Copyright © 2016 Pearson Canada Inc.

Learning Outcomes: Define motivation. Compare and contrast early theories of motivation. Compare and contrast contemporary theories of motivation. Discuss current issues in motivation. Copyright © 2016 Pearson Canada Inc.

What Is Motivation? Motivation: The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. Learning Outcome 1: Define motivation. 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. Copyright © 2016 Pearson Canada Inc.

What Is Motivation? Need: An internal state that makes certain outcomes appear attractive Learning Outcome 1: Define motivation. 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 14-1). Copyright © 2016 Pearson Canada Inc.

Exhibit 14-1 The Motivation Process
Learning Outcome 1: Define motivation. Exhibit 14-1 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. Copyright © 2016 Pearson Canada Inc.

Early Theories of Motivation
Maslow’s Hierarchy of Needs Theory Needs were categorized as 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. Learning Outcome 2: Compare and contrast early theories of motivation. Maslow’s hierarchy of needs theory was developed by Abraham Maslow. It states that there is a hierarchy of five human needs (see Exhibit 14-2): 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. Copyright © 2016 Pearson Canada Inc.

Maslow’s Hierarchy of Needs Theory Lower-order (external): physiological, safety Higher-order (internal): social, esteem, self-actualization Learning Outcome 2: Compare and contrast early theories of motivation. Maslow’s hierarchy of needs theory was developed by Abraham Maslow. It states that there is a hierarchy of five human needs (see Exhibit 14-2): 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. Copyright © 2016 Pearson Canada Inc.

Maslow’s Hierarchy of Needs Theory Hierarchy of needs theory Maslow’s theory that there is a hierarchy of five human needs: physiological, safety, social, esteem, and self-actualization; as each need becomes satisfied, the next need becomes dominant. Physiological needs A person’s need for food, drink, shelter, sexual satisfaction, and other physical requirements. Safety needs A person’s need for security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met. Learning Outcome 2: Compare and contrast early theories of motivation. Copyright © 2016 Pearson Canada Inc.

Maslow’s Hierarchy of Needs Theory Social needs A person’s need for affection, belongingness, acceptance, and friendship. Esteem needs A person’s need for internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention. Self-actualization needs A person’s need to grow and become what he or she is capable of becoming. Learning Outcome 2: Compare and contrast early theories of motivation. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-2 Maslow’s Hierarchy of Needs
Learning Outcome 2: Compare and contrast early theories of motivation. Copyright © 2016 Pearson Canada Inc.

McGregor’s Theory X and Theory Y Theory X The assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform. Theory Y The assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction. Motivation is maximized by participative decision making, interesting jobs, and good group relations. Learning Outcome 2: Compare and contrast early theories of motivation. McGregor’s Theory X and Theory Y were developed by Douglas McGregor and describe two distinct views of human nature. 1. There are two types of motivators: a. extrinsic motivators—factors that are external to the individual b. intrinsic motivators—factors that are internal 2. Theory X assumes that employees dislike work, are lazy, seek to avoid responsibility, and must be coerced to perform. In other words, it posits that people are motivated exclusively by extrinsic factors. 3. Theory Y assumes that employees are creative, seek responsibility, and can exercise self-direction. This theory suggests that employees are intrinsically motivated. a. Another way of looking at the X and Y theories is that theory X assumes that lower-order needs (Maslow’s) dominate individuals, and Theory Y assumes that higher-order needs dominate. 4. Our current knowledge of motivation tells us that neither theory alone fully accounts for employee behaviour. What we know is that motivation is the result of the interaction of the individual and the situation. Individuals differ in their basic motivational drive. Copyright © 2016 Pearson Canada Inc.

Herzberg’s Motivation-Hygiene Theory Attempted to explain why job satisfaction does not result in increased performance. The opposite of satisfaction is not dissatisfaction, but rather no satisfaction. Learning Outcome 2: Compare and contrast early theories of motivation. 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 14-3). Copyright © 2016 Pearson Canada Inc.

Herzberg’s Motivation-Hygiene Theory (aka: two-factor theory) Herzberg’s theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are related to job dissatisfaction: Hygiene factors: factors that eliminate job dissatisfaction, but don’t motivate Motivators: factors that increase job satisfaction and motivation Learning Outcome 2: Compare and contrast early theories of motivation. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-3 Herzberg’s Two-Factor Theory
Learning Outcome 2: Compare and contrast 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. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-4 Contrasting Views of Satisfaction–Dissatisfaction
Learning Outcome 2: Compare and contrast early theories of motivation. The basis of Herzberg’s theory is that he believed that the opposite of satisfaction was not dissatisfaction (see Exhibit 14-4). Removing dissatisfying characteristics from a job would not necessarily make the job satisfying. Copyright © 2016 Pearson Canada Inc.

McClelland’s Three-Needs Theory Three acquired (not innate) needs—achievement, power, and affiliation—are major motives in work. Need for Achievement (nAch) The drive to succeed and excel in relation to a set of standards. Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise. Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships. Learning Outcome 2: Compare and contrast early theories of motivation. David McClelland and his associates proposed the three-needs theory, which says that three acquired (not innate) needs are major motivators in work. These needs are the need for achievement (nAch), which is the drive to succeed and excel in relation to a set of standards; the need for power (nPow), which is the need to make others behave in a way that they would not have behaved otherwise; and the need for affiliation (nAff), which is the desire for friendly and close interpersonal relationships. Of these three needs, the need for achievement has been researched the most. Copyright © 2016 Pearson Canada Inc.

Contemporary Theories of Motivation
Goal-Setting Theory The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals. Working toward a goal is a major source of job motivation. The specificity of the goal itself acts as an internal stimulus. Learning Outcome 3: Compare and contrast contemporary theories of motivation. Copyright © 2016 Pearson Canada Inc.

Goal-Setting Theory Factors that influence the goal–performance relationship: Feedback Goal commitment Self-efficacy National culture Learning Outcome 3: Compare and contrast contemporary theories of motivation. Feedback - people will do better if they get feedback on how well they’re progressing toward their goals because feedback helps identify discrepancies between what they have done and what they want to do Commitment - goal-setting theory assumes that an individual is committed to a goal. Commitment is most likely when goals are made public, when an individual has an internal locus of control, and when the goals are self-set rather than assigned Self-efficacy refers to an individual’s belief that he or she is capable of performing a task.25 The higher your self-efficacy, the more confidence you have in your ability to succeed in a task National Culture - the value of goal-setting theory depends on the national culture. It’s well adapted to North American countries because its main ideas align reasonably well with those cultures Copyright © 2016 Pearson Canada Inc.

Self-efficacy: An individual’s belief that he or she is capable of performing a task. Learning Outcome 3: Compare and contrast contemporary theories of motivation. Refers to an individual’s belief that he or she is capable of performing a task.27 The higher your self-efficacy, the more confidence you have in your ability to succeed in a task. So, in difficult situations, we find that people with low self-efficacy are likely to reduce their effort or give up altogether, whereas those with high self-efficacy will try harder to master the challenge. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-5 Goal-Setting Theory
Learning Outcome 3: Compare and contrast contemporary theories of motivation. Copyright © 2016 Pearson Canada Inc.

Reinforcement Theory The theory that behaviour is a function of its consequences. Reinforcers Consequences immediately following a behaviour that increase the probability that the behaviour will be repeated Learning Outcome 3: Compare and contrast contemporary theories of motivation. Copyright © 2016 Pearson Canada Inc.

Job Design Theory How tasks can be combined to form complete jobs Factors influencing job design: Changing organizational environment/structure The organization’s technology Employees’ skills, abilities, and preferences Learning Outcome 3: Compare and contrast contemporary theories of motivation. Job design can be used to influence employee motivation. Job design is the way tasks are combined to form complete jobs. Managers should design jobs to reflect the demands of the changing environment as well as the organization’s technology, skills, and abilities and preferences of its employees. Copyright © 2016 Pearson Canada Inc.

Job Scope: The number of different tasks required in a job and the frequency with which these tasks are repeated.. Job Enlargement: The horizontal expansion of a job through increasing job scope.. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 1. Job Enlargement. One of the earliest efforts at overcoming the drawbacks of job specialization was through increasing job scope, the number of different tasks required in a job and the frequency with which those tasks are repeated. a. This type of job design is called job enlargement—the horizontal expansion of a job or an increase in job scope. b. Job design programs that focused solely on task enlargement haven’t been very successful. c. When knowledge enlargement activities were implemented, however, workers were more satisfied and made fewer errors. 2. Job Enrichment. Another approach to designing motivating jobs is job enrichment, which is the vertical expansion of a job by adding planning and evaluating responsibilities. a. In job enrichment, job depth—the degree of control employees have over their work—is increased. b. Research evidence on job enrichment activities has been inconclusive about its benefits. Copyright © 2016 Pearson Canada Inc.

Job Enrichment: The vertical expansion of a job by adding planning and evaluating responsibilities. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 1. Job Enlargement. One of the earliest efforts at overcoming the drawbacks of job specialization was through increasing job scope, the number of different tasks required in a job and the frequency with which those tasks are repeated. a. This type of job design is called job enlargement—the horizontal expansion of a job or an increase in job scope. b. Job design programs that focused solely on task enlargement haven’t been very successful. c. When knowledge enlargement activities were implemented, however, workers were more satisfied and made fewer errors. 2. Job Enrichment. Another approach to designing motivating jobs is job enrichment, which is the vertical expansion of a job by adding planning and evaluating responsibilities. a. In job enrichment, job depth—the degree of control employees have over their work—is increased. b. Research evidence on job enrichment activities has been inconclusive about its benefits. Copyright © 2016 Pearson Canada Inc.

Job Characteristics Model (JCM): A framework for designing motivating jobs. Five primary job characteristics: Skill variety: The degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents. Task identity: The degree to which a job requires completion of a whole and identifiable piece of work. Task significance: The degree to which a job affects the lives or work of other people. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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. a. The five job dimensions outlined in the JCM include (see Exhibit 14-6): 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. Copyright © 2016 Pearson Canada Inc.

Job Characteristics Model (JCM): A framework for designing motivating jobs. Five primary job characteristics continued: Autonomy: The degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying it out. Feedback: The degree to which carrying out work activities required by a job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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. a. The five job dimensions outlined in the JCM include (see Exhibit 14-6): 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. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-6 Job Characteristics Model
Learning Outcome 3: Compare and contrast 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. Copyright © 2016 Pearson Canada Inc.

Equity Theory: Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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 14-8). Copyright © 2016 Pearson Canada Inc.

Exhibit 14-7 Equity Theory
Learning Outcome 3: Compare and contrast contemporary theories of motivation. The JCM also provides specific guidelines to managers for job design (see Exhibit 14-7). 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. Copyright © 2016 Pearson Canada Inc.

If the ratios are perceived as 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). Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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 14-8). Copyright © 2016 Pearson Canada Inc.

Employee responses to perceived inequities: Distort own or others’ ratios Induce others to change their own inputs or outcomes Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards) Choose a different comparison (referent) other (person, systems, or self) Quit their job Learning Outcome 3: Compare and contrast contemporary theories of motivation. 1. Individuals compare themselves to others (the referents can be persons, systems, or one’s self) 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 or outcomes d. Choose a different comparison person e. Quit their job Copyright © 2016 Pearson Canada Inc.

Equity Theory Distributive Justice: The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what?). Learning Outcome 3: Compare and contrast contemporary theories of motivation. Historically equity theory focused on distributive justice. Recent equity research has focused on issues of procedural justice. Copyright © 2016 Pearson Canada Inc.

Equity Theory Procedural Justice: The perceived fairness of the process used to determine the distribution of rewards (i.e., how who received what). Learning Outcome 3: Compare and contrast contemporary theories of motivation. Historically equity theory focused on distributive justice. Recent equity research has focused on issues of procedural justice. Copyright © 2016 Pearson Canada Inc.

Expectancy Theory Individuals act based on the expectation that a given outcome will follow and whether that outcome is attractive. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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. Copyright © 2016 Pearson Canada Inc.

Key to the Expectancy theory is understanding and managing employee goals and the linkages among and between effort, performance, and rewards. Effort: employee abilities and training/ development Performance: valid appraisal systems Rewards (goals): understanding employee needs Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-8 Simplified Expectancy Model
Learning Outcome 3: Compare and contrast contemporary theories of motivation. Exhibit 14-8 illustrates how expectancy theory works. Copyright © 2016 Pearson Canada Inc.

Expectancy Relationships Expectancy (effort-performance linkage) 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. Learning Outcome 3: Compare and contrast contemporary theories of motivation. 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. Copyright © 2016 Pearson Canada Inc.

Exhibit 14-9 Steps to Increasing Motivation, Using Expectancy Theory
Learning Outcome 3: Compare and contrast contemporary theories of motivation. Exhibit 14-9 shows how to improve each of the links of the expectancy model. Copyright © 2016 Pearson Canada Inc.

Integrating Theories of Motivation The three motivation theories are complementary. Exhibit illustrates how they are integrated. The basic foundation is Expectancy Theory Learning Outcome 3: Compare and contrast contemporary theories of motivation. Copyright © 2016 Pearson Canada Inc.

Current Issues in Motivation
Cross-Cultural Challenges Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics. Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy. The need for achievement (nAch) is lacking in other cultures. Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance. Learning Outcome 4: Discuss current issues in motivation. In today’s global environment, motivational programs that work in one location may not be effective in another. There is an American bias in some of the motivational theories. For example, in Japan, Greece, and Mexico security needs would be at the top of Maslow’s pyramid. The motivation concept of achievement need clearly has an American bias. Equity theory is relatively strong in the U.S. based on pay-for-performance systems. Copyright © 2016 Pearson Canada Inc.

Cross-Cultural Consistencies: Interesting work is widely desired, as is growth, achievement, and responsibility. Learning Outcome 4: Discuss current issues in motivation. Despite cross-cultural differences in motivation, there are cross-cultural consistencies. For instance, the desire for interesting work seems important to almost all employees, regardless of their national culture. In a study of seven countries, employees in Belgium, Britain, Israel, and the United States ranked “interesting work” number one among 11 work goals. And this factor was ranked either second or third in Japan, the Netherlands, and Germany. Similarly, in a study comparing job-preference outcomes among graduate students in the United States, Canada, Australia, and Singapore, growth, achievement, and responsibility were rated the top three and had identical rankings. Both of these studies suggest some universality to the importance of intrinsic factors identified by Herzberg in his two-factor theory. Copyright © 2016 Pearson Canada Inc.

Motivating Minimum-Wage Employees Employee recognition programs Provision of sincere praise Empowering Guidance Training Learning Outcome 4: Discuss current issues in motivation. Motivating Minimum-Wage Workers. 1. One of the toughest motivation challenges a manager might face. a. Although money is important as a motivator, it’s not the only reward that people seek and that managers can use. b. Also, job design and expectancy theories can provide some answers to motivating this group. Copyright © 2016 Pearson Canada Inc.

Motivating Professionals 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 Motivators for professionals Job challenge Organizational support of their work Learning Outcome 4: Discuss current issues in motivation. This group of employees values challenging work, problem solving, and support. Copyright © 2016 Pearson Canada Inc.

Motivating Contingent Workers Opportunity to become a permanent employee Opportunity for training Equity in compensation and benefits Learning Outcome 4: Discuss current issues in motivation. Motivating Contingent Workers. 1. Contingent workers don’t have the security or stability that permanent employees do. Some things that managers might use include the opportunity for permanent status, opportunity for training, and equitable treatment. Copyright © 2016 Pearson Canada Inc.

The Role of Money The most commonly used reward in organizations is money. When organizations develop reward programs, they need to consider very carefully what individual employees value. A number of studies suggest that an individual’s attitude toward money is correlated with personality traits and demographic factors Learning Outcome 4: Discuss current issues in motivation. Copyright © 2016 Pearson Canada Inc.

Employee Recognition Programs: Giving personal attention and expressing interest, approval, and appreciation for a job well done. Learning Outcome 4: Discuss current issues in motivation. Employee recognition programs consist of personal attention and expressions of approval and appreciation for a job well done. Copyright © 2016 Pearson Canada Inc.

Pay-for-performance: Variable compensation plans that reward employees on the basis of their performance: piece rates, wage incentives, profit-sharing, and lump-sum bonuses. Learning Outcome 4: Discuss current issues in motivation. 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. Copyright © 2016 Pearson Canada Inc.

Designing Appropriate Rewards Programs Stock option programs Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price Learning Outcome 4: Discuss current issues in motivation. These are financial instruments that give employees the right to purchase shares of stock at a set price. Copyright © 2016 Pearson Canada Inc.

From Theory to Practice: Suggestions for Motivating Employees
Recognize individual differences Match people to jobs Use goals Ensure goals are attainable Individualize rewards Link rewards to performance Check the system for equity Show care and concern for employees Use recognition Don`t ignore money Learning Outcome 5: Describe how managers can motivate employees. Copyright © 2016 Pearson Canada Inc.

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