Chapter 5 Motivation

Determinants of Job Performance Willingness to perform Job performance Capacity to perform Opportunity to perform

The Starting Point: The Individual (1 of 4) Most managers must motivate a diverse and unpredictable group of people The diversity results in different behavioral patterns that are in some manner related to needs and goals

The Starting Point: The Individual (2 of 4) Need – a deficiency or lack of something of value that an individual experiences at a particular point in time Deficiencies may be: Physiological (e.g., a need for food) Psychological (e.g., a need for self-esteem) Sociological (e.g., a need for social interaction)

The Starting Point: The Individual (3 of 4) When needs are present, the individual will seek to fulfill those needs and may be more susceptible to managers’ motivational efforts Work-related needs can vary from individual to individual People seek to reduce need deficiencies Need deficiencies trigger a search process for ways to reduce the tension caused by the deficiencies

The Starting Point: The Individual (4 of 4) The motivational process is goal-directed The goals (or outcomes) that an employee seeks are viewed as forces that attract the person The accomplishment of desirable goals can result in a significant reduction in need deficiencies

The Motivational Process: A General Model Need deficiencies VI. II. Need deficiencies reassessed by the employee Search for ways to satisfy needs The Employee V. III. Rewards or punishments Goal-directed behavior IV. Performance (evaluation of goals accomplished)

Motivation Theories: A Summary Overview Content Motivation Theories Theories that focus on factors within a person that: Energize behavior Direct behavior Sustain behavior Stop behavior These factors can only be inferred Process Motivation Theories Theories that describe and analyze how behavior is: Energized Directed Sustained Stopped

Content Theories of Motivation Founders of the Theories Maslow – five-level need hierarchy Alderfer – three-level hierarchy (ERG) Herzberg – two major factors (hygienes and motivators) McClelland – three learned needs acquired from the culture Managerial Application Managers need to be aware of differences in needs, desires, and goals because each individual is unique in many ways

Maslow’s Need Hierarchy (1 of 2) Maslow defined human needs as: Physiological: the need for food, drink, shelter, and relief from pain Safety and security: the need for freedom from threat; the security from threatening events or surroundings Belongingness, social, and love: the need for friendship, affiliation, interaction, and love

Maslow’s Need Hierarchy (2 of 2) Esteem: the need for self-esteem and for respect from others Self-actualization: the need to fulfill oneself by making maximum use of abilities, skills, and potential

Maslow’s Need Hierarchy Related to the Job Starting a successful new business Developing and mentoring others Using business skills to start a charity that helps homeless children SELF-ACTUALIZATION Winning a coveted award for performance Receiving a high-level promotion Earning an outstanding reputation among peers ESTEEM Being accepted by personal and professional friends Working in groups that are compatible Having supportive supervision BELONGINGNESS, SOCIAL, AND LOVE Receiving regular salary increases Having medical and disability insurance Working in a hazard free environment SAFETY AND SECURITY Receiving a sufficient salary to live on Having sufficient food and drink available Working in a comfortable environment PHYSIOLOGICAL

Maslow’s Theory: Key Points A person attempts to satisfy basic needs before directing behavior toward satisfying upper-level needs A satisfied need ceases to motivate Unsatisfied needs can cause frustration, conflict, and stress People have a need to grow and develop and will strive constantly to move up the hierarchy in terms of need satisfaction

Alderfer’s ERG Theory Alderfer proposes a hierarchy involving three sets of needs: Existence: needs satisfied by such factors as food, air, water, pay, and working conditions Relatedness: needs satisfied by meaningful social and interpersonal relationships Growth: needs satisfied by an individual making creative or productive contributions

Alderfer’s ERG Theory: Key Points (1 of 2) In addition to the satisfaction-progression process, a frustration-regression process is also at work e.g., if a person is continually frustrated in attempts to satisfy growth needs, relatedness needs reemerge as a major motivating force this causes the individual to redirect efforts toward satisfying a lower-order need category

Alderfer’s ERG Theory: Key Points (2 of 2) Individuals are motivated to engage in behavior to satisfy one of the three sets of needs

Alderfer’s ERG Theory: Management Application If a subordinate’s higher-order needs (e.g., growth) are being blocked, perhaps because of a company policy or lack of resources, Then it is in the manager’s best interest to attempt to redirect the subordinate’s efforts toward relatedness or existence needs

Herzberg’s Two-Factor Theory Extrinsic Conditions: Dissatisfiers or Hygienes Salary Job security Working conditions Status Company procedures Quality of technical supervision Quality of interpersonal relations among peers, with superiors, and subordinates Intrinsic Conditions: Satisfiers or Motivators Achievement Recognition Responsibility Advancement The work itself The possibility of growth

Traditional versus Herzberg View of Job Satisfaction I. Traditional Job Satisfaction Theory High job dissatisfaction High job satisfaction II. Herzberg’s Two-Factor Theory No job satisfaction High job satisfaction Based on Motivators Feeling of achievement Meaningful work Opportunities for advancement Increased responsibility Recognition Opportunities for growth No job dissatisfaction High job dissatisfaction Hygiene Factors Pay Status Job security Working conditions Employee benefits Policies and procedures Interpersonal relations 9

Herzberg’s Two-Factor Theory: Job Enrichment The process of building personal achievement, recognition, challenge, responsibility, and growth opportunities into a person’s job Has the effect of increasing the individual’s motivation by providing him/her with more discretion and accountability when performing challenging work

McClelland’s Learned Needs Theory McClelland contends that when a need is strong in a person, its effect is to motivate the person to use behavior that leads to its satisfaction. Achievement (n Ach) Affiliation (n Aff) Power (n Pow)

McClelland’s Theory: Key Points Needs are learned through coping with one’s environment Since needs are learned, behavior which is rewarded tends to recur at a higher frequency As a result of the learning process, individuals develop unique configurations of needs that affect their behavior and performance

A Comparison of the Content Theories Maslow (need hierarchy) Self-actualization Esteem Belongingness, social, and love Safety and security Physiological Herzberg (two-factor theory) The work itself Responsibility Advancement Growth Achievement Recognition Quality of inter- personal relations among peers, with supervisors, with subordinates Job security Working conditions Salary Alderfer Growth Relatedness Existence McClelland Need for achievement power affiliation Higher order needs Motivators Hygiene conditions Basic needs

Process Theories of Motivation Founders of the Theories Vroom – an expectance theory of choices Adams – equity theory based on comparisons that individuals make Locke – goal-setting theory (conscious goals and intentions are the determinants of behavior) Managerial Application Managers need to understand the process of motivation and how individuals make choices based on preferences, rewards, and accomplishments

Vroom’s Expectancy Theory Motivation is a process governing choices among alternate forms of voluntary activity Most behaviors are considered to be under the voluntary control of the person and consequently are motivated

Expectancy Theory: Key Terms (1 of 4) First-Level Outcomes First-level outcomes resulting from behavior are those associated with doing the job itself They include: productivity absenteeism turnover quality of production

Expectancy Theory: Key Terms (2 of 4) Second-Level Outcomes Those events (rewards and punishments) that the first-level outcomes are likely to produce, such as: merit pay increases group acceptance or rejection promotion termination

Expectancy Theory: Key Terms (3 of 4) Instrumentality The perception by an individual that first-level outcomes (performance) are associated with second-level outcomes (rewards) Valence The preferences for outcomes as seen by the individual

Expectancy Theory: Key Terms (4 of 4) The individual’s belief regarding the likelihood or subjective probability that a particular behavior will be followed by a particular outcome Easily thought of as a probability statement

Expectancy Theory Effort Performance First-level outcome E P EXPECTANCY E O EXPECTANCY Perceived probability of successful performance, given effort Perceived probability of receiving an outcome, given performance Expectancy Theory Second-level outcome First-level outcome Second-level outcome Effort Performance First-level outcome Second-level outcome Second-level outcome First-level outcome Second-level outcome Second-level outcome

Equity Theory Employees compare their efforts and rewards with those of others in similar work situations Based on the assumption that individuals are motivated by a desire to be equitably (fairly) at work The individual works in exchange for rewards from the organization

Equity Theory: Key Terms Person – the individual for whom equity or inequity is perceived Comparison other – any group or persons used by Person as a referent regarding the ratio of inputs and outcomes Inputs – the individual characteristics brought by Person to the job Outcomes – what Person received from the job

The Equity Theory of Motivation A person (P) with certain inputs (I) and receiving certain outcomes (O) Compares his/her input/outcome ratio to reference person’s (RP) inputs (I) and outcomes (O) OP ORP IP IRP equity = and perceives or OP ORP IP IRP inequity < or OP ORP IP IRP inequity > IP: Inputs of the person OP: Outcomes of the person IRP: Inputs of reference person ORP: Outcomes of reference person 13

Change Procedures to Restore Equity Changing inputs Changing outcomes Changing attitudes Changing the reference person Changing the inputs or outcomes of the reference person Leaving the field

Organizational Justice The degree to which individuals feel fairly treated at the workplace Distributive justice – the perceived fairness of how resources and rewards are distributed throughout an organization Procedural justice – the perceived equity or fairness of the organization’s processes and procedures used to make resource and allocation decisions

Procedural Justice: Positive Impact Procedural justice has been shown to have a positive impact on affective and behavioral reactions: Organizational commitment Intent to stay with the organization Organizational citizenship Trust in supervisor Satisfaction with decision outcome Work effort Performance

Key Steps to Implementing a Commitment-Oriented Management System: Commit to people-first values Clarify and communicate your mission Guarantee organizational justice Create a sense of community Support employee development

Goal Setting: Key Concepts The process of establishing goals Goal Specific target that a person, team, or group is attempting to accomplish Goal specificity Degree of quantitative precision (clarity) of the goal Goal difficulty Level of performance required to achieve the goal Goal intensity Process of setting the goal or of determining how to reach it Goal commitment Amount of effort used to achieve a goal

Examples of Goal Setting at Work Developing a new software program within 4-6 months to detect malicious viruses on the Internet Landing 5 new customers or increasing sales of existing customers by 10% over the next 12 months Decreasing waste in the manufacturing process by 20% over the next 3 years

Goal Setting Applied to Organizations Goal Characteristics Performance Rewards Clarity Meaningful Challenging Desired by Organization Preferred by Individual or Team Moderators Ability Commitment Feedback

Exchange Theory Suggests that members of an organization engage in reasonably predictable give-and-take relationships (exchanges) with each other e.g., an employee gives time and effort in exchange for pay e.g., management provides pleasant working conditions in exchange for employee loyalty

Psychological Contract (1 of 2) An unwritten agreement between the individual and the organization which specifies what each expects to give and receive from the other These implicit agreements may take precedence over written agreements May focus on exchanges involving: satisfaction, challenging work, fair treatment, loyalty, and opportunity to be creative

Psychological Contract (2 of 2) Managing the psychological contract is a key aspect of most managers’ jobs The more attuned the manager is to the needs and expectations of subordinates, the greater the number of matches that are likely to exist and be maintained in the psychological contract This can positively impact the direction, intensity, and persistence of motivation in the organization

Conclusions for Managers (1 of 2) Managers can influence the motivation state of employees If performance needs to be improved, managers must intervene and help create an atmosphere that encourages, supports, and sustains improvement Managers should be sensitive to variations in employees’ needs, abilities, and goals Managers must also consider differences in preferences (valences) for rewards

Conclusions for Managers (2 of 2) Continual monitoring of needs, abilities, goals, and preferences of employees is each individual manager’s responsibility It is not just the domain of human resources managers only Managers need to work on providing employees with jobs that offer task challenge, diversity, and a variety of opportunities for need satisfaction