Leadership – motivation Management Leadership – motivation

Useful vocabulary Job design Job scope Job enlargement Job enrichment Job depth Skill variety Task identity Task significance Autonomy Feedback Relational Proactive High-involvement Equity theory Expectancy theory Open-book management Employee recognition programs

Today’s lecture We will: Define motivation Compare and contrast early theories of motivation Compare and contrast contemporary theories of motivation Discuss current issues in motivation

What is motivation? Motivation - the process by which a person’s efforts are energised, directed, and sustained toward attaining a goal. Motivation, or, to put it another way – why people do what they do – is behind most of our actions. We all do things for a reason; however, that reason is not always clear.

3 elements of motivation Intensity – how hard a person tries Direction – effort that is channeled toward, and consistent with, organisational goals Persistence – how long a person can maintain effort

RSA video Fun and interesting video on motivation: http://www.thersa.org/events/video/animate/rsa-animate-drive

Early motivation theories

Early theories of motivation Maslow’s Hierarchy of Needs McGregor’s Theories X and Y Herzberg’s Two-Factor Theory McClelland’s Three Needs Theory

Maslow’s hierarchy of needs Maslow’s theory is that people are motivated by needs. Once people have what they need, their needs change and develop. In the next diagram, you can see that these start at the bottom with basic physiological needs such as food and water. They then progress and change until self-actualisation is achieved.

Maslow’s hierarchy of needs - diagram Self-actualisation Esteem Love Safety Physiological

What does it mean? Maslow’s hierarchy looks at a person’s whole life, not just their work life. However, work can fulfil some of a person’s needs to help them be more fulfilled and therefore more motivated. The next diagram offers suggestions of how to interpret Maslow’s needs in a workplace context.

What does this mean? Maslow Fulfilment activities Workplace fulfilment activities Physiological Food, water, sleep, sex Money, working conditions, kitchen Safety Safety, security, stability, protection Safe environment, job security, benefits Social Love, affection, belonging Friendly supervision, good relationship with colleagues, membership of groups Esteem Self-esteem, self-respect, prestige, status Job status, job title, positive feedback, recognition Self-actualisation Growth, advancement, creativity Challenging work, opportunities for autonomy, achievement, promotion

Criticisms of Maslow People can be on multiple steps at the same time People will move between different stages in both directions Not based on research There are a number of criticisms of the two-factor theory. There are some questions about the study itself. First, the participants had a self-serving bias. When things are going well, they will take credit themselves. When things are not going well, they tend to blame it on the environment or others. The second criticism is that the raters will incorporate their own biases in their observations. Finally, Herzberg’s look at satisfaction had some errors in it as there was no attempt to measure overall satisfaction and he assumed a relationship between satisfaction and productivity. (c) 2008 Prentice-Hall, All rights reserved.

McGregor’s Theory X and Theory Y Theory X - the assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform. Theory Y - the assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction.

Criticisms of McGregor Managers used a set of assumptions based on their view The assumptions moulded their behaviour toward employees No empirical evidence to support this theory.

Herzberg’s two factor theory Two-factor theory (motivation-hygiene theory) - the motivation theory that claims that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction. Hygiene factors - factors that eliminate job dissatisfaction, but don’t motivate. Motivators - factors that increase job satisfaction and motivation.

Herzberg’s two factor theory Herzberg’s theory is in some ways similar to Maslow’s. He puts forward the suggestion that people have two sets of factors which contribute to their motivation: Hygiene Factors Motivators Achievement Responsibility Growth Work Conditions Salary Company Policies Extrinsic and Related to Dissatisfaction Intrinsic and Related to Satisfaction

Herzberg’s two factor theory

McClelland’s achievement motivation theory He suggests that there are four main needs that everyone has: The Achievement motive (n-Ach) The Power motive (n-Pow) The Affiliate motive (n-Affil) The Avoidance motive (n-Avoid)

McClelland’s four needs He suggests that everyone has a combination of these needs but that one tends to dominate. The Achievement motive (n-Ach) People with a high achievement need like to be successful and have positive feedback.  The Power motive (n-Pow) People with a high power need like to be in charge of people and/or organisations.  The Affiliate motive (n-Affil) People with a high affiliation need prefer to work with other people in teams and groups.  The Avoidance motive (n-Avoid) People with a high avoidance need will avoid situations which may provoke negative emotions in them.

Criticisms of McClelland Focus in the research was mostly on nAch Not very practical to use in organisations as a tool because of time taken to undertaken and expertise needed Motivators are internal and difficult to identify and measure

Thematic Apperception Tasks - TAT pictures

Criticisms of McClelland Focus in the research was mostly on nAch Not very practical to use in organisations as a tool because of time taken to undertaken and expertise needed Motivators are internal and difficult to identify and measure

Activity – individual reflection What motivates you? What makes you get out of bed in the morning? What makes you attend lectures? What makes you want to do well? Select a theory and analyse your own motivations.

Contemporary theories of motivation

Contemporary Theories of Motivation Goal-Setting Theory Reinforcement Theory Equity Theory Expectancy Theory Self-Determination Theory Management by Objectives (MBO) Self-Efficacy Theory Social Cognitive Theory or Social Learning Theory There are a number of contemporary theories of motivation that have utilized the older theories to provide us with a deeper understanding of motivation in the workplace. (c) 2008 Prentice-Hall, All rights reserved.

Goal setting theory That specific and difficult goals, with self-generated feedback, lead to higher performance Difficult Goals: Focus and direct attention Energize the person to work harder Difficulty increases persistence Force people to be more effective and efficient Relationship between goals and performance depends on: Goal commitment (the more public the better!) Task characteristics (simple, well-learned) Culture (best match is in North America) Edwin Locke developed what is called the goal-setting theory. The idea behind this theory is that goals that are specific and effectively difficult can lead to higher performance if they include self-generated feedback. A difficult goal will help the individual to focus and direct attention as well as energize them to work harder. The difficulty of the goal will increase persistence and force people to be more effective and efficient. The relationship between goals and performance depends on how committed the individual is to the goal as well as how specific the tasks are. Most of the research has been done in the United States so the applicability of this theory to other cultures is suspect. (c) 2008 Prentice-Hall, All rights reserved.

Goal setting theory

Reinforcement theory Reinforcement theory - the theory that behaviour is a function of its consequences. Reinforcers - consequences immediately following a behaviour which increase the probability that the behaviour will be repeated. (reward, punishment, ignore)

Equity theory Equity theory - the theory that an employee compares his or her job’s input-outcome ratio with that of relevant others and then corrects any inequity. Referents - the persons, systems, or selves against which individuals compare themselves to assess equity. Distributive justice - perceived fairness of the amount and allocation of rewards among individuals.

Equity theory’s “Relevant Others” Can be four different situations: Self-Inside The person’s experience in a different job in the same organisation Self-Outside The person’s experience in a different job in a different organisation Other-Inside Another individual or group within the organisation Other-Outside Another individual or group outside of the organisation There are four different type of situations that arise with the equity theory’s relevant others; they are as follows: * Self-inside where the person compares themselves with someone else within the organisation who holds a different job; * Self-outside where the person compares themselves with someone outside of the organisation with a different job; * Other-inside where the person compares another individual or group of individuals within the organisation; and * Other-outside where the person compares another individual or group of individuals outside of the organisation. All these factors are based on the individual’s perceptions of what is equitable or fair. (c) 2008 Prentice-Hall, All rights reserved.

Reactions to inequity Employee behaviours to create equity: Change inputs (slack off) Change outcomes (increase output) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person (focus on another person to reference) Leave the field (quit the job) Employees will often react strongly to situations they perceive as inequitable. They normally engage in behaviours to create equity, such as slacking off when they feel they are working harder than others or quitting when they see no way to make things equitable. There are also some responses to inequitable pay that employees engage, such as producing more when they are overpaid or producing lower quality outputs when they feel they are underpaid. (c) 2008 Prentice-Hall, All rights reserved.

Reactions to equity Propositions relating to inequitable pay: Paid by time: Over-rewarded employees produce more Under-rewarded employees produce less with low quality Paid by quality: Over-rewarded employees give higher quality Under-rewarded employees make more of low quality

Expectancy theory Expectancy theory - the theory 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.

Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. ie, people will do more if they believe there is a good reward

Expectancy theory details 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 attaining a desired outcome (reward). Valence The attractiveness/importance of the performance reward (outcome) to the individual.

Expectancy model

Global Implications Motivation theories are often culture-bound: Maslow’s Hierarchy of Needs Theory Order of needs is not universal McClelland’s Three Needs Theory nAch presupposes a willingness to accept risk and performance concerns – not universal traits Equity Theory a desire for equity is not universal “Each according to his need” – socialist/former communists desire for interesting work seems to be universal. There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal Unfortunately, in the area of motivation theory, the vast majority of research has been done in the United Sates and is culturally bound. There does seem to be a universal acceptance that a desire for interesting work is common across the globe, but there is no research to support this. (c) 2008 Prentice-Hall, All rights reserved.

Designing motivating jobs

Designing motivating jobs (1) Job design - the way tasks are combined to form complete jobs. Job scope - the number of different tasks required in a job and the frequency with which those tasks are repeated. Job enlargement - the horizontal expansion of a job that occurs as a result of increasing job scope.

Designing motivating jobs (2) Job enrichment - the vertical expansion of a job that occurs as a result of additional planning and evaluation of responsibilities. Job depth - the degree of control employees have over their work. Job characteristics model (JCM) - a framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes.

Five core job dimensions Skill Variety: degree to which the job incorporates a number of different skills and talents Task Identity: degree to which the job requires the completion of a whole and identifiable piece of work Task Significance: how the job impacts the lives of others Autonomy: identifies how much freedom and independence the worker has over the job Feedback: how much the job generates direct and clear information about the worker’s performance The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include skill variety, which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires the completion of whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the worker’s performance. (c) 2008 Prentice-Hall, All rights reserved.

Job characteristics model

Contemporary job design approaches (1) Relational perspective - focuses on how people’s tasks and jobs are increasingly based on social relationships. Proactive perspective - in which employees take the initiative to change how their work is performed. High-involvement work practices - work practices designed to elicit greater input or involvement from workers.

Guidelines for job re-design

Current issues in motivation

Integrating modern theories of motivation

Global issues in motivation (1) Motivational programs are most applicable in cultures where individualism and achievement are cultural characteristics (eg USA). Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy Eg, security needs – Japan, Greece Mexico Eg, social needs – Denmark, Sweden, Norway, Finland, Netherlands

Global issues in motivation (2) The need for achievement (nAch) is lacking in other cultures (eg, Chile, Portugal) Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance (eg, socialist countries)

Motivating a diverse workforce Motivating a diverse workforce through flexibility: Men desire more autonomy than do women. Women desire learning opportunities, flexible work schedules, and good interpersonal relations Gen Y and older workers have different needs

Motivating a diverse workforce (2) Compressed workweek Longer daily hours, but fewer days Flexible work hours (flextime) Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present Job Sharing Two or more people split a full-time job Telecommuting Employees work from home using computer links

Motivating unique groups of workers (1) Motivating Professionals Characteristics of professionals 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.

Motivating unique groups of workers (2) 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

Designing appropriate rewards Open-book management - a motivational approach in which an organisation’s financial statements (the “books”) are shared with all employees. Employee recognition programs - programs based on personal attention and expression of interest, approval, and appreciation for a job well done. Pay-for-performance programs - variable compensation plans that pay employees on the basis of some performance measure.

Summary Today: Early motivation theories Modern motivation theories Designing motivating jobs Contemporary issues in motivation Tomorrow: Leading - communication

Reading Please read Chapter 15 before tomorrow’s lecture.