MGTO120s Motivating Employees Jian Liang MGTO, HKUST

Where We Are Management Motivating employee (Ch16) Basic Concepts Retrospect (ch2) Retrospect (ch2) Retrospect (ch2) Context (ch3,4,& 5) Context (ch3,4,& 5) Context (ch3,4,& 5) Plan (ch6, 7,8,& 9) Plan (ch6, 7,8,& 9) Plan (ch6, 7,8,& 9) Organize (Ch10,11 & 13) Organize (Ch 10, 11,12,13) Organize (Ch 10 Lead Lead Lead Control Control Control Motivating employee (Ch16)

Learning Objectives What Is Motivation? Early Theories of Motivation Define motivation. Explain motivation as a need-satisfying process. Early Theories of Motivation Describe the five levels in Maslow’s hierarchy and how Maslow’s hierarchy can be used in motivational efforts. Discuss how Theory X and Theory Y managers approach motivation. Describe Herzberg’s motivation-hygiene theory.

Learning Objectives (Cont’d) Contemporary Theories of Motivation Describe the three needs McClelland proposed as being present in work settings. Describe the job characteristics model as a way to design motivating jobs. Discuss the motivation implications of equity theory. Contrast distributive justice and procedural justice. Explain the three key linkages in expectancy theory and their role in motivation.

Let’s start from a comparison What managers think employee want Good pay Job security Promotion and growth Good working conditions Interesting work Tactful discipline Loyalty to employees Full appreciation of work done Help with personal problems Feeling of being in on things Employees really want 5 4 6 7 1 10 8 2 9 3 Adapted from Kenneth Kovoch, advanced Management Journal

On the folly of rewarding A, while hoping for B Managers who complain about lack of motivation in their workers might do well to consider the possibility that the reward systems they have installed are paying off for behavior other than what they are seeking…and this is what regularly frustrates societal efforts to bring about honest politicians and civic-minded managers. —Steven Kerr (AME, 1995, p.13)

What Is Motivation? The processes that account for an individual’s willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. Effort: a measure of intensity or drive. Direction: toward organizational goals Need: personalized reason to exert effort Motivation works best when individual needs are compatible with organizational goals.

The Motivation Process

Early Theories of Motivation Maslow’s Hierarchy of Needs Theory Needs were categorized as five levels of lower- to higher-order needs. Individuals must satisfy lower-order needs before they can satisfy higher order needs. Satisfied needs will no longer motivate. Motivating a person depends on knowing at what level that person is on the hierarchy. Hierarchy of needs Lower-order (external): physiological, safety Higher-order (internal): social, esteem, self-actualization

Maslow’s Hierarchy of Needs http://www.ship.edu/~cgboeree/maslow.html Self-Actualization The drive to become what one is capable of becoming.

“He wrote it to bring McGregor and me down to earth.” --- Peter Drucker, 1995

Early Theories of Motivation (cont’d) McGregor’s Theory X and Theory Y Theory X Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision. Theory Y Assumes that workers can exercise self-direction, desire responsibility, and like to work. Motivation is maximized by participative decision making, interesting jobs, and good group relations.

Early Theories of Motivation (cont’d) Herzberg’s Motivation-Hygiene Theory Job satisfaction and job dissatisfaction are created by different factors. Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction. Motivators: intrinsic (psychological) factors that create job satisfaction. The opposite of satisfaction is not dissatisfaction, but rather no satisfaction

Herzberg and his study

Contrasting Views of Satisfaction-Dissatisfaction

Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Recognition Responsibility Achievement Interesting duties Opportunity for growth High Job Dissatisfaction Job Satisfaction High

Functions of the Two Factors Attempted to explain why job satisfaction does not result in increased performance. Hygiene factor: simple keep the worker on the job---they keep him/her from going else-where for work. Its presence reduces dissatisfaction, and causes dissatisfaction. But it has no effect on motivation Motivational factor: the presence will both satisfy and motivate employees. Their absence may not necessarily cause dissatisfaction, it will decrease motivation.

Contemporary Theories of Motivation Three-Needs Theory Designing Motivating Jobs Equity Theory Expectancy Theory

Motivation and Needs Three-Needs Theory There are three major acquired needs that are major motives in work. Need for achievement (nAch) The drive to excel and succeed Need for power (nPow) The need to influence the behavior of others Need of affiliation (nAff) The desire for interpersonal relationships

Projective tests Rorschach inkblots. Thematic Apperception Test (TAT): 31 ambiguous pictures

Goal-Setting Theory Setting goals that are accepted, specific, and challenging yet achievable will result in higher performance than having no or easy goals. Benefits of Participation in Goal-Setting Increases the acceptance of goals. Fosters commitment to difficult, public goals. Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (self-efficacy).

Goal-Setting Theory Specificity Challenge Feedback Participation Commitment Self-efficacy Characteristics Culture

Designing Motivating Jobs The way into which tasks can be combined to form complete jobs. Factors influencing job design: Changing organizational environment/structure The organization’s technology Employees’ skill, abilities, and preferences Job enlargement Increasing the scope (number of tasks) in a job. Job enrichment Increasing responsibility and autonomy (depth) in a job.

Designing Motivating Jobs (cont’d) Job Characteristics Model (JCM) A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs.

Job Characteristics Model (JCM) Five primary job characteristics: Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the jobholder have? Feedback: do workers know how well they are doing?

Job Characteristics Model

Guidelines for Job Redesign Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.

Designing Motivating Jobs (cont’d) Suggestions for Using the JCM Combine tasks (job enlargement) to create more meaningful work. Create natural work units to make employees’ work important and whole. Establish external and internal client relationships to provide feedback. Expand jobs vertically (job enrichment) by giving employees more autonomy. Open feedback channels to let employees know how well they are doing.

Motivation and Perception Equity Theory Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. If the ratios are perceived as equal then a state of equity (fairness) exists. If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded. When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).

Motivation and Perception (cont’d) Equity Theory (cont’d) Employee responses to perceived inequities: Distort own or others’ ratios. Induce others to change their own inputs or outcomes. Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards). Choose a different comparison (referent) other (person, systems, or self). Quit their job. Employees are concerned with both the absolute and relative nature of organizational rewards.

Equity Theory

Motivation and Perception (cont’d) Equity Theory (cont’d) Distributive justice The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). Procedural justice The perceived fairness of the process use to determine the distribution of rewards (i.e., how who received what).

Motivation, Perception, and Behavior Expectancy Theory States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards.

Motivation, Perception, and Behavior (cont’d) Core elements in expectancy theory Effort: employee abilities and training/development Performance: valid appraisal systems Rewards (goals): understanding employee needs

Motivation, Perception, and Behavior (cont’d) Expectancy Relationships Expectancy (effort-performance linkage) The perceived probability that an individual’s effort will result in a certain level of performance. Instrumentality The perception that a particular level of performance will result in the attaining a desired outcome (reward). Valence The attractiveness/importance of the performance reward (outcome) to the individual.

Simplified Expectancy Model

Current Issues in Motivation Motivating Professionals How are “Professionals” different? Strong and long-term commitment to their field of expertise. Loyalty is to their profession, not to the employer. Have the need to regularly update their knowledge. Don’t define their workweek as 8:00 am to 5:00 pm. Motivators for professionals Job challenge Organizational support of their work

Current Issues in Motivation (cont’d) Motivating Contingent Workers Opportunity to become a permanent employee Opportunity for training Equity in compensation and benefits Motivating Low-Skilled, Minimum-Wage Employees Employee recognition programs Provision of sincere praise

Extrinsic or Intrinsic Motivation? Debate Extrinsic or Intrinsic Motivation?

Extrinsic motivation Against: For: Induces only temporary compliance. Pay is not a motivator. Rewards punish. Rewards rupture relationships. Rewards ignore reasons. Rewards discourage risk-taking. Rewards undermine interest. For: The bottom line: economic rewards have to be competitive Economic rewards are indicators of achievement and status Incentive pay (to induce higher level of efforts) Labor costs versus labor investment.

Intrinsic Motivation For: Against (?): The Hawthorn experiment; Individuals enjoy work, collective activities; Individuals respond to peer pressures, social comparison; Socialization, professional training shape behaviors; Against (?): To what extent? Under what conditions?

In general, the more cognitive sophistication and open-ended thinking that was required, the worse people performed when working for a reward. — Aflie Kohn (2000, p. 55)

Motivation: From Theory to Practice Recognize individual differences Ensure that goals are perceived as attainable Check the system for equity Individualize rewards Link rewards to performance Suggestions for Motivating Employees Use goals Don’t ignore money Match people to jobs

Cards from Two Hotels: Which One can Motivate You Case Analysis Cards from Two Hotels: Which One can Motivate You

Dear Guest: The management of this hotel would greatly appreciate it if you would consider reusing your towels a second day. This would greatly help us reduce our operating costs. Please place any towels that you are willing to reuse back on the rack. This will tell housekeeping not to replace them. Thank you very much. Sincerely, The management

Dear Guest: As a responsible citizen, you are probably concerned about doing your part to help preserve our fragile environment. If you are, the management of this hotel would like to suggest a way that you could make a real difference. Every year, millions of tons of detergent pollute our environment through the laundering of hotel towels that really don’t need to laundered. This is where you can help. If you are willing to reuse your towels, simple place them back on the rack. This will tell housekeeping not to replace them. Thank you so much for doing your part in keeping our plant green. Sincerely, The management

Summary and takeaways Motivation and incentive matter. Incentives take different forms Financial, social recognition Individual-based, collective-based Short-term, long-term Motivations vary with— Work environments Different types of career lines Stages in the life course A key managerial task is to figure out what motivates your employees and design your ‘incentive plan’ accordingly.