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8 Motivation Chapter Twelve: Motivation

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1 8 Motivation Chapter Twelve: Motivation
n Motivation is an interesting subject that focuses directly on the performance of an organization. Students usually enjoy this chapter particularly when examples of motivation that they can relate with are included.

2 Learning Objectives 1. Explain what motivation is and why managers need to be concerned about it. 2. Describe from the point of view of expectancy theory and equity theory what managers should do to have a highly motivated workforce. 3. Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance. 4. Explain why and how managers can use pay as a major motivation tool.

3 Motivation Defined as the psychological forces within a person that determine: 1) direction of behaviour in an organization; 2) the effort or how hard people work; 3) the persistence displayed in meeting goals. Intrinsic Motivation: behaviour performed for its own sake. Motivation comes from performing the work. Extrinsic Motivation: behaviour performed to acquire rewards. Motivation source is the consequence of an action. n Students often focus on extrinsic motivation when considering job performance given society’s focus on pay and rewards. However, ask them if they feel it is stronger than intrinsic motivation. Ideally, managers should be motivated by both sources.

4 Outcomes & Inputs Regardless of the source of motivation, people seek outcomes. Outcome: anything a person gets from a job. Examples include pay, autonomy, accomplishment. Organizations hire workers to obtain inputs: Input: anything a person contributes to their job. Examples include skills, knowledge, work behaviour. Managers thus use outcomes to motivate workers to provide inputs. n Firms want their employees to “work hard” and provide the most output for the least input. Therefore, it becomes very important to determine those outputs that are desired more than others. n The real challenge with this concept is that each individual often desires a different type of outcome and is motivated differently.

5 Figure 8.1 The Motivation Equation
n Figure 12.1 seems simple, however, ask students how much effort has already gone into hiring workers before the process in 12.1 starts. This means that even after the selection, training and other HR processes are completed, management still must consider the motivation formula to achieve maximum results.

6 Needs Theory People are motivated to obtain outcomes at work to satisfy their needs. A need is a requirement for survival. To motivate a person: 1) Managers must determine what needs worker wants satisfied. 2) Ensure that a person receives the outcomes when performing well. Several needs theories exist. Maslow’s Hierarchy of Needs. Herzberg’s Motivator-Hygiene Theory n There are many motivational theories. One group focuses on the needs of individuals. n These theories suggest that all people have different needs and are motivated to satisfy these needs. Therefore, managers must first identify the need and then seek ways to satisfy them so that the workers will be motivated.

7 Table 8.1 Maslow’s Hierarchy of Needs
Need Level Description Examples Self- Actualization Realize one’s full potential Use abilities to the fullest Esteem Feel good about oneself Promotions & recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items n Maslow’s model focuses on five levels. It is important that students understand Need models assume that all lower-level needs are satisfied before workers are motivated by higher level issues. n Example: workers will not be worried about job security when their pay level is insufficient to provide for basic food and shelter. Lower level needs must be satisfied before higher needs are addressed.

8 Motivation-Hygiene Theory
Focuses on outcomes that can lead to high motivation, job satisfaction, & those that can prevent dissatisfaction. Motivator needs: related to nature of the work and how challenging it is. Outcomes are autonomy, responsibility, interesting work. Hygiene needs: relate to the physical & psychological context of the work. Refers to a good work environment, pay, job security. When hygiene needs not met, workers are dissatisfied. Note: when met, they will NOT lead to higher motivation, just will prevent low motivation. n Needs can be broken into two categories: motivator and hygiene. The important difference is that satisfying hygiene needs does not lead to higher motivation (but when these hygiene needs are not met, lower motivation will result). n Example: › When working conditions are poor, motivation will be lower. Here, work conditions are considered a hygiene factor. › Ask students if health benefits are a motivator or hygiene need. (most managers consider this to be a hygiene need).

9 Expectancy Theory Developed by Victor Vroom and is a very popular theory of work motivation. Vroom suggests that motivation will be high when workers feel: High levels of effort lead to high performance. High performance will lead to the attainment of desire outcomes. Consists of three areas: Expectancy, Instrumentality, & Valence. n Point out that Vroom connects high performance with effort and outcomes. He feels that workers look for the connection between these factors and if the connection is not there in any one of the three, then motivation will suffer.

10 Figure 8.3 Expectancy, Instrumentality, and Valence

11 Expectancy, Instrumentality, & Valence
Expectancy is the perception that effort (input) will result in a level of performance. You will work hard if it leads to high performance. You would be less willing to work hard if you knew that the best you would get on a paper was a D regardless of how hard you tried. Instrumentality: Performance leads to outcomes. Workers are only motivated if they think performance leads to an outcome. Managers should link performance to outcomes. Valence: How desirable each outcome is to a person. Managers should determine the outcomes workers want most. n Students understand these concepts. A good example is to consider their reaction to a major class paper. n           Example: › Expectancy: If a student worked very hard, they know they can write an excellent paper. This relationship shows that the expectancy value will be high. › Instrumentality: The student knows that her high performance (the excellent paper) will lead to an excellent grade. This means the instrumentality is strong. › Valence: The student desires an excellent grade, therefore, the valence is high. n This example provides for strong motivation. Point out that if any one factor is low, then motivation will be low.

12 High Motivation: According to the Expectancy Theory, high motivation results from high levels of Expectancy, Instrumentality, & Valence. If just one value is low, motivation will be low. This means that even if desired outcomes are closely link to performance, the worker must feel the task is possible to achieve for high motivation to result. Managers need to consider this relationship to build a high performance firm. n Example: If a student learned from prior experience that the professor grading the project routinely awards the same grades to students regardless of performance, then instrumentality will be low and as a result, motivation will be low.

13 Figure 8.4 Expectancy Theory
n Students must understand that if any value in Vroom’s model is low, then motivation will be low as well. This has powerful implications for overall motivation in a firm.

14 Goal-Setting Theory Focus worker’s inputs in the direction of high performance & achievement of organizational goals. Goal is what a worker tries to accomplish. Goals must be specific and difficult for high performance results. Workers put in high effort to achieve such goals. Workers must accept and be committed to them. Feedback on goal attainment also is important. Goals point out what is important to the firm. Managers should encourage workers to develop action plans to attain goals. n High performance organizations achieve challenging organizational goals. These overall goals are in turn broken down until there are goals for individual workers. n Workers will be motivated to achieve these goals ONLY if they are committed to them. This means that mangers must relate the goal to the worker such that the worker knows the goal is important to the firm.

15 Reinforcement Theory Reinforcement theory looks at the relationship between behaviour and its consequences. Positive Reinforcement: people get desired outcomes when they perform needed work behaviours. Positive reinforcers: pay raises, promotions. Negative Reinforcement: manager eliminates undesired outcomes once the desired behaviour occurs. Worker performs to avoid an undesired outcome (Work harder or you are fired). In both types of reinforcement, managers must be careful to link the right behaviours by workers to what the organization needs. n Students understand the concept of positive reinforcement but usually have a problem relating tot he concept of negative reinforcement. Stress that both forms provide an outcome, however, one outcome is something a worker wishes to avoid. n Example: a manager wants to motivate a sales representative. For sales reps that are not selling successfully, there is a mandatory after hours meeting. To avoid this meeting (an outcome), the sales rep must call on a specific number of clients (the work behavior)

16 Reinforcement Theory Extinction: used when workers are performing behaviour detrimental to the firm. Manager does not reward the behaviour and over time, the worker will stop performing it. Punishment: used when the manager does not control the reward the worker receives (perhaps it is outside the job). Manager administers an undesired consequence to worker (verbal reprimands to pay cuts). Punishment can lead to unexpected side-effects such as resentment, and should be used sparingly. n Extinction assumes that the actions performed by the worker (good and bad) are to attain outcomes. By not rewarding the behavior in any way, over time the worker will cease to perform the behavior. n Example: a auto dealer wants to avoid the use of pressure sales tactics. When a car is sold through the use of such tactics, the manager does not praise the sales rep. Praise is only given when appropriate methods are used. n Punishment is a technique that should be sparingly used as it builds resentment toward managers and does nothing to enhance motivation.

17 Organizational Behaviour Modification
OB MOD occurs when managers systematically apply the tools of operant behaviour. Shown to improve productivity, attendance, punctuality and other behaviours. Works best for behaviours that are specific, objective and countable. Some managers argue it is over-control while others suggest it provides for high efficiency. Both sides likely have valid points. n OB MOD occurs when managers try to change behavior by using operant conditioning tools. n Point out to students that this type of approach works best in environments that are highly structured and with specific tasks that are performed. Unfortunately, this environment is not found in many firms today.

18 Figure 8.5 Five Steps in OB MOD

19 Equity Theory Considers worker’s perceptions of the fairness of work outcomes in proportion to their inputs. Adams notes it is the relative rather than the absolute level of outcomes a person receives. The Outcome/input ratio is compared by worker with another person called a referent. The referent is perceived as similar to the worker. Equity exists when a person perceives their outcome/input ratio to be equal to the referent’s ratio. If the referent receives more outcomes, they should also give more inputs to achieve equity. n Students relate well to the concept of fairness and equity. Adams equity theory can be explained best through the use of examples. n Example: Ask students to describe how they might decide if the grade they receive on a project is fair. Probably, some students will compare the grade they received vs. the amount of work they performed as a ratio. They will then compare this perceived ratio with the assumed ratio of some other student (or referent). This would be a classic example of the equity theory.

20 Outcomes < Outcomes Outcomes > Outcomes
Table 8.2 Equity Theory Condition Person Referent Example Equity Outcomes = Outcomes Inputs Inputs Worker contributes more inputs but also gets more outputs than referent Underpayment Outcomes < Outcomes gets the same outputs as referent Overpayment Outcomes > Outcomes same inputs but also n Table 8.2 depicts the options workers have to create equity. It is important to note that the equity concept exists in the mind of the worker and is not provided by a manager.

21 Inequity Inequity exists when worker’s outcome/input ratio is not equal to referent. Underpayment inequity: ratio is less than the referent. Worker feels they are not getting the outcomes they should given inputs. Overpayment inequity: ratio is higher than the referent. Worker feels they are getting more outcomes then they should given inputs. Restoring Equity: Inequity creates tension in workers to restore equity. In underpayment, workers reduce input levels to correct. Overpayment, worker can change the referent to adjust. If inequity persists, worker will often leave the firm. n Students will have heard the comment “It is not fair. Jane did less than I did and got a better grade.” This illustrates a condition of inequity. n Notice that it is the worker that will attempt to achieve equity. If the worker perceives the situation incorrectly (the referent appears to do less work, but in reality does more), then management can help by ensuring accurate information is received.

22 Pay and Motivation Pay can help motivate workers.
Need Theory: pay is used to satisfy many needs. Expectancy: pay is an instrumentality (and outcome), must be high for motivation to be high. Goal-Setting Theory: pay linked to goal attainment. Reinforcement Theory: outcomes (pay), is distributed upon performance of functional behaviours. Equity Theory: pay is given in relation to inputs. Pay should be based on performance, many firms do this with a Merit Pay Plan. n Pay is a common and effective motivator. However, be sure to stress that it is not the only motivator! n Pay also has a tendency to lose motivational value over time and can be difficult to directly associate with performance.

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