1. PowerPoint Presentation to Accompany Chapter 14 of Management, 8/e John R. Schermerhorn, Jr.
Prepared by: Michael K. McCuddy
Valparaiso University
Published by: John Wiley & Sons, Inc.

2. Planning Ahead — Chapter 14 Study Questions
What is motivation?
What are the different types of individual needs?
What are the process theories of motivation?
What role does reinforcement play in motivation?
What are the challenges of motivation in the new workplace?
Management 8/e - Chapter 14

3. Study Question 1: What is motivation?
Basic motivational concepts
Motivation—the forces within the individual that account for the level, direction, and persistence of effort expended at work.
Reward—a work outcome of positive value to the individual
Extrinsic rewards—valued outcomes given to someone by another person.
Intrinsic rewards—valued outcomes that occur naturally as a person works on a task.
Management 8/e - Chapter 14

4. Study Question 1: What is motivation?
To achieve maximum motivational potential in linking rewards to performance …
Respect diversity and individual differences to best understand what people want from work.
Allocate rewards to satisfy the interests of both individuals and the organization.
Management 8/e - Chapter 14

5. Study Question 1: What is motivation?
Types of motivation theories
Content theories
Human needs and how people with different needs may respond to different work situations.
Process theories
How people give meaning to rewards and make decisions on various work-related behaviors.
Reinforcement theory
How people’s behavior is influenced by environmental consequences.
Management 8/e - Chapter 14

6. Study Question 2: What are the different types of individual needs?
Unfulfilled physiological and psychological desires of an individual.
Explain workplace behavior and attitudes.
Create tensions that influence attitudes and behavior.
Good managers and leaders facilitate employee need satisfaction.
Management 8/e - Chapter 14

7. Study Question 2: What are the different types of individual needs?
Types of content theories:
Hierarchy of needs theory
ERG theory
Two-factor theory
Acquired needs theory
Management 8/e - Chapter 14

8. Study Question 2: What are the different types of individual needs?
Hierarchy of needs theory
Developed by Abraham Maslow.
Lower-order and higher-order needs affect workplace behavior and attitudes.
Lower-order needs:
Physiological, safety, and social needs.
Desires for physical and social well being.
Higher-order needs:
Esteem and self-actualization needs.
Desire for psychological growth and development.
Management 8/e - Chapter 14

9. Study Question 2: What are the different types of individual needs?
Hierarchy of needs theory
Deficit principle
A satisfied need is not a motivator of behavior.
Progression principle
A need at one level does not become activated until the next lower-level need is satisfied.
Management 8/e - Chapter 14

10. Study Question 2: What are the different types of individual needs?
ERG theory
Developed by Clayton Alderfer.
Three need levels:
Existence needs — desires for physiological and material well-being.
Relatedness needs — desires for satisfying interpersonal relationships.
Growth needs — desires for continued psychological growth and development.
Management 8/e - Chapter 14

11. Study Question 2: What are the different types of individual needs?
ERG theory
Any/all needs can influence behavior at one time.
Frustration-regression principle.
An already satisfied lower-level need becomes reactivated when a higher-level need is frustrated.
Management 8/e - Chapter 14

12. Study Question 2: What are the different types of individual needs?
Two-factor theory
Developed by Frederick Herzberg.
Hygiene factors:
Elements of the job context.
Sources of job dissatisfaction.
Satisfier factors:
Elements of the job content.
Sources of job satisfaction and motivation.
Management 8/e - Chapter 14

13. Study Question 2: What are the different types of individual needs?
Acquired needs theory
Developed by David McClelland.
People acquire needs through their life experiences.
Needs that are acquired:
Need for Achievement (nAch)
Need for Power (nPower)
Need for Affiliation (nAff)
Management 8/e - Chapter 14

14. Study Question 2: What are the different types of individual needs?
Acquired needs theory
Need for Achievement (nAch)
Desire to do something better or more efficiently, to solve problems, or to master complex tasks.
People high in (nAch) prefer work that:
Involves individual responsibility for results.
Involves achievable but challenging goals.
Provides feedback on performance.
Management 8/e - Chapter 14

15. Study Question 2: What are the different types of individual needs?
Acquired needs theory
Need for Power (nPower)
Desire to control other persons, to influence their behavior, or to be responsible for other people.
Personal power versus social power.
People high in (nPower) prefer work that:
Involves control over other persons.
Has an impact on people and events.
Brings public recognition and attention.
Management 8/e - Chapter 14

16. Study Question 2: What are the different types of individual needs?
Acquired needs theory
Need for Affiliation (nAff)
Desire to establish and maintain friendly and warm relations with other persons.
People high in (nAff) prefer work that:
Involves interpersonal relationships.
Provides for companionship
Brings social approval.
Management 8/e - Chapter 14

17. Study Question 2: What are the different types of individual needs?
Questions for summarizing the content theories of motivation:
How many different individual needs are there?
Can a work outcome or reward satisfy more than one need?
Is there a hierarchy of needs?
How important are the various needs?
Management 8/e - Chapter 14

18. Study Question 3: What are the process theories of motivation?
How people make choices to work hard or not.
Choices are based on:
Individual preferences.
Available rewards.
Possible work outcomes.
Types of process theories:
Equity theory.
Expectancy theory.
Goal-setting theory.
Management 8/e - Chapter 14

19. Study Question 3: What are the process theories of motivation?
Equity theory
Developed by J. Stacy Adams.
When people believe that they have been treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity to the situation.
Perceived inequity.
Perceived equity.
Management 8/e - Chapter 14

20. Study Question 3: What are the process theories of motivation?
Equity theory
People respond to perceived negative inequity by changing …
Work inputs.
Rewards received.
Comparison points.
Situation.
Management 8/e - Chapter 14

21. Study Question 3: What are the process theories of motivation?
Managerial implications of equity theory—
Underpaid people experience anger.
Overpaid people experience guilt.
Perceptions of rewards determine motivational outcomes.
Negative consequences of equity comparisons should be minimized, if not eliminated.
Do not underestimate the impact of pay as a source of equity controversies in the workplace.
Gender equity.
Comparable worth.
Management 8/e - Chapter 14

22. Study Question 3: What are the process theories of motivation?
Expectancy theory
Developed by Victor Vroom.
Key expectancy theory variables:
Expectancy — belief that working hard will result in desired level of performance.
Instrumentality — belief that successful performance will be followed by rewards.
Valence — value a person assigns to rewards and other work related outcomes.
Management 8/e - Chapter 14

23. Study Question 3: What are the process theories of motivation?
Expectancy theory
Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion:
M = E x I x V
If either E, I, or V is low, motivation will be low.
Management 8/e - Chapter 14

24. Study Question 3: What are the process theories of motivation?
Managerial implications of expectancy theory—
To maximize expectancy, managers should:
Select workers with ability.
Train workers to use ability.
Support work efforts.
Clarify performance goals.
Management 8/e - Chapter 14

25. Study Question 3: What are the process theories of motivation?
Managerial implications of expectancy theory—
To maximize instrumentality, managers should:
Clarify psychological contracts.
Communicate performance-outcome possibilities.
Identify rewards that are contingent on performance.
Management 8/e - Chapter 14

26. Study Question 3: What are the process theories of motivation?
Managerial implications of expectancy theory—
To maximize valence in a positive direction, managers should:
Identify individual needs.
Adjust rewards to match individual needs.
Management 8/e - Chapter 14

27. Study Question 3: What are the process theories of motivation?
Goal-setting theory
Developed by Edwin Locke.
Properly set and well-managed task goals can be highly motivating.
Motivational effects of task goals:
Provide direction to people in their work.
Clarify performance expectations.
Establish a frame of reference for feedback.
Provide a foundation for behavioral self-management.
Management 8/e - Chapter 14

28. Study Question 3: What are the process theories of motivation?
Key issues and principles in the goal-setting process:
Set specific goals.
Set challenging goals.
Build goal acceptance and commitment.
Clarify goal priorities.
Provide feedback on goal accomplishment.
Reward goal accomplishment.
Management 8/e - Chapter 14

29. Study Question 3: What are the process theories of motivation?
Goal-setting theory
Participation in goal setting …
Unlocks the motivational potential of goal setting.
Management by objectives (MBO) promotes participation.
When participation is not possible, workers will respond positively if supervisory trust and support exist.
Management 8/e - Chapter 14

30. Study Question 4: What role does reinforcement play in motivation?
Fundamentals of reinforcement theory …
Reinforcement theory focuses on the impact of external environmental consequences on behavior.
Law of effect — impact of type of consequence on future behavior.
Operant conditioning:
Developed by B.F. Skinner.
Applies law of effect to control behavior by manipulating its consequences.
Management 8/e - Chapter 14

31. Study Question 4: What role does reinforcement play in motivation?
Operant conditioning strategies:
Positive reinforcement
Increases the frequency of a behavior through the contingent presentation of a pleasant consequence.
Negative reinforcement
Increases the frequency of a behavior through the contingent removal of an unpleasant consequence.
Management 8/e - Chapter 14

32. Study Question 4: What role does reinforcement play in motivation?
Operant conditioning strategies:
Punishment
Decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence.
Extinction
Decreases the frequency of a behavior through the contingent removal of an pleasant consequence.
Management 8/e - Chapter 14

33. Study Question 4: What role does reinforcement play in motivation?
Successful implementation of positive reinforcement is based on …
Law of contingent reinforcement —
Reward delivered only if desired behavior is exhibited.
Law of immediate reinforcement —
More immediate the delivery of a reward, the more reinforcement value it has.
Management 8/e - Chapter 14

34. Study Question 4: What role does reinforcement play in motivation?
Guidelines for using positive reinforcement:
Clearly identify desired work behaviors.
Maintain a diverse inventory of rewards.
Inform everyone about what must be done to get rewards.
Recognize individual differences when allocating rewards.
Follow the laws of immediate and contingent reinforcement.
Management 8/e - Chapter 14

35. Study Question 4: What role does reinforcement play in motivation?
Schedules of reinforcement:
Continuous reinforcement administers a reward each time a desired behavior occurs.
Intermittent reinforcement rewards behavior only periodically.
Acquisition of behavior is quicker with continuous reinforcement.
Behavior acquired under an intermittent schedule is more permanent.
Management 8/e - Chapter 14

36. Study Question 4: What role does reinforcement play in motivation?
Guidelines for using punishment:
Tell the person what is being done wrong.
Tell the person what is being done right.
Match the punishment to the behavior.
Administer punishment in private.
Follow laws of immediate and contingent reinforcement.
Management 8/e - Chapter 14

37. Study Question 4: What role does reinforcement play in motivation?
Ethical issues in reinforcement:
Ignores individuality.
Restricts freedom of choice.
Ignores the possibility of other types of motivation.
Key concern is whether it is ethical to not control behavior well enough to serve both individual and organizational goals.
Management 8/e - Chapter 14

38. Management 8/e - Chapter 14
Study Question 5: What are the challenges of motivation in the new workplace?
Integrated model of motivation
Motivation leads to work effort that, when combined with appropriate individual abilities and organizational support, leads to performance accomplishment.
The motivational impact of any rewards received for this performance accomplishment depends on equity and reinforcement considerations.
Ultimately, satisfaction with rewards should lead to increased motivation to work hard in the future.
Management 8/e - Chapter 14

39. Management 8/e - Chapter 14
Study Question 5: What are the challenges of motivation in the new workplace?
Pay for performance
Paying people for performance is consistent with:
Equity theory.
Expectancy theory.
Reinforcement theory.
Merit pay
Awards a pay increase in proportion to individual performance contributions.
Provides performance contingent reinforcement.
May not succeed due to weakness in performance appraisal system or lack of consistency in application.
Management 8/e - Chapter 14

40. Management 8/e - Chapter 14
Study Question 5: What are the challenges of motivation in the new workplace?
Incentive compensation systems:
Skill-based pay.
Links pay to the number of job-relevant skills an employee masters.
Bonus pay plans.
One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution.
Management 8/e - Chapter 14

41. Management 8/e - Chapter 14
Study Question 5: What are the challenges of motivation in the new workplace?
Incentive compensation systems:
Profit-sharing plans.
Some or all employees receive a proportion of net profits earned by the organization.
Gain-sharing plans.
Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity.
Employee stock ownership plans.
Employees own stock in the company that employs them.
Management 8/e - Chapter 14

42. COPYRIGHT
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