1. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 12 Motivation

2. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 2 Learning Objectives After reading this chapter, you should be able to: Differentiate between extrinsic and intrinsic motivation. Describe the need theories of motivation and their implications for managing. Generate steps that can be taken to improve performance by applying the various process models of motivation. Apply reinforcement principles to manage performance. Identify causes of low performance and how they could be improved using the expectancy model. Understand the basic approaches to motivation. Identify features of job design that can affect worker motivation. Apply the job characteristics model to link job design to motivation.

3. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 3 Motivation Categories of Theories:  Content theories of motivation seek to understand what underlies and drives motivation  Process theories of motivation seek to understand what steps can be taken to improve and maintain motivation Types of Motivation: –Intrinsic motivation- comes from the personal satisfaction of the work itself –Extrinsic motivation – comes from the rewards that are linked to job performance, such as a paycheck

4. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 4 Content View of Motivation Maslow’s Hierarchy of Needs Alderfer’s ERG Theory McClelland’s Need Theory Herzberg’s Two- Factor Theory

5. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 5 Maslow’s Hierarchy of Needs Self-actualization Esteem Needs Social Needs Safety Needs Physiological Needs

6. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 6 Alderfer’s ERG Theory Existence Growth Relationships

7. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 7 Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Quality of supervision Rate of pay Company policies Working conditions Relations with others Job security Career Advancement Personal growth Recognition Responsibility Achievement Career Advancement Personal growth Recognition Responsibility Achievement High Job Dissatisfaction Job Satisfaction 0

8. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 8 McClelland’s Needs Theory McClelland’s Needs Theory Need for Achievement(nAch) Achievement(nAch) Power(nPow) Power(nPow) Affiliation(nAff) Affiliation(nAff)

9. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 9 Process View of Motivation Goal-Setting Theory Equity Theory Reinforcement Theory Expectancy Theory

10. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 10 Goal-Setting Theory Effective Goals are:  Accepted by employees  Challenging and realistic  Specific, quantifiable, and measurable

11. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 11 MBO: Cascading of Objectives OrganizationalObjectives DivisionalObjectives DepartmentalObjectives IndividualObjectives The XYZ Company Consumer Products Industrial Products DevelopmentResearchMarketingCustomerServiceSalesProduction

12. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 12 Equity Theory Personal Outcomes Others’ Outcomes Others’ Outcomes InputsInputs versus Fairness is achieved when the ratios are equivalent.

13. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 13 Inequity occurs when the ratio is not equivalent and creates cognitive dissonance To restore equity, people may use one of the following:  Reduce inputs by cutting back on the effort, and if the imbalance becomes too great, to leave the firm  Influence the outcome, such as persuade the boss for a raise  Decrease others’ outcomes, such as spread rumors about others  Increase effort level if they think they are getting more than they deserve Equity Theory (cont)

14. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 14 Reinforcement Theory Conditions Positive Reinforcement Punishment ExtinctionNegative Reinforcement Apply Withdraw Contingency PositiveNegative Nature of Outcome

15. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 15 Expectancy Theory of Motivation Effort V1 V2 Expectancy Rewards Tasks Instrumentality

16. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 16 Motivation by Design Job Enlargement Job Rotation Job Enrichment Job Characteristics Model

17. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 17 Job Characteristics Model Skill varietyExperiencedHigh internal Task identitymeaningfulnesswork motivation Task significanceof the work High quality AutonomyExperienced work performance responsibility for outcomes ofHigh satisfaction the workwith the work FeedbackKnowledge of theLow absenteeism actual results ofand turnover the work activities Core job dimensions Personal and work outcomes Critical psychological states Employee growth need strength