Chapter 13 Motivation MGMT 3 Chuck Williams Copyright

What Is Motivation? After reading this section, you should be able to: 1. explain

Motivation Direction Initiation Persistence 3 Copyright © 2011 by Cengage Learning. All rights reserved

Basics of Motivation Effort and Performance Need Satisfaction Extrinsic and Intrinsic Rewards Motivating People

Effort and Performance Effort • • • Initiation Direction Persistence Performance 1. 1 5

Effort and Performance Job Performance = Motivation x Ability x Situational Constraints 1. 1

Need Satisfaction • Needs – physical or psychological requirements – must be met to

A Job Well Done Beyond the Book According to David Novak, CEO of Yum

Adding Needs Satisfaction to the Model 1. 2 9 Copyright © 2011 by Cengage

Maslow’s Hierarchy of Needs Self-Actualization Esteem Belongingness Safety Physiological 1. 2 10 Copyright ©

Aldefer’s ERG Theory Growth Relatedness Existence 1. 2 11 Copyright © 2011 by Cengage

Mc. Clelland’s Learned Needs Theory Power Achievement Affiliation 1. 2 12 Copyright © 2011

Needs Classification Maslow’s Hierarchy Higher -Order Needs Self. Actualization Esteem Belongingness Lower- Safety Order

Extrinsic and Intrinsic Rewards Extrinsic Rewards – tangible and visible to others – contingent

Extrinsic Rewards motivate people to: • • Join the organization Regularly attend their jobs

Intrinsic Rewards include: • Sense of accomplishment • Feeling of responsibility • Chance to

Motivation at Pfizer Shari Adler took six months off of work through Pfizer’s paid

The Most Important Rewards • Good benefits Extrinsic • Health insurance • Job security

Adding Rewards to the Model 1. 3 19 Copyright © 2011 by Cengage Learning.

Motivating with the Basics • Ask people what their needs are • Satisfy lower-order

How Perceptions and Expectations Affect Motivation After reading these sections, you should be able

Equity Theory Components of Equity Theory Reaction to Perceived Inequity Motivating People Using Equity

Components of Equity Theory • Inputs – employee contributions to the organization • Outcomes

Inequity When a person’s O/I ratio differs from their referent’s O/I ratio • Underreward

How People React to Perceived Inequity ü ü ü Reduce inputs Increase outcomes Rationalize

Adding Equity Theory to Model 2. 2 26 Copyright © 2011 by Cengage Learning.

Motivating with Equity Theory • Look for and correct major inequities • Reduce employees’

Expectancy Theory Components of Expectancy Theory Motivating with Expectancy Theory 3 Copyright © 2011

Components of Expectancy Theory Valence Expectancy Instrumentality 3. 1 29 Copyright © 2011 by

Losing the Perks Beyond the Book Many companies are scaling back, and employees are

Adding Expectancy Theory to Model 3 31 Copyright © 2011 by Cengage Learning. All

Motivating with Expectancy Theory ü Systematically gather information to find out what employees want

How Rewards and Goals Affect Motivation After reading these sections, you should be able

Reinforcement Theory Components of Reinforcement Theory Schedules for Delivering Reinforcement Motivating with Reinforcement Theory

Reinforcement Theory A theory that states that behavior is a function of its consequences,

Reinforcement Contingencies ü Positive reinforcement • desirable consequence strengthens behavior ü Negative reinforcement •

Adding Reinforcement Theory to Model 4. 1 37 Copyright © 2011 by Cengage Learning.

Schedules for Delivering Reinforcement Continuous Intermittent 4. 2 38 Copyright © 2011 by Cengage

Continuous Reinforcement Schedules Continuous Reinforcement Schedule A schedule that requires a consequence to be

Intermittent Reinforcement Schedules Fixed Interval (Time) Consequences follow behavior after a fixed time has

Motivating with Reinforcement Theory • Identify, measure, analyze, intervene, and evaluate • Don’t reinforce

Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort.

Goal-Setting Theory • Goal Specificity – the clarity of goals • Goal Difficulty –

Adding Goal-Setting Theory to Model 5. 1 44 Copyright © 2011 by Cengage Learning.

Motivating with Goal-Setting Theory • Assign specific, challenging goals • Make sure workers truly

Motivating with the Integrated Model Motivating with the Basics Motivating with Expectancy Theory Motivating

Motivating with the Integrated Model 6 47 Copyright © 2011 by Cengage Learning. All

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Effort and Performance Job Performance = Motivation x Ability x Situational Constraints 1. 1 • Job performance – how well someone performs the job • Motivation – effort put forth on the job • Ability – capability to do the job • Situational Constraints – external factors affecting performance 6 Copyright © 2011 by Cengage Learning. All rights reserved

Need Satisfaction • Needs – physical or psychological requirements – must be met to ensure survival and well being • Unmet needs motivate people • Three approaches: – Maslow’s Hierarchy of Needs – Alderfer’s ERG Theory – Mc. Clelland’s Learned Needs Theory 1. 2 Copyright © 2011 by Cengage Learning. All rights reserved

A Job Well Done Beyond the Book According to David Novak, CEO of Yum Brands, everyone needs to be recognized for a job well done. Recognition must be genuine, must come from the heart, and, when it is deserved, it can’t be overdone. When he was president at KFC, Novak used to find workers who were doing a good job and give them a rubber chicken trophy and $100. Says Novak, “Using recognition is the best way to build a highenergy, fun culture and reinforce the behaviors that drive results. ” Source: D. C. Novak, “Corner Office: At Yum Brands, Rewards for Good Work”, interview by A. Bryant, The New York Times, 11 July 2009. http: //www. nytimes. com/2009/07/12/business/12 corner. html (accessed 10/23/2009). Copyright © 2011 by Cengage Learning. All rights reserved 8

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 1. 2 13 Copyright © 2011 by Cengage Learning. All rights reserved

Extrinsic and Intrinsic Rewards Extrinsic Rewards – tangible and visible to others – contingent on performance Intrinsic Rewards – natural rewards – associated with performing the task for its own sake 1. 3 14 Copyright © 2011 by Cengage Learning. All rights reserved

Extrinsic Rewards motivate people to: • • Join the organization Regularly attend their jobs Perform their jobs well Stay with the organization 1. 3 15 Copyright © 2011 by Cengage Learning. All rights reserved

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 1. 3 16 Copyright © 2011 by Cengage Learning. All rights reserved

Motivation at Pfizer Shari Adler took six months off of work through Pfizer’s paid volunteerism program working for the Tanzanian Ministry of Health. Meaningful volunteer opportunities help attract and retain workers who are motivated to use their job skills to help others in need. © Charles O. Cecil/Alamy Source: S. E. Needleman, “The Latest Office Perk: Getting Paid to Volunteer, ” The Wall Street Journal, 29 April 2008, D 1. 17 Copyright © 2011 by Cengage Learning. All rights reserved

The Most Important Rewards • Good benefits Extrinsic • Health insurance • Job security • Vacation time • Interesting work Intrinsic • Learning new skills • Independent work situations 1. 3 18 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with the Basics • Ask people what their needs are • Satisfy lower-order needs first • Expect people’s needs to change • Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards 1. 4 20 Copyright © 2011 by Cengage Learning. All rights reserved

How Perceptions and Expectations Affect Motivation After reading these sections, you should be able to: 2. use equity theory to explain how employees’ perceptions of fairness affect motivation. 3. use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation. 21 Copyright © 2011 by Cengage Learning. All rights reserved

Components of Equity Theory • Inputs – employee contributions to the organization • Outcomes – rewards employees receive from the organization • Referents – comparison to others • Outcome/input (O/I) ratio 2. 1 Outcomesself = Outcomesreferent Inputsself Inputsreferent 23 Copyright © 2011 by Cengage Learning. All rights reserved

Inequity When a person’s O/I ratio differs from their referent’s O/I ratio • Underreward – referent’s O/I ratio is greater than yours – experience anger or frustration • Overreward – referent’s O/I ratio is less than yours – experience guilt 2. 1 24 Copyright © 2011 by Cengage Learning. All rights reserved

How People React to Perceived Inequity ü ü ü Reduce inputs Increase outcomes Rationalize inputs or outcomes Change the referent Leave 2. 2 © i. Stockphoto. com 25 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with Equity Theory • Look for and correct major inequities • Reduce employees’ inputs • Make sure decision-making processes are fair – distributive justice – procedural justice 2. 3 27 Copyright © 2011 by Cengage Learning. All rights reserved

Losing the Perks Beyond the Book Many companies are scaling back, and employees are seeing many perks (free catered lunches, concierge services, health-care co-pays) starting to disappear. This can cause employees to become scared or discouraged, creating concerns over job security. These kinds of perks, however, are not ongoing motivators; they’re extras. Companies need to make sure that when cutbacks come, that they don’t isolate workers from each other or leave them uninformed. Workers need to understand that everyone is in this together and everyone is making sacrifices. Source: R. Dodes, “Crossing Fashion’s Thin White Line, ” The Wall Street Journal, 1 February 2008. B 1. 30 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with Expectancy Theory ü Systematically gather information to find out what employees want from their jobs ü Clearly link rewards to individual performance ü Empower employees to make decisions which enhance expectancy perceptions 3. 2 32 Copyright © 2011 by Cengage Learning. All rights reserved

How Rewards and Goals Affect Motivation After reading these sections, you should be able to: 4. explain how reinforcement theory works and how it can be used to motivate. 5. describe the components of goal-setting theory and how managers can use them to motivate workers. 6. discuss how the entire motivation model can be used to motivate workers. 33 Copyright © 2011 by Cengage Learning. All rights reserved

Reinforcement Theory A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences–or not followed by positive consequences–will occur less frequently. 4 35 Copyright © 2011 by Cengage Learning. All rights reserved

Reinforcement Contingencies ü Positive reinforcement • desirable consequence strengthens behavior ü Negative reinforcement • withholding unpleasant consequence strengthens behavior ü Punishment • unpleasant consequence weakens behavior ü Extinction • no consequence weakens behavior 4. 1 36 Copyright © 2011 by Cengage Learning. All rights reserved

Continuous Reinforcement Schedules Continuous Reinforcement Schedule A schedule that requires a consequence to be administered following every instance of a behavior. 4. 2 39 Copyright © 2011 by Cengage Learning. All rights reserved

Intermittent Reinforcement Schedules Fixed Interval (Time) Consequences follow behavior after a fixed time has elapsed Consequences follow Ratio a specific number of (Behavior) behaviors Variable Consequences follow behavior after different times that vary around an average time Consequences follow a different number of behaviors that vary around an average number 4. 2 40 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with Reinforcement Theory • Identify, measure, analyze, intervene, and evaluate • Don’t reinforce the wrong behavior • Correctly administer punishment at the appropriate time • Choose the simplest and most effective schedule of reinforcement 4. 3 41 Copyright © 2011 by Cengage Learning. All rights reserved

Goal-Setting Theory • Goal Specificity – the clarity of goals • Goal Difficulty – how challenging goals are • Goal Acceptance – how well goals are agreed to or understood • Performance Feedback – information on goal progress 5. 1 43 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with Goal-Setting Theory • Assign specific, challenging goals • Make sure workers truly accept organizational goals • Provide frequent and specific performancerelated feedback 5. 2 45 Copyright © 2011 by Cengage Learning. All rights reserved

Motivating with the Integrated Model Motivating with the Basics Motivating with Expectancy Theory Motivating with Goal-Setting Theory Motivating with Equity Theory Motivating with Reinforcement Theory 6 46 Copyright © 2011 by Cengage Learning. All rights reserved