Organizational Behavior Lecture 5 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Recap Lecture 4  What is personality and personality traits?  Measuring Personality  Determinants of Personality –Heredity –Environmental –Situational  The Myers-Briggs Type Indicator  Big-Five Personality Traits  Personality Traits and outcomes  Core self-evaluations –Self esteem –Locus of control 1 CHAPTER SEVEN

Recap Lecture 4  Other personality traits –Machiavellianism (Mach) –Self-Monitoring –Risk-Taking –Type A and Type B personality –Proactive Personality –Self-Efficacy –Political Skills  Person-Job Fit  Conclusions © 2007 Prentice Hall Inc. All rights reserved.

Managing Motivation Lecture 5

Outline  What is motivation  Motivation theories –Maslow’s Need Theory –ERG Theory –Theory X and Theory Y –Two-factor Theory –McClelland’s Theory of Needs –Cognitive Evaluations Theory © 2007 Prentice Hall Inc. All rights reserved.

What Is Motivation? Direction Persistence Intensity

© 2007 Prentice Hall Inc. All rights reserved. Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries Key Elements 1.Intensity: how hard a person tries 2.Direction: toward beneficial goal 3.Persistence: how long a person tries Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. What is Motivation?

© 2007 Prentice Hall Inc. All rights reserved. Hierarchy of Needs Theory (Maslow) Hierarchy of Needs Theory 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.

© 2007 Prentice Hall Inc. All rights reserved. Maslow’s Hierarchy of Needs E X H I B I T 6–1 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. SelfEsteemSocialSafetyPhysiological

Maslow’s Need Theory-concepts  Physiological – hunger, thirst, shelter, sex, and other bodily needs  Safety – security and protection from physical or emotional harm  Social – affection, belongingness, acceptance & friendship  Esteem – internal factors such as self-respect, autonomy and achievement and external factors such as status, recognition and attention  Self-actualization – drive to become what one is capable of becoming, achieving one’s potential and self fulfillment © 2007 Prentice Hall Inc. All rights reserved.

Assumptions of Maslow’s Hierarchy Movement up the Pyramid Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied. Maslow Application: A homeless person will not be motivated to meditate! Maslow Application: A homeless person will not be motivated to meditate! Individuals therefore must move up the hierarchy in order

Alderfer’s ERG Theory  Existence similar to Maslow’s physiological and safety needs  Relatedness related to social and status needs  Growth similar to esteem and self-actualization needs  Unlike Maslow’s theory, individuals can be at all categories simultaneously © 2007 Prentice Hall Inc. All rights reserved.

Theory X Managers See Workers As… Disliking Work Avoiding Responsibility Having Little Ambition Theory Y Managers See Workers As… Managers See Workers As… Enjoying Work Accepting Responsibility Self-Directed

Theory X and Theory Y  McGreoger believes theory Y assumptions more valid so managers should encourage participative decision making, responsible and challenging jobs and good group relations  No evidence indicating which assumptions are true or that theory Y environment will lead to more motivated workers © 2007 Prentice Hall Inc. All rights reserved.

Herzberg’s Two-Factor Theory Bottom Line: Satisfaction and Dissatisfaction are not Opposite Ends of the Same Thing! Separate constructs –Hygiene Factors--- Extrinsic & Related to Dissatisfaction –Motivation Factors--- Intrinsic and Related to Satisfaction Hygiene Factors: Salary Work Conditions Company Policies Motivators: Achievement Responsibility Growth

© 2007 Prentice Hall Inc. All rights reserved. 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 E X H I B I T 6–2 Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

© 2007 Prentice Hall Inc. All rights reserved. Contrasting Views of Satisfaction and Dissatisfaction E X H I B I T 6–3

Critique on two-factor theory  Failure blamed to extrinsic factors; success to personal attributes  Ratings used to measure job satisfaction may be contaminated; people may be positive on one scale item but may treat a different response differently  No overall measure of satisfaction utilized; dissatisfaction on one facet but overall satisfaction © 2007 Prentice Hall Inc. All rights reserved.

Critique on two-factor theory  Herzberg assumed relationship between satisfaction and productivity but no measure of productivity was employed. One needs to assume a strong relationship between the two. –No sufficient empirical backing for the theory as for the earlier ones –May sound well empirically © 2007 Prentice Hall Inc. All rights reserved.

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. Bottom Line: Individuals have different levels of needs in each of these areas, and those levels will drive their behavior

David McClelland’s Theory of Needs  Not much evidence for power and affiliation need  High achievers perform well when probability of success.5. –Not attribution to pure chance or least challenge  High achievers are successful entrepreneurs; no links to being effective managers  Effective managers may be linked to high power need and low affiliation need © 2007 Prentice Hall Inc. All rights reserved.

Matching High Achievers and Jobs E X H I B I T 6–4

© 2007 Prentice Hall Inc. All rights reserved. Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation. The theory may only be relevant to jobs that are neither extremely dull nor extremely interesting. Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it!

Cognitive Evaluation Theory  Intrinsic and extrinsic motivation are not mutually exclusive  Managerial implications: rewards contingent on performance?  Extrinsic rewards shift locus of control to external –Tangible rewards undermine performance while intangible rewards don’t.  Support from a number of studies © 2007 Prentice Hall Inc. All rights reserved.

Self-concordance – extension of CET  Intrinsically motivated people are happy even when they cant reach goals as they find the process fun  Extrinsically motivated people don’t get that much happiness even after goal achievement as they don’t find goal satisfying  Implications –Choose jobs carefully –Managers should create work conditions that enhance intrinsic motivation and not only rely on rewards. © 2007 Prentice Hall Inc. All rights reserved.

E X H I B I T 6–5 What Would Herzberg Say? What Would Maslow Say?