McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Motivation Chapter 6

6-2 Class Agenda Motivation defined Theories of motivation ๏ Expectancy theory ๏ Goal setting theory ๏ Equity theory ๏ Psychological empowerment How important is motivation? Best practices

6-3

6-4 Why Are Some Employees More Motivated than Others?

6-5 Motivation Defined A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity, and persistence ๏ What do you do? ๏ How hard do you do it? ๏ How long do you do it?

6-6 Theories of Motivation Several theories attempt to summarize the key factors that foster high motivation: ๏ Expectancy theory ๏ Goal setting theory ๏ Equity theory ๏ Psychological empowerment

6-7 Expectancy Theory Motivation is fostered when the employee believes three things: ๏ That effort will result in performance ๏ That performance will result in outcomes ๏ That those outcomes will be valuable

6-8 Expectancy Theory

6-9 Expectancy Effort → Performance ๏ Can be hindered by: ๏ Lack of necessary resources ๏ Lack of supportive leadership ๏ Low self-efficacy

6-10 Expectancy

6-11 Instrumentality Performance → Outcomes ๏ Can be hindered by: ๏ Poor methods for measuring performance, as Instrumentality could actually be rewritten to be Performance → Evaluation → Outcomes ๏ Inadequate budget to provide outcomes, even when performance is high ๏ Use of policies that reward things besides performance, such as attendance or seniority ๏ Time delays in doling out rewards

6-12 Valence Anticipated value of outcomes ๏ Extrinsic ๏ Intrinsic

6-13 Valence

6-14 Valence Why does pay have such a high valence? ๏ The meaning of money ๏ Achievement ๏ Respect ๏ Freedom

Achieve Respect Freedom

6-16 Expectancy Theory Motivation = (E→P) x Σ[(P→O) x V] Key aspect: multiplicative effects ๏ Motivation is zero if either expectancy, instrumentality, or valence is zero

6-17 Expectancy Theory Taken together, the instrumentality and valence components resemble a concept from a famous movie franchise ๏ OB on Screen: Wall Street: Money Never Sleeps

6-18 Expectancy Theory Motivation = (E→P) x Σ[(P→O) x V] Motivation = (E→P) x Greed? ๏ Is greed indeed “good”? ๏ How could greed be “channeled”?

6-19 Goal Setting Theory Motivation is fostered when employees are given specific and difficult goals ๏ Rather than no goals, easy goals, or “do your best” goals

6-20 Goal Setting Theory

6-21 Goal Setting Theory

6-22 Equity Theory Motivation is maximized when an employee’s ratio of “outcomes” to “inputs” matches those of some “comparison other” Thus motivation also depends on the outcomes received by other employees

6-23 Equity Theory Are these really equal?

6-24 Equity Theory What emotion do you feel in this case? What methods can be used to restore equity?

6-25 Equity Theory What emotion do you feel in this case? What methods can be used to restore equity?

6-26 Psychological Empowerment An intrinsic form of motivation derived from the belief that one’s work tasks are contributing to some larger purpose Fostered by four beliefs: ๏ Meaningfulness ๏ Self-Determination ๏ Competence ๏ Impact

6-27 Why Are Some Employees More Motivated than Others?

6-28 Why Are Some Employees More Motivated than Others? Instrumentality Expectancy Valence Specific & Difficult Goals Empowerment Equity Expectancy Instrumentality Valence Empowerment Specific & Difficult Goals Equity

6-29

6-30 How Important is Motivation?

6-31 Application

6-32 Best Practices: Enterprise

6-33 Best Practices: Enterprise Hires more college grads than any other company Clear promotion ladder: 100% of top managers started as trainees Emphasizes energy, enthusiasm, and positivity in hiring Promotions depend on branch performance on customer service Bonuses paid based on supplemental insurance Salary supplemented with branch-based profit sharing