Transcript Motivating Employee Performance Copyright © Houghton Mifflin Company. All rights reserved. 16–1

Motivating Employee Performance
Copyright © Houghton Mifflin Company. All rights reserved.
16–1
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.
• The Importance of Motivation in the
Workplace
– Individual Performance is determined by:
• Motivation—the desire to do the job.
• Ability—the capability to do the job.
• Work environment—the resources to do the job.
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Historical Perspectives on Motivation
• The Traditional Approach
 Workers are interchangeable tools of production.
 Frederick Taylor (Scientific Management)
 Assumptions:

Managers know more than workers.

Economic gain (money) is the primary motivation
for performance.

Work is inherently unpleasant.
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Historical Perspectives on Motivation
• The Human Relations Approach
 Emphasized role of social processes in workplace.
 Assumptions:

Employees want to feel useful and and important.

Employees have strong social needs, more
important than money.

Maintaining the appearance of employee
participation is important.
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Historical Perspectives on Motivation
• The Human Resource Approach
 Emphasized value of employees to organization
 Assumptions:

Employee contributions are important and
valuable to the employee and the organization.

Employees want to and are able to make
genuine contributions.

Management’s job is to encourage participation
and create a work environment that motivates
employees.
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16–5
Motivation Theories
This chapter has many theories, these are the ones you need to know:
(You do not need to distinguish between content, process, and reinforcement perspectives.)
– Maslow’s Hierarchy of Needs
– Herzberg’s Two-Factor Theory
– McClelland’s 3-Needs Theory (Achievement,
Power, and Affiliation)
– Expectancy Theory
– Equity Theory
– Goal-Setting Theory
– Reinforcement Theory
– Motivational Strategies (empowerment
participation, alternative work arrangements.)
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Maslow’s Hierarchy of Needs
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The Two-Factor Theory (Herzberg)
Satisfaction and dissatisfaction are influenced by
two independent sets of factors.
• Motivational factors (work content) are on a continuum
that ranges from satisfaction to no satisfaction.
• Hygiene factors (work environment) are on a separate
continuum that ranges from dissatisfaction to no
dissatisfaction.
Theory assumes 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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The Two-Factor Theory of
Motivation
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16–9
Three Needs Theory
The need for achievement
• The desire to accomplish a goal or task more effectively
than in the past.
• Assume personal responsibility, set moderately difficult
goals, desire specific and immediate feedback. 10% of
population.
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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16–10
Expectancy Theory
Motivation depends on how much we want something and
how likely we are to get it.
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—the consequence or reward
for behaviors in an organizational setting.
Valence
An index of how much an individual values a particular outcome.
It is the attractiveness of the outcome to the individual.
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16–11
Equity Theory
People are motivated to seek social equity in the rewards they
receive for performance. Equity is the belief that treatment
received is fair relative to the treatment received by others.
outcomes (self)
inputs (self)
=
outcomes (other)
inputs (other)
Feeling equitably rewarded – maintain performance
Feeling under-rewarded – try to reduce inequity
•Increase or Decrease inputs: try harder or slack off
•Change outcomes: demand raise
•Distort ratios by altering perceptions of self or others
•Quit
•Change comparison
Feeling over-rewarded
•Increase or decrease inputs
•Distort ratios
•Help object person gain more outcomes
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16–12
Goal-Setting Theory
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
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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Reinforcement Theory
Behavior is a function of its consequences.
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.
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.
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Reinforcement (cont’d)
Behavior modification (OB mod)
• A method for applying the basic elements of
reinforcement theory in an organizational setting.
Consistently applied reinforcement helps maintain
employee motivation by:
• encouraging (rewarding) positive behaviors
• discouraging (punishing) dysfunctional behaviors in an
organization.
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16–15
Popular Motivational Strategies
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.
Alternate work arrangements
• Compressed workweek, flextime, job sharing,
telecommuting
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Reward Systems to Motivate
• 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
– Incentive pay plans
• Piece-rate systems
• Sales commissions
– Other forms of incentives
• Non-monetary incentives (perks)
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Reward Systems to Motivate
• 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
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16–18