Management Principles Motivation Craig W. Fontaine, Ph.D.

The Context of Motivation Some definitions: Performance is a product of motivation and ability moderated by situation constraints Ability is an individual’s capacity to perform certain tasks Situational constraints refers to factors in the workplace that hinder performance Motivation………..

Defining Motivation Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Key Elements Intensity: how hard a person tries Direction: toward beneficial goal Persistence: how long a person tries

The Nature of Motivation (cont’d) Intrinsic Motivation Behavior that is performed for its own sake. The source of the motivation that comes from actually engaging in the behavior. The sense of accomplishment and achievement derived from doing the work itself Extrinsic Motivation Behavior that is performed to acquire material or social rewards or to avoid punishment. The source of the motivation is the consequences of the behavior and not the behavior itself.

Theories of Motivation

Hierarchy of Needs Theory (Maslow) There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming.

Maslow’s Hierarchy of Needs Lower-Order Needs Needs that are satisfied externally; physiological and safety needs. Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs. Source: Motivation and Personality , 2nd ed,, by A.H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.

Maslow’s Hierarchy of Needs Self- actualization Esteem Social Safety Physiology Food Achievement Status Friendship Stability Job Friends Pension Base NEEDS General Examples Organizational Examples job Challenging title at work plan salary Copyright © by Houghton Mifflin Company. All rights reserved.

Alderfer’s ERG Theory ERG Theory is slightly different then Need Theory (Maslow) People’s needs are grouped into three overlapping categories—existence, relatedness, and growth. Maslow’s hierarchy is collapsed into three levels: Existence needs related to physiological and safety needs. Relatedness needs that are similar to social and esteem by others. Growth needs encompass needs for self-esteem and self-actualization. ERG theory assumes that: Multiple needs can be operative at one time (there is no absolute hierarchy of needs – Unlike Need Theory If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (Frustration Regression).

Need Theory compared to ERG Theory Physiological Safety & Security Social Esteem SA Growth Relatedness Existence 10

Theory X and Theory Y (Douglas McGregor) Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform. Theory Y Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

Assumptions of Theory X Naturally indolent (Lazy) Lack ambition, dislike responsibility, and prefer to be led Inherently self-centered and indifferent to organizational needs Naturally resistant to change Gullible, not bright, ready dupes Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org. 7 8

Assumptions of Theory Y Experiences in organizations result in passive and resistant behaviors; they are not inherent Motivation, development potential, capacity for assuming responsibility, readiness to direct behavior toward organizational goals are present in people Management’s task—arrange conditions and operational methods so people can achieve their own goals by directing efforts to organizational goals Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor, reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org. 8 9

Herzberg’s Motivation-Hygiene Theory Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work. Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security. Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.

The Two-Factor Theory of Motivation Satisfaction No satisfaction Motivation Factors • Achievement Recognition The work itself Responsibility Advancement and growth The Two-Factor Theory of Motivation Dissatisfaction No dissatisfaction Hygiene Factors • Supervisors Working conditions Interpersonal relations Pay and security Company policies and administration

Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October 1987. Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

Contrasting Views of Satisfaction and Dissatisfaction

David McClelland’s Theory of Needs Need for Achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed. Need for Affiliation The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise. nAch nPow nAff

Goal-Setting Theory (Edwin Locke) The theory that specific and difficult goals, with feedback, lead to higher performance. Characteristics of Goals Goal difficulty Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals. Goals should be difficult but attainable. Goal specificity Clarity and precision of the goal. Goals vary in their ability to be stated specifically.

Goal-Setting Theory (continued) Other considerations Acceptance The extent to which persons accept a goal as their own. Commitment The extent to which an individual is personally interested in reaching a goal.

Reinforcement Theory The assumption that behavior is a function of its consequences. Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.

Reinforcement Theory and Learning Based on the idea that behavior is a function of its consequences. Behavior that results in pleasant consequences (reward) is likely to be repeated. Behavior that results in unpleasant consequences (punishment) is less likely to be repeated. “Responses that produce a satisfying effect in a particular situation become more likely to occur again in that situation, and responses that produce a discomforting effect become less likely to occur again in that situation” From: Edward Thorndike’s “Law of Effect”

Types of Reinforcement in Organizations Positive Reinforcement A reward or other desirable consequence that follows behavior. Avoidance (Negative Reinforcement) Rather than receiving a reward following a desirable behavior, the person is given the opportunity to avoid an unpleasant consequence. Extinction Decreases the frequency of behavior by eliminating a reward or desirable consequence that follows that behavior. Punishment An unpleasant, or aversive, consequence that results from behavior.

Types of Reinforcement – Examples of Use Positive Reinforcement and avoidance can be used to motivate desired behaviors by employees

Types of Reinforcemene – Example of Use Extinction and Punishment can be used to change undesired employee

Schedules of Reinforcement Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated. Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated.

Schedules of Reinforcement (cont’d) Fixed-Interval Schedule Rewards are spaced at uniform time intervals. Variable-Interval Schedule Rewards are initiated after a fixed or constant number of responses.

Schedules of Reinforcement (cont’d) Fixed-ratio

Intermittent Schedules of Reinforcement

Intermittent Schedules of Reinforcement (cont’d)

Related Aspects of Learning Reinforcement Generalization The process of recognizing relationships between behavior and reinforcement in different settings. Social Learning Occurs when people observe the behaviors of others, recognize their consequences, and alter their own behaviors as a result.

Equity Theory Adams proposed that a worker’s motivation is based on social comparison. Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. There can be: Equity Underpayment Overpayment

Equity Theory (cont’d) Condition Person Referent Example Equity Outcomes = Outcomes Inputs Inputs Worker contributes more inputs but also gets more outputs than referent Underpayment Outcomes < Outcomes gets the same outputs as referent Overpayment Outcomes > Outcomes same inputs but also

Responses to Perceptions of Equity and Inequity

Equity Theory – Related Concepts Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals. Procedural Justice The perceived fairness of the process to determine the distribution of rewards.

Expectancy Theory A cognitive theory, assumes workers to be a rational decision maker who will expend energy on activities that lead to desired rewards Three basics elements: Expectancy an individuals perception that their effort (E) will result in performance (P) Instrumentality an individual’s perception that performance will lead to desired outcome (O) Valance the value the individual places on outcome (V)

Basic Concepts of Expectancy Theory V Will the outcome be satisfying? Valance Effort Performance Outcome Expectancy Instrumentality E – P If I exert a lot of effort will I perform well? O If I perform well will it lead to the desired outcome?

Expectancy Theory Relationships Summary Effort–Performance Relationship The probability that exerting a given amount of effort will lead to performance. Performance–Reward Relationship The belief that performing at a particular level will lead to the attainment of a desired outcome. Rewards–Personal Goals Relationship The degree to which organizational rewards satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.

The Porter-Lawler Model The model predicts that satisfaction is determined by the perceived equity of intrinsic and extrinsic rewards for high-level performance. Reference: Figure from Porter, Lyman W., and Edward E. Lawler, Managerial Attitudes and Performance. Copyright © 1968. Reproduced by permission of the publisher, McGraw-Hill, Inc.

Summary and Implications for Managers Need Theories Maslow’s hierarchy, Two factor, ERG, & McClelland’s Goal Setting Theory Clear and difficult goals often lead to higher levels of employee productivity. Reinforcement Theory Good predictor of quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. Equity Theory Strongest when predicting absence and turnover behaviors. Weakest when predicting differences in employee productivity. Expectancy Theory Focus on performance variables It is a “rational” model so be careful when using it This theory may be better applied to employees with greater discretion in their jobs (i.e., as opposed to semi-skilled positions)

Popular Motivational Strategies Empowerment and Participation Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. Participation The process of giving employees a voice in making decisions about their work. Areas of Participation for Employees Making decisions about their jobs. Decisions about administrative matters (e.g., work schedules). Participating in decision making about broader issues of product quality.

Actions That Empower Employees Increase signature authority at all levels Reduce the number of rules Reduce the number of approval steps Assign nonroutine jobs Specific Actions that Empower Provide more freedom of access to people Allow independent judgment Provide more freedom of access to resources Define jobs more broadly as projects