Copyright © 2016 Pearson Canada Inc.

What Is Motivation? Motivation The intensity, direction, and persistence of effort a person shows in reaching a goal: Intensity: How hard a person tries Direction: Where effort is channelled Persistence: How long effort is maintained L01: Material pertinent to this discussion is found under “What Is Motivation?” Copyright © 2016 Pearson Canada Inc. 2

Theory X and Theory Y Theory X Assumptions Employees dislike work Employees attempt to avoid work Employees must be coerced, controlled, or threatened with punishment to achieve goals. Theory Y Assumptions Employees like to work Employees are creative, and seek responsibility Employees will exercise self-direction and self-control if they are committed to the objectives. LO1; Material pertinent to this discussion is found under “What Is Motivation?” Copyright © 2016 Pearson Canada Inc. 3

Motivators Intrinsic Motivators A person’s internal desire to do something interest, challenge, and personal satisfaction Extrinsic Motivators Motivation that comes from outside the person pay, bonuses, and other tangible rewards LO1; Material pertinent to this discussion is found under “What Is Motivation?” Ask students whether they’re motivated more by intrinsic or extrinsic factors, and the conditions where this varies. Copyright © 2016 Pearson Canada Inc. 4

Needs Theories of Motivation
Basic idea Individuals have needs that, when unsatisfied, have the potential to create motivation Maslow’s Hierarchy of Needs Theory Herzberg’s Motivation-Hygiene Theory Alderfer’s ERG Theory McClelland’s Theory of Needs LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Note: This is an introductory slide to introduce the Needs Theories of Motivation. Further slides will provide detail on each theory. The early needs theories, developed in the 1950s, are heavily attacked and now questionable in terms of validity. However, these are probably the best-known explanations for employee motivation, and they do represent the foundation from which contemporary theories have grown. Also, practising managers use these theories in explaining employee motivation Copyright © 2016 Pearson Canada Inc. 5

Maslow’s Hierarchy of Needs
Physiological Includes hunger, thirst, shelter, sex, and other bodily needs Safety Includes security and protection from physical & emotional harm Social Includes affection, belongingness, acceptance, and friendship Esteem Includes internal esteem factors: self-respect, autonomy, and achievement Includes external esteem factors: status, recognition, and attention Self-actualization The drive to become what one is capable of becoming Includes growth, achieving one’s potential, and self-fulfillment LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Abraham Maslow's theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization. Copyright © 2016 Pearson Canada Inc. 6

Exhibit 4-1 Maslow’s Hierarchy of Needs
LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 7

Herzberg’s Motivation-Hygiene Theory
Motivators Sources of satisfaction Intrinsic factors (content of work) Achievement Recognition Challenging, varied, or interesting work Responsibility Advancement Growth Hygiene factors Sources of dissatisfaction Extrinsic factors (context of work) Company policy and administration Unhappy relationship with employee’s supervisor Poor interpersonal relations with one’s peers Poor working conditions LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, “What do people want from their jobs?” Factors affecting job attitudes were tabulated and classified. Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad. Copyright © 2016 Pearson Canada Inc. 8

Exhibit 4-2 Comparison of Satisfiers and Dissatisfiers
LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Herzberg’s data suggest that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. The factors that were cited as leading to extreme dissatisfaction had very little relation to those factors cited as leading to extreme satisfaction. Copyright © 2016 Pearson Canada Inc. 9

McClelland’s Theory of Needs
Need for achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for power The need to make others behave in a way that they would not have behaved otherwise Need for affiliation The desire for friendly and close interpersonal relationships LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” David McClelland proposes three needs as being important in organizational settings for understanding motivation. These are need for achievement (nAch), to achieve in relation to set of standards, need for power (nPow), the need to make others behave in a way that they would not have behaved otherwise, and need for affiliation (nAff), the desire for friendly and close interpersonal relationships. Copyright © 2016 Pearson Canada Inc. 10

Exhibit 4-4 Relationship of Various Needs Theories
LO4; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 11

Summary: Hierarchy of Needs
All the need theories propose a similar idea: Individuals have needs that, when unsatisfied, have the potential to create motivation. Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. Herzberg: Motivators lead to satisfaction. Hygiene factors must be met if person is not to be dissatisfied. However, they will not lead to satisfaction. Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases. McClelland’s: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power. LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 12

Summary: Impact of Theory
Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time. Alderfer: Seen as a more valid version of the need hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks. McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally. LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 13

Summary: Support and Criticism of Theory
Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. Herzberg: Not really a theory of motivation: Assumes a link between satisfaction and productivity that was not measured or demonstrated. Alderfer: Ignores situational variables. McClelland’s: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement. LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 14

Process Theories of Motivation
Look at the actual process of motivation Expectancy theory Goal-setting theory Self-efficacy theory LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.” Note: This is an introductory slide to Process Theories of Motivation. There follow specific slides that provide speaking notes for the three process theories listed. Copyright © 2016 Pearson Canada Inc. 15

Expectancy Theory The theory that employees will be motivaated to exert a high level of effort if they believe the following: That their effort will lead to good performance That good performance will be followed by a given outcome (organizational rewards such as salary increase) That the reward will satisfy employee’s personal goals LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.” This theory concerns an attractiveness, performance-reward and effort-performance linkage. The likelihood a person will act in a certain way depends on the strength of his or her expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Exhibit 4-6 is a good one to use in class. Ask students questions like: What if I asked you to write a paper? A book? To change the oil in your car? To build a car? Have them relate their responses in terms of expectancy theory. Copyright © 2016 Pearson Canada Inc. 16

Expectancy Relationships
The theory focuses on three relationships: Effort-Performance Relationship (Expectancy) The perceived probability that exerting a given amount of effort will lead to performance Performance-Reward Relationship (Instrumentality) The degree to which the individual believes that performing at a particular level will lead to organizational rewards Rewards-Personal Goals Relationship (Valence) The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 17

Exhibit 4-7 Steps to Increasing Motivation, Using Expectancy Theory
LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.” This is a good exhibit to use in class. Ask students questions like: -What if I asked you to write a paper? -A book? -To change the oil in your car? -To build a car? Have them relate their responses in terms of expectancy theory. Copyright © 2016 Pearson Canada Inc. 18

Importance of Providing Performance Feedback
An effective performance review: Employee perceives the appraisal as fair Manager is sincere Climate is constructive Performance review should be more like a counselling activity than a judgment process, allowing the review to evolve out of the employee’s own self-evaluation. LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 19

Goal-Setting Theory The theory that specific and difficult goals lead to higher performance. Goals tell an employee what needs to be done and how much effort will need to be expended. Specific goals increase performance. Difficult goals, when accepted, result in higher performance than do easy goals. Feedback leads to higher performance than does non-feedback. Specific hard goals produce a higher level of output than does the generalized goal of “do your best.” The specificity of the goal itself acts as an internal stimulus. LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 20

How Does Goal Setting Motivate?
Direct attention Regulate effort Increase persistence Encourage the development of strategies and action plans LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 21

Goals Should Be SMART For goals to be effective, they should be SMART: Specific Measurable Attainable Results Oriented Time bound LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” SMART goals are very popular in the business world, so you might have students work at remembering the acronym Copyright © 2016 Pearson Canada Inc. 22

Exhibit 4-8 Locke’s Model of Goal Setting
LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 23

Goal Setting Theory People differ in the way they regulate their thoughts and behaviours during goal pursuit Promotion Focus – strive for advancement and accomplishment and approach conditions that move them closer toward desired goals Prevention Focus – strive to fulfill duties and obligations and avoid conditions that pull them away from desired goals LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 24

Self-Efficacy Theory Self Efficacy also known as social cognitive theory and social learning theory An individual’s belief that he or she is capable of performing a task. The higher your self efficacy the more confident you are in your ability to succeed in a task LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 25

Four Ways to Improve Self Efficacy
Enactive Mastery Gaining relevant experience Vicarious Modelling Confidence gained by seeing someone else perform the task. Verbal Persuasion Confidence gained because someone convinces you that you have the necessary skills to succeed. Arousal An energized state can drive a person to complete the task. Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 26

Exhibit 4-9 Joint Efforts of Goals and Self Efficacy on Performance
Material pertinent to this discussion is found under “Process Theories of Motivation.” Copyright © 2016 Pearson Canada Inc. 27

Motivating Through Reinforcement
Skinner suggested that people learn how to behave to get something they want or to avoid something they don’t want. This idea is known as operant conditioning. Behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour. LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” Copyright © 2016 Pearson Canada Inc. 28

Methods of Shaping Behaviour
Positive reinforcement Following a response with something pleasant. Negative reinforcement Following a response by the termination or withdrawal of something unpleasant. Punishment Causing an unpleasant condition in an attempt to eliminate an undesirable behaviour. Extinction Eliminating any reinforcement that is maintaining a behaviour. LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” There are four ways in which to shape behaviour. Exhibit 4-13 gives examples of each type of reinforcement. Copyright © 2016 Pearson Canada Inc. 29

Exhibit 4-10 Types of Reinforcement
LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” Copyright © 2016 Pearson Canada Inc. 30

Schedules of Reinforcement
The two major types of reinforcement schedules are continuous and intermittent. Continuous reinforcement: reinforces desired behaviour each and every time it is demonstrated. Intermittent reinforcement: ratio or interval The individual is reinforced after giving a certain number of specific types of behaviour. The individual is reinforced on the first appropriate behaviour after a particular time has elapsed. LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” See Exhibit 4-11 Schedules of Reinforcement. Copyright © 2016 Pearson Canada Inc. 31

Fixed and Variable Reinforcements
A reinforcement can also be classified as fixed or variable. Fixed-interval schedule Variable-interval schedule Fixed-ratio schedule Variable-ratio schedule LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” Fixed-interval Schedule: The reward is given at fixed time intervals. Variable-interval Schedule: The reward is given at variable time intervals. Fixed-ratio Schedule: The reward is given at fixed amounts of output. Variable-ratio Schedule: The reward is given at variable amounts of input. Copyright © 2016 Pearson Canada Inc. 32

Exhibit 4-11 Schedules of Reinforcement
LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.” Copyright © 2016 Pearson Canada Inc. 33

Responses to the Reward System
Equity Theory Fair Process and Treatment Self-Determination Theory Increasing Intrinsic Motivation LO5; Material pertinent to this discussion is found under “Responses to the Reward System.” Note: This is an introductory slide. Additional slides follow which provide speaking notes for each of the theories listed above. Copyright © 2016 Pearson Canada Inc. 34

Exhibit 4-12 Equity Theory
LO5; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 35

Equity Theory Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive. Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. LO5; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 36

Equity Comparisons Self-inside An employee’s experiences in a different position inside his or her current organization. Self-outside An employee’s experiences in a situation or position outside his or her current organization. Other-inside Another individual or group of individuals inside the employee’s organization. Other-outside Another individual or group of individuals outside the employee’s organization. LO5; Material pertinent to this discussion is found under “Responses to the Reward System.” • Self-inside: An employee’s experiences in a different position inside his or her current organization. • Self-outside: An employee’s experiences in a situation or position outside his or her current organization. • Other-inside: Another individual or group of individuals inside the employee’s organization. • Other-outside: Another individual or group of individuals outside the employee’s organization. Copyright © 2016 Pearson Canada Inc. 37

Responses to Inequity Change their inputs. Change their outcomes. Adjust perceptions of self. Adjust perceptions of others. Choose a different referent. Leave the field. LO5; Material pertinent to this discussion is found under “Responses to the Reward System.” • Change their inputs (for example, don’t exert as much effort). • Change their outcomes (for example, individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality). • Adjust perceptions of self (for example, “I used to think I worked at a moderate pace but now I realize that I work a lot more slowly than everyone else”). • Adjust perceptions of others (for example, “Mike’s job isn’t as desirable as I previously thought it was”). • Choose a different referent (for example, “I may not make as much as my brother-in-law, but I’m doing a lot better than my dad did when he was my age”). • Leave the field (for example, quit the job). Copyright © 2016 Pearson Canada Inc. 38

Fair Process and Treatment
Equity theory is an important precursor to the study of Organizational Justice: an overall perception of what is fair in the workplace. Employees evaluate how fairly they are treated along four dimensions: Distributive Justice Procedural Justice Informational Justice Interpersonal Justice LO6; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 39

Fair Process and Treatment
Employees are concerned with what they receive: Distributive Justice: perceived fairness of the amount and allocation of resources among individuals. Employees are also concerned about how outcomes are distributed: Procedural Justice: perceived fairness of the process used to determine the distribution of rewards Informational Justice: degree to which employees are provided truthful explanations for decisions Interpersonal Justice: degree to which employees are treated with dignity and respect LO6; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 40

Exhibit 4-13 Model of Organizational Justice

Self-Determination Theory
People prefer to feel they have control over their actions If a previously enjoyed task feels more like an obligation than a freely chosen activity, it will undermine motivation. Much research on self-determination theory in OB has focused on cognitive evaluation theory. LO7; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 42

Self-Determination Theory
The introduction of extrinsic rewards for work effort that was previously rewarded intrinsically will tend to decrease the overall level of a person’s motivation. Intrinsic Motivators A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction. Extrinsic Motivators Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards. LO7; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 43

Cognitive Evaluation Theory
A recent outgrowth of Cognitive Evaluation Theory is self concordance, which considers the degree to which people’s reasons for pursuing goals is consistent with their interests and core values. OB research suggest that people who pursue work goals for intrinsic reasons are more satisfied with their jobs, feel like they fit into their organization better, and may perform better. LO7; Material pertinent to this discussion is found under “Responses to the Reward System.” Copyright © 2016 Pearson Canada Inc. 44

Four Key Rewards to Increase Intrinsic Motivation
Sense of choice Sense of competence Sense of meaningfulness Sense of progress LO7; Material pertinent to this discussion is found under “Responses to the Reward System.” Managers can act in ways that will build these intrinsic rewards for their employees. Copyright © 2016 Pearson Canada Inc. 45

Four Key Rewards to Increase Intrinsic Motivation

Ethics of Motivation Who benefits from theories of motivation? Help managers get more productivity from employees Little concern with employees beyond improvements to productivity Researchers propose organizations have a moral obligation to make workplaces better for employees and provide meaningful work Focus on improving conditions of workplace LO8; Material pertinent to this discussion is found under “Motivation for Whom?” Copyright © 2016 Pearson Canada Inc.

Putting It All Together
What we know about motivating employees in organizations: Recognize individual differences. Employees have different needs. Don’t treat them all alike. Spend the time necessary to understand what’s important to each employee. Use goals and feedback. Allow employees to participate in decisions that affect them. Link rewards to desired performance. Check the system for equity. LO9; Material pertinent to this discussion is found under “Motivation for Whom?” Copyright © 2016 Pearson Canada Inc. 48

Global Implications Needs Theories Theories align with Canadian and US cultures, but not all Goal Setting Setting specific, difficult, individual goals may have different effects in different cultures. Equity Theory and Fairness Equity is means different things to different cultures Intrinsic and Extrinsic Motivation Cultural differences in manager’s perception of employee motivation. Cross-Cultural Consistencies Don’t assume that there are no cross-cultural consistencies. LO9; Material pertinent to this discussion is found under “Global Implications” Copyright © 2016 Pearson Canada Inc. 49

Summary Recognize individual differences Goals and feedback help motivate individuals Rewards signal what is important to the employer (or leader) Material pertinent to this discussion is found at the end of the chapter. Copyright © 2016 Pearson Canada Inc. 50

OB at Work: For Review 1. What are the three key elements of motivation? 2. What are some early theories of motivation? How applicable are they today? 3. What are the key tenets of expectancy theory? 4. What are the key principles of goal-setting theory, self-efficacy theory, and reinforcement theory? 5. Why do equity and fairness matter in the workplace? Material pertinent to this discussion is found at the end of the chapter. Copyright © 2016 Pearson Canada Inc. 51

OB at Work: For Review 6. How is organizational justice a refinement of equity theory? 7. How do the predictions of self-determination theory apply to intrinsic and extrinsic rewards? 8. What are some of the ethical issues with motivation theories? 9. What is the essence of what we know about motivating employees? Material pertinent to this discussion is found at the end of the chapter. Copyright © 2016 Pearson Canada Inc. 52

OB at Work: For Managers
■ Consider goal-setting theory: Clear and difficult goals often lead to higher levels of employee productivity. ■ Consider how reinforcement theory applies to the quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. ■ Consult equity theory to help you understand productivity, satisfaction, absence, and turnover variables. ■ Expectancy theory offers a powerful explanation of performance variables such as employee productivity, absenteeism, and turnover. Material pertinent to this discussion is found at the end of the chapter. Copyright © 2016 Pearson Canada Inc. 53

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