1. McGraw-Hill/Irwin© 2008 The McGraw-Hill Companies, Inc. All rights reserved. 5 5 Motivation in the Workplace

2. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-2 Motivation Through Recognition Panfric Hotel general manager David Gachuru (shown in photo giving an award to employee Matayo Moyale) motivates employees with good old-fashioned praise and recognition. Courtesy Sanova Panafric Hotel

3. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-3 Challenges of Motivating Employees Revised employment relationship –Due to globalization, technology, restructuring –Potentially undermines trust and commitment Flatter organizations –Fewer supervisors to monitor performance Changing workforce –Gen-X/Gen-Y bring different expectations

4. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-4 Maslow’s Needs Hierarchy Objectives Holistic –integrative view of needs rather than studying each need in isolation of others Humanistic –responses to higher needs are influenced by social dynamics, not just instinct Positivistic –need gratification is just as important as need deprivation

5. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-5 Self- actual- ization Physiological Safety Belongingness Esteem Seven categories capture most needs Five categories placed in a hierarchy Need to know Need for beauty Maslow’s Needs Hierarchy Theory

6. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-6 Maslow’s Needs Hierarchy Theory –Lowest unmet need has strongest effect –When lower need is satisfied, next higher need becomes the primary motivator –Self-actualization -- a growth need because people desire more rather than less of it when satisfied Self- actual - ization Physiological Safety Belongingness Esteem Need to know Need for beauty

7. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-7 Evaluating Maslow’s Theory –Lack of support for theory –Values influence needs People have different needs hierarchies -- not universal –Maslow’s categories don’t cover all needs –Needs change more rapidly than Maslow stated Self- actual - ization Physiological Safety Belongingness Esteem Need to know Need for beauty

8. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-8 Four-Drive Theory Drive to Bond Drive to Learn Need to form relationships and social commitments Basis of social identity Need to satisfy curiosity and resolve conflicting information Basis of self-actualization Drive to Defend Need to protect ourselves Reactive (not proactive) drive Basis of fight or flight Drive to Acquire Need to take/keep objects and experiences Basis of hierarchy and status

9. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-9 Features of Four Drives Innate and hardwired -- everyone has them Independent of each other (no hierarchy of drives) Complete set -- no drives are excluded from the model

10. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-10 How Four Drives Affect Needs 1.Four drives determine which emotions are automatically tagged to incoming information 2.Drives generate independent and often competing emotions that demand our attention 3.Social skill set determines how to translate drives into needs and effort

11. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-11 Four Drive Theory of Motivation Mental skill set uses social norms, personal values, and experience to translate competing drives into needs and effort Drive to Acquire Social norms Drive to Bond Drive to Learn Drive to Defend Person al values Past experience Mental skill set resolves competing drive demands Goal-directed choice and effort

12. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-12 Learned Needs Theory Some needs can be learned Need for achievement –Desire for challenging and somewhat risky goals, feedback, recognition Need for affiliation –Desire to seek approval, conform, and avoid conflict –Try to project a favorable self-image Need for power –Desire to control one’s environment –Personalized versus socialized power

13. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-13 Implications of Needs/Drives Theories Four-drive theory –provide a balanced opportunity for employees to fulfill drives –employees continually seek fulfillment of drives –avoid having conditions support one drive over others Maslow –allow employees to self-actualize –power of positive experiences Offer employees a choice of rewards

14. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-14 E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - EffortPerformance Outcome 3 + or - Outcome 2 + or - Expectancy Theory of Motivation

15. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-15 Increasing E-to-P Expectancy Train employees Select people with required competencies Provide role clarification Provide sufficient resources Provide coaching and feedback

16. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-16 Increasing P-to-O Expectancy Measure performance accurately Describe outcomes of good and poor performance Explain how rewards are linked to past performance

17. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-17 Increasing Outcome Valences Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes

18. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-18 Goal Setting at Speedera Speedera Networks employees achieved a challenging revenue goal in one quarter, for which all employees in California and India were rewarded with a free Hawaiian trip. Courtesy of Akamai

19. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-19 Specific Relevant Challenging TaskEffort TaskPerformance Feedback Participation Commitment Effective Goal Setting

20. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-20 Goal Difficulty and Performance High Task Performance LowModerateChallengingImpossible Area of Optimal Goal Difficulty Goal Difficulty

21. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-21 Characteristics of Effective Feedback Effective Feedback Specific Relevant Timely Credible Sufficientlyfrequent

22. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-22 Multisource (360-degree) Feedback Evaluated Employee Co-worker Customer Subordinate Projectleader Supervisor Co-worker Subordinate Subordinate

23. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-23 Executive Coaching Uses various behavioral methods to help clients identify and achieve goals Just-in-time personal development using feedback and other techniques Generally effective, but many techniques make it difficult to pinpoint what is effective

24. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-24 Preferred Feedback Sources Depends on the situation Nonsocial sources (gauges, printouts) –Better for goal progress –Considered more accurate, less damaging Social sources (supervisor, co-workers) –Better for ‘good news’ feedback –Improves self-image and esteem

25. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-25 Keeping Pay Equitable at Costco Costco Wholesale CEO Jim Sinegal (shown in this photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong,” says Sinegal, whose salary and bonus are a much smaller multiple of what his staff earn.

26. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-26 Elements of Equity Theory Outcome/input ratio –inputs -- what employee contributes (e.g., skill) –outcomes -- what employee receives (e.g., pay) Comparison other –person/people against whom we compare our ratio –not easily identifiable Equity evaluation –compare outcome/input ratio with the comparison other

27. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-27 Overreward vs Underreward Inequity You Comparison Other Outcomes Inputs Outcomes Inputs Overreward Inequity Outcomes Inputs Outcomes Inputs Underreward Inequity

28. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-28 Correcting Inequity Feelings Reduce out inputsLess organizational citizenship Increase our outcomesAsk for pay increase Increase other ’ s inputs Ask coworker to work harder Reduce other ’ s outputs Ask boss to stop giving other preferred treatment Change our perceptions Start thinking that other ’ s perks aren ’ t really so valuable Change comparison other Compare self to someone closer to your situation Leave the fieldQuit job Actions to correct inequityExample

29. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-29 Equity Sensitivity Benevolents –Tolerant of being underrewarded Equity Sensitives –Want ratio to be equal to the comparison other Entitleds –Prefer receiving proportionately more than others

30. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-30 Emotions Emotions Attitudes Attitudes Behaviors Behaviors Distribution Principles Distributive Justice Perceptions Procedural Justice Perceptions Structural Rules Social Rules Organizational Justice Components

31. McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5-31 Procedural Justice Structural Rules Voice Bias-Free Knowledgeable Consistent Listens to all Appealable

32. McGraw-Hill/Irwin© 2008 The McGraw-Hill Companies, Inc. All rights reserved. 5 5 Motivation in the Workplace