Chapter 16 Motivating Employees

The Concept of Motivation Motivation – the arousal of enthusiasm and persistence to pursue a course of action Forces either intrinsic or extrinsic to a person that arouse enthusiasm and persistence Employee motivation affects productivity A manager’s job is to channel motivation toward the accomplishment of goals

16.1 A Simple Model of Motivation

16.2 Four Categories of Motives Managers Can Use

Content Perspectives on Motivation If managers understand employees’ needs, they can design appropriate reward systems Needs motivate people Needs translate into an internal drive that motivates behavior People have a variety of needs

16.3 Maslow’s Hierarchy of Needs

ERG Theory Existence needs – the needs for physical well-being Relatedness needs – the needs for satisfactory relationships with others Growth needs – the needs that focus on the development of human potential and the desire for personal growth Frustration-regression principle: failure to meet a high-order need may cause a regression to an already satisfied lower-order need

16.4 Herzberg’s Two-Factor Theory

Acquired Needs Need for achievement Need for affiliation Need for power

Process Perspectives on Motivation How people select behavioral actions Goal-Setting Theory Equity Theory Expectancy Theory

Goal-Setting Theory Increase motivation and enhance performance by setting goals and providing timely feedback Key components of the theory: Goal specificity Goal difficulty Goal acceptance Feedback

16.5 Criteria for Motivational Goals

Equity Theory Changing work effort Changing outcomes Individual perceptions of fairness Inequity occurs when the input-to-outcome ratios are out of balance Perceived inequity can be reduced by: Changing work effort Changing outcomes Changing perception Leaving the job

Expectancy Theory Motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards E → P: determining whether putting effort into a given task will lead to high performance P → O: determining whether successful performance of a task will lead to the desired outcome Valence – the value or attraction an individual has for an outcome

16.6 Major Elements of Expectancy Theory

Reinforcement Perspective on Motivation Behavior Modification Reinforcement theory techniques used to modify behavior Reinforcement Anything that causes a behavior to be repeated or inhibited Law of Effect Positively reinforced behavior tends to be repeated and unreinforced behavior inhibited

Four Reinforcement Tools Extinction Withholding of a positive reward Punishment Imposition of unpleasant outcomes on an employee Avoidance learning Removal of an unpleasant consequence once a behavior is improved Positive Reinforcement Pleasant and rewarding consequences following a desired behavior

16.7 Changing Behavior with Reinforcement

Social Learning Theory Individual’s motivation can result from the person’s observations of other people’s behavior Vicarious learning – observational learning from seeing others’ behaviors and getting rewarded for them

Job Design for Motivation Job Rotation Job Enlargement Job Enrichment

16.8 The Job Characteristics Model

Dimensions that determine a job’s motivational potential: Core Job Dimensions Dimensions that determine a job’s motivational potential: Skill variety Task identity Task significance Autonomy Feedback Based on: Critical Psychological States Personal and Work Outcomes Employee Growth-Need Strength

Innovative Ideas for Motivating Organizations are using various types of incentive compensation to motivate employees to higher levels of performance Variable compensation is a key motivational tool Incentive plans can backfire They should be combined with motivational ideas and intrinsic rewards and meeting higher-level needs Incentives should reward the desired behavior

16.9 New Motivational Compensation Programs

Empowering People to Meet Higher Needs Employees receive information about company performance Employees have knowledge and skills to contribute to company goals Employees have the power to make substance decisions Employees are rewarded based on company performance

16.10 Employee Engagement Model