Transcript Motivation: Concepts and Rewards

MOTIVATION
Concepts and Rewards
MOTIVATION DEFINED

Willingness to exert high levels of effort to
reach organizational goals.
BASIC ASSUMPTIONS
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Everyone is motivated
 Key?
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Two types of motivation
 Intrinsic
 Extrinsic
TYPES OF MOTIVATION
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Extrinsic Motivation:
 "What
gets rewarded gets done"
 Based on extrinsic/tangible rewards
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Intrinsic Motivation:
 "What
is rewarding gets done"
 Based on intrinsic/intangible rewards
Motivation Theories
Need (Maslow & ERG)
 Equity
 Reinforcement
 Expectancy Theory
 Goal-Setting Theory
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Needs (stage of development)
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Maslow
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Self actualization
Self esteem
Social (love)
Safety
Physiological
Alderfer (ERG)
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Growth
Relatedness
Existence
NEED THEORIES OF MOTIVATION
What are the implications of need-based
theories for managers?
TODAY’S TOPIC
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Motivation
EQUITY THEORY
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People compare their
outcome/input ratio to
that of others
Conclusions
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Ratios are equal
(equity exists)
Ratios are unequal
(inequity exists)
RESPONSES TO EQUITY/INEQUITY
Equity: Maintenance
 Inequity:
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 Change
Inputs
 Change Outcomes
 Quit
Forms of Justice
REINFORCEMENT THEORY
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Behavior is a function
of consequences
Behavior that is
rewarded persists
To increase behavior
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Positive reinforcement
negative reinforcement
REINFORCEMENT THEORY
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To reduce behavior
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Extinction
Punishment
Immediacy is crucial
Implications?
REWARDING B
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WE HOPE FOR:
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Long-term growth
Setting challenging goals
Total Quality
Candor
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BUT WE
REWARD:
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Teamwork
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EXPECTANCY THEORY
People are motivated to do that which they
believe is possible and valuable
 Expectancy: Belief that you can perform
 Instrumentality: Belief that performance
will lead to an outcome
 Valence: Value of the outcome
EXPECTANCY THEORY
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According to expectancy theory, what must
managers do to motivate their employees?
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GOAL SETTING THEORY
People naturally set goals
 Benefits of Goals:
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 Increase
effort
 Direct effort
 Increase persistence
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Most effective goals are:
Making MBO Work:
SMARTER Goals
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S
M
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A
R
T
E
R
Improve conflict management process vs.
80% reduction in grievances filed by second quarter
Motivation Theories
Need (Maslow & ERG)
 Equity
 Reinforcement
 Expectancy Theory
 Goal-Setting Theory
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Effective Rewards &
Incentive Systems:
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NORDSTROMS
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Using theories of motivation & related keys to
effective incentive systems, evaluate the Incentive
system in place at Nordstroms.
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What do you see as its strengths?
Any concerns/questions regarding the system?
Are Nordstrom employees pressured
inappropriately by the sales-per-hour system? By
management?
What (if any) changes would you recommend?
NORDSTROMS
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Using theories of motivation & related keys
to effective incentive systems, evaluate the
Incentive system in place at Nordstroms.
 What
do you see as its strengths?
NORDSTROMS
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“This is Your Business. Treat
it Like Your Own Business.”
 Highest sales productivity
 Earnings > $80,000
 Compound growth in sales,
earnings, stores sq. ft.
 Highly, educated workforce
NORDSTROMS

Using theories of motivation & related keys
to effective incentive systems, evaluate the
Incentive system in place at Nordstroms.
 What
do you see as its strengths?
 Any potential concerns?
NORDSTROMS

“This is Your Business. Treat
it Like Your Own Business.”
 Highest sales productivity
 Earnings > $80,000
 Compound growth in sales,
earnings, stores sq. ft.
 Highly, educated workforce
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“It’s fear that Provides
Great Customer Service”
 Local 1001 publicity
campaign
 Union complaint with
Washington Dept. L & I
 NLRB charges
 $15 million reserve against
earnings
 shareholder class action suit
 employee class action suit
 Wall Street Journal story
 60 Minutes TV story
NORDSTROMS
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Are Nordstrom employees pressured
inappropriately by the sales-per-hour
system? By management?
NORDSTROMS
ACTIVITY
Drive to another store to pick
up merchandise for a customer
Home delivery
Obtain merchandise from
another department for a
customer
Thank you notes
Merchandise stocking
Store displays
Sales meetings
Inventory count
Record keeping
SELL
NONSELL
NORDSTROMS
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Using theories of motivation & related keys to
effective incentive systems, evaluate the Incentive
system in place at Nordstroms.

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What do you see as its strengths?
Any concerns/questions regarding the system?
Are Nordstrom employees pressured
inappropriately by the sales-per-hour system? By
management?
What (if any) changes would you recommend?