© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 5 C H A P T E R: F I V E Motivation in the Workplace

2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Motivation Through Recognition Fairmont Hotels (shown in photo) and other Canadian firms are returning to good old-fashioned praise and recognition to motivate staff. Courtesy of Fairmont Hotels & Resorts

3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Challenges of Motivating Employees Revised employment relationship  Due to globalization, technology, restructuring  Potentially undermines trust and commitment Flatter organizations  Fewer supervisors to monitor performance Changing workforce  Gen-X/Gen-Y bring different expectations

4 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Maslow’s Needs Hierarchy Objectives Holistic  integrative view of needs rather than studying each need in isolation of others Humanistic  responses to higher needs are influenced by social dynamics, not just instinct Positivistic  need gratification is just as important as need deprivation

5 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Maslow’s Needs Hierarchy Theory Self- actual- ization Physiological Safety Belongingness Esteem Seven categories capture most needs Five categories placed in a hierarchy Need to know Need for beauty

6 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Maslow’s Needs Hierarchy Theory  Lowest unmet need has strongest effect  When lower need is satisfied, next higher need becomes the primary motivator  Self-actualization -- a growth need because people desire more rather than less of it when satisfied Self- actual - ization Physiological Safety Belongingness Esteem Need to know Need for beauty

7 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Evaluating Maslow’s Theory  Lack of support for theory  Needs don’t cluster around Maslow’s categories  Needs change more rapidly than Maslow stated  Primary needs aren’t always lowest in the hierarchy  Values influence needs  Conclusion: Needs hierarchy might vary from one person to the next (not innate or universal) Self- actual - ization Physiological Safety Belongingness Esteem Need to know Need for beauty

8 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Four-Drive Theory Drive to Bond Drive to Learn Need to form relationships and social commitments Basis of social identity Need to satisfy curiosity and resolve conflicting information Basis of self-actualization Drive to Defend Need to protect ourselves A reactive (not proactive) drive Basis of fight or flight Drive to Acquire Need to take/keep objects and experiences Basis of hierarchy and status

9 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Features of Four Drives Innate and hardwired -- everyone has them Independent of each other (no hierarchy of drives) Complete set -- no drives are excluded from the model

10 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e How Four Drives Affect Needs 1.Four drives determine which emotions are automatically tagged to incoming information 2.Drives generate independent and often competing emotions that demand our attention 3.Social skill set determines how to translate drives into needs and effort

11 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Four Drive Theory of Motivation Mental skill set uses social norms, personal values, and experience to translate competing drives into needs and effort

12 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Learned Needs Theory Some needs can be learned. Need for achievement  Desire for challenging and somewhat risky goals, feedback, recognition Need for affiliation  Desire to seek approval, conform, and avoid conflict  Try to project a favourable self-image Need for power  Desire to control one’s environment  Personalized versus socialized power

13 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Recognition vs Money at Encana Many Encana employees who received a “High Five” card from co-workers displayed them in their offices rather than redeem them for the $5 value. This small symbol of recognition was worth far more than the monetary value of the cards. Courtesy of Encana Corp.

14 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Implications of Needs/Drives Theories Four drive theory provide a balanced opportunity for employees to fulfill drives employees continually seek fulfillment of drives avoid having conditions support one drive over others Maslow allow employees to self-actualize power of positive experiences Offer employees a choice of rewards Courtesy of Encana Corp.

15 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - EffortPerformance Outcome 3 + or - Outcome 2 + or - Expectancy Theory of Motivation

16 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Increasing E-to-P Expectancy Train employees Select people with required competencies Provide role clarification Provide sufficient resources Provide coaching and feedback

17 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Increasing P-to-O Expectancy Measure performance accurately Describe outcomes of good and poor performance Explain how rewards are linked to past performance

18 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Increasing Outcome Valences Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes

19 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Goal Setting at Inco’s Copper Cliff At Inco’s Copper Cliff smelter in Sudbury, Ontario, production and maintenance goals are established and posted in a highly visible location. Feedback sessions help keep goal completion on track while involving employees in the process. Courtesy of Inco Ltd.

20 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Specific Relevant Challenging TaskEffort TaskPerformance Feedback Participation Commitment Effective Goal Setting

21 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Goal Difficulty and Performance High Task Performance LowModerateChallengingImpossible Area of Optimal Goal Difficulty Goal Difficulty

22 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Characteristics of Effective Feedback Effective Feedback Specific Relevant Timely Credible Sufficientlyfrequent

23 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Multisource (360-degree) Feedback Evaluated Employee Co-worker Customer Subordinate Projectleader Supervisor Co-worker Subordinate Subordinate

24 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Executive Coaching Uses various behavioural methods to help clients identify and achieve goals Just-in-time personal development using feedback and other techniques Improves performance, but varied techniques makes it difficult to pinpoint what is effective

25 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Preferred Feedback Sources Depends on the situation Nonsocial sources (gauges, printouts)  Better for goal progress  Considered more accurate, less damaging Social sources (supervisor, co-workers)  Better for ‘good news’ feedback  Improves self-image and esteem

26 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Inequity of British “Fat Cats” British protesters (including company employees) express their anger over unfair executive pay by dressing as “fat cats” in business suits outside the company’s annual general meetings. © Simon Clark

27 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Elements of Equity Theory Outcome/input ratio  inputs -- what employee contributes (e.g., skill)  outcomes -- what employee receives (e.g., pay) Comparison other  person/people against whom we compare our ratio  not easily identifiable Equity evaluation  compare outcome/input ratio with the comparison other © Simon Clark

28 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Overreward vs Underreward Inequity You Comparison Other Outcomes Inputs Outcomes Inputs Overreward Inequity Outcomes Inputs Outcomes Inputs Underreward Inequity

29 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Correcting Inequity Feelings Reduce out inputsLess organizational citizenship Increase our outcomesAsk for pay increase Increase other’s inputsAsk coworker to work harder Reduce other’s outputsAsk boss to stop giving other preferred treatment Change our perceptionsStart thinking that other’s perks aren’t really so valuable Change comparison otherCompare self to someone closer to your situation Leave the fieldQuit job Actions to correct inequityExample

30 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Equity Sensitivity Benevolents  Tolerant of being underrewarded Equity Sensitives  Want ratio to be equal to the comparison other Entitleds  Prefer receiving proportionately more than others

31 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Emotions Emotions Attitudes Attitudes Behaviours Behaviours DistributionPrinciples Distributive Justice Perceptions Procedural Justice Perceptions StructuralRules SocialRules Organizational Justice Components

32 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Procedural Justice Structural Rules Voice Bias-Free Knowledgeable Consistent Listens to all Appealable

© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 5 C H A P T E R: F I V E Motivation in the Workplace