1. Chapter 13 Motivation and Performance
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2. Learning Objectives
Explain what motivation is and why managers need to be concerned about it.
Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.
Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.
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3. Learning Objectives
Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory.
Explain why and how managers can use pay as a major motivation tool.
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4. The Nature of 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
Explains why people behave the way they do in organizations
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5. The Nature of Motivation
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 when faced with obstacles
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6. The Nature of Motivation
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
Extrinsically Motivated Behavior
Behavior that is performed to acquire material or social rewards or to avoid punishment.
Prosocially motivated behavior
behavior performed to benefit or help others
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes from actually performing the 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.
Prosocially motivated behavior is behavior
that is performed to benefi t or help others. Behavior can be prosocially motivated
in addition to being extrinsically and/or intrinsically motivated.
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7. Example – Warren Buffet
Investor Warren Buffett is giving away a large portion of his fortune to the Gates foundation
He is doing it now because he believes in the work the foundation is doing with world health issues and improving U.S. libraries and high schools
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8. Outcomes and Inputs Outcome Input
Anything a person gets from a job or an organization
Pay, job security, benefits, vacation time
Input
Anything a person contributes to his or her job or organization
Time, effort, skills, knowledge, work behaviors
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9. The Motivation Equation
This alignment between employees and organizational goals as a whole can be described
by the motivation equation depicted in Figure Managers seek to ensure that people are
motivated to contribute important inputs to the organization, that these inputs are put to good
use or focused in the direction of high performance, and that high performance results in
workers’ obtaining the outcomes they desire.
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10. Expectancy Theory Expectancy theory
The theory that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes.
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11. Expectancy Theory Expectancy Instrumentality Valence
a person’s perception about the extent to which effort (an input) results in a certain level of performance
Instrumentality
a person’s perception about the extent to which performance at a certain level results in the attainment of outcomes
Valence
how desirable each of the available outcomes from the job is to a person
Motivation will be high when workers believe:
High levels of effort will lead to high performance.
High performance will lead to the attainment of desired outcomes.
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12. Expectancy, Instrumentality, and Valence
Expectancy theory identifies three major factors that determine a
person’s motivation: expectancy, instrumentality, and valence (see Figure 13.2 ).
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13. Expectancy Theory Expectancy Theory Expectancy is high:
People perceive that if
they try hard, they can
perform at a high level.
Instrumentality is high:
People perceive that
high performance leads
to the receipt of
certain outcomes.
Valence is high:
People desire the
outcomes that result
from high performance.
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14. Need Theories Need Theories Need
Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs.
Need
A requirement or necessity for survival and well-being.
Managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well.
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15. Maslow’s Hierarchy of Needs
An arrangement of five basic needs that motivate behavior
Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time.
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16. Maslow’s Hierarchy of Needs
Psychologist Abraham Maslow proposed that all people seek to satisfy five basic kinds of needs:
physiological needs, safety needs, belongingness needs, esteem needs, and self- actualization
needs (see Table 13.1). 65 He suggested that these needs constitute a hierarchy of needs , with
the most basic or compelling needs—physiological and safety needs—at the bottom. Maslow
argued that these lowest-level needs must be met before a person strives to satisfy needs higher
up in the hierarchy, such as self-esteem needs. Once a need is satisfied, Maslow proposed, it
ceases to operate as a source of motivation. The lowest level of unmet needs in the hierarchy
is the prime motivator of behavior; if and when this level is satisfied, needs at the next highest
level in the hierarchy motivate behavior.
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17. Alderfer’s ERG Theory Alderfer’s ERG theory
The theory that three universal needs—for existence, relatedness, and growth— constitute a hierarchy of needs and motivate behavior.
Alderfer proposed that needs at more than one level can be motivational at the same time.
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18. Alderfer’s ERG Theory Alderfer’s ERG Theory
Clayton Alderfer’s ERG theory collapsed the five categories
of needs in Maslow’s hierarchy into three universal categories—
existence, relatedness, and growth—also arranged in a hierarchy
(see Table 13.2 ). Alderfer agreed with Maslow that as
lower-level needs become satisfied, a person seeks to satisfy
higher-level needs. Unlike Maslow, however, Alderfer believed
that a person can be motivated by needs at more than one level
at the same time.
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19. Herzberg’s Motivation-Hygiene Theory
Herzberg’s motivator-hygiene theory
A need theory that distinguishes between motivator needs and hygiene needs and proposes that motivator needs must be met for motivation and job satisfaction to be high.
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20. Herzberg’s Motivation-Hygiene Theory
Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work.
Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security.
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21. McClelland’s Needs for Achievement, Affiliation, and Power
Need for Achievement
The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence.
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22. McClelland’s Needs for Achievement, Affiliation, and Power
Need for Affiliation
Concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other
Need for Power
A desire to control or influence others
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23. Equity Theory Equity Theory
A theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs.
A relative outcome to input ratio comparison to oneself or to another person (referent) perceived as similar to oneself.
Equity exists when a person perceives that their outcome/input ratio to be equal to the referent’s ratio.
If the referent receives more outcomes, they should also give more inputs to achieve equity.
Inequity exists when worker’s outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent.
Workers feel they are not getting the outcomes they should for their inputs.
Overpayment inequity: ratio is higher than the referent.
Workers feel they are getting more outcomes than they should for their inputs.
Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity.
In underpayment, workers may reduce input levels to correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent person and readjust their ratio perception.
If inequity persists, workers will often choose to leave the organization.
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24. Equity Theory Equity theory
There are two types of inequity: underpayment inequity and overpayment inequity
(see Table 13.3 ). Underpayment inequity exists when a person’s own outcome–
input ratio is perceived to be less than that of a referent. In comparing yourself to a
referent, you think you are not receiving the outcomes you should be, given your
inputs. Overpayment inequity exists when a person perceives that his or her own
outcome–input ratio is greater than that of a referent. In comparing yourself to a referent,
you think you are receiving more outcomes than you should be, given your inputs.
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25. Inequity Underpayment inequity Overpayment inequity
The inequity that exists when a person perceives that his or her own outcome–input ratio is less than the ratio of a referent.
Overpayment inequity
The inequity that exists when a person perceives that his or her own outcome–input ratio is greater than the ratio of a referent
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26. Equity and Justice in Organizations
Distributive justice
A person’s perception of the fairness of the distribution of outcomes in an organization
Procedural justice
A person’s perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization.
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27. Equity and Justice in Organizations
Interpersonal justice
A person’s perception of the fairness of the interpersonal treatment he or she receives from whoever distributes outcomes to him or her.
Informational justice
A person’s perception of the extent to which his or her manager provides explanations for decisions and the procedures used to arrive at them.
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28. Goal Setting Theory Goal-setting theory
A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects.
Must be specific and difficult
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29. Learning Theories Learning theories
Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals.
Learning
A relatively permanent change in person’s knowledge or behavior that results from practice or experience.
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30. 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 can motivate high performance and prevent behaviors that detract from organizational effectiveness.
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31. Operant Conditioning Tools
Positive Reinforcement
Gives people outcomes they desire when they perform organizationally functionally behaviors
Negative Reinforcement
Eliminating or removing undesired outcomes when people perform organizationally functional behaviors
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32. Operant Conditioning Tools
Extinction
Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.
Punishment
Administering an undesired or negative consequence when dysfunctional behavior occurs
Manager administers an undesired consequence to worker (verbal reprimand, demotion, pay cut).
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33. Avoiding Side Effects of Punishment
Downplay the emotional element involved
Try to punish dysfunctional behaviors as soon as they occur
Try to avoid punishing someone in front of others
• Downplay the emotional element involved in punishment. Make it clear that you
are punishing a person’s performance of a dysfunctional behavior, not the person
himself or herself.
• Try to punish dysfunctional behaviors as soon after they occur as possible, and
make sure the negative consequence is a source of punishment for the individuals
involved. Be certain that organizational members know exactly why they are
being punished.
• Try to avoid punishing someone in front of others because this can hurt a person’s
self-respect and lower esteem in the eyes of coworkers as well as make coworkers
feel uncomfortable. 87 Even so, making organizational members aware that
an individual who has committed a serious infraction has been punished can
sometimes be effective in preventing future infractions and teaching all members
of the organization that certain behaviors are unacceptable. For example, when
organizational members are informed that a manager who has sexually harassed
subordinates has been punished, they learn or are reminded of the fact that sexual
harassment is not tolerated in the organization.
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34. Organizational Behavior Modification
The systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors.
Used to improve productivity, efficiency, attendance, punctuality, safe work practices, and customer service
Sometimes questioned because of lack of relevance to certain work behaviors
To critics it is overly controlling and robs workers of their dignity, individuality, freedom of choice and creativity
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35. Steps in Organizational Behavior Modification
Five Steps in OB MOD
Managers identify
an important behavior.
Managers measure the frequency
with which the behavior
is occurring.
Managers develop and apply a strategy
entailing the use of positive reinforcement,
negative reinforcement,
punishment, or extinction.
Managers measure the
frequency of the behavior.
Managers determine if people know
whether they should be performing the
behavior and what consequences they
receive when they do perform it.
Managers maintain the
behavior by continuing to
use the strategy.
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36. Social Learning Theory
A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior
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37. Social Learning Theory
Vicarious Learning
Occurs when a person becomes motivated to perform a behavior by watching another person perform the behavior and be positively reinforced for doing so
Also called observational learning
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38. Social Learning Theory
Self-reinforcer
Any desired or attractive outcome or award that a person gives himself or herself for good performance.
Self-efficacy
A person’s belief about his or her ability to perform a behavior successfully.
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39. Pay and Motivation Pay as a Motivator
Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high.
Need Theory: pay is used to satisfy many needs.
Equity Theory: pay is given in relation to inputs.
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40. Pay and Motivation Pay as a Motivator
Goal Setting Theory: pay is linked to attainment of goals.
Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.
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41. Merit Pay and Performance
Merit Pay Plan
A compensation plan that bases pay on based on individual, group and/or organization performance.
Individual plan: when individual performance (sales) can accurately measured.
Merit Pay Plan
Group plan: when group that works closely together is measured and rewarded as a group.
Organization plan: when group or individual outcomes not easily measured.
Piece-rate Pay
Employee’s pay is based on the number of units that the employee produces.
Commission Pay
Employee’s pay is based on a percentage of sales that the employee makes.
Organization-based Merit Plans
Scanlon plan—focuses on reduced expenses or cutting costs
Profit sharing—employees receive a share of an organization’s profits
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42. Salary Increase or Bonus?
Employee Stock Option
A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.
Uses
To attract high-level managers
To motivate employee performance through ownership in the firm
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43. Video: New Belgium Brewery
How does the open-book management style at New Belgium Brewery motivate the employees?
• Employee Owners: New Belgium Brewery -- Run time: 11:01
New Belgium Brewery developed as a result of cofounder Jeff Lebesch's hobby and family trips to Belgium. From Its early beginnings in the basement of one of its cofounders, the company has grown to be a highly respected, high quality, high volume beer producer. The company sets itself apart from Its competitors primarily through its organizational culture, organizational structure and decentralized management processes. New Belgium Brewery keeps its employees focused on the wellbeing of the company by giving them shares of stock when they have been with the company for a year. In this manner, employees learn to share in the risks, as well as the rewards. Since employees are not only staff but shareholders as well, New Belgium treats them as such with "open-book management". Employees are given training in basic financial practices and business language so that the cofounders can keep them informed about the company's performance and upcoming plans and solicit employees' Ideas.
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