1. Motivating Employee Performance
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2. The Nature of Motivation
The set of forces that cause people to behave in certain ways.
The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.
The Importance of Motivation in the Workplace
Individual Performance is determined by:
Motivation—the desire to do the job.
Ability—the capability to do the job.
Work environment—the resources to do the job.
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3. Historical Perspectives on Motivation
The Traditional Approach
Workers are interchangeable tools of production.
Frederick Taylor (Scientific Management)
Assumptions:
Managers know more than workers.
Economic gain (money) is the primary motivation for performance.
Work is inherently unpleasant.
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4. Historical Perspectives on Motivation
The Human Relations Approach
Emphasized role of social processes in workplace.
Assumptions:
Employees want to feel useful and and important.
Employees have strong social needs, more important than money.
Maintaining the appearance of employee participation is important.
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5. Historical Perspectives on Motivation
The Human Resource Approach
Emphasized value of employees to organization
Assumptions:
Employee contributions are important and valuable to the employee and the organization.
Employees want to and are able to make genuine contributions.
Management’s job is to encourage participation and create a work environment that motivates employees.
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6. Motivation Theories
This chapter has many theories, these are the ones you need to know:
(You do not need to distinguish between content, process, and reinforcement perspectives.)
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McClelland’s 3-Needs Theory (Achievement, Power, and Affiliation)
Expectancy Theory
Equity Theory
Goal-Setting Theory
Reinforcement Theory
Motivational Strategies (empowerment participation, alternative work arrangements.)
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7. Maslow’s Hierarchy of Needs
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8. The Two-Factor Theory (Herzberg)
Satisfaction and dissatisfaction are influenced by two independent sets of factors.
Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
Theory assumes that motivation is a two-step process:
Ensuring that the hygiene factors are not deficient and not blocking motivation.
Giving employees the opportunity to experience motivational factors through job enrichment.
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9. The Two-Factor Theory of Motivation
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10. Three Needs Theory The need for achievement The need for affiliation
The desire to accomplish a goal or task more effectively than in the past.
Assume personal responsibility, set moderately difficult goals, desire specific and immediate feedback. 10% of population.
The need for affiliation
The desire for human companionship and acceptance.
The need for power
The desire to be influential in a group and to be in control of one’s environment.
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11. Expectancy Theory
Motivation depends on how much we want something and how likely we are to get it.
Elements of Expectancy Theory
Effort-to-Performance Expectancy
The employee’s perception of the probability that effort will lead to a high level of performance.
Performance-to-Outcome Expectancy
The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.
Valence
An index of how much an individual values a particular outcome.
It is the attractiveness of the outcome to the individual.
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12. Equity Theory
People are motivated to seek social equity in the rewards they receive for performance. Equity is the belief that treatment received is fair relative to the treatment received by others.
outcomes (self)
inputs (self) =
outcomes (other)
inputs (other)
Feeling equitably rewarded – maintain performance
Feeling under-rewarded – try to reduce inequity
Increase or Decrease inputs: try harder or slack off
Change outcomes: demand raise
Distort ratios by altering perceptions of self or others
Quit
Change comparison
Feeling over-rewarded
Increase or decrease inputs
Distort ratios
Help object person gain more outcomes
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13. Goal-Setting Theory Characteristics of Goals
Setting goals influence the behavior of people in organizations.
Characteristics of Goals
Goal difficulty
Extent to which a goal is challenging and requires effort.
People work harder to achieve more difficult goals.
Goals should be difficult but attainable.
Goal specificity
Clarity and precision of the goal.
Goals vary in their ability to be stated specifically
Goal acceptance
The extent to which persons accept a goal as their own.
Goal commitment
The extent to which an individual is personally interested in reaching a goal.
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14. Reinforcement Theory Behavior is a function of its consequences.
Positive reinforcement
Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.
Avoidance
Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed.
Punishment
Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.
Extinction
Weakens undesired behavior by simply ignoring or not reinforcing that behavior.
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15. Reinforcement (cont’d)
Behavior modification (OB mod)
A method for applying the basic elements of reinforcement theory in an organizational setting.
Consistently applied reinforcement helps maintain employee motivation by:
encouraging (rewarding) positive behaviors
discouraging (punishing) dysfunctional behaviors in an organization.
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16. Popular Motivational Strategies
Empowerment
Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.
Participation
Giving employees a voice in making decisions about their work.
Areas of participation for employees:
Making decisions about their jobs.
Decisions about administrative matters (e.g., work schedules).
Participating in decision making about broader issues of product quality.
Alternate work arrangements
Compressed workweek, flextime, job sharing, telecommuting
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17. Reward Systems to Motivate
Merit Reward Systems
Base a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization.
Employees who make greater contributions are given higher pay than those who make lesser contributions.
Incentive Reward Systems
Incentive pay plans
Piece-rate systems
Sales commissions
Other forms of incentives
Non-monetary incentives (perks)
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18. Reward Systems to Motivate
Executive Compensation
Standard forms of executive compensation
Base salary
Incentive pay (bonuses)
Special forms of executive compensation
Stock option plans
Executive perks
Criticism of executive compensation
Excessively large compensation amounts
Compensation not tied to overall performance of the organization
Earnings gap between executive pay and typical employee pay
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