1. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–1 Motivation and Performance Motivation –The willingness to achieve organizational objectives. Motivation Process –Employees go from need to motive to behavior to consequence to satisfaction or dissatisfaction.

2. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–2 How Motivation Affects Performance Expectations, Motivation, and Performance –Self-fulfilling prophecy “If you believe you can, or if you believe you can’t, then you are right”—Henry Ford If you think you will be successful, then you will be. The Performance Formula –Performance = Ability x Motivation x Resources For maximum performance levels, all three factors must be high.

3. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–3

4. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–4 Major Motivation Theories Content Motivation Theories Process Motivation Theories Theories ReinforcementTheoryReinforcementTheory Major Motivation Theories

5. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–5 Motivation: Content Theories Content Motivation Theories –Focus on identifying and understanding employees’ needs. Hierarchy of needs theory ERG theory Two-factor theory Acquired needs theory

6. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–6 Maslow’s Hierarchy of Needs Theory Hierarchy of Needs –Only unmet needs motivate. –People’s needs are arranged in order of importance for basic to complex. Satisfaction of lower level needs precedes satisfaction of higher levels needs. –There are five classifications of needs: Physiological Safety Social Esteem Self-actualization

7. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–7 How Managers Motivate with Maslow’s Hierarchy of Needs Theory Exhibit 12–2

8. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–8 Alderfer’s ERG Theory ERG theory –Proposes that employees are motivated by three needs: Existence: physiological and safety needs. Relatedness: social needs. Growth: esteem and actualization. –Needs can be active on more than one level at the same time. Starving actor: being hungry and wanting fame and fortune.

9. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–9 Herzberg’s Two-Factor Theory Exhibit 12–3

10. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–10 McClelland’s Acquired Needs Theory Acquired Needs Theory –Proposes that employees are motivated by their need for achievement, power, and affiliation. Need for Achievement (n Ach): the desire for responsibility and accomplishment. Need for Power (n Pow): the desire to control the situation and influence others. Need for Affiliation (n Aff): the tendency to be liked and to seek close relationship with others.

11. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–11 A Comparison of Four Content Motivation Theories Exhibit 12–4

12. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–12 Motivation: Process Theories Process Motivation Theories –Focus on understanding how employees choose behavior to fulfill their needs. Equity theory Goal-setting theory Expectancy theory

13. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–13 Adams’s Equity Theory Equity Theory –Proposes that employees are motivated when their perceived inputs equal outputs. –People compare their inputs (contributions to the organization) and outputs (rewards) to that of relevant others and conclude that they are: Underrewarded Overrewarded Equitably rewarded

14. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–14 Goal-Setting Theory –Proposes that achievable but difficult goals motivate employees, leading to higher levels of motivation and performance. Goals provide an attractive challenge to high-performing individuals who have a strong need for achievement. Goals provide a sense of purpose—why we are working to accomplish a given task. Goals require action plans to achieve goals and measure progress.

15. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–15 Vroom’s Expectancy Theory Expectancy Theory –Proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort. –Motivation = expectancy x valence Expectancy: the person’s perception of his or her ability to accomplish an objective. Valence: the value the person places on the outcome or reward for his or her performance.

16. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–16 Reinforcement Theory –Proposes that through the consequences for behavior employees will be motivated to behave in predetermined ways. Stimulus Responding Behavior Consequences of Behavior (Reinforcement)

17. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–17 Types of Reinforcement Positive Reinforcement –Encouraging continued behavior by offering attractive consequences (rewards) for desirable performance. Avoidance Reinforcement (Negative Reinforcement) –Encouraging continued desirable behavior to avoid a negative consequence.

18. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–18 Types of Reinforcement (cont’d) Extinction –Discouraging undesirable behavior by withholding reinforcement when the behavior occurs. Punishment –Providing an undesirable consequence for the undesirable behavior.

19. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–19 Schedules of Reinforcement Continuous Reinforcement –Each and every desirable behavior is reinforced. Intermittent Reinforcement Schedules –Time-based Fixed interval Variable interval –Output-based Fixed ratio Variable ratio

20. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–20

21. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–21

22. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–22 Giving Praise Model 12–1 1.Tell the employee exactly what was done correctly. 2.Tell the employee why the behavior was important. 3.Stop for a moment of silence. 4.Encourage repeat performance.

23. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–23 The Motivation Process with the Motivation Theories Exhibit 12–6

24. Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 12–24