2. Employee Motivation
Chapter 10

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Learning Objectives
Define motivation and identify the classical motivation theories
Explain why many consider expectancy theory to be the best current explanation of employee motivation
Identify the strengths and weaknesses of goal-setting theory
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Learning Objectives
Describe the job characteristics model and explain how it helps predict motivation and performance
Define reinforcement theory and differentiate between positive and negative reinforcement
List five managerial strategies that are vital to maintain a motivated workforce
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5. What Motivates Employees to Peak Performance?
Motivation
The combination of forces that move individuals to take certain actions and avoid other actions
Engagement
An employee’s rational and emotional commitment to his or her work
Motivation is a complex subject that defies easy explanation, and some of the brightest minds in the field of management have been working for decades to understand this mysterious force. Starting with a basic definition, motivation is the combination of forces that drive individuals to take certain actions and avoid others in pursuit of individual objectives. Pay close attention to drive and actions in this definition; they are key to understanding motivation.
Engagement reflects the degree of energy, enthusiasm, and effort each employee brings to his or her work. If you’re “just not into it,” chances are you won’t perform at your best.
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Four Indicators of Motivation
EXHIBIT 10.1
Employees can be said to be fully motivated when they are engaged, satisfied, committed, and rooted (meaning they have little or no intention to leave).
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7. Four Fundamental Needs
The drive to acquire
The drive to bond
The drive to comprehend
The drive to defend
Contemporary research suggests that motivation stems from the four fundamental drives listed here.
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8. Classical Theories of Motivation
Scientific Management
A management approach designed to improve employees’ efficiency by scientifically studying their work
One of the earliest motivational researchers, Frederick W. Taylor, a machinist and engineer from Philadelphia, studied employee efficiency and motivation in the late 19th and early 20th centuries. He is credited with developing scientific management, an approach that sought to improve employee efficiency through the scientific study of work. In addition to analyzing work and business processes in order to develop better methods, Taylor popularized financial incentives for good performance. His work truly revolutionized business and had a direct influence on the rise of the United States as a global industrial power in the first half of the 20th century.
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9. The Hawthorne Studies and the STUDY - “Hawthorne Effect”
The Hawthorne Effect
A supposed effect of organizational research, in which employees change their behavior because they are being studied and given special treatment; the validity of the effect is uncertain, and the Hawthorne studies were richer and more influential than this simple outcome would suggest
Between 1924 and 1932, a series of pioneering studies in employee motivation and productivity were conducted at the Hawthorne Works of the Western Electric Company in Chicago. The researchers varied the lighting level for one group of workers (the experimental group) and kept it the same for a second group (the control group). Both groups were engaged in the tedious and exacting task of wrapping wire to make telephone coils, so lighting presumably played a key role in eye strain and other factors influencing productivity.
Whatever the researchers expected to find, they surely didn’t expect to see productivity increase in both groups as the lighting level was increased for the experimental group—and productivity kept increasing in both groups even when the lighting level was lowered for the experimental group.
Then a couple of decades later, a researcher not connected with the studies suggested the phenomenon of the Hawthorne effect, in which the behavior of the Western Electric workers changed because they were being observed and given special treatment as research subjects.
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Maslow’s Hierarchy of Needs
EXHIBIT 10.2
Abraham Maslow suggested that needs on the lower levels of the hierarchy must be satisfied before higher-level needs can be addressed (examples are shown to the right). This model offers a convenient way to categorize needs, but it lacks empirical validation.
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11. Maslow’s Hierarchy of Needs
A model in which human needs are arranged in order of their priority, with the most basic needs at the bottom and the more advanced needs toward the top
In Maslow’s hierarchy all of the requirements for basic survival—food, clothing, shelter, and the like—fall into the category of physiological needs. These basic needs must be satisfied before the person can consider higher-level needs such as safety needs, social needs (the need to give and receive love and to feel a sense of belonging), and esteem needs (the need for a sense of self-worth and integrity). At the top of Maslow’s hierarchy is self-actualization—the need to become everything one can be. This need is also the most difficult to fulfill—and even to identify in many cases.
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Theory X and Theory Y
Theory X
A managerial assumption that employees are irresponsible, are unambitious, and dislike work and that managers must use force, control, or threats to motivate them
In the 1960s, psychologist Douglas McGregor proposed two radically different sets of assumptions that underlie most management thinking, which he classified as Theory X and Theory Y. According to McGregor, Theory X–oriented managers believe that employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards—those given by other people, such as money and promotions.
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Theory X and Theory Y
Theory Y
A managerial assumption that employees enjoy meaningful work, are naturally committed to certain goals, are capable of creativity, and seek out responsibility under the right conditions
In contrast, Theory Y–oriented managers believe that employees like to work and can be motivated by working for goals that promote creativity or for causes they believe in. Consequently, Theory Y–oriented managers seek to motivate employees through intrinsic rewards—which employees essentially give to themselves.
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Herzberg’s Two-Factor Theory
EXHIBIT 10.3
According to Herzberg, hygiene factors such as working conditions and company policies can influence employee dissatisfaction. On the other hand, motivators such as opportunities for achievement and recognition can influence employee satisfaction.
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15. Herzberg’s Two Factors
Herzberg’s two-factor theory
A model that divides motivational forces into satisfiers (“motivators”) and dissatisfiers (“hygiene factors”)
In Herzberg’s two-factor theory (see Exhibit 10.3), so-called hygiene factors are associated with dissatisfying experiences, and motivators are associated with satisfying experiences. Hygiene factors are mostly extrinsic and include working conditions, company policies, pay, and job security. Motivators tend to be intrinsic and include achievement, recognition, responsibility, and other personally rewarding factors. According to Herzberg’s model, managers need to remove dissatisfying elements and add satisfying elements—doing one or the other is not enough.
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16. McClelland’s Three Needs
Three-needs Theory
David McClelland’s model of motivation that highlights the needs for power, affiliation, and achievement
The last of the classical theories to consider is the three-needs theory developed by David McClelland. McClelland’s model highlights the need for power (having—and demonstrating—control over others), the need for affiliation (being accepted by others and having opportunities for social interaction), and the need for achievement (attaining personally meaningful goals).
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17. Explaining Employee Choices
Expectancy Theory
The idea that the effort employees put into their work depends on expectations about their own ability to perform, expectations about likely rewards, and the attractiveness of those rewards
Expectancy theory, considered by some experts to offer the best available explanation of employee motivation, connects an employee’s efforts to the outcome he or she expects from those efforts. Expectancy theory focuses less on the specific forces that motivate employees and more on the process they follow to seek satisfaction in their jobs. As shown in Exhibit 10.4, the effort employees will put forth depends on (1) their expectations regarding the level of performance they will be able to achieve, (2) their beliefs regarding the rewards that the organization will give in response to that performance, and (3) the attractiveness of those rewards relative to their individual goals.
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EXHIBIT 10.4
Expectancy Theory
Expectancy theory suggests that employees base their efforts on expectations of their own performance, expectations of rewards for that performance, and the value of those rewards.
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19. Explaining Employee Choices
Equity Theory
The idea that employees base their level of satisfaction on the ratio of their inputs to the job and the outputs or rewards they receive from it
Equity theory suggests that employee satisfaction depends on the perceived ratio of inputs to outputs. To remedy a perception of inequity, you might ask for a raise, decide not to work as hard, try to change perceptions of your efforts or their outcomes, or simply quit and find a new job. Any one of these steps has the potential to bring your perceived input/output ratio back into balance. Some of the choices employees can make to address perceived inequity are obviously not desirable from an employer’s point of view, so it’s important to understand why employees might feel they aren’t getting a fair shake.
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20. Motivating with Challenging Goals
Goal-setting Theory
A motivational theory suggesting that setting goals can be an effective way to motivate employees
Goal-setting theory, the idea that carefully designed goals can motivate employees to higher performance, is one of the most important contemporary theories of motivation. It is both widely used and strongly supported by experimental research.
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21. Motivating with Challenging Goals (cont.)
Goals should be specific enough to give employees clarity and focus
Goals should be difficult enough to inspire energetic and committed effort
There should be clear “ownership” of goals so that accountability can be established
Individuals’ should have belief in their ability to meet their goals
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22. Management by Objectives
Management By Objectives (MBO)
A motivational approach in which managers and employees work together to structure personal goals and objectives for every individual, department, and project to mesh with the organization’s goals
Goal-setting theory is frequently implemented through a technique known as management by objectives (MBO), a companywide process that empowers employees and involves them in goal setting and decision making. This process consists of four steps: setting goals, planning actions, implementing plans, and reviewing performance (see Exhibit 10.5). Because employees at all levels are involved in all four steps, they learn more about company objectives and feel that they are an important part of the companywide team. Furthermore, they understand how their individual job functions contribute to the organization’s long-term success.
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Management by Objectives
EXHIBIT 10.5
The four steps of the MBO cycle are refined and repeated as managers and employees at all levels work toward establishing goals and objectives, thereby accomplishing the organization’s strategic goals.
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24. Risk and Limitations of Goal-Setting Theory
Overly narrow goals
Overly challenging goals
Inappropriate time horizons
Unintentional performance limitations
Missed learning opportunities
Unhealthy internal competition
Decreased intrinsic motivation
The four steps of the MBO cycle are refined and repeated as managers and employees at all levels work toward establishing goals and objectives, thereby accomplishing the organization’s strategic goals.
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25. Redesigning Jobs to Stimulate Performance
Job characteristics model
A model suggesting that five core job dimensions influence three critical psychological states that determine motivation, performance, and other outcomes
Using the job characteristics model proposed by Richard Hackman and Greg Oldman has proven to be a reliable way to predict the effects of five core job dimensions on employee motivation and other positive outcomes.
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26. Job Characteristics Model
Skill variety
Task identity
Task significance
Autonomy
Feedback
• Skill variety —the range of skills and talents needed to accomplish the responsibilities associated with the job. The broader the range of skills required, the more meaningful the work is likely to be to the employee.
• Task identity —the degree to which the employee has responsibility for completing an entire task. Greater task identity contributes to the sense of meaning in work.
• Task significance —the employee’s perception of the impact the job has on the lives of other people.
• Autonomy —the degree of independence the employee has in carrying out the job.
• Feedback —timely information that tells employees how well they’re doing in their jobs.
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27. Critical Psychological States
Experienced meaningfulness of the work
a measure of how much employees care about the jobs they are doing
Experienced responsibility for results
the sense each employee has that his or her efforts contribute to the outcome
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28. Critical Psychological States
Knowledge of actual results
employees’ awareness of the real-life results of their efforts
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29. Approaches to Modifying Core Job Dimensions
Job Enrichment
Making jobs more challenging and interesting by expanding the range of skills required
Cross-Training
Training workers to perform multiple jobs and rotating them through these various jobs to combat boredom or burnout
The strategy behind job enrichment is to make jobs more challenging and interesting by expanding the range of skills required—typically by expanding upward, giving employees some of the responsibilities previously held by their managers. For example, an employee who had been preparing presentations for his or her boss to give to customers could be asked to give the presentations as well.
Job enrichment and job enlargement expand the scope of an individual job, whereas cross-training, or job rotation, involves training workers to perform multiple jobs and rotating them through these various jobs to combat boredom or burnout. Cross-training is also valuable in lean manufacturing (see page 202) because it lets companies keep staffs as small as possible and assign people wherever they are needed to handle fluctuations in workflow. And in a tight economy, cross-training helps companies address task needs without adding new staff.
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30. Reinforcing High-Performance Behavior
Reinforcement Theory
A motivational approach based on the idea that managers can motivate employees by influencing their behaviors with positive and negative reinforcement
Reinforcement theory suggests that managers can motivate employees by shaping their actions through behavior modification. Using reinforcement theory, managers try to systematically encourage those actions considered beneficial to the company. Reinforcement is a valuable motivational tool, but it has broad application whenever managers want to shape employee behavior.
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31. Types of Reinforcement
Positive Reinforcement
Encouraging desired behaviors by offering pleasant consequences for completing or repeating those behaviors
Negative Reinforcement
Encouraging the repetition of a particular behavior (desirable or not) by removing unpleasant consequences for the behavior
Positive reinforcement offers pleasant consequences for particular actions or behaviors, increasing the likelihood that the behaviors will be repeated. For example, even a simple but sincere “thank you” provides emotional reward and encourages employees to repeat whatever behavior elicited the praise.
Negative reinforcement also encourages a particular behavior to be repeated, but it does so through the reduction, removal, or absence of an unpleasant outcome. For example, if you initially received some complaints about publicly humiliating your employees after taking over as department manager, but those complaints dwindled over time as people gave up and accepted your poor behavior, their silence would encourage you to continue being a bully.
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Reinforcement and Punishment
EXHIBIT 10.6
The terminology of reinforcement theory can be confusing because the terms are used differently in everyday speech than in psychology. Three points will help you keep the terms straight in your mind. First, both positive and negative reinforcement encourage a behavior to be repeated—they reinforce it, in order words. The difference is in how they work. Second, punishment (not negative reinforcement) is the opposite of positive reinforcement. Third, positive reinforcement can encourage undesirable behaviors, so it isn’t necessarily a good thing, in spite of the “positive” label.
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33. Motivational Strategies
Providing timely and frequent feedback
Personalizing motivational efforts
Adapting to circumstances and special needs
Tackling workplace problems before they have a chance to destroy morale
Being inspirational leaders
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34. Personalizing Motivation
EXHIBIT 10.7
Personalizing Motivation
Gearing motivational efforts to the individual makes them more effective, but this approach must be conducted in a way that is fair for everyone. Achieving a balance is not always easy, because various employees are motivated by different things.
1. Establish systems and policies that are fair and automatic
2. Be as flexible as possible while still being fair
3. Get to know employees as individuals
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Education, Inc.
THE END