1. Motivating Self and Others
Chapter 4
Motivating Self and Others

2. What is Motivation? Motivation Intensity: how hard a person tries
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal
Intensity: how hard a person tries
Direction: where effort is channeled
Persistence: how long effort is maintained
Most people view motivation as a personal trait – you either have it or your don’t – this is not true

3. Theory X and Theory Y Theory X Theory Y
The assumption that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform.
Theory Y
The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction and self-control.
Material pertinent to this discussion is found on page 103.
Theory Y suggests that:
1) Employees inherently dislike work and, whenever possible, will attempt to avoid it.
2) Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals.
3) Employees will avoid responsibilities and seek formal direction whenever possible.
4) Most workers place security above all other factors associated with work and will display little ambition.
1) Employees can view work as being as natural as rest or play.
2) People will exercise self-direction and self-control if they are committed to the objectives.
3) The average person can learn to accept, even seek, responsibility.
4) The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.
We know in reality that neither is 100% true

4. Motivators Intrinsic Extrinsic
A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic
Motivation that comes from outside
the person, such as pay, bonuses,
and other tangible rewards.
Are individuals intrinsicly or extrinsicly motivated?
Theory X – says that people are mostly motivated by extrinsic things
Theory Y say intrinsic
Depends on the individual and on the situation

5. Needs Theories of Motivation
Basic idea:
Individuals have needs that, when unsatisfied, will result in motivation
Maslow’s hierarchy of needs
Herzberg’s two factor theory (motivation-hygiene theory)
Alderfer’s ERG theory
McClelland’s theory of needs
Main theories of motivation fall under NEEDS theories or PROCESS theories
Needs theories talk about the needs that must be met in order to motivate people
Process theories talk about actual ways in which we and others are motivated
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
Less Important

6. Maslow’s Hierarchy of Needs
Physiological
Safety
Social
Esteem
Self-
actualization
As each one of these needs becomes satisfied – the next is more important to fulfil.
The theory says that once one need is satisfied – it no longer motivates. Therefore, if you want to motivate someone you need to understand what level of the hierarchy that person is currently on and focus on satisfying needs at or above that level.
Forms the foundation of our thinking, but has never really been validated

7. Herzberg’s Motivation-Hygiene Theory
Hygiene factors - necessary, but not sufficient, for healthy adjustment
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
Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, "What do people want from their jobs?"
Found that certain things – achievement, growth etc were related to job satisfaction
Other things – company policy and working conditions, led to dissatisfaction.
He believe that the opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job, don’t necessarily make it satisfying
You can deal with hygiene factors – this will remove dissatisfaction, but will not necessarily bring satisfaction – may bring peace, but not satisfaction
These needs must be met so employee is not dissatisfied – but they do not necessarily lead to satisfaction

8. Herzberg’s Motivation-Hygiene Theory
Motivators - the sources of satisfaction
Intrinsic factors; content of work
Achievement
Recognition
Challenging, varied or interesting work
Responsibility
Advancement
Material pertinent to this discussion is found on pages

9. Contrasting Views of Satisfaction and Dissatisfaction
Traditional view
Satisfaction
Dissatisfaction
Herzberg's view
Motivators
Material pertinent to this illustration is found on pages
Herzberg’s data suggest that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Herzberg proposed the existence of a dual continuum: The opposite of "Satisfaction" is "No Satisfaction" and the opposite of Dissatisfaction" is "No Dissatisfaction."
Traditional view saw the continuum as Satisfaction to Dissatisfaction. Herzberg saw it otherwise.
1) People could have no dissatisfaction, but still not be satisfied
2) Conditions that eliminate dissatisfaction do not bring about satisfaction
3) Satisfaction is created after all dissatisfaction is eliminated.
No Satisfaction
Satisfaction
Hygiene Factors
No dissatisfaction
Dissatisfaction

10. Alderfer’s ERG Theory Existence Relatedness Growth
Concerned with providing basic material existence requirements
Relatedness
Desire for maintaining important interpersonal relationships
Growth
Intrinsic desire for personal development
This is supplemental material. It is referred to in exhibits on pages – just go through this quickly – no need to know these two theories in great depth
ERG Theory is the reworking of Maslow's needs hierarchy by Clayton Alderfer of Yale, to align it more closely with empirical research. He argues that there are three groups of core needs, Existence, Relatedness, and Growth.
Besides substituting three needs for five, the ERG theory differs from Maslow’s in that it demonstrates that
more than one need may be operative at the same time and
if the gratification of a higher-level need is stifled, the desire to satisfy a lower-level need increases.
As well, this is an example of OB humour: an “erg” is used in physics and is a measure of energy or work.

11. 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
This is supplemental material. It is referred to in exhibits on pages
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.

12. Summarizing the Various Needs Theories
Relatedness
Existence
Growth
Alderfer
Factors
Motivators
Herzberg
Self-Actualization
Esteem
Affiliation
Security
Physiological
Maslow
Need for Achievement
Need for Power
Need for Affiliation
McClelland
Hygiene
Material pertinent to this illustration is found on page 106.

13. Summary: Hierarchy of Needs
Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs.
Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction.
Material pertinent to this discussion is found on page 107.

14. 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
Material pertinent to this discussion is found on page 107.

15. Process Theories of Motivation
Look at the actual process of motivation
Expectancy theory
Goal-setting theory
The needs theories we just discussed identify he different needs that could be used to motivate individuals. Process theories focus on the broader picture of how someone can set about motivating another individual.

16. Expectancy Theory
An employee will be motivated to exert a high level of effort when he/she believes:
That effort will lead to good performance
That performance will lead to organizational rewards
The rewards will satisfy the employee’s personal goals
Material pertinent to this discussion is found on pages
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.

17. Expectancy Relationships
The theory focuses on three relationships:
Effort-performance relationship
The perceived probability that exerting a given amount of effort will lead to performance.
Performance-reward relationship
The degree to which the individual believes that performing at a particular level will lead to a desired outcome.
Rewards-personal goals relationship
The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual.
Material pertinent to this discussion is found on pages

18. How Does Expectancy Theory Work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Expectancy
Instrumentality
Valence
Effort Performance Link
Performance Rewards Link
Rewards Personal Goals Link
No matter how much effort
My professor does not look
There are a lot of wonderful things
I put in, probably not possible
like someone who has $1 million
I could do with $1 million
to memorize the text in 24 hours
Material pertinent to this illustration is found on pages
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.
E=0
I=0
V=1
Conclusion: Though I value the reward, I will not be motivated to do this task.

19. Steps to Increasing Motivation, Using Expectancy Theory
Improving Expectancy
Improving Instrumentality
Improving Valence
Improve the ability of the
Make sure that the reward is
Increase the individual ’
s belief that
meaningful to the individual
individual to perform
performance will lead to reward
Material pertinent to this illustration is found on pages

20. Steps to Increasing Motivation, Using Expectancy Theory
Improving Expectancy
Improve the ability of the
individual to perform •
Make sure employees have skills
for the task
Provide training
Assign reasonable tasks and goals
Improving Instrumentality
Improving Valence
Increase the individual ’
s belief that
performance will lead to reward
Observe and recognize performance
Deliver rewards as promised
Indicate to employees how previous
good performance led to greater
rewards
Make sure that the reward is
meaningful to the individual
Ask employees what rewards they
value
Give rewards that are valued
Material pertinent to this illustration is found on pages

21. 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 nonfeedback.
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.
Material pertinent to this discussion is found on page 110.
This theory is based on the idea that specific and difficult goals lead to higher performance. The work of Edwin Locke (1960s) proposes that intentions to work toward a goal are a major source of work motivation.

22. Management by Objectives
A program that encompasses
Specific goals
Participative decision-making
Explicit time period
Performance feedback
Material pertinent to this discussion is found on page
Management by objectives emphasizes participatively set goals that are tangible, verifiable, and measurable. The idea was originally proposed by Peter Drucker more than forty years ago as a means of using goals to motivate people rather than to control them. Its appeal lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members. The model conceptualizes a "cascading" of objectives down through the organization.
For the individual employee, MBO provides specific personal performance objectives.
MBO is a popular technique found in business, health care, educational, government, and non-profit organizations. Failures often are the result of unrealistic expectations regarding results, lack of top management commitment, and an inability or unwillingness by management to allocate rewards based on goal accomplishment.

23. Summary so far … What is motivation? Needs theory of motivation
Maslow’s Hierarchy
Motivation-Hygiene Theory
Process Theories of Motivation
Expectancy Theory
Goal-setting Theory
Management by Objectives

24. Responses to the Reward System
Two more theories of motivation
Equity Theory
Fair Process
Material pertinent to this illustration is found on page 112.
Equity Theory: Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
Fair Process: Concern for fairness in the process of distributing rewards.

25. Equity Theory
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
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.
Material pertinent to this discussion is found on pages

26. Exhibit 4-7 Equity Theory
Person 1
Inequity, underrewarded
Equity
Inequity, overrewarded
Ratio of Output to Input
Person 1’s
Perception
Person 2
Material pertinent to this illustration is found on pages

27. Responses to Inequity Change Inputs Change Outcomes
Adjust Perceptions of Self
Adjust Perceptions of Others
Choose a Different Referent
Leave the Field
Material pertinent to this discussion is found on pages
• 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).

28. Fair Process and Treatment
Historically, equity theory focused on:
Distributive justice
However, equity should also consider
Procedural justice
Material pertinent to this discussion is found on page 114.

29. Fair Process Distributive Justice Procedural Justice
Perceived fairness of the amount and allocation of rewards among individuals
Procedural Justice
Perceived fairness of the process used to determine the distribution of rewards
Interactional Justice
The quality of the interpersonal treatment received from another
Evidence indicates that
Distributive justice has a greater influence on employee satisfaction
Procedural and interactional justice tend to affect an employees organ. Commitment and trust in manager.
Changing the way that employees are treated may boost productivity more than changing how they are paid.

30. Summary of motivation theories …
Needs theories of motivation
Maslow’s Hierarchy
Motivation-Hygiene Theory (Hertzberg)
Process Theories of Motivation
Expectancy Theory
Goal-setting Theory
Management by Objectives
Equity Theory
Fair Process Theory

31. Group Exercise on Motivation Theories
Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously Jesse has been one of your star employees. Using the theory assigned to your group, explain what steps you might take to motivate Jesse to perform better.
Describe the plan
Indicate how the plan relates to the theory
This is the exercise I conduct in class in order to elicit discussion of the theories. This means that I lecture less, and the students have to think more. The exercise often takes a good part of the class. The theories considered appear on the next slide.

32. Theories to Apply Herzberg Motivation-Hygiene (Two-Factor) Theory
Expectancy Theory
Goal-Setting Theory
Equity Theory
Fair Process Theory
Theories to apply for the exercise described on the previous slide.
Some thoughts for the debriefing:
Herzberg: Something about the conditions of the workplace may be having a negative impact; or Jesse may need more pay or recognition that before.
Expectancy: Jesse may be feeling that no matter what is done, it doesn’t get rewarded any more, and thus doesn’t see a connection between performance and reward.
Goal-Setting: Work with Jesse to develop goals
Equity: Jesse may be feeling that others are getting rewarded the same for doing less work, and so has started doing less work too.
Based on these starting points, then evaluate students’ plans for change.

33. Motivating to Show People Matter
Employee Recognition Programs
Programs that use multiple sources and recognizes both individual and group accomplishments.
Linking Programs and Reinforcement Theory
Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition.
Employee Recognition Programs in Practice
In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry.
Up until now we have discussed the general framework for motivating people, uusing theories as our guide – now lets look at some specific practices within organizations

34. Variable Pay Programs
A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance.
Individual-based
Piece-rate wages, bonuses
Workers are paid a fixed sum for each unit of production completed.
Group-based
Gainsharing: an incentive plan where improvements in group productivity determine the total amount of money that is allocated.
Material pertinent to this discussion is found on page

35. Variable Pay Programs Organizational-based
Profit-sharing: organization wide programs that distribute compensation based on some established formula designed around a company’s profitability.
Employee stock ownership plans (ESOPs): company-established benefit plans in which employees acquire stock as part of their benefits.
Material pertinent to this discussion is found on pages

36. Variable-Pay Programs
Linking variable-pay plans and expectancy theory
Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems.
Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.
Material pertinent to this discussion is found on page 119.
Individuals should perceive a strong relationship between their performance and the rewards they receive – therefore more motivated

37. Rewards for Other Types of Performance
Commissions beyond sales
Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets.
Leadership effectiveness
Employee satisfaction, or how the manager handles his or her employees.
New goals
All employees who contribute to specific organizational goals, such as customer satisfaction, cycle time, or quality measures.
Material pertinent to this discussion is found on page 120.

38. Rewards for Other Types of Performance
Knowledge workers in teams
Performance of knowledge workers and/or professional employees who work on teams.
Competency and/or skills
Abstract knowledge or competencies—for example, knowledge of technology, the international business context, customer service, or social skills.
Material pertinent to this discussion is found on page 120.

39. Management Reward Follies
We hope for …
But we reward …
Teamwork and collaboration
The best individual team members
Innovative ideas and risk taking
Proven methods and not making mistakes
Development of people skills
Technical achievements and accomplishments
Employee involvement and empowerment
Tight control over operations and resources
High achievement
Another year’s effort
Long-term growth; environmental responsibility
Quarterly earnings
Commitment to total quality
Shipping on schedule, even with defects
Candour, surfacing bad news early
Reporting good news, whether its true or not; agreeing with the manager, whether or not he/she’s right

40. Why Do Managers Engage in Reward Follies?
Stuck in old patterns of rewards and recognition
Stick to rewarding things that can be easily measured
Don’t look at the big picture
Subunits compete with each other
Focus on short-term results
Material pertinent to this discussion is found on page 125.

41. Cross-Cultural Differences in Motivation
Canada and US rely on extrinsic rewards more than other countries
Japan and Germany rarely use individual incentives
Japan emphasizes group rewards
China more likely to give bonuses to everyone
Material pertinent to this discussion is found on pages

42. Are Rewards Overrated? Cognitive Evaluation Theory
Allocating extrinsic rewards for behaviour that had been previously intrinsically rewarded tends to decrease the overall level of motivation.
Material pertinent to this discussion is found on page 127.
Alfie Kohn argues that people are actually punished by rewards, doing inferior work when they are enticed by money, grades, or other incentives. His extensive review of incentive studies concluded that “rewards usually improve performance only at extremely simple–indeed, mindless–tasks, and even then they improve only quantitative performance.”
Historically, motivational theorists felt that intrinsic motivations were separate from extrinsic motivations – ie if you change one, it won’t affect the other.
Cognitive evaluation theory suggests otherwise – when employers offer extrinsic rewards the intrinsic rewards change

43. Abolishing Rewards
Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments
Abolish incentives
Re-evaluate evaluation
Create conditions for authentic motivation
Collaboration
Content
Choice
Material pertinent to this discussion is found on pages
Abolish incentives. Pay people generously and fairly, make sure people don’t feel exploited, and then make sure that pay is not on their minds.
Re-evaluate evaluation. Rather than making performance appraisals look and feel like a punitive effort—who gets raises, who gets promoted, who is told they’re performing poorly—the performance evaluation system might be structured more like a two-way conversation to trade ideas and questions, done continuously, not as a competition.
Create the conditions for authentic motivation. A noted economist recently summarized the evidence about pay for productivity as follows: “Changing the way workers are treated may boost productivity more than changing the way they are paid.”
Collaboration. People are more likely to perform better in well-functioning groups where they can get feedback and learn from each other.
Content. People are generally the most motivated when their jobs give them an opportunity to learn new skills, provide variety in the tasks that are performed, and enable them to demonstrate competence.
Choice. “We are most likely to become enthusiastic about what we are doing—and all else being equal, to do it well—when we are free to make decisions about the way we carry out a task.”

44. Summary Need Theories Goal Setting Theory Expectancy Theory
Be aware that individuals differ in their levels and types of needs
Goal Setting Theory
Clear and difficult goals lead to higher levels of employee productivity.
Expectancy Theory
Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover.
Material pertinent to this discussion is found on pages

45. Summary Equity Theory Cognitive Evaluation Theory
Strongest when predicting absence and turnover behaviours.
Weakest when predicting differences in employee productivity.
Cognitive Evaluation Theory
When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation.
Material pertinent to this discussion is found on pages

46. Implications Recognize Individual Differences Use Goals and Feedback
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
Material pertinent to this discussion is found on pages

47. Implications Link Rewards to Performance Check the System for Equity
Employees must perceive a clear linkage.
Check the System for Equity
Material pertinent to this discussion is found on pages

48. Homework “Rewards for Workforce Diversity” – page 135
Chose 3 of the employees described in the case and design a benefits package for them
Why would your benefit package be best for motivating them?