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 Motivation – the arousal of enthusiasm and persistence to pursue a course of action  Forces either intrinsic or extrinsic to a person that arouse enthusiasm and persistence  Employee motivation affects productivity  A manager’s job is to channel motivation toward the accomplishment of goals 2

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

If managers understand employees’ needs, they can design appropriate reward systems  Needs motivate people  Needs translate into an internal drive that motivates behavior  People have a variety of needs 4

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

 Existence needs – the needs for physical well-being  Relatedness needs – the needs for satisfactory relationships with others  Growth needs – the needs that focus on the development of human potential and the desire for personal growth 6 Frustration-regression principle: failure to meet a high-order need may cause a regression to an already satisfied lower- order need

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

8 Need for achievement Need for affiliation Need for power

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. How people select behavioral actions  Goal-Setting Theory  Equity Theory  Expectancy Theory 9

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Increase motivation and enhance performance by setting goals and providing timely feedback  Key components of the theory:  Goal specificity  Goal difficulty  Goal acceptance  Feedback 10

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Individual perceptions of fairness  Inequity occurs when the input-to-outcome ratios are out of balance  Perceived inequity can be reduced by:  Changing work effort  Changing outcomes  Changing perception  Leaving the job 11

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards  E → P : determining whether putting effort into a given task will lead to high performance  P → O : determining whether successful performance of a task will lead to the desired outcome  Valence – the value or attraction an individual has for an outcome 12

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Behavior Modification Reinforcement theory techniques used to modify behavior Reinforcement Anything that causes a behavior to be repeated or inhibited Law of Effect Positively reinforced behavior tends to be repeated and unreinforced behavior inhibited

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Extinction Withholding of a positive reward Punishment Imposition of unpleasant outcomes on an employee Avoidance learning Removal of an unpleasant consequence once a behavior is improved Positive Reinforcement Pleasant and rewarding consequences following a desired behavior

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual’s motivation can result from the person’s observations of other people’s behavior  Vicarious learning – observational learning from seeing others’ behaviors and getting rewarded for them 17

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Job Rotation Job Enlargement Job Enrichment

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 Dimensions that determine a job’s motivational potential:  Skill variety  Task identity  Task significance  Autonomy  Feedback Based on:  Critical Psychological States  Personal and Work Outcomes  Employee Growth-Need Strength

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Organizations are using various types of incentive compensation to motivate employees to higher levels of performance  Variable compensation is a key motivational tool  Incentive plans can backfire  They should be combined with motivational ideas and intrinsic rewards and meeting higher-level needs  Incentives should reward the desired behavior 21

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Employees receive information about company performance  Employees have knowledge and skills to contribute to company goals  Employees have the power to make substance decisions  Employees are rewarded based on company performance 23

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 Instill a sense of support and meaning Help employees develop positive relationships with colleagues and supervisors Focus on learning, contribution, and growth