1. ChapterChapter M OTIVATION IN ORGANIZATIONS FourFour

2. After reading this chapter you should be able to: 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. Explain equity theory and procedural justice, and explain how both 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 and job enrichment as techniques for motivating employees. 7. Describe the job characteristics model and its implications for redesigning jobs to enhance motivation.

3. Motivation in Organizations: Its Basic Nature (Pp. 130-132) Motivation - set of processes that arouse, direct, and maintain human behavior toward attaining some goal Components Arousal - drive or energy behind our actions Direction - choices that we make in pursuing some goal Maintaining - conditions that suggest continuance of our actions Key Points Motivation and job performance are not synonymous - motivation is one of several determinants of performance Motivation is multifaceted - several motives may be operative at the same time People are motivated by more than just money - goals, other than financial goals, are operative at work

4. Motivating By Meeting Needs (Pp. 133-137) Maslow’s Need Hierarchy - theory specifying that there are five human needs that are arranged so that lower-level, more basic needs must be satisfied before higher-level needs become activated Deficiency needs - if these needs are not met, people will not develop either physically or psychologically Physiological needs - biological drives such as the need for food, air, water, and shelter Safety needs - need for a secure environment, free from threats of physical or psychological harm Social needs - need to be affiliative, i.e., to have friends and to be loved and accepted by other people Growth needs - gratification of these needs helps a person to reach her/his full potential Esteem needs - need to develop self-respect and to gain the approval of others Self-actualization needs - need to discover who we are and to develop ourselves to our fullest potential

5. Motivating By Meeting Needs (cont.) Maslow’s Need Hierarchy (cont.) Evaluation of the theory - has not received much empirical support - other research has failed to confirm that there are five categories of needs - needs do not have to satisfied in the order prescribed in the hierarchy Alderfer’s ERG Theory - asserts that there are three basic human needs that are not necessarily activated in any specific order Existence needs - correspond to Maslow’s physiological and safety needs Relatedness needs - correspond to Maslow’s social needs Growth needs - correspond to Maslow’s esteem and self- actualization needs Evaluation of the theory - fits better with research evidence

6. Deficiency Needs Growth needs 4. Esteem needs 5. Self-actualization needs Growth needs 3. Social needs Relatedness needs 1. Physiological needs 2. Safety needs Existence needs Maslow’s need hierarchy theoryAlderfer’s ERG theory Figure 4.4 Need Theories: A Comparison

7. Motivating By Meeting Needs (cont.) Managerial Applications of Need Theories - makes sense to help people satisfy their needs, especially if self-actualization will bring about greater creativity on the job Promote a healthy workforce - satisfy employees’ physiological needs by providing incentives for mental and physical health Provide financial security - an important safety need - go beyond traditional forms of compensation - address issues of job security, including outplacement Provide opportunities to socialize - organize events that help to satisfy social needs Recognize employee’s accomplishments - award programs satisfy esteem needs - must clearly link award to desired behavior

8. Motivating By Setting Goals (Pp. 138-142) Goal Setting - process of determining specific levels of performance for workers to attain - one of the most important motivational forces in organizations Locke and Latham’s Goal-Setting Theory - having a goal serves as a motivator because it influences: - people’s beliefs about their ability to perform the task - self-efficacy - the degree to which people invest themselves in the task - goal commitment is determined by the extent to which an individual desires to attain the goal and believes that s/he has a reason- able chance of doing so

9. Figure 4.7 Cognitive Summary of the Goal Setting Process Desire to attain goalPerceived chance of goal attainment Goal commitment (accept goal as own) Self-efficacy beliefs Desire to feel competent Recognize challenge of higher goal level Performance at goal level

10. Motivating By Setting Goals (cont.) Managers’ Guidelines for Setting Effective Performance Goals Assign specific goals - people perform at higher levels when asked to meet a specific, high-performance goal than when asked simply to “do your best” or when no goal at all is assigned - improve output, reduce absenteeism, decrease accidents Assign difficult - but acceptable - performance goals - people will internalize the goal if it is perceived as challenging but attainable - involve employees in the goal setting process Provide feedback concerning goal attainment - informs individual about how closely s/he is approaching the performance goal - without feedback, workers do their jobs blindly

11. Percentage of Maximum Weight Carried on Each Trip Before goal After goal Four-Week Periods 50 60 70 80 90 100 12456789101112Seven Years Later Figure 4.8 Goal Setting: Some Impressive Effects There was a dramatic improvement in performance after a goal was set Performance at the goal level was sustained seven years after the goal was first set 3 Goal level

12. Motivating By Being Fair (Pp. 142-148) Organizational Justice - people’s perception of fairness in organizations, consisting of perceptions regarding how decisions are made concerning the distribution of outcomes Procedural justice - focus is on the process used to resource allocation decisions Equity theory - focus is on the perceived fairness of the outcomes themselves Organizational Justice Procedural Justice Equity Theory

13. Adams Equity Theory - people strive to maintain a ratio of their own outcomes (rewards) to their own inputs (contributions) equal to the outcome/input ratio of others with whom they compare themselves Outcomes - the rewards, such as salary and recognition, that employees receive from their jobs Inputs - people’s contributions to their jobs, such as their experience, qualifications, or amount of time worked Motivating By Being Fair (cont.) Overpayment inequity - the condition, resulting in feelings of guilt, in which the ratio of one’s outcomes to one’s inputs is more than the corresponding ratio of comparison person - individual may raise her inputs or lower his outcomes Underpayment inequity - the condition, resulting in feelings of anger, in which the ratio of one’s outcomes to one’s inputs is less than the corresponding ratio of comparison person - individual may lower her inputs or raise his outcomes Perceptual resolution of inequity - change how you think about the situation

14. Social Comparison Person A Person B Outcomes Inputs Outcomes Inputs Angry Guilty Underpayment inequity for Person A Overpayment inequity for Person B Less Than Outcomes Inputs Outcomes Inputs Satisfied Equitable payment for Person A Equitable payment for Person B Equal To Figure 4.11 Equity Theory Overpayment inequity for Person A Underpayment inequity for Person B Greater Than Outcomes Inputs Outcomes Inputs Guilty Angry

15. Motivating By Being Fair (cont.) Procedural Justice: Making Decisions Fairly - for the outcome to be fair, the procedures must be fair Structural side of procedural justice - determining how decisions need to be made for them to be considered fair - give people a say in how decisions are made - voice - provide an opportunity for errors to be corrected - appeal process - apply rules and policies consistently - make decisions in an unbiased manner Social side of procedural justice - quality of interpersonal treatment received at the hands of decision maker Interactional justice - perceived fairness of the interpersonal treatment used to determine organizational outcomes - informational justification - thoroughness of the information received about a decision - social sensitivity - amount of dignity and respect demonstrated when presenting an undesirable outcome

16. Motivating By Being Fair (cont.) Organizational Justice: Some Tips for Managers - implications of equity theory for motivating people Avoid overpayment - managers should strive to treat all employees equitably - be open and honest about outcomes and inputs Give people a voice in decisions that affect them - give people a say in matters that pertain to their jobs Present information about outcomes in a thorough, socially sensitive manner - take sting out of undesirable outcomes Avoid underpayment - employees may attempt to “even the score” Two-tier wage structures - payment systems in which newer employees are paid less than employees hired at earlier times who do the same work

17. Motivating By Altering Expectations (Pp. 149-153) Expectancy Theory - characterizes people as rational beings who think about what they must do to be rewarded and how much that reward means to them before they actually perform their jobs Basic elements - three different types of beliefs Expectancy - belief that one’s effort will influence one’s performance positively Instrumentality - beliefs regarding the likelihood of being rewarded according to her/his own level of performance Valence - value a person places on the rewards s/he expects to receive from an organization Combining all three components - motivation is a multiplicative function of the three components - if any component is zero, overall level of motivation is also zero

18. Motivating By Altering Expectations (cont.) Expectancy Theory (cont.) Other determinants of job performance - motivation is only one of several important determinants Skills and abilities - determine person/job fit Role perceptions - what employees believe their jobs duties to be Opportunities - chance to perform the job Managerial Applications of Expectancy Theory Clarify people’s expectancies that effort leads to performance - train, make desired performance attainable, and help employee to attain level of performance Administer rewards with a positive valence - “carrot must be tasty” Cafeteria-style benefit plan - incentive system in which worker can select the fringe benefits s/he wants from a menu of available alternatives Clearly link valued rewards and performance - enhance beliefs about instrumentality by specifying what behavior leads to what rewards

19. Skills and abilities Role perceptions and opportunities Job Performance Effort Performance Expectancy Instrumentality Rewards Figure 4.14 Expectancy Theory: An Overview Motivation Valence of Rewards X X

20. Motivating by Structuring Jobs to Make Them Interesting (Pp. 153-160) Job Design - suggests that jobs can be structured to enhcance people’s interest in doing them Job enrichment - gives employees a high degree of control over their work, from planning and organization through implementation and evaluation - employees determine how to do their jobs - vertical job loading - although successful in many organizations, popularity is limited by difficulty in implementation and lack of employee acceptance Job enlargement - expansion of the content of a job to include more variety and more tasks at the same level - does not increase responsibility nor skills needed to do job - horizontal job loading - may help to improve job performance, but its effects may not be lasting

21. Task 1 Task 2 Level of Responsibility (vertical job loading) (high) (low) Number of Tasks (horizontal job loading) (high) (low) Figure 4.15 Job Enlargement and Job Enrichment: A Comparison Enlarged Job Task 3 Task 4 Job enlargement adds more tasks at the same level of responsibility. Level of Responsibility (vertical job loading) (high) (low) Number of Tasks (horizontal job loading) Standard Job (high) (low) Task 1 Task 2 (low) Number of Tasks (horizontal job loading) Level of Responsibility (vertical job loading) (high) (low) Task 1 Task 2 Task 1 Task 2 Enriched Job Job enrichment adds more responsibility to the same number of tasks.

22. Motivating by Structuring Jobs to Make Them Interesting (cont.) Job Characteristics Model - specifies that enriching certain elements of jobs alters people’s psychological states in a manner that enhances their work effectiveness Components of the Model - affect motivation, satisfaction, and performance Core job dimensions Skill variety - extent to which a job requires worker to use different skills and talents Task identity - extent to which an entire piece of work is completed from beginning to end Task significance - impact of job on others Autonomy - amount of discretion to do job as desired Feedback - information about performance effectiveness Critical psychological states - beliefs engendered by core dimensions Experienced meaningfulness - importance and value of job - stems from skill variety, task identity and significance Personal responsibility and accountability - stems from autonomy Knowledge of results - stems from feedback

23. Motivating by Structuring Jobs to Make Them Interesting (cont.) Job Characteristics Model (cont.) Does model apply to everyone? - model is especially effective in describing behavior of people who are high in growth need strength Putting it all together Job Diagnostic Survey (JDS) - questionnaire used to measure the core dimensions present in a given job Motivating Potential Score (MPS) - mathematical index describing the degree to which a job is designed to motivate people MPS = Skill variety + Task identity + Task significance X Autonomy X Feedback 3 Evidence for the model - most empirical tests have supported many aspects of the model

24. CORE JOB DIMENSIONS Skill variety Task variety Task significance Autonomy Feedback CRITICAL PSYCHOLOGI- ICAL STATES Experienced meaningfulness of the work Experienced responsibility for outcomes of the work Knowledge of the actual results of the work activities Employee growth need strength PERSONAL AND WORK OUTCOMES High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover Figure 4.16 Job Characteristics Model

25. Motivating by Structuring Jobs to Make Them Interesting (cont.) Techniques for Designing Jobs that Motivate Combine tasks - instead of having several workers perform separate parts of a whole job, have each person perform the entire job Open feedback channels Establish client relationships - person performing a job comes into contact with the recipient of that service Load jobs vertically - give people greater responsibility for the job