1. Motivation and Performance chapter thirteen Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Learning Objectives 1. Explain what motivation is and why managers need to be concerned about it. 2. Describe from the perspectives 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. Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory. 5. Explain why and how managers can use pay as a major motivation tool. 13-2

3. The Nature of Motivation  Motivation  The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence  Explains why people behave the way they do in organizations 13-3

4. Outcomes and Inputs  Outcome  Anything a person gets from a job or an organization  Pay, job security, benefits, vacation time  Input  Anything a person contributes to his or her job or organization  Time, effort, skills, knowledge, work behaviors 13-4

5. The Motivation Equation 13-5 Figure 13.1

6. Expectancy Theory  Expectancy theory  The theory that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes. 13-6

7. Expectancy, Instrumentality, and Valence Figure 13.2 13-7

8. Maslow’s Hierarchy of Needs 13-8 Table 13.1

9. Alderfer’s ERG Theory 13-9 Table 13.2

10. Herzberg’s Motivation-Hygiene Theory  Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work.  Hygiene needs are related to the physical and psychological context of the work— comfortable work environment, pay, job security. 13-10

11. McClelland’s Needs for Achievement, Affiliation, and Power  Need for Achievement  The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence. 13-11

12. Equity Theory  Equity Theory  A theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs. 13-12

13. Operant Conditioning Theory  Operant Conditioning  People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. 13-13

14. Steps in Organizational Behavior Modification 13-14 Figure 13.4

15. Salary Increase or Bonus?  Employee Stock Option  A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions. 13-15