Transcript Chapter Sixteen - Directory Viewer
Mgmt 371 Chapter Sixteen
Managing Employee Motivation and Performance
Much of the slide content was created by Dr, Charlie Cook, Houghton Mifflin, Co.© 1
The Nature of Motivation
Motivation
The set of forces that cause people to behave in certain ways.
The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.
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The Nature of Motivation The Importance of Motivation in the Workplace
Determinants of Individual Performance
Motivation
—the desire to do the job.
Ability
—the capability to do the job.
Organizational Support
—the resources to do the job.
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The Motivation Framework 4
Content Perspectives on Motivation
Content Theories (Perspectives)
Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?”
Defines what causes motivation
.
Content Perspectives of Motivation Maslow’s Hierarchy of Needs Aldefer’s ERG Theory Herzberg’s Two-Factor Theory McClelland’s Achievement, Power, and Affiliation Needs 5
Content Perspectives on Motivation (Maslow’s Hierarchy) The Need Hierarchy Approach
Maslow’s Hierarchy of Needs
Physiological
—basic survival and biological function.
Security
—a safe physical and emotional environment.
Belongingness
—love and affection.
Esteem
—positive self-image/self-respect and recognition and respect from others.
Self-actualization
—realizing one’s potential for personal growth and development 6
Content Perspectives on Motivation (Maslow’s Hierarchy) Weakness of Maslow’s theory Five levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences.
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Maslow’s Hierarchy of Needs Extrinsically Determined Physiological
Salary
Safety/Security
Job security Handbooks Rules/policies Stability
Belonging
Stable work group Interaction Friendship
Intrinsically Determined Esteem
Salary Status Office Personnel Plaques Awards Titles
Self Actualization
Freedom to fulfill one’s self Challenging job 8
Content Perspectives on Motivation (
Aldefer’s
)
The ERG Theory
Needs are grouped into three overlapping categories:
Existence needs
—physiological and security needs.
Relatedness needs
—belongingness and esteem by others.
Growth needs
—self-esteem and self actualization .
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Content Perspectives on Motivation (
Aldefer’s
) ERG theory assumes that: Multiple needs can be operative at one time (there is no absolute hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration regression).
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Content Perspectives on Motivation (Herzberg) Satisfaction and dissatisfaction are influenced by two independent sets of factors.
Maintenance (Hygiene) Factors
dissatisfaction.
- cause
Motivational (Motivators) Factors
- cause job satisfaction.
Job satisfaction and dissatisfaction are two separate phenomena.
Hygiene factors
(work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
Motivational factors
a continuum that ranges from satisfaction to no satisfaction.
(mostly work content) are on 11
Content Perspectives on Motivation (Herzberg) The Two-Factor Theory posits that motivation is a two-step process: Ensuring that the hygiene factors are not deficient and not blocking motivation.
Giving employees the opportunity to experience motivational factors through job enrichment.
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Herzberg’s Two- Factor Theory
Hygiene Factors
Status Salary Work Conditions Relations with Peers Relations with Superiors
Relations with Subordinates Motivators
Autonomy Recognition Achievement Responsibility Interesting Work Advancement Opportunities Dissatisfaction No Dissatisfaction No Satisfaction Satisfaction
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Content Perspectives on Motivation (McClelland) Individual Human Needs (David McClelland)
The need for achievement
The desire to accomplish a goal or task more effectively than in the past.
The need for affiliation
The desire for human companionship and acceptance.
The need for power
The desire to be influential in a group and to be in control of one’s environment.
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Process Perspectives on Motivation
Process Theories (Perspectives)
Approaches to motivation that focus on: Why people choose certain behavioral options to satisfy their needs How they evaluate their satisfaction after they have attained their goals.
Describe how motivation occurs.
Process Perspectives of Motivation Victor Vroom’s Expectancy Theory Porter-Lawler Extension of Expectancy Theory J. Stacy Adam’s Equity Theory Goal-Setting Theory 15
Process Perspectives on Motivation (Vroom) Victor Vroom’s Expectancy Theory Motivation depends on how much we want something and how likely we are to get it.
Assumes that: Behavior is determined by personal and environmental forces.
People make decisions about their behavior in organizations.
People have different types of needs, desires, and goals.
People choose among alternatives of behaviors in selecting 16
Process Perspectives on Motivation (Vroom) People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.
Motivation leads to effort that, when combined with ability and environmental factors, results in performance which leads to various outcomes that have value (
valence
) to employees.
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Process Perspectives on Motivation (Vroom)
V j =ƒ j n [ Σ (V k I jk )] (
k =1
j =1… n )
Where: V j
F i ƒ j’ = f i > 0; n
j =1 I jk
i I jj
= the
= 0
valence = the cognized instrumentality the attainment of outcome
[Σ(E ij V j )] ( i = n
of outcome
+ 1… m )
j k of j for
ƒ j ’ > 0;
Where: F i = the force to perform act E ij V j
i
= the strength of the act i
j = Φ, Φ is the null set
i expectancy that will be followed by outcome = the valence of outcome j j 18
Process Perspectives on Motivation (Vroom)
P = E x I x V
Where:
P
= Performance
E
= Expectancy
I
= Instrumentality
V
= Valence 19
Process Perspectives on Motivation (Vroom)
E xpectancy
- the belief that you can achieve the level of performance expected in order to be eligible for a reward.
I nstrumentality
- the belief that the level of expected performance will be rewarded.
V alence
- how much importance you attach to the reward.
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Process Perspectives on Motivation (Vroom) Elements of Expectancy Theory Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead to a high level of performance.
Performance-to-Outcome Expectancy The employee’s perception of the probability that performance will lead to a specific outcome setting.
—the consequence or reward for behaviors in an organizational 21
Process Perspectives on Motivation (Porter-Lawler) The Porter-Lawler Extension of Expectancy Theory Assumptions: If performance results in equitable and fair rewards, people will be more satisfied.
High performance can lead to rewards and high satisfaction.
Types of rewards:
Extrinsic rewards
awarded by external parties (e.g., pay and promotions).
are outcomes set and
Intrinsic rewards
are outcomes internal to the individual (e.g., self-esteem and feelings of accomplishment).
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The Porter-Lawler Extension of Expectancy Theory 23
Process Perspectives on Motivation (Adams)
Equity Theory
People are motivated to seek social equity in the rewards they receive for performance.
Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others. Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.
outcomes (self) = outcomes (other) inputs (other) 24
Process Perspectives on Motivation Equity Theory (cont’d) Conditions of and reactions to equity comparisons: Feeling equitably rewarded (equilibrium) Maintain performance and accept comparison as fair estimate.
Feeling under-rewarded —try to reduce inequity.
Change inputs by trying harder or slacking off.
Change outcomes by demanding a raise.
Distort the ratios by altering perceptions of self or of others.
Leave situation by quitting the job.
Change comparisons by choosing another object person.
Feeling over-rewarded.
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
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Process Perspectives on Motivation (Goal-Setting) Goal-Setting Theory Assumptions Behavior is a result of conscious goals and intentions.
Setting goals influence the behavior of people in organizations. Characteristics of Goals Goal difficulty Extent to which a goal is challenging and requires effort.
People work harder to achieve more difficult goals.
Goals should be difficult but attainable.
Goal specificity Clarity and precision of the goal.
Goals vary in their ability to be stated specifically 26
Process Perspectives on Motivation Characteristics of Goals Goal acceptance The extent to which persons accept a goal as their own.
Goal commitment The extent to which an individual is personally interested in reaching a goal.
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The Expanded Goal-setting Theory of Motivation 28
Implications of Process Perspectives on Motivation Implications of the Process Perspectives If rewards are to motivate employees, they must be perceived as being valued, attainable, fair and equitable 29
Reinforcement Perspectives on Motivation (Skinner) Reinforcement Theory (B.F. Skinner) The role of rewards as they cause behavior to change or remain the same over time.
Assumes that: Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.
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Reinforcement Perspectives on Motivation (Skinner) Kinds of Reinforcement in Organizations
Positive reinforcement
Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.
Avoidance
Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed.
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Reinforcement Perspectives on Motivation (Skinner) Kinds of Reinforcement in Organizations
Punishment
Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.
Extinction
Weakens undesired behavior by simply ignoring or not reinforcing that behavior.
Withholds a reward.
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Reinforcement Perspectives on Motivation (Reinforcement) Reinforcement schedules
Fixed interval schedule
—reinforcement applied at fixed time intervals, regardless of behavior.
Variable interval
—reinforcement applied at variable time intervals.
Fixed ratio
—reinforcement applied after a fixed number of behaviors, regardless of time.
Variable Ratio
—reinforcement applied after a variable number of behaviors, regardless of time .
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Reinforcement Perspectives on Motivation (OB mod) Behavior modification (OB mod) A method for applying the basic elements of reinforcement theory in an organizational setting.
Specific behaviors are tied to specific forms of reinforcement.
Implications of the Reinforcement Perspectives Consistently applied reinforcement helps maintain employee motivation by: Encouraging (rewarding) positive behaviors Discouraging (punishing) dysfunctional behaviors in an organization.
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Popular Motivational Strategies (Empowerment & Participation) Empowerment and Participation
Empowerment
Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.
Participation
Giving employees a voice in making decisions about their work.
Areas of participation for employees: Making decisions about their jobs.
Decisions about administrative matters (e.g., work schedules).
Participating in decision making about broader issues of product quality.
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Popular Motivational Strategies (Empowerment & Participation) Techniques and Issues in Empowerment Using work teams Collections of employees empowered to plan, organize, direct, and control their work.
Decentralization Changing the overall method of organizing the firm Conditions necessary for empowerment: Power spread to lower organizational levels Commitment to empowering workers Systematic and patient efforts to empower workers.
Increased commitment to training.
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Using Reward Systems to Motivate Performance (Applications) Reward System The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards Higher-level performance-based rewards motivate employees to work harder.
Rewards help align employee self-interest with organizational goals.
Rewards foster increased retention and citizenship 37
Using Reward Systems to Motivate Performance (Applications) Merit Reward Systems Base a meaningful portion of individual compensation on merit —the relative value of an individual’s contributions to the organization.
Employees who make greater contributions are given higher pay than those who make lesser contributions.
Incentive Reward Systems Concept: employee pay is based on employee output.
Assume that: Performance is under the control of the individual worker.
The employee work at a single task continuously.
Pay is tightly tied to performance (i.e., pay varies with output).
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Using Reward Systems to Motivate Performance (Applications) Incentive Reward Systems (cont’d) Incentive pay plans Piece-rate systems Sales commissions Other forms of incentives Non-monetary incentives (perks) Team and Group Incentive Reward Systems Gainsharing programs Scanlon Plan Employee stock ownership plans (ESOPs) 39
Using Reward Systems to Motivate Performance (Applications) Executive Compensation Standard forms of executive compensation Base salary Incentive pay (bonuses) Special forms of executive compensation Stock option plans Executive perks Criticism of executive compensation Excessively large compensation amounts Compensation not tied to overall performance of the organization Earnings gap between executive pay and typical employee pay 40
Using Reward Systems to Motivate Performance (Applications) New Approaches to Performance-Based Rewards Leveraging the value of incentives Allowing individuals and groups in the organization to have a say in how rewards are distributed.
Getting increasingly innovative in incentive programs: Offering stock options to all employees Individualizing the rewards available to individuals in reward systems 41