Motivation and Performance chapter thirteen Motivation and Performance McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives Define motivation. Understand numerous different approaches to how employees are motivated in the workplace Maslow’s Hierarchy of Needs Herzberg’s 2-Factor Theory McClelland’s Theory of Needs Equity Theory Expectancy Theory Operant Conditioning Theory Serve up Real World Motivational practices McGraw-n © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Q. Why is motivating employees (or not) one of the most important things a manager does? McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Nature of Motivation Motivation - The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence Direction - possible behaviors the individual could engage in Effort - how hard the individual will work Persistence - whether the individual will keep trying or give up

Defining Motivation Motivation is not a personality trait, which either you have or you don’t… Motivation is something everyone has and it varies by individual and between individuals based upon the situation

The Nature of Motivation Intrinsically Motivated Behavior The sense of accomplishment and achievement derived from doing the work itself Extrinsically Motivated Behavior Behavior that is performed to acquire material or social rewards or to avoid punishment. The source of the motivation is the consequences of the behavior and not the behavior itself.

Outcomes and Inputs Input - Anything a person contributes to his or her job or organization (Time, effort, skills, knowledge, work behaviors) Outcome - Anything a person gets from a job or an organization (pay, job security, autonomy, accomplishment)

The Motivation Equation Figure 13.1

Motivation Theory #1 – Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs – humans will strive to meet needs, only moving on to higher level needs once a need is met. Implication – In order to motivate people, you must try to meet the lowest level of unmet needs that they have .

Motivation Theory #1 – Maslow’s Hierarchy of Needs Higher-order needs Self-actualization Self-fulfillment Esteem or ego Recognition, Confidence, Success, Strength Social Acceptance, Belonging, Love, Affection Safety Security, Protection, Comfort, Peace, Surroundings Physiological Food, Thirst, Sleep, Health, Body needs, Exercise, Rest Lower-order needs McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Maslow’s Hierarchy of Needs Self- actualization Realize one’s full potential Use abilities to the fullest Esteem Feel good about oneself Promotions and recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items Needs Description Examples Lower-level needs must be satisfied before higher-level needs are addressed. Highest-level needs Lowest-level needs Table 13.1

Motivation Theory #2 – Herzberg’s 2-Factor Theory Maintenance Factors – Workplace elements that must be present to prevent dissatisfaction, but being present doesn’t cause motivation Motivating Factors – Workplace elements that when present will motivate employees Implication – There are certain factors (like money) which won’t motivate most employees but can de-motivate them if not decent. There are other factors which can motivate employees

Job Enrichment - Herzberg Herzberg’s Maintenance Factors and Motivating Factors Maintenance Factors (Not Motivators, Motivating Factors but Prevent Dissatisfaction): (Directly Lead to Satisfaction): 1. Company policy and administration 1. Opportunity for achievement 2. Supervision 2. Opportunity for recognition 3. Relationship with supervisor 3. Work itself 4. Relationship with peers 4. Responsibility 5. Working conditions 5. Advancement 6. Salary 6. Personal growth 7. Relationship with subordinates Job Enrichment - Herzberg .

Motivation Theory #3 – McClelland’s Acquired Needs Theory People acquire 3 groups of needs through their life experiences, especially early in life: Need for Achievement – motivated by meeting challenges Need for Power – motivated by responsibility Need for Affiliation – motivated by approval Implication - If a manager understands which of these 3 types of needs is most important for an employee, then they can be motivated accordingly .

Motivation Theory #3 - McClelland’s Acquired Needs Theory nAch nPow nAff

Motivation Theory #3 – McClelland’s Acquired Needs Theory Q. Based upon the McClelland’s Theory, what Need are you most motivated by? Need for Achievement – motivated by meeting challenges Need for Power – motivated by responsibility Need for Affiliation – motivated by approval

Motivation Theory #3 – McClelland’s Acquired Needs Theory * Implication - You will likely be happiest by seeking out a work environment that matches your primary Need: N power - Likely to be happiest in jobs that give you control over budgets, people, and decision-making. N achievement - Likely to be happiest working in an environment in which you can create something new. N affiliation – Likely to happiest when you can be working with other people and can form friendships. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivation Theory #4 – Equity Theory Equity theory - People want to be treated fairly in relationship to others. Inequity exists when a person perceives his or her job inputs (such as effort, skills, and experience) and outcomes (such as pay) to be different than the job inputs and outcomes of another person. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivation Theory #4 – Equity Theory Q. Have you ever seen someone throttle back their work effort because they felt they were underpaid? Or increase their effort because they felt they were overpaid?

Motivation Theory #4 – Equity Theory A person might take several actions to reduce inequity: Increase efforts on the job Reduce efforts on the job Quit the job. Request a pay increase. Implication – It is human nature for employees to compare their efforts and rewards to others, therefore managers need to be as fair as possible in rewarding all employees for their efforts. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivation Theory #5 – Expectancy Theory Expectancy Theory is best expressed in the following formula: Implication – Managers must reward achievements in ways that are meaningful to individual employees. .

Motivation Theory #5 – Expectancy Theory An employee’s motivation will be maximized when they answer “yes” to the following questions: If I give a maximum effort, will it be recognized? If it is recognized, will it then be rewarded? If it is rewarded, are the rewards attractive to me? If the employee does not expect the answer to be “yes” to each question, they won’t be motivated Q. Does this apply to you personally?

Q. In the workplace, what motivates you the most? Q. Other than using monetary incentives, how would you motivate your followers?

Motivation Theory #6 - Operant Conditioning Theory People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. Linking specific behaviors to the attainment of specific outcomes (such as pay raises or recognition) can motivate high performance and prevent negative behaviors.

Operant Conditioning Tools Positive Reinforcement - Gives people outcomes they desire when they perform organizationally functionally behaviors Positive reinforcers: Pay, praises, promotions Negative Reinforcement - Eliminating undesired outcomes once the functional behavior occurs Negative reinforcers: criticisms, pay cuts, suspension

Avoiding Side Effects of Negative Reinforcement Downplay the emotional element involved Try to punish dysfunctional behaviors as soon as they occur Try to avoid punishing someone in front of others

In the Real World… Ways to Motivate Followers Take an individualized approach Understand Responsibility, Authority, Autonomy & Accountability = pride & self-esteem Build a team Install a flexible benefits program Utilize job design techniques Provide Great Leadership! Properly use recognition

Individualizing Motivation Understand that each individual has different motivators and individuals are motivated differently depending upon the situation Understand that Motivation is not a personality trait, which either you have or you don’t. It is by degree for everyone Invite employees to participate in determining their own rewards Make certain that motivation is being handed out equitably

Individualizing Motivation Connect rewards to both individual & team performance Ensure that employees are both having fun and producing Balance the needs of the employee with the needs of the organization (provide the best reward under the circumstances) View individuals as followers, not as employees!