Chapter 12 Motivating Employees

CATEGORIES OF MOTIVATION THEORIES n Content Theories u Concerned with WHAT people need or want n Process Theories u Concerned with HOW people think and behave to get what they want n Reinforcement Theories u Concerned with the effects of REWARDS upon motivated behavior (Some consider it a Process Theory) (Some consider it a Process Theory)

CONTENT THEORIES n Hierarchy of Needs Theory u Maslow u Alderfer n Two-Factor Theory u Herzberg n Acquired Needs Theory u McClelland

MASLOW’S HIERARCHY OF NEEDS (from lowest to highest) n Physiological n Safety (Security) n Belongingness (Social) n Esteem n Self-Actualization

ALDERFER’S ERG THEORY n Existence n Relatedness n Growth

FRUSTRATION-REGRESSION PRINCIPLE (ERG Theory) n Failure to meet a higher-order need may trigger a regression to an already fulfilled lower-order need Example: Worker who cannot fulfill a need for personal growth may redirect efforts toward making money.

HERZBERG’S TWO- FACTOR THEORY n Hygiene Factors (mostly extrinsic, e.g., a nice office) u Influence Dissatisfaction (The best Hygiene Factors can provide is “No Dissatisfaction” – They don’t motivate.) n Motivators (mostly intrinsic, e.g., enjoyment of work responsibility, etc.) u Influence Satisfaction

McCLELLAND’S ACQUIRED NEEDS - Successful Top Executives: NEED LEVEL (Hi, Mod., Lo?) NEED LEVEL (Hi, Mod., Lo?) Achievement Moderate Affiliation Low Power High

APPLICATIONS OF CONTENT THEORIES n Job Enrichment n Flexible Work Schedules

PROCESS THEORIES n Goal-Setting Theory n Equity Theory n Expectancy Theory

GOAL-SETTING THEORY n Assumes having clear goals increases motivation n Challenges and Feedback are especially important

EQUITY THEORY n Unique in viewing motivation as affected by Comparisons to other people. n We don’t necessarily expect to get the same rewards as others, but we expect the Ratio of our Outcome to Input to be equivalent to that of others. n We are Motivated to correct inequity.

DEALING WITH INEQUITY n Change your Input n Change your Outcome n Distort (Change) your Perceptions u (of either input or outcome of you or the comparison person) n Leave the Job n Change Comparison Persons

EXPECTANCY THEORY n Analyzes the parts of the Motivation Process that the Leader must attend to (c.f., Path-Goal Theory) n Has the greatest Breadth of popular motivation theories

EXPECTANCY THEORY CONCEPTS n EXPECTANCY u Effort-Performance Relationship (E-P) (The most Unique feature of the theory) n INSTRUMENTALITY u Performance-Outcome Relationship (P-O) n VALENCE u Value of Reward If any of the three equal Zero, then there is No Motivation.

MAJOR ELEMENTS OF REINFORCEMENT THEORY n Stimulus u Supervisor requests faster work n Response u Employee increases or decreases speed or does nothing n Consequence u Positive Reinforcement, Negative Reinf. (Avoidance), Extinction, Punishment

BEHAVIORAL CONSEQUENCES n Positive Reinforcement u Receive desirable outcome (Money) n Negative Reinforcement u Avoid undesirable outcome (Prevent reprimand) n Extinction u Lack of reinforcement (Behavior ignored) n Punishment u Undesirable outcome occurs (Get fired )

APPLICATIONS OF REINFORCEMENT THEORY n Organizational Behavior Modification (OB MOD) n Pay for Performance (Merit Pay) n Gain Sharing n Employee Stock Ownership Plans (ESOPs) n Lump-Sum Bonuses n Pay for Knowledge

Minimizing Reward Problems n Measure performance accurately n Give team rewards for interdependent jobs n Ensure that rewards are valued n Beware of unintended consequences

Some Rewards Lower-Level Managers May Control n Recognition, such as letters of appreciation n Invitations to coffee or lunch n Recommendations for pay increases or promotions n Time off n Desirable work assignments

Job Simplification n Pursues efficiency by reducing the number of tasks one person must do (However, workers dislike routine and boring jobs.)

Job Rotation n Systematically moves employees from one job to another. (However, skill level is unchanged.)

Job Enlargement n Combines a series of tasks into one new, broader job.

Job Enrichment n Incorporates high-level motivators into the work.

WorkmotivationGrowthsatisfactionGeneralsatisfactionWorkeffectiveness Job Characteristics Model Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness AutonomyResponsibility Individual Differences in Growth Needs CriticalPsychologicalStates Core Job CharacteristicsOutcomes

Implementing Job Enrichment n Training is typically needed n Short-term performance declines are normal Dangers in Job Enrichment n Some people have low “Growth Need Strength” n Employees may expect higher pay

MAJOR IMPLICATIONS OF MOTIVATION THEORIES n Set Challenging, but Attainable Goals n Train and Encourage People n Provide Valued Extrinsic and Intrinsic Rewards u Recognize Individual Differences u Watch for Changes in an Individual’s Motives n Use Mainly Positive Reinforcement n Distribute Rewards Equitably