1. Motivation in Organizations Chapter 6

2. © Copyright 2003, Prentice Hall 2 Learning Objectives 1. Define motivation and explain its importance in the field of organizational behavior. 2. Describe need hierarchy theory and what it recommends about improving motivation in organizations. 3. Identify and explain the conditions through which goal setting can be used to improve job performance. 4. Describe distributive justice, procedural justice, and interactional justice, and explain how they may be applied to motivating people in organizations. 5. Describe expectancy theory and how it may be applied in organizations. 6. Distinguish between job enlargement, job enrichment, and the job characteristics model as techniques for motivating employees.

3. © Copyright 2003, Prentice Hall 3 Motivation  The set of processes that arouse, direct, and maintain human behavior toward attaining some goal.  Components : –Arousal –Direction –Maintenance

4. © Copyright 2003, Prentice Hall 4 Components of Motivation

5. © Copyright 2003, Prentice Hall 5 Key Points about Motivation  Motivation and job performance are not synonymous.  Motivation is multifaceted.  People are motivated by more than just money.

6. © Copyright 2003, Prentice Hall 6 Maslow ’ s Need Hierarchy Theory Specifies that there are five human needs and that these are arranged in such a way that lower, more basic needs must be satisfied before higher-level needs become activated. Deficiency Needs Physiological Safety Social Growth Needs Esteem Self-actualization Deficiency Needs Physiological Safety Social Growth Needs Esteem Self-actualization

7. © Copyright 2003, Prentice Hall 7 Deficiency Needs  The needs that must be met in order for people to develop in a healthy fashion.  Physiological  Physiological: Fundamental biological drives, such as the need for food, air, water, and shelter.  Safety  Safety: The need for a secure environment and to be free from threats of physical or psychological harm.  Social  Social: The need to be affiliative – that is, to have friends, and to be loved and accepted by other people.

8. © Copyright 2003, Prentice Hall 8 Growth Needs  The needs that must be met in order for a person to reach his or her full potential.  Esteem  Esteem: The need to develop self- respect and to gain the approval of others.  Self-Actualization  Self-Actualization: The need to discover who we are and to develop ourselves to the fullest potential.

9. © Copyright 2003, Prentice Hall 9 Alderfer ’ s ERG Theory  An alternative to Maslow’s need hierarchy theory which asserts that there are three basic human needs: –Existence –Existence: Corresponds with Maslow’s physiological and safety needs. –Relatedness –Relatedness: Corresponds with Maslow’s social needs. –Growth –Growth: Corresponds with Maslow’s esteem and self-actualization needs.

10. © Copyright 2003, Prentice Hall 10 Need Theories: A Comparison

11. © Copyright 2003, Prentice Hall 11 Managerial Applications Promote a healthy workforce Provide financial security Provide opportunities to socialize Recognize employees’ accomplishments

12. © Copyright 2003, Prentice Hall 12 Goal-Setting Theory  The theory according to which a goal serves as a motivator because it causes people to compare their present capacity to perform with that required to succeed at the goal.  Related Concepts: –Goal Setting –Goal Setting: The process of determining specific levels of performance for workers to attain. –Self-Efficacy –Self-Efficacy: One’s belief about having the capacity to perform a task. –Goal Commitment –Goal Commitment: The degree to which people accept and strive to attain goals.

13. © Copyright 2003, Prentice Hall 13 The Goal-Setting Process

14. © Copyright 2003, Prentice Hall 14 Setting Effective Goals  Assign specific goals: People perform at higher levels when asked to meet a specific high- performance goal than when simply asked to “do their best,” or when no goal at all is assigned.  Assign difficult but acceptable goals.  Provide feedback concerning goal attainment.

15. © Copyright 2003, Prentice Hall 15 Goal-Setting Effects

16. © Copyright 2003, Prentice Hall 16 The Importance of Feedback

17. © Copyright 2003, Prentice Hall 17 Organizational Justice People’s perceptions of fairness in organizations, consisting of perceptions of how decisions are made regarding the distribution of outcomes and the perceived fairness of those outcomes themselves. Distributive Justice Distributive Justice: The perceived fairness of the way rewards are distributed among people. Procedural Justice Procedural Justice: Perceptions of the fairness of the procedures used to determine outcomes. Interactional Justice Interactional Justice: The perceived fairness of the interpersonal treatment used to determine organizational outcomes.

18. © Copyright 2003, Prentice Hall 18 Three Types of Justice

19. © Copyright 2003, Prentice Hall 19 Equity Theory The theory stating that people strive to maintain ratios of their own outcomes to their own inputs that are equal to the outcome/input ratios of others with whom they compare themselves. Outcomes Outcomes: The rewards employees receive from their jobs, such as salary and recognition. Inputs Inputs: People’s contributions to their jobs, such as their experience, qualifications, or the amount of time worked.

20. © Copyright 2003, Prentice Hall 20 Equity Theory Overpayment Inequity Overpayment Inequity: The condition resulting in feelings of guilt, in which the ratio of one’s outcomes/inputs is more than the corresponding ratio of another person with whom that person compares himself or herself. Underpayment Inequity Underpayment Inequity: The condition resulting in feelings of anger, in which the ratio of one’s outcomes/inputs is less than the corresponding ratio of another person with whom that person compares himself or herself. Equitable Payment Equitable Payment: The state in which one person’s outcome/input ratio is equivalent to that of another person with whom the person compares himself or herself.

21. © Copyright 2003, Prentice Hall 21 Equity Theory

22. © Copyright 2003, Prentice Hall 22 Reactions to Inequity

23. © Copyright 2003, Prentice Hall 23 Making Decisions Fairly  Give people a say in how decisions are made.  Provide an opportunity for errors to be corrected.  Apply rules and policies consistently.  Make decisions in an unbiased manner.

24. © Copyright 2003, Prentice Hall 24 Motivational Tips  Avoid underpayment.  Avoid overpayment.  Give people a voice in decisions affecting them.  Explain outcomes thoroughly using a socially sensitive manner.

25. © Copyright 2003, Prentice Hall 25 Expectancy Theory The theory that asserts that motivation is based on people’s beliefs about the probability that effort will lead to performance, multiplied by the probability that performance will lead to reward, multiplied by the perceived value of the reward. Determinants of motivation:ExpectancyInstrumentalityValence Other Factors

26. © Copyright 2003, Prentice Hall 26 Determinants of Motivation Expectancy Expectancy: The belief that one’s efforts will positively influence one’s performance. Instrumentality Instrumentality: An individual’s beliefs regarding the likelihood of being rewarded in accord with his or her own level of performance. Valence Valence: The value a person laces on the rewards he or she expects to receive from an organization. Other Determinants Other Determinants: Skills and abilities, Role perceptions, opportunities to perform

27. © Copyright 2003, Prentice Hall 27 Expectancy Theory

28. © Copyright 2003, Prentice Hall 28 Managerial Applications Clarify people’s expectancies that their effort will lead to performance. Administer rewards that are positively valent to employees. Clearly link valued rewards and performance.

29. © Copyright 2003, Prentice Hall 29 Job Design  An approach to motivation suggesting that jobs can be created to enhance people’s interest in doing them.  Job Enlargement  Job Enlargement: The practice of expanding the content of a job to include more variety and a greater number of tasks at the same level.  Job Enrichment  Job Enrichment: The practice of giving employees a high degree of control over their work, from planning and organization, through implementing the jobs and evaluating the results.

30. © Copyright 2003, Prentice Hall 30 Job Enlargement and Enrichment

31. © Copyright 2003, Prentice Hall 31 The Job Characteristics Model An approach to job enrichment that specifies that five core job dimensions produce critical psychological states that lead to beneficial outcomes for individuals and the organization. Components of the Model: –Core Job Dimensions Motivating Potential Score –Critical Psychological States Growth Need Strength –Personal and Work Outcomes

32. © Copyright 2003, Prentice Hall 32 Core Job Dimensions  Skill Variety  Skill Variety: The extent to which a job requires a number of different activities using several of the employee’s skills and talents.  Task Identity  Task Identity: The extent to which a job requires completing a whole piece of work from beginning to end.  Task Significance  Task Significance: The degree of impact the job is believed to have on others.  Autonomy  Autonomy: The extent to which employees have the freedom and discretion to plan, schedule, and carry out their jobs as desired.  Feedback  Feedback: The extent to which the job allows people to have information about the effectiveness of their performance.

33. © Copyright 2003, Prentice Hall 33 Motivating Potential Score  A mathematical index describing the degree to which a job is designed so as to motivate people, as suggested by the job characteristics model. It is computed on the basis of a questionnaire known as the Job Diagnostic Survey (JDS).  The lower the MPS, the more the job may stand to benefit from redesign.

34. © Copyright 2003, Prentice Hall 34 Critical Psychological States Experienced meaningfulness of the work. Experienced responsibility for outcomes of the work. Knowledge of the actual results of the work activities. growth need strength These effects are moderated by an individual’s growth need strength: –The personality variable describing the extent to which people have a high need for personal growth and development on the job. –The JCM best describes people high in growth need strength.

35. © Copyright 2003, Prentice Hall 35 The Job Characteristics Model

36. © Copyright 2003, Prentice Hall 36 Enriching Jobs