1. Motivation and Empowerment8
Motivation and Empowerment

2. Chapter Objectives
Recognize and apply the difference between intrinsic and extrinsic rewards.
Motivate others by meeting their higher-level needs.
Apply needs-based theory of motivation.
Implement individual and systemwide rewards.
Avoid the disadvantages of “carrot-and-stick” motivation.
Implement empowerment by providing the five elements of information, knowledge, discretion, meaning, and rewards.

3. Motivation
The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action
* According to Gallup Organization, when all employees are highly motivated, customers are 70% more loyal, turnover drops 70% & Profits jump 40%

4. Ex. 8.1 A Simple Model of Motivation
Need Creates desire to fulfill needs (money, friendship, recognition, achievement
Behavior Results in actions to fulfill needs
Rewards Satisfy needs: intrinsic or extrinsic rewards
Feedback Reward informs person whether behavior was appropriate and should be used again

5. Types of Rewards Intrinsic Rewards Extrinsic Rewards
Internal satisfactions a person receives in the process of performing a particular action
Extrinsic Rewards
Rewards given by another person, typically a supervisor, such as pay increases and promotions
Systemwide Rewards
Rewards that apply the same to all people within an organization or within a specific category or department

6. Rewards
Intrinsic rewards appeal to higher needs, i.e., satisfaction, fulfillment, etc.
Extrinsic rewards appeal to lower needs, i.e., need for more money, bonuses, benefits, etc
Leader’s job is to help followers achieve intrinsic rewards
Traditional management takes a “carrot- stick” approach – achievement of extrinsic rewards

7. Ex. 8.2 Examples of Intrinsic and Extrinsic Rewards
Individual
Large merit increase
Feeling of self-fulfillment
Pride in being part of a “winning” organization
System-wide
Insurance benefits

8. Ex. 8.3 Needs of People and Motivation Methods
Conventional management
Leadership
Lower needs
Higher needs
Carrot and stick (Extrinsic)
Empowerment (Intrinsic)
Growth and fulfillment
Control people
Best effort
Adequate effort

9. Ex. 8.4 Maslow’s Hierarchy of Needs
Need Hierarchy
Fulfillment on the Job
Opportunities for advancement, autonomy, growth, creativity
Self-actualization Needs
Esteem Needs
Recognition, approval, high status, increased responsibilities
Belongingness Needs
Work groups, clients, coworkers, supervisors
Safety Needs
Safe work, fringe benefits, job security
Physiological Needs
Heat, air, base salary
Physiological, safety and belongingness are deficiency needs

10. Ex. 8.5 Herzberg’s Two-Factor Theory
Highly Satisfied
Motivators
Achievement
Recognition
Responsibility
Work itself
Personal growth
Area of Satisfaction
Motivators influence level of satisfaction
Neither Satisfied nor Dissatisfied
Hygiene Factors
Work conditions
Pay/security
Co. policies
Supervisors
Area of Dissatisfaction
Hygiene factors influence level of dissatisfaction
Interpersonal. relationships
Highly Dissatisfied

11. Herzberg’s Two-Factor Theory
Work characteristics associated with dissatisfaction are different from those pertaining to satisfaction
Good hygiene factors remove dissatisfaction, but does not increase motivation
Motivators raise satisfaction, and hence productivity
Hygiene factors similar to Maslow’s deficiency needs

12. Acquired Needs Theory
McClelland’s theory that proposes that certain types of needs are acquired during an individual’s lifetime
Three needs most frequently studied:
Need for achievement – need to accomplish difficult/challenging tasks
Need for affiliation – desire to form personal relationships, avoid conflict
Need for power – need to influence/control others

13. McClelland’s theory
People with high achievement needs are entrepreneurial and innovative
People with high affiliation needs are successful integrators (brand and project managers)
People with high power needs are usually CEOs. They pursue a path of continuous promotion

14. Reinforcement Theory
This, and subsequent theories apply to extrinsic rewards
This looks at the relationship between behaviour and its consequences
It involves behviour modification
Positive reinforcement is administration of pleasant and rewarding consequences following a behaviour
Negative reinforcement is the withdrawal of unpleasant consequences in order to encourage desired behaviour

15. Expectancy Theory
This theory suggests that motivation depends on the individual’s mental expectations about their ability to perform tasks and received the desired results.
Associated with Vroom
All 3 factors necessary

16. Ex. 8.6 Key Elements of Expectancy Theory
Will putting effort into the task lead to the desired performance?
E > P expectancy
Effort Performance
Will high performance lead to the desired outcomes?
P > O expectancy
Performance Outcomes
Valence – value of outcomes
(pay, recognition, other rewards)
Are the available outcomes highly valued?
Motivation

17. Equity Theory
A theory that proposes that people are motivated to seek social equity in the rewards they expect for performance
Depends on their perception of how fairly they are treated

18. Carrot & Stick Approaches
These tend to:
Diminish intrinsic rewards; always looking for extrinsic rewards
Extrinsic rewards temporary
Extrinsic rewards assume people are driven by lower needs
Organizations now too complex for carrot & stick approaches
Carrot & stick tend to destroy people’s motivation to work as a group (competitive rather than cooperative)

19. Empowerment
The “thing” these days; move from carrot & stick and need to control, to providing people with power, info and authority that enable people to satisfy intrinsic rewards
Requires shifting power down and sharing it

20. Requirements for Empowerment: information, knowledge, discretion, meaning, and rewards
Employees receive info about company performance
Employees receive appropriate training (knowledge & skills)
Employees have power to make substantive decisions
Employees understand the meaning and impact of their jobs
Employees are rewarded based on company performance (rather than individuals)

21. Empowerment & Other issues
Empowerment today: Continuum from no decision discretion, to being responsible for decision & strategy
Difficult for hierarchical organizations to empower (share power)
Other approaches to motivation (individual and organizationwide motivation): job enrichment, employee ownership, etc