Michael A. Hitt C. Chet Miller Adrienne Colella Slides by R. Dennis Middlemist Chapter 6 Work Motivation

Knowledge Objectives 1.Define work motivation and explain why it is important to organizational success. 2.Discuss how managers can use Maslow’s need hierarchy and ERG theory to motivate associates. 3.Explain how Herzberg’s two-factor theory of motivation has influenced current management practice. 4.Describe how need for achievement, need for affiliation, and need for power relate to work performance and motivation.

Knowledge Objectives 5.Discuss the application of expectancy theory to motivation. 6.Understand equity theory and procedural justice, and discuss how fairness judgments influence work motivation. 7.Explain how goal-setting theory can be used to motivate associates. 8.Describe how to enrich jobs and how job enrichment can enhance motivation. 9.Based on all theories of work motivation, describe specific actions that can be taken to increase and sustain employee motivation.

Motivation – Forces within a person – Willful direction, intensity, and persistence of the person’s efforts – Achieving specific goals not due to Ability Environmental demands

Motivation Person’s level of performance is a function (f) of both ability and motivation: Performance = f (Ability x Motivation) Theories of Motivation – Content theories – Process theories

Order of Prepotency Physiological Needs Safety Needs Social and Belongingness Needs Esteem Needs Self- Actualization Unsatisfied Needs Content Theories: Need Hierarchy Maslow’s Need Hierarchy People motivated by desire to satisfy specific needs, arranged in a hierarchical order of prepotency* *Lower level needs must be satisfied before a person can be motivated by higher level needs Satisfied Needs

Content Theories: ERG Theory Maslow’s Need Hierarchy Physiological Needs Safety Needs Social and Belongingness Needs Esteem Needs Self- Actualization order of prepotency Existence Needs Relatedness Needs Growth Needs Alderfer’s ERG Theory Adapted from: Exhibit 6-1 Maslow’s Need Hierarchy and Alderfer’s ERG Theory Compared

Content Theories: ERG Theory Two differences between Maslow’s and Alderfer’s theories – Notion of prepotency is not fixed in ERG theory May become concerned about a higher order need before lower order need is satisfied May still have strong desire to satisfy lower order need, even when the higher order need seems most important – Even when a need is satisfied, it may remain as the dominant motivator if the next need in the hierarchy cannot be satisfied (frustration-regression process)

Content Theories: Achievement, Affiliation, and Power People with a high need for achievement – Prefer to set their own goals – Set goals of moderate difficulty, but that are achievable – Like to solve problems rather than leave the results to chance – Are more interested in achieving the goal than in the associated rewards – Prefer situations in which they receive regular, concrete feedback on their performance – Are positive thinkers who find workable solutions to life’s hurdles and challenges – Take a strong personal responsibility for their work

Content Theories: Achievement, Affiliation, and Power People with a high need for affiliation – Have a strong desire to be liked and to stay on good terms with most other people. – Tend not to make good managers because they often treat different people in different ways (for example, may apply inconsistent rules) – Are more concerned with initiating and maintaining personal relationships than with focusing on the task at hand

Content Theories: Achievement, Affiliation, and Power People with a high need for institutional power – Are concerned about the functioning of the organization and have a desire to serve others – Are controlled in their exercise of power People with a high need for personal power – Desire to influence others for their own personal gain – Are more impulsive in exercising power – Show little concern for other people – Are focused on obtaining symbols of prestige and status (such as big offices)

Content Theories: Achievement, Affiliation, and Power Conclusion People with a high need for institutional power are particularly good at – Increasing morale – Creating clear expectations – Getting others to work for the good of the organization People high in need for achievement – Take responsibility for their own work and require short-term feedback – Are reluctant to delegate work to others and to be patient in working toward long-term objectives Effective managers have both a high need for achievement and a high need for institutional power

Two-Factor Theory Focuses on the rewards or outcomes of performance that satisfy individuals’ needs Job satisfaction and dissatisfaction are not opposites ends of the same continuum but are independent states Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa

Two-Factor Theory Achievement Recognition Responsibility Opportunity for advancement or promotion The work itself Potential for personal growth Salary Technical supervision Working conditions Company policies, administration, and procedures Interpersonal relationships with peers, supervisors, and subordinates Status Security When increased, lead to greater satisfaction When deficient, lead to greater dissatisfaction MotivatorsHygienes

Process Theories: Expectancy Theory Three factors affect decision to exert effort – Expectancy Subjective probability that effort will lead to performance – Instrumentality Subjective probability that a given level of performance will lead to certain outcomes – Valence An Individual’s expected satisfaction associated with each outcome resulting from performance

Expectancy Theory Adapted from Exhibit 6-2 Expectancy Theory Motivational Force = EffortPerformance Outcome 2 Outcome 1 Outcome 3 V1 V2 V3 I2 I1 I3 E E = Subjective probability that effort will lead to performance I = Subjective probability that performance will lead to various outcomes V = Valence = Expected satisfaction with each outcome Motivational Force = E   (I  V)

Process Theories: Expectancy Theory To increase motivation – Heighten expectancy by increasing associates’ beliefs that exerting effort will lead to higher levels of performance (training, support) – Increase instrumentalities by clearly linking high performance to outcomes (pay for performance) – Increase valence by providing outcomes that are highly valued (provide rewards employees desire)

Process Theories: Equity Theory Motivation is based on a person’s assessment of the ratio of the outcomes or rewards (pay, status) he receives for input on the job (effort, skills) compared with the same ratio for a comparison other My Outcomes My inputs vs. Other’s Outcomes Other’s Inputs

Process Theories: Equity Theory Employees may – Increase or decrease inputs – Change their outcomes – Distort their perceptions of inputs and/or outcomes – Distort perceptions of other’s inputs and/or outcomes – Change the referent others – Leave the organization My Outcomes My inputs Other’s Outcomes Other’s Inputs IF = \

Procedural Justice Voice in the decision process Procedures applied consistently Procedures free from bias Based on accurate information Formal grievance procedures Ethical code Treated with respect Given reasons for decisions

Goal-Setting Theory Goal-setting theory – Difficult and specific goals increase human performance because the affect effort, persistence, and direction of behavior Goal difficulty Goal specificity Goal commitment Participation in setting goals Feedback

Factors Affecting Goal Commitment Exhibit 6-3: Factors Affecting Goal Commitment Exhibit 6-3Factors Affecting Goal Commitment 1.The goal is set by an appropriate authority figure. 2.Rewards and punishments are tied to goal attainment (or failure). 3.The goal fosters a sense of self-achievement and potential for development. 4.The goal assigner is perceived as trustworthy. 5.The goal assigner is supportive and promotes self-efficacy. 6.Peer models are committed to the goal. 7.The goal assigner provides a rationale for the goal. 8.The goal provides a challenge to prove oneself and meets ego needs. 9.The goal is public. Factors Increasing the Desirability of Attaining a Given Goal 1.There is high self-efficacy on the task. 2.There are successful role models 3.The task is not impossibly difficult 4.Expectancy for success is high. 5.There is competition with others. Factors Increasing the Perceived Ability of Attaining a Given Goal

Motivating Associates: Integration of Theory Exhibit 6-3: Factors Affecting Goal Commitment Exhibit 6-4Motivation Practices Resulting from Motivation Theories Motivation Theories Motivation Practices Need Hierarchies Maslow ERG Find Meaningful Individual Rewards Tie Rewards to Performance Redesign Jobs Provide Feedback Clarify Expectations and Goals McClelland’s Needs Herzberg’s Two-Factor Theory Expectancy Theory Equity Theory Goal-Setting Theory XXXXXX XXXXXXXXXX X XXXXXXXX XXXXXXXX XXXXXX

Motivating Associates: Integration of Theory Tie individual rewards to individual needs – Individuals differ on what they find “rewarding” – Tailor individual rewards to individual needs – Do not overemphasize extrinsic rewards Tie rewards to performance – Performance is difficult to measure – Managers may lack flexibility in determining rewards – Intrinsic rewards may work when extrinsic rewards are unavailable

Motivating Associates: Integration of Theory Redesign jobs – Job enlargement: add tasks of equal complexity to increase variety and use of skills – Job enrichment: make jobs more motivating by increasing responsibility Skill variety Task identity Task significance Autonomy Feedback

Motivating Associates: Integration of Theory Provide feedback – In conjunction with goals – Repeat at regular intervals – Provide information as to how performance can be improved – Come from a credible source – Focus on the performance, not the person

Clarify Expectations and Goals Motivating potential of goals Align individual goals with organizational goals Management by Objectives – Together, the supervisor and associate establish the associate’s short-term performance goals – Regular meetings are held to discuss the associate’s progress in meeting the goals – Checkpoints and benchmarks are established to measure the associate’s progress – A discussion is held at the end of some time period to evaluate the associate’s accomplishment of the goals