1. Copyright ©2011 by Cengage Learning. All rights reserved 1 Chapter 13 Motivation Designed & Prepared by B-books, Ltd. MGMT3 Chuck Williams

2. Copyright ©2011 by Cengage Learning. All rights reserved 2 What Is Motivation? After reading this section, you should be able to: 1.explain the basics of motivation.

3. Copyright ©2011 by Cengage Learning. All rights reserved 3 Motivation Initiation Persistence Direction

4. Copyright ©2011 by Cengage Learning. All rights reserved 4 Basics of Motivation Extrinsic and Intrinsic Rewards Extrinsic and Intrinsic Rewards Motivating People Effort and Performance Need Satisfaction 1 1

5. Copyright ©2011 by Cengage Learning. All rights reserved 5 Effort and Performance PerformancePerformance EffortEffort InitiationInitiation DirectionDirection PersistencePersistence 1.1

6. Copyright ©2011 by Cengage Learning. All rights reserved 6 Effort and Performance Job performance –how well someone performs the job Motivation –effort put forth on the job Ability –capability to do the job Situational Constraints –external factors affecting performance Job Performance = Motivation x Ability x Situational Constraints 1.1

7. Copyright ©2011 by Cengage Learning. All rights reserved 7 Need Satisfaction Needs –physical or psychological requirements –must be met to ensure survival and well being Unmet needs motivate people Three approaches: –Maslow’s Hierarchy of Needs –Alderfer’s ERG Theory –McClelland’s Learned Needs Theory 1.2

8. Copyright ©2011 by Cengage Learning. All rights reserved 8 Beyond the Book A Job Well Done According to David Novak, CEO of Yum Brands, everyone needs to be recognized for a job well done. Recognition must be genuine, must come from the heart, and, when it is deserved, it can’t be overdone. When he was president at KFC, Novak used to find workers who were doing a good job and give them a rubber chicken trophy and $100. Says Novak, “Using recognition is the best way to build a high- energy, fun culture and reinforce the behaviors that drive results.” Source: D. C. Novak, “Corner Office: At Yum Brands, Rewards for Good Work”, interview by A. Bryant, The New York Times, 11 July 2009. http://www.nytimes.com/2009/07/12/business/12corner.html (accessed 10/23/2009).

9. Copyright ©2011 by Cengage Learning. All rights reserved 9 Adding Needs Satisfaction to the Model 1.2

10. Copyright ©2011 by Cengage Learning. All rights reserved 10 Maslow’s Hierarchy of Needs Esteem Belongingness Safety Physiological Self-Actualization 1.2

11. Copyright ©2011 by Cengage Learning. All rights reserved 11 Aldefer’s ERG Theory Relatedness Existence Growth 1.2

12. Copyright ©2011 by Cengage Learning. All rights reserved 12 McClelland’s Learned Needs Theory Achievement Affiliation Power 1.2

13. Copyright ©2011 by Cengage Learning. All rights reserved 13 Needs ClassificationMcClelland’s Learned Needs Alderfer’sERGMaslow’sHierarchy Higher -Order Needs Lower- Order Needs Self- Actualization Esteem Belongingness Safety Physiological Growth Relatedness Existence Power Achievement Affiliation 1.2

14. Copyright ©2011 by Cengage Learning. All rights reserved 14 Extrinsic and Intrinsic Rewards Extrinsic Rewards –tangible and visible to others –contingent on performance Intrinsic Rewards –natural rewards –associated with performing the task for its own sake 1.3

15. Copyright ©2011 by Cengage Learning. All rights reserved 15 Extrinsic Rewards Extrinsic Rewards motivate people to : Join the organization Regularly attend their jobs Perform their jobs well Stay with the organization 1.3

16. Copyright ©2011 by Cengage Learning. All rights reserved 16 Intrinsic Rewards Intrinsic Rewards include: Sense of accomplishment Feeling of responsibility Chance to learn something new The fun that comes from performing an interesting, challenging, and engaging task 1.3

17. Copyright ©2011 by Cengage Learning. All rights reserved 17 Motivation at Pfizer Shari Adler took six months off of work through Pfizer’s paid volunteerism program working for the Tanzanian Ministry of Health. Meaningful volunteer opportunities help attract and retain workers who are motivated to use their job skills to help others in need. © Charles O. Cecil/Alamy Source: S. E. Needleman, “The Latest Office Perk: Getting Paid to Volunteer,” The Wall Street Journal, 29 April 2008, D1.

18. Copyright ©2011 by Cengage Learning. All rights reserved 18 The Most Important Rewards Good benefits Health insurance Job security Vacation time Interesting work Learning new skills Independent work situations Extrinsic Intrinsic 1.3

19. Copyright ©2011 by Cengage Learning. All rights reserved 19 Adding Rewards to the Model 1.3

20. Copyright ©2011 by Cengage Learning. All rights reserved 20 Motivating with the Basics Ask people what their needs are Satisfy lower-order needs first Expect people’s needs to change Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards 1.4

21. Copyright ©2011 by Cengage Learning. All rights reserved 21 How Perceptions and Expectations Affect Motivation After reading these sections, you should be able to: 2.use equity theory to explain how employees’ perceptions of fairness affect motivation. 3.use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation.

22. Copyright ©2011 by Cengage Learning. All rights reserved 22 Equity Theory Components of Equity Theory Reaction to Perceived Inequity Motivating People Using Equity Theory 2 2

23. Copyright ©2011 by Cengage Learning. All rights reserved 23 Components of Equity Theory Inputs –employee contributions to the organization Outcomes –rewards employees receive from the organization Referents –comparison to others Outcome/input (O/I) ratio Outcomes self Inputs self Outcomes referent Inputs referent = 2.1

24. Copyright ©2011 by Cengage Learning. All rights reserved 24 Inequity 2.1 When a person’s O/I ratio differs from their referent’s O/I ratio Underreward –referent’s O/I ratio is greater than yours –experience anger or frustration Overreward –referent’s O/I ratio is less than yours –experience guilt

25. Copyright ©2011 by Cengage Learning. All rights reserved 25 How People React to Perceived Inequity Reduce inputs Increase outcomes Rationalize inputs or outcomes Change the referent Leave 2.2 © iStockphoto.com

26. Copyright ©2011 by Cengage Learning. All rights reserved 26 Adding Equity Theory to Model 2.2

27. Copyright ©2011 by Cengage Learning. All rights reserved 27 Motivating with Equity Theory Look for and correct major inequities Reduce employees’ inputs Make sure decision-making processes are fair –distributive justice –procedural justice 2.3

28. Copyright ©2011 by Cengage Learning. All rights reserved 28 Expectancy Theory Motivating with Expectancy Theory Components of Expectancy Theory 3 3

29. Copyright ©2011 by Cengage Learning. All rights reserved 29 Components of Expectancy Theory Valence Expectancy Instrumentality 3.1

30. Copyright ©2011 by Cengage Learning. All rights reserved 30 Beyond the Book Losing the Perks Many companies are scaling back, and employees are seeing many perks (free catered lunches, concierge services, health-care co-pays) starting to disappear. This can cause employees to become scared or discouraged, creating concerns over job security. These kinds of perks, however, are not ongoing motivators; they’re extras. Companies need to make sure that when cutbacks come, that they don’t isolate workers from each other or leave them uninformed. Workers need to understand that everyone is in this together and everyone is making sacrifices. Source: R. Dodes, “Crossing Fashion’s Thin White Line,” The Wall Street Journal, 1 February 2008. B1.

31. Copyright ©2011 by Cengage Learning. All rights reserved 31 Adding Expectancy Theory to Model 3 3

32. Copyright ©2011 by Cengage Learning. All rights reserved 32 Motivating with Expectancy Theory Systematically gather information to find out what employees want from their jobs Clearly link rewards to individual performance Empower employees to make decisions which enhance expectancy perceptions 3.2

33. Copyright ©2011 by Cengage Learning. All rights reserved 33 How Rewards and Goals Affect Motivation After reading these sections, you should be able to: 4.explain how reinforcement theory works and how it can be used to motivate. 5.describe the components of goal-setting theory and how managers can use them to motivate workers. 6.discuss how the entire motivation model can be used to motivate workers.

34. Copyright ©2011 by Cengage Learning. All rights reserved 34 Reinforcement Theory Components of Reinforcement Theory Schedules for Delivering Reinforcement Schedules for Delivering Reinforcement Motivating with Reinforcement Theory 4 4

35. Copyright ©2011 by Cengage Learning. All rights reserved 35 Reinforcement Theory A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences–or not followed by positive consequences–will occur less frequently. 4 4

36. Copyright ©2011 by Cengage Learning. All rights reserved 36 Reinforcement Contingencies Positive reinforcement desirable consequence strengthens behavior Negative reinforcement withholding unpleasant consequence strengthens behavior Punishment unpleasant consequence weakens behavior Extinction no consequence weakens behavior 4.1

37. Copyright ©2011 by Cengage Learning. All rights reserved 37 Adding Reinforcement Theory to Model 4.1

38. Copyright ©2011 by Cengage Learning. All rights reserved 38 Schedules for Delivering Reinforcement Intermittent Continuous 4.2

39. Copyright ©2011 by Cengage Learning. All rights reserved 39 Continuous Reinforcement Schedules Continuous Reinforcement Schedule A schedule that requires a consequence to be administered following every instance of a behavior. 4.2

40. Copyright ©2011 by Cengage Learning. All rights reserved 40 Intermittent Reinforcement Schedules Variable Interval (Time) Fixed Ratio (Behavior) Consequences follow behavior after a fixed time has elapsed Consequences follow behavior after different times that vary around an average time Consequences follow behavior after different times that vary around an average time Consequences follow a specific number of behaviors Consequences follow a different number of behaviors that vary around an average number 4.2

41. Copyright ©2011 by Cengage Learning. All rights reserved 41 Motivating with Reinforcement Theory Identify, measure, analyze, intervene, and evaluate Don’t reinforce the wrong behavior Correctly administer punishment at the appropriate time Choose the simplest and most effective schedule of reinforcement 4.3

42. Copyright ©2011 by Cengage Learning. All rights reserved 42 Goal-Setting Theory Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort. PerformancePerformance EffortEffort InitiationDirectionPersistence 5 5

43. Copyright ©2011 by Cengage Learning. All rights reserved 43 Goal-Setting Theory Goal Specificity –the clarity of goals Goal Difficulty –how challenging goals are Goal Acceptance –how well goals are agreed to or understood Performance Feedback –information on goal progress 5.1

44. Copyright ©2011 by Cengage Learning. All rights reserved 44 Adding Goal-Setting Theory to Model 5.1

45. Copyright ©2011 by Cengage Learning. All rights reserved 45 Motivating with Goal-Setting Theory Assign specific, challenging goals Make sure workers truly accept organizational goals Provide frequent and specific performance- related feedback 5.2

46. Copyright ©2011 by Cengage Learning. All rights reserved 46 Motivating with the Integrated Model Motivating with the Basics Motivating with the Basics Motivating with Equity Theory Motivating with Equity Theory Motivating with Expectancy Theory Motivating with Expectancy Theory Motivating with Reinforcement Theory Motivating with Reinforcement Theory Motivating with Goal-Setting Theory Motivating with Goal-Setting Theory 6 6

47. Copyright ©2011 by Cengage Learning. All rights reserved 47 Motivating with the Integrated Model 6 6