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Chapter 9 Motivating Employees

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1 Chapter 9 Motivating Employees
Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

2 LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter
What Is Motivation? Define motivation Early Theories of Motivation Describe Maslow’s Hierarchy of Needs Theory Discuss McGregor’s Theory X and Theory Y Describe Herzberg’s Motivation-Hygiene Theory Review McClelland’s Theory of Needs Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

3 LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter
Contemporary Theories of Motivation Review the following theories of motivation Reinforcement Theory Job Characteristics Model (JCM) Equity Theory Expectancy Theory Discuss integrating contemporary theories of motivation Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

4 LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter
Current Issues in Motivation Discuss how to motivate a diverse workforce Review how to design effective rewards programs Describe how to improve work-life balance Suggestions For Motivating Employees Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

5 What Is Motivation? Motivation
An individual’s willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need Effort: a measure of intensity or drive Direction: effort directed toward organizational goals Need: personalized reason to exert effort Motivation works best when individual needs are compatible with organizational goals We define motivation as the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. Effort is a measure of intensity or drive. High levels of effort are unlikely to lead to favourable job performance unless the effort is channeled in a direction that benefits the organization. A need is an internal state that makes certain outcomes appear attractive. An unsatisfied need creates tension that stimulates drives within an individual. These drives generate a search behaviour to find particular goals that, if attained, will satisfy the need and reduce the tension (see Exhibit 9.1 found in ‘What Is Motivation?’). Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

6 Exhibit 9. 1 found in ‘What Is Motivation
Exhibit 9.1 found in ‘What Is Motivation?’ illustrates our definition of motivation: the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

7 Early Theories of Motivation
Maslow’s Hierarchy of Needs Theory Human needs are categorized in five levels Individuals must satisfy lower-order needs before they can satisfy higher order needs Satisfied needs will no longer motivate Motivating a person depends on knowing at what level that person is on the hierarchy Hierarchy of needs Lower-order (external): physiological, safety Higher-order (internal): social, esteem, self-actualization Maslow’s hierarchy of needs theory was developed by Abraham Maslow. It states that there is a hierarchy of five human needs (see Exhibit 9.2 contained in section ‘Maslow’s Hierarchy of Needs Theory’ found in ‘Early Theories of Motivation’): 1. Physiological (basic food, drink, water, shelter, and sexual needs) 2. Safety (security and protection from physical and emotional harm) 3. Social (affection, belongingness, acceptance, and friendship) 4. Esteem (internal factors such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention) 5. Self-actualization (a person’s drive to become what he or she is capable of becoming). a. As each need is substantially satisfied, the next need becomes dominant. b. Maslow also separated the needs into lower-level needs (includes the physiological and safety needs) and higher-level needs (includes social, esteem, and self-actualization). c. Although Maslow’s theory is widely recognized, research generally has not validated the theory. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

8 Maslow’s hierarchy of needs theory was developed by Abraham Maslow
Maslow’s hierarchy of needs theory was developed by Abraham Maslow. It states that there is a hierarchy of five human needs (see Exhibit 9.2 contained in section ‘Maslow’s Hierarchy of Needs Theory’ found in ‘Early Theories of Motivation’). Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

9 Early Theories of Motivation (cont’d)
McGregor’s Theory X and Theory Y Theory X Employees have little ambition, dislike work, avoid responsibility, and require close supervision Theory Y Employees can exercise self-direction, accept and seek out responsibility, and like to work Motivation is maximized by participative decision making, interesting jobs, and good group relations McGregor’s Theory X and Theory Y were developed by Douglas McGregor and describe two distinct views of human nature: Extrinsic motivation comes from outside the person and includes things such as pay, bonuses, and other tangible rewards. Intrinsic motivation reflects an individual’s internal desire to do something, with motivation coming from interest, challenge, and personal satisfaction. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

10 Early Theories of Motivation (cont’d)
Herzberg’s Motivation-Hygiene Theory Motivators: intrinsic factors that increase job satisfaction and motivation Achievement, recognition, and responsibility Hygiene factors: extrinsic factors that eliminate job dissatisfaction, but don’t motivate Supervision, policies, relationships, working conditions The opposite of satisfaction is not dissatisfaction Removing hygiene factors does not necessarily make that job more satisfying Herzberg’s Motivation-hygiene Theory was developed by Frederick Herzberg. It suggests that intrinsic factors are related to job satisfaction and motivation, and extrinsic factors are associated with job dissatisfaction (see Exhibit 9.3 contained in section ‘Herzberg’s Motivation-Hygiene Theory’ found in ‘Early Theories of Motivation’). Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

11 Exhibit 9.3 contained in section ‘Herzberg’s Motivation-Hygiene Theory’ found in ‘Early Theories of Motivation’. 1. Hygiene factors are factors that eliminated dissatisfaction. They included things such as supervision, company policy, salary, working conditions, security, and so forth—extrinsic factors associated with job context, or those things surrounding a job. 2. Motivators were factors that increased job satisfaction and hence motivation. They included things such as achievement, recognition, responsibility, advancement, and so forth—intrinsic factors associated with job content, or those things within the job itself. 3. Herzberg’s theory has been criticized for the statistical procedures and methodology used in his study. 4. Even considering the criticisms, Herzberg’s theory has had a strong influence on how we currently design jobs. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

12 The basis of Herzberg’s theory is that he believed that the opposite of satisfaction was not dissatisfaction (see Exhibit 9.4 contained in section ‘Herzberg’s Motivation-Hygiene Theory’ found in ‘Early Theories of Motivation’). Removing dissatisfying characteristics from a job would not necessarily make the job satisfying. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

13 Early Theories of Motivation (cont’d)
McClelland’s Theory of Needs There are three acquired needs that motivate work performance Need for achievement (nAch) Need for power (nPow) Need for affiliation (nAff) McClelland’s theory of needs proposes that managers understand which needs are most important to their employees and accordingly provide them a means of achieving that need. The three acquired needs are: Need for achievement: the drive to excel, to achieve in relation to a set of (aAch) standards, and to strive to succeed Need for power: the need to make others behave in a way that they (nPow) would not have behaved otherwise Need for affiliation: the desire for friendly and close interpersonal (nAff) relationships Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

14 Contemporary Theories of Motivation
Reinforcement Theory Behaviour is influence by consequences Reinforcers are consequences that, when given immediately following a behaviour, increases the probability that the behaviour will be repeated Emphasis is on positive reinforcement, meaning managers should ignore, not punish, unfavourable behaviour The reinforcement theory requires that action be taken immediately after a behaviour has taken place. Desired behaviours, if rewarded immediately, will encourage further desired behaviour and undesired behaviour, if not rewarded or punished, will be less likely to be repeated. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

15 Contemporary Theories of Motivation (cont’d)
Job Characteristics Model (JCM) A framework for designing motivating jobs Identifies five core job dimensions: Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the job provide? Feedback: do workers know how well they are doing? The job characteristics model (JCM) provides a framework for analyzing and designing jobs. It identifies five primary job characteristics, their interrelationships, and their impact on employee productivity, motivation, and satisfaction. The five job dimensions outlined in the JCM include (see Exhibit 9.5 contained in section ‘Job Characteristics Model (JCM)’ found in ‘Contemporary Theories of Motivation’): 1. Skill variety is the degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents. 2. Task identity is the degree to which a job requires completion of a whole and identifiable piece of work. 3. Task significance is the degree to which a job has a substantial impact on the lives or work of other people. 4. Autonomy is the degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out. 5. Feedback is the degree to which carrying out the work activities required by a job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

16 Exhibit 9.5 contained in section ‘Job Characteristics Model (JCM)’ found in ‘Contemporary Theories of Motivation’. a. Skill variety, task identity, and task significance combine to create meaningful work. Autonomy leads to an increased sense of responsibility for outcomes of the work. Feedback leads to knowledge of the actual results of the work activities. b. The JCM suggests that intrinsic (internal) rewards are gained when an employee learns (knowledge of results through feedback) that he or she personally (experienced responsibility through autonomy of work) has performed well on a task that he or she cares about (experienced meaningfulness of work through skill variety, task identify, and/or task significance). c. The more that these three conditions characterize a job, the greater the employee’s work motivation, performance, and satisfaction and the lower his or her absenteeism and likelihood of resigning. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

17 Combine tasks (job enlargement) to create more meaningful work.
The JCM also provides specific guidelines to managers for job design (see Exhibit 9.6 contained in section ‘Job Characteristics Model (JCM)’ found in ‘Contemporary Theories of Motivation’). Combine tasks (job enlargement) to create more meaningful work. Create natural work units to make employees’ work important and whole. Establish external and internal client relationships to provide feedback. Expand jobs vertically (job enrichment) by giving employees more autonomy. Open feedback channels to let employees know how well they are doing. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

18 Contemporary Theories of Motivation (cont’d)
Equity Theory An employee compares his or her job’s inputs-outcomes ratio with that of relevant others If the ratios are perceived to be equal then a state of equity (fairness) exists If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice) Equity theory, developed by J. Stacey Adams, says that an employee perceives what he or she got from a job situation (outcomes) in relation to what he or she put into it (inputs) and then compares the inputs-outcomes ratio with the inputs-outcomes ratios of relevant others and finally corrects any inequity (see Exhibit 9.7 contained in section ‘Equity Theory’ found in ‘Contemporary Theories of Motivation’). Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

19 Contemporary Theories of Motivation (cont’d)
Equity Theory (cont’d) Employee responses to perceived inequities: Distort own or others’ inputs or outcomes Induce others to change their inputs or outcomes Change own inputs or outcomes Choose a different comparison person Quit their job 1. Individuals compare themselves to others to assess equity. 2. Equity theory recognizes that individuals are concerned with their absolute rewards as well as the relationship of those rewards to what others receive. 3. What will employees do when they perceive an inequity? a. Distort either their own or others’ inputs or outcomes b. Behave in some way to induce others to change their inputs or outcomes c. Behave in some way to change their own inputs (increase or decrease efforts) or outcomes (seek greater rewards) d. Choose a different comparison person e. Quit their job 4. The referent against which individuals compare themselves is an important variable in equity theory. Three referent categories are: other, system and self. The other category includes other individuals with similar jobs in the same organization but also includes friends, neighbours or professional associates. The system category includes organizational pay policies and procedures and the administration of the system. The self category refers to the inputs-outcomes ratios that are unique to the individual. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

20 Equity theory, developed by J
Equity theory, developed by J. Stacey Adams, says that an employee perceives what he or she got from a job situation (outcomes) in relation to what he or she put into it (inputs) and then compares the inputs-outcomes ratio with the inputs-outcomes ratios of relevant others and finally corrects any inequity (see Exhibit 9.7 contained in section ‘Equity Theory’ found in ‘Contemporary Theories of Motivation’). Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

21 Contemporary Theories of Motivation (cont’d)
Equity Theory (cont’d) Originally focused on distributive justice The perceived fairness of the amount and allocation of rewards among individuals Has greater influence on employee satisfaction Recent research focused on procedural justice The perceived fairness of the process used to determine the distribution of rewards Affects employee’s organizational commitment, trust in his or her boss, and intention to quit Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

22 Contemporary Theories of Motivation (cont’d)
Expectancy Theory Individuals act on the expectation that a given outcome will follow and whether that outcome is attractive Key is to understand and manage employee goals and the relationship between effort, performance and rewards Effort: employee abilities and training/development Performance: valid appraisal systems Rewards (goals): understanding employee needs Expectancy theory is the theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Three relationships are important to this theory (see Exhibit 9.8 contained in section ‘Expectancy Theory’ found in ‘Contemporary Theories of Motivation’). It includes three variables or relationships: 1. Effort-performance linkage (expectancy) is the probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance. 2. Performance-reward linkage (instrumentality) is the degree to which an individual believes that performing at a particular level is instrumental in, or will lead to, the attainment of a desired outcome. 3. Attractiveness of the reward (valence) is the importance that the individual places on the potential outcome or reward that can be achieved on the job. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

23 Exhibit 9.8 contained in section ‘Expectancy Theory’ found in ‘Contemporary Theories of Motivation’ illustrates how expectancy theory works. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

24 Contemporary Theories of Motivation (cont’d)
Expectancy Relationships Expectancy The perceived probability that an individual’s effort will result in a certain level of performance Instrumentality The perception that a particular level of performance will result in attaining a desired outcome (reward) Valence The attractiveness/importance of the performance reward (outcome) to the individual 1. There are four features inherent in the theory: a. What perceived outcomes does the job offer the employee? b. How attractive do employees consider these outcomes to be? c. What kind of behaviour must the employee exhibit to achieve these outcomes? d. How does the employee view his or her chance of doing what is asked? 2. The key to understanding expectancy theory is understanding an individual’s goal and the linkage between effort and performance, between performance and rewards, and between rewards and individual goal satisfaction. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

25 Exhibit 9.9 contained in section ‘Expectancy Theory’ found in ‘Contemporary Theories of Motivation’ shows how to improve each of the links of the expectancy model. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

26 Current Issues in Motivation
Motivating a Diverse Workforce Motivating a diverse workforce through flexibility: Men desire more autonomy than do women Women desire learning opportunities, flexible work schedules, and good interpersonal relations “Interesting work” ranks high in importance to almost all employees Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

27 Current Issues in Motivation (cont’d)
Motivating Minimum-Wage Employees Employee recognition programs Provision of sincere praise Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

28 Current Issues in Motivation (cont’d)
Motivating Professionals and Technical Workers Characteristics of professionals: Strong and long-term commitment to their field of expertise Loyalty is to their profession, not to the employer Have the need to regularly update their knowledge Don’t define their workweek as 8:00 am to 5:00 pm Motivated by job challenges and organizational support of their work This group of employees values challenging work, problem solving, and support. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

29 Current Issues in Motivation (cont’d)
Motivating Contingent Workers Opportunity to become a permanent employee Opportunity for training There is no simple solution for motivating contingent employees. For a small set, the freedom of their temporary status is preferred to the demands of a full-time job. These are the exceptions, for the most part, temporary employees are not temporary by choice. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

30 Current Issues in Motivation (cont’d)
Designing Effective Rewards Programs Money is not normally an employee’s top priority Employee recognition programs provide attention, approval and appreciation for a job well done Pay-for-performance plans that reward employees on the basis of their performance Variable compensation including piece rates, wage incentives, profit-sharing, and lump sum bonuses 1. The role of money is important to all employees but is not normally the top motivator to most. It is important that when organizations develop reward programs it is necessary to determine what the individual values. 2. Employee recognition programs consist of personal attention and expressions of approval and appreciation for a job well done. 3. Pay-for-performance programs are compensation plans that pay employees on the basis of some performance measure. a. Performance-based compensation is probably most compatible with expectancy theory. b. The increasing popularity of pay-for-performance programs can be explained in terms of both motivation and cost control. c. Do pay-for-performance programs work? Studies seem to indicate that they do. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

31 Current Issues in Motivation (cont’d)
Designing Effective Rewards Programs (cont’d) Stock option programs that gives the right to purchase shares of company stock Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price These are financial incentives that give employees the right to purchase shares of stock at a set price. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

32 Current Issues in Motivation (cont’d)
Improving Work-Life Balance Compressed workweek in which employees work longer daily hours, but fewer days per week Flexible work hours (flextime) in which employees work a specific number of hours each week but can vary those hours Job Sharing in which two or more people split a full-time job Telecommuting in which employees work from home using computer links Motivating the workforce requires managers to help employees balance work and their life outside work. Compressed workweek is a workweek comprised of four 10-hour days. Flexible work hours (flextime) describes a scheduling system in which employees are required to work a number of hours a week, but are free, within limits, to vary the hours of work. Job sharing is the practice of having two or more people split a 40-hour-a-week job. Telecommuting allows employees to do their work at home by linking their computers to the office. The advantages of telecommuting are the decrease in the time and stress of commuting and the increase in flexibility in coping with family demands. The drawbacks revolve around the lack of social contact, the reward system used, and the separation of organization work and homework. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.

33 Suggestions for Motivating Employees
Recognize individual differences Match people to jobs Individualize rewards Link rewards to performance Check the system for equity Use recognition Don’t ignore money Several suggestions for motivating employees are given and are based on what is currently known about motivation. A. Recognize individual differences in terms of needs, attitudes, personality, and other important individual factors. B. Match people to jobs by identifying what needs are important to individuals and trying to provide jobs that allow them to fulfill those needs. C. Individualize rewards. Because employees have different needs, what is a reward and reinforcer to one may not work for another. D. Link rewards to performance by making rewards contingent on desired levels of performance. E. Check the system for equity. Employees should perceive that the rewards or outcomes are equal to the inputs given. F. Use recognition. Using recognition is a powerful, yet low-cost means to reward employees. G. Don’t ignore money. The allocation of performance-based increases, piecework bonuses, and other pay incentives is important in determining employee motivation. Chapter 9, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Sixth Canadian Edition Copyright © 2011 Pearson Canada Inc.


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