1. Copyright © Houghton Mifflin Company. All rights reserved. 13-1 Chapter 13 Motivating Job Performance

2. Copyright © Houghton Mifflin Company. All rights reserved. 13-2 Chapter Outline Motivation Theories u Maslow’s Needs Hierarchy Theory u Herzberg’s Two-Factor Theory u Expectancy Theory u Goal-Setting Theory

3. Copyright © Houghton Mifflin Company. All rights reserved. 13-3 Chapter Outline (continued) Motivation Through Job Design u Strategy One: Fitting People to Jobs u Strategy Two: Fitting Jobs to People

4. Copyright © Houghton Mifflin Company. All rights reserved. 13-4 Chapter Outline (continued) Motivation Through Rewards u Extrinsic Versus Intrinsic Rewards u Employee Compensation u Improving Performance with Extrinsic Rewards

5. Copyright © Houghton Mifflin Company. All rights reserved. 13-5 Chapter Outline (continued) Motivation Through Employee Participation u Quality Control Circles u Self-Managed Teams u Keys to Successful Employee Participation Programs

6. Copyright © Houghton Mifflin Company. All rights reserved. 13-6 Chapter Outline (continued) Other Motivation Techniques for a Diverse Workforce u Flexible Work Schedules u Family Support Services u Wellness Programs u Sabbaticals

7. Copyright © Houghton Mifflin Company. All rights reserved. 13-7 EMPLOYEE MOTIVATION Motivation: the psychological process that gives behavior purpose and direction.

8. Copyright © Houghton Mifflin Company. All rights reserved. 13-8 EMPLOYEE MOTIVATION (continued) Factors to Consider In the Motivation- Job Performance Linkage u Individual motivational factors (Needs, satisfaction, expectations, goals) u Individual ability to get the job done

9. Copyright © Houghton Mifflin Company. All rights reserved. 13-9 EMPLOYEE MOTIVATION (continued) u Situational factors u Challenging and interesting work u Opportunity for participation and self- management u Desired rewards

10. Copyright © Houghton Mifflin Company. All rights reserved. 13-10 EMPLOYEE MOTIVATION (continued) For Discussion: Which of these factors has overriding importance in your worklife? Why?

11. Copyright © Houghton Mifflin Company. All rights reserved. 13-11 MASLOW’S NEEDS HIERARCHY THEORY “Maslow’s message was simply this: people always have needs, and when one need is relatively fulfilled, others emerge in a predictable sequence to take its place.”

12. Copyright © Houghton Mifflin Company. All rights reserved. 13-12 MASLOW’S NEEDS HIERARCHY THEORY (continued) Highest level u Self-actualization needs (being everything one is capable of becoming) u Esteem needs (Self-respect; self-confidence) u Love needs (Social acceptance and affection) u Safety needs (Protection from the elements) u Physiological needs (Life-sustaining needs) Lowest level

13. Copyright © Houghton Mifflin Company. All rights reserved. 13-13 MASLOW’S NEEDS HIERARCHY THEORY (continued) For Discussion: Which level of needs primarily drives you at this point in your life? Explain.

14. Copyright © Houghton Mifflin Company. All rights reserved. 13-14 HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) “The elimination of dissatisfaction is not the same as truly motivating an employee. To satisfy and motivate employees, an additional element is required: meaningful, interesting, and challenging work.”

15. Copyright © Houghton Mifflin Company. All rights reserved. 13-15 HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) (continued) Dissatisfiers come from the job context or situation Satisfiers come from job content or the work itself u Achievement u Recognition u Work itself u Responsibility u Advancement u Growth

16. Copyright © Houghton Mifflin Company. All rights reserved. 13-16 For Discussion: 1.Describe the worst job you ever had. What roles did Herzberg’s dissatisfiers and satisfiers play? 2.Describe the best job you ever had. What roles did Herzberg’s dissatisfiers and satisfiers play? HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION (Satisfaction = Motivation) (continued)

17. Copyright © Houghton Mifflin Company. All rights reserved. 13-17 EXPECTANCY THEORY OF MOTIVATION Expectancy theory: assumes motivational strength is determined by perceived probabilities of success. Expectancy: one’s belief or expectation that one thing will lead to another.

18. Copyright © Houghton Mifflin Company. All rights reserved. 13-18 EXPECTANCY THEORY OF MOTIVATION (continued) Three Key Perceptions in Expectancy Theory 1. Perceived effort-performance probability 2. Perceived value of rewards. 3. Perceived performance-reward probability

19. Copyright © Houghton Mifflin Company. All rights reserved. 13-19 EXPECTANCY THEORY OF MOTIVATION (continued) “Effort  performance  reward expectations determine whether motivation will be high or low.” “Employees tend to work harder when they believe they have a good chance of getting personally meaningful rewards.”

20. Copyright © Houghton Mifflin Company. All rights reserved. 13-20 EXPECTANCY THEORY OF MOTIVATION (continued) For Discussion: How well does expectancy theory explain how hard you work at school and/or your job?

21. Copyright © Houghton Mifflin Company. All rights reserved. 13-21 GOAL-SETTING THEORY Goal setting: process of improving individual or group job performance with formally stated objectives, deadlines, or quality standards.

22. Copyright © Houghton Mifflin Company. All rights reserved. 13-22 GOAL-SETTING THEORY (continued) How Goals Improve Performance 1. Goals need to be: u Specific u Difficult u Participatively set 2. Goals motivate by: u Directing attention u Encouraging effort u Encouraging persistence u Fostering goal-attainment strategies and action plans

23. Copyright © Houghton Mifflin Company. All rights reserved. 13-23 GOAL-SETTING THEORY (continued) For Discussion: 1.Goal-setting researchers say it is a mistake to tell someone to “just do your best.” How do you interpret this advise in light of the model in Figure 13.4? 2.How do you use goals to improve your performance at school, at work, in sports, or elsewhere?

24. Copyright © Houghton Mifflin Company. All rights reserved. 13-24 JOB DESIGN Job design: creating task responsibilities based upon strategy, technology, and structure.

25. Copyright © Houghton Mifflin Company. All rights reserved. 13-25 JOB DESIGN (continued) Strategy One: Fitting People to Jobs u Realistic job previews u Job rotation u Limited exposure Contingent time off: rewarding people with early time off when they get the job done.

26. Copyright © Houghton Mifflin Company. All rights reserved. 13-26 JOB DESIGN (continued) Strategy Two: Fitting Jobs to People u Job enlargement: combining two or more specialized tasks to increase motivation. (Also called horizontal job loading.) u Job enrichment: redesigning jobs to increase their motivating potential. (Also called vertical job loading.)

27. Copyright © Houghton Mifflin Company. All rights reserved. 13-27 JOB DESIGN (continued) For Discussion: Describe your present (or past) job and explain how it could be horizontally or vertically loaded.

28. Copyright © Houghton Mifflin Company. All rights reserved. 13-28 JOB ENRICHMENT Figure 13.5 Core Job Characteristics u Skill variety u Task identity u Task significance u Autonomy u Feedback from job

29. Copyright © Houghton Mifflin Company. All rights reserved. 13-29 JOB ENRICHMENT Figure 13.5 (continued) Critical Psychological States u Feeling that work is meaningful u Feeling of responsibility for outcomes of the work u Knowledge of the actual results of the work

30. Copyright © Houghton Mifflin Company. All rights reserved. 13-30 JOB ENRICHMENT (continued) Team Exercise: Brainstorm the “perfect job” a person could have and describe it in terms of the core job characteristics and critical psychological states. (Note: You can build upon a job you have heard about or create an entirely new job.)

31. Copyright © Houghton Mifflin Company. All rights reserved. 13-31 MOTIVATION THROUGH REWARDS Rewards: the material and psychological payoffs for working. Extrinsic rewards: payoffs granted to the individual by other people (e.g., money, benefits, recognition, praise). Intrinsic rewards: self-granted and internally experienced payoffs (e.g., a sense of accomplishment).

32. Copyright © Houghton Mifflin Company. All rights reserved. 13-32 MOTIVATION THROUGH REWARDS (continued) Team Competition: Brainstorm a list of as many workplace extrinsic rewards as possible in ten minutes.

33. Copyright © Houghton Mifflin Company. All rights reserved. 13-33 MOTIVATION THROUGH REWARDS (continued) For Discussion: Describe a situation in which you got an intrinsic reward from working. What can managers do to foster situations like that?

34. Copyright © Houghton Mifflin Company. All rights reserved. 13-34 EMPLOYEE COMPENSATION PLANS Table 13.2 Nonincentive u Hourly Wage u Annual salary Incentive u Piece rate u Sales commission u Merit pay u Profit sharing u Gain sharing u Pay-for-knowledge u Stock options

35. Copyright © Houghton Mifflin Company. All rights reserved. 13-35 EMPLOYEE COMPENSATION PLANS Table 13.2 (continued) Other u Cafeteria compensation (Life-cycle benefits)

36. Copyright © Houghton Mifflin Company. All rights reserved. 13-36 EMPLOYEE COMPENSATION PLANS (continued) For Discussion: 1.From a managerial standpoint, which type of pay plan is best? Why? 2.Which pay plan would you prefer? Why?

37. Copyright © Houghton Mifflin Company. All rights reserved. 13-37 IMPROVING PERFORMANCE WITH EXTRINSIC REWARDS 1.Rewards must satisfy individual needs 2.Employees must believe effort will lead to reward 3.Rewards must be equitable 4.Rewards must be linked to performance

38. Copyright © Houghton Mifflin Company. All rights reserved. 13-38 IMPROVING PERFORMANCE WITH EXTRINSIC REWARDS (continued) For Discussion: 1.How do these guidelines help address the commonly-heard complaint that “money doesn’t motivate?” 2.What kinds of reward inequity have you experienced on the job? How did it affect your motivation?

39. Copyright © Houghton Mifflin Company. All rights reserved. 13-39 PARTICIPATIVE MANAGEMENT Participative management: the process of empowering employees to assume greater control of the workplace. Quality control circles: voluntary problem- solving groups committed to improving quality and reducing costs. Self-managed teams: high-performance teams that assume traditional managerial duties such as staffing and planning.

40. Copyright © Houghton Mifflin Company. All rights reserved. 13-40 PARTICIPATIVE MANAGEMENT (continued) Keys to Successful Employee Participation Programs 1.A profit-sharing or gain-sharing plan. 2.A long-term employment relationship withgood job security. 3.A concerted effort to build and maintain group cohesiveness. 4.Protection of the individual employee’s rights.

41. Copyright © Houghton Mifflin Company. All rights reserved. 13-41 PARTICIPATIVE MANAGEMENT (continued) For Discussion: Are these four factors “a package deal,” meaning could one or two missing factors ruin a participative management program?