DESIGN Job design: creating task responsibilities based upon strategy, technology, and structure. Your limited as to how you can design a job by the organization’s strategy.

25. JOB DESIGN - LIMITS u Technology may require more or less expertise - or may cause you to have to survive in a bad environment (oil rig) u Organizational structure can effect job design (large sales territory sparsely settled territory, makes you travel a lot.)

26. JOB DESIGN (continued) Strategy One: Fitting People to Jobs u Realistic job previews (you have to fit this job even when its bad) u Job rotation u Limited exposure Contingent time off: rewarding people with early time off when they get the job done. (Productivity & quality often go up - people can earn time off.)

27. JOB DESIGN (continued) Strategy Two: Fitting Jobs to People u Job enlargement: combining two or more specialized tasks to increase motivation. (Also called horizontal job loading.) u Job enrichment: redesigning jobs to increase their motivating potential. (Also called vertical job loading.)

28. JOB DESIGN (continued) For Discussion: Describe your present (or past) job and explain how it could be horizontally or vertically loaded.

29. Strategy Two FITTING JOBS TO PEOPLE Use various types of JOB ENRICHMENT Comprehensive rebuilding of jobs using the Job Characteristics model. Core Job Characteristics u Skill variety u Task identity u Task significance u Autonomy u Feedback from job

30. JOB ENRICHMENT (continued) Critical Psychological States u Feeling that work is meaningful u Feeling of responsibility for outcomes of the work u Knowledge of the actual results of the work

31. JOB ENRICHMENT (continued) Team Exercise: Brainstorm the “perfect job” a person could have and describe it in terms of the core job characteristics and critical psychological states. (Note: You can build upon a job you have heard about or create an entirely new job.)

32. Chapter Outline (continued) III. Motivation Through Rewards u Extrinsic Versus Intrinsic Rewards u Employee Compensation u Improving Performance with Extrinsic Rewards

33. MOTIVATION THROUGH REWARDS Rewards: the material and psychological payoffs for working. Extrinsic rewards: payoffs granted to the individual by other people (e.g., money, benefits, recognition, praise). Intrinsic rewards: self-granted and internally experienced payoffs (e.g., a sense of accomplishment).

34. MOTIVATION THROUGH REWARDS (continued) Team Competition: Brainstorm a list of as many workplace extrinsic rewards as possible in ten minutes.

35. MOTIVATION THROUGH REWARDS (continued) For Discussion: Describe a situation in which you got an intrinsic reward from working. What can managers do to foster situations like that?

36. Extrinsic MOTIVATION (Extrinsic Rewards) EMPLOYEE COMPENSATION PLANS Non-incentive u Hourly Wage u Annual salary Incentive u Piece rate u Sales commission u Merit pay u Profit sharing u Gain sharing u Pay-for-knowledge u Stock options

37. EMPLOYEE COMPENSATION PLANS (continued) Other u Cafeteria compensation (Life-cycle benefits) u Employees select their own benefits from a list. u What you pick changes as your stages of life change.

38. EMPLOYEE COMPENSATION PLANS (continued) For Discussion: 1.From a managerial standpoint, which type of pay plan is best? Why? 2.Which pay plan would you prefer? Why?

39. Chapter Outline (continued) IV. Motivation Through Employee Participation u Quality Control Circles u Self-Managed Teams u Keys to Successful Employee Participation Programs

40. PARTICIPATIVE MANAGEMENT Participative management: the process of empowering employees to assume greater control of the workplace. Quality control circles: voluntary problem- solving groups committed to improving quality and reducing costs. Self-managed teams: high-performance teams that assume traditional managerial duties such as staffing and planning.

41. PARTICIPATIVE MANAGEMENT (continued) Keys to Successful Employee Participation Programs 1. A profit-sharing or gain-sharing plan. 2. A long-term employment relationship with good job security. 3. A concerted effort to build and maintain group cohesiveness. 4. Protection of the individual employee’s rights.

42. PARTICIPATIVE MANAGEMENT (continued) For Discussion: Are these four factors “a package deal,” meaning could one or two missing factors ruin a participative management program?

43. Chapter Outline (continued) V. Other Motivation Techniques for a Diverse Workforce u Flexible Work Schedules u Family Support Services u Sabbaticals

44. No Brainers on Motivating u Pick those with correct ability (HRM) u Give them tools and training (HRM, good Mgmt) u Have good evaluation system u Choose correct rewards (Maslow, Herzberg, Expectancy theory) u Be equitable (Equity theory: (effort/rewards of person1)=(effort/rewards of person 2) u Design jobs well ( i.e. job characteristic model)

45. Individual Motivation and Job Performance