Chapter 13 Motivation 2015 Cengage Learning MGMT 7

Chapter 13 Motivation © 2015 Cengage Learning MGMT 7

What Is Motivation? • Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal • Initiation of effort is concerned with the choices that people make about how much effort to put forth in their jobs. • Direction of effort is concerned with the choices that people make in deciding where to put forth effort in their jobs. • Persistence of effort is concerned with the choices that people make about how long they will put forth effort. 3

The Basics of Motivation • Effort and performance • Need satisfaction • Extrinsic and intrinsic rewards • How to motivate with the basic model of motivation 13 -1 © 2015 Cengage Learning

A Basic Model of Work Motivation and Performance © 2015 Cengage Learning 13 -1

Effort and Performance Job Performance = Motivation x Ability x Situational Constraints • Job performance – how well someone performs the job – Motivation • effort put forth on the job – Ability • capability to do the job(knowledge, skills, talent 0 – Situational Constraints • external factors affecting performance(tools, policies, resources) • Since job performance is a multiplicative function of motivation times ability times situational constraints, job performance will suffer if any one of these components is weak. 7

Need Satisfaction • Needs – the physical or psychological requirements that must be met to ensure survival and well-being • • • 13 -1 A person’s unmet need creates an uncomfortable, internal state of tension that must be resolved. People are motivated by unmet needs Managers must learn what those unmet needs are, and address them. Once a need is met, it no longer motivates. Three approaches: – Maslow’s Hierarchy of Needs – Alderfer’s ERG Theory – Mc. Clelland’s Learned Needs Theory © 2015 Cengage Learning

Maslow’s Hierarchy of Needs Self-Actualization Realizing your potential Esteem Recognition, achievement Belongingness Friendship, social interaction Safety Physical and economic Physiological Food and water 10

Aldefer’s ERG Theory Growth Esteem, self-actualization Relatedness Belongingness Existence Safety and physiological 11

Mc. Clelland’s Learned Needs Theory Power Need to influence others Achievement Need to accomplish goals Affiliation Need to be liked 12

Needs Classification Maslow’s Hierarchy Higher -Order Needs Self. Actualization Esteem Belongingness Lower- Safety Order Physiological Needs Alderfer’s ERG Mc. Clelland’s Learned Needs Growth Relatedness Power Achievement Affiliation Existence 13

“What Leads to Effort? ” • Higher-order needs will not motivate as long as lower-order needs remain unsatisfied. • It’s difficult to predict which higher-order needs will motivate employees’ behavior. • The relative importance of the various needs may change over time. © 2015 Cengage Learning 13 -1

Predictions of Need Theories • Maslow – needs are arranged in a hierarchy from low to high; people are motivated by their lowest unsatisfied needs • Alderfer – people can be motivated by more than one need at a time • Mc. Clelland – the degree to which particular needs motivate varies from person to person 13 -1 © 2015 Cengage Learning

A Basic Model of Work Motivation and Performance © 2015 Cengage Learning 13 -1

Extrinsic and Intrinsic Rewards • Extrinsic rewards – tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors • Intrinsic rewards – the natural rewards associated with performing a task or activity for its own sake © 2015 Cengage Learning 13 -1

Extrinsic Rewards motivate people to: • • Join the organization Regularly attend their jobs Perform their jobs well Stay with the organization 18

Intrinsic Rewards include: • Sense of accomplishment • Feeling of responsibility • Chance to learn something new • The fun that comes from performing an interesting, challenging, and engaging task 19

The Most Important Rewards • Good benefits Extrinsic • Health insurance • Job security • Vacation time • Interesting work Intrinsic • Learning new skills • Independent work situations 20

Motivating with the Basics • Start by asking people what their needs are • Satisfy lower-order needs first • Expect peoples needs to change • As needs change and lower-order needs are satisfied, create opportunities for employees to satisfy higher-order needs 13 -1 © 2015 Cengage Learning

Adding Rewards to the Model 22

Equity Theory People will be motivated at work when they perceive that they are being treated fairly. In particular, equity theory stresses the importance of perceptions. © 2015 Cengage Learning 13 -2

Components of Equity Theory • Inputs – employee contributions to the organization • Outcomes – rewards employees receive from the organization • Referents – comparison others • Outcome/input (O/I) ratio Outcomesself = Outcomesreferent Inputsself Inputsreferent 24

Inequity When a person’s O/I ratio differs from their referent’s O/I ratio • Kinds of inequity – Underreward • your O/I ratio is worse than yours referent’s O/I ratio • experience anger or frustration – Overreward • your O/I ratio is better than yours referent’s I/O ratio • experience guilt 25

Reacting to Inequity • Decreasing or withholding inputs • Increasing outcomes • Rationalize or distort inputs to outcomes • Changing the referent • Employees may leave 13 -2 © 2015 Cengage Learning

Adding Equity Theory to the Model © 2015 Cengage Learning 13 -2

Motivating with Equity Theory • Start by looking for and correcting major inequities • Reduce employees’ inputs • Make sure decision-making processes are fair – distributive justice • The degree to which outcomes and rewards are fairly distributed – procedural justice • The fairness of the procedures used to make reward allocation decisions. © 2015 Cengage Learning 13 -2

Expectancy Theory People will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards. People make conscious choices about their motivation 13 -3 © 2015 Cengage Learning

Components of Expectancy Theory Motivation = Valence x Expectancy x Instrumentality © 2015 Cengage Learning 13 -3

Expectancy Theory • Valence – The attractiveness or desirability of various rewards or outcomes. • Expectancy – The perceived relationship between effort and performance. • Instrumentality – The perceived relationship between performance and rewards. • Motivation=Valence x Expectancy x Instrumentality 31

Motivating with Expectancy Theory 13 -3 • Systematically gather information to find out what employees want from their jobs • Take specific steps to link rewards to individual performance in a clear and understandable way • Empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance © 2015 Cengage Learning

Adding Expectancy Theory to the Model © 2015 Cengage Learning 13 -3

Reinforcement Theory Behavior is a function of its consequences, behaviors followed by positive consequences will occur more frequently, and behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently. • Reinforcement contingencies • Schedule of reinforcement © 2015 Cengage Learning 13 -4

Reinforcement Theory • Reinforcement has two parts: reinforcement contingencies and schedules of reinforcement. – Reinforcement contingencies are the cause-and-effect relationships between the performance of specific behaviors and specific consequences. – A schedule of reinforcement is the set of rules regarding reinforcement contingencies, such as which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered. 35

Reinforcement Contingencies • Positive reinforcement – Follow behaviors with desirable consequences (strengthens behavior, increases its frequency) • Negative reinforcement(Avoidance learning) – When employees perform a specific behavior to avoid an unpleasant consequence. (strengthens behavior, increases its frequency) • Punishment – Weakens behavior by following behaviors with unpleasant consequences(weakens behavior, less likely to occur. ) • Extinction – positive consequence no longer allowed to follow a previously reinforced behavior. (weakens behavior, less likely to occur) 36

Schedules for Delivering Reinforcement • Continuous reinforcement schedules – a consequence follows every instance of a behavior. – For example, employees working on a piece-rate pay system earn money (consequence) for every part they manufacture (the behavior). The more they produce, they more they earn. • Intermittent reinforcement schedules – consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred. – there are four types of intermittent reinforcement schedules. – Two of these are based on time and are called interval reinforcement schedules, while the other two, known as ratio schedules, are based on behaviors 37

Intermittent Reinforcement Schedules Fixed Interval (Time) Ratio (Behavior) consequences follow behavior after a fixed time has elapsed Ex. paychecks Consequences follow a specific number of behaviors Ex. Bonus after 10 sales 9 sales would not receive a bonus Variable Consequences follow behavior after different times that vary around an average time Ex. Bonus receives at 80 or 100 days on a 90 day schedule Consequences follow a different number of behaviors that vary around an average number Ex. Bonus after 7 or 11 or 9 sales 38

Motivating with Reinforcement Theory • Five steps of reinforcement theory: – Identify, measure, analyze, intervene, evaluate • Don’t reinforce the wrong behaviors • Correctly administer punishment at the appropriate time • Choose the simplest and most effective schedule of reinforcement 13 -4 © 2015 Cengage Learning

Reinforcement Theory • Identify means identifying critical, observable, performance-related behaviors • Measure means measuring the baseline frequencies of these behaviors • Analyze means analyzing the causes and consequences of these behaviors • Intervene means changing the organization by using positive and negative reinforcement to increase the frequency of these critical behaviors • Evaluate means evaluating the extent to which the intervention actually changed workers' behavior. 40

Adding Reinforcement Theory to the Model © 2015 Cengage Learning 13 -4

Goal-Setting Theory People will be motivated to the extent that they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. © 2015 Cengage Learning 13 -5

Components of Goal-Setting Theory • Goal specificity – the extent to which goals are detailed, exact, and unambiguous • Goal difficulty – is the extent to which a goal is hard or challenging to accomplish • Goal acceptance – the extent to which people consciously understand agree to goals • Performance feedback – information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal 13 -5 © 2015 Cengage Learning

Motivating with Goal-Setting Theory • Assign employees specific, challenging goals • Make sure workers truly accept organizational goals • Provide frequent, specific, performancerelated feedback © 2015 Cengage Learning 13 -5

Adding Goal-Setting Theory to the Model © 2015 Cengage Learning 13 -5

Motivating with the Integrated Model 48