CHAPTER 17 Motivating Employees Copyright 2005 Prentice Hall

  • Slides: 30
Download presentation
 • CHAPTER 17 • Motivating Employees Copyright © 2005 Prentice Hall, Inc. All

• CHAPTER 17 • Motivating Employees Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10– 1

What Is Motivation? • Motivation Ø The processes that accounts for an individual’s willingness

What Is Motivation? • Motivation Ø The processes that accounts for an individual’s willingness to exert high levels of effort to reach organizational or personal goals, conditioned by the effort’s ability to satisfy some individual need. Ø It is also the process by which a person’s efforts are energized, directed, and sustained towards attaining a goal. v Energy: a measure of intensity or drive. v Direction: toward organizational or personal goals v Sustenance: persistence or perseverance or diligence to exert effort

What Is Motivation? (contd…. ) An unsatisfied need creates tension which is reduced by

What Is Motivation? (contd…. ) An unsatisfied need creates tension which is reduced by an individual’s efforts to satisfy the need. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 3

16– 4

16– 4

Early Theories of Motivation 1. Maslow’s Hierarchy of Needs 2. Mac. Gregor’s Theories X

Early Theories of Motivation 1. Maslow’s Hierarchy of Needs 2. Mac. Gregor’s Theories X and Y 3. Ouchi’s Theory Z 4. Herzberg’s 2 -factor Theory Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 5

Early Theories of Motivation • 1. Maslow’s Hierarchy of Needs Theory Ø Needs are

Early Theories of Motivation • 1. Maslow’s Hierarchy of Needs Theory Ø Needs are categorized into five levels of lower- to higherorder needs. v Individuals must satisfy lower-order needs before they can satisfy higher order needs. v Satisfied needs will no longer motivate. v Motivating a person depends on knowing at what level that person is on the hierarchy. Ø Hierarchy of needs v Lower-order (external): physiological, safety v Higher-order (internal): social, esteem, self-actualization Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 6

Maslow’s Hierarchy of Needs Theory (contd…. ) 1. physiological – needs of food, drink,

Maslow’s Hierarchy of Needs Theory (contd…. ) 1. physiological – needs of food, drink, shelter, etc. i. e. the basic amenities of life. • 2. safety – needs for physical, environmental and emotional safety and protection. • 3. social – needs for affection, belongingness, acceptance, friendship, etc. • 4. esteem – needs for internal esteem such as self-respect, achievement, status, recognition, attention, admiration, power, etc. • 5. self-actualization – needs for growth, achieving one’s potential, selffulfillment; in other words, the drive to be what one is capable of becoming.

Maslow’s Hierarchy of Needs Theory (contd…. ) Copyright © 2005 Prentice Hall, Inc. All

Maslow’s Hierarchy of Needs Theory (contd…. ) Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 8

2. Mac. Gregor’s Theories X & Y • Theory X managers are assumed to

2. Mac. Gregor’s Theories X & Y • Theory X managers are assumed to view the average employee as: • Disliking work and finding ways to avoid it as much as possible. • Responding to threats of punishment or control because of the dislike of work. • Avoiding responsibility because of lack of ambition. • Wanting to be directed. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 9

Mac. Gregor’s Theories X & Y (cont’d…. ) • Theory Y manager assumes that

Mac. Gregor’s Theories X & Y (cont’d…. ) • Theory Y manager assumes that the average employee: • Enjoys work and does not want to avoid it. • Wants to achieve organizational goals through selfdirected behavior. • Responds to rewards associated with accomplishing goals. • Will accept responsibility. • Has initiative and can be creative in solving organizational problems. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 10

Mac. Gregor’s Theories X & Y (cont’d…. ) • Theory X and Theory Y

Mac. Gregor’s Theories X & Y (cont’d…. ) • Theory X and Theory Y represent two extremely different positions — an autocratic management style and democratic management style. • A manager must review the people involved and the situation and then determine if a Theory X or a Theory Y management style will work.

4. Herzberg’s Two-Factor Theory In 1959, Frederick Herzberg, a behavioural scientist proposed a two

4. Herzberg’s Two-Factor Theory In 1959, Frederick Herzberg, a behavioural scientist proposed a two -factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. He said that the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.

Herzberg’s Two-Factor Theory Herzberg classified these job factors into two categories. Hygiene factors (also

Herzberg’s Two-Factor Theory Herzberg classified these job factors into two categories. Hygiene factors (also called maintenance factors) – factors that do not give satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself (e. g. salary, work environment, company policy, relationship with peers and supervisors, etc. ). Motivating factors (e. g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself. The motivational factors yield positive satisfaction. These factors motivate the employees for a superior performance. These factors are called satisfiers.

Herzberg’s Two-Factor Theory 16– 14

Herzberg’s Two-Factor Theory 16– 14

Three-Needs Theory (Mc. Clelland) Ø There are three acquired (not innate) needs that are

Three-Needs Theory (Mc. Clelland) Ø There are three acquired (not innate) needs that are major motives in work o Need for achievement (n. Ach)- the drive to succeed and excel o Need for power (n. Pow)- the need to influence the behavior of others o Need for affiliation(n. Aff)- the desire for friendly and close interpersonal relationships

Contemporary Theories of Motivation • 1. Goal-Setting Theory • 2. Reinforcement Theory • 3.

Contemporary Theories of Motivation • 1. Goal-Setting Theory • 2. Reinforcement Theory • 3. Job Design Theory • 4. Equity Theory Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 16

 • 1. Goal-Setting Theory (Motivation and Goals) Ø Proposes that accepted goals which

• 1. Goal-Setting Theory (Motivation and Goals) Ø Proposes that accepted goals which are specific, and challenging yet achievable will result in higher performance than having no or easy goals. Ø Working toward a goal is a major source of job motivation. Motivation is maximized by difficult goals not impossible ones. • Benefits of Participation in Goal-Setting Ø Increases the acceptance of goals. Ø Fosters commitment to difficult, public goals. Ø Self-efficacy- individual’s belief that he or she is capable of performing a task. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 17

Exhibit 17 -5 goal-setting theory

Exhibit 17 -5 goal-setting theory

 • 2. Reinforcement Theory (Motivation and Behavior) Ø Assumes that a desired behavior

• 2. Reinforcement Theory (Motivation and Behavior) Ø Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. Ø Ignores factors such as goals, expectations, and needs. Ø Instead, it focuses on what happens to a person when he/she does something. v Positive reinforcement is preferred for its long-term effects on performance (example- hourly bonus) v Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors. 16– 19

3. Job Design Theory • Job Design Ø The way into which tasks can

3. Job Design Theory • Job Design Ø The way into which tasks can be combined to form complete jobs. Ø Job enlargement v Increasing the scope (number of tasks) in a job. Ø Job enrichment v Increasing responsibility and autonomy (depth) in a job.

Jo n o i t a v i t o M & n g

Jo n o i t a v i t o M & n g i s e D b

 • 4. Equity Theory (Motivation and Perception) Ø Proposes that employees perceive what

• 4. Equity Theory (Motivation and Perception) Ø Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. v If the ratios are perceived as equal then a state of equity (fairness) exists. v If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded. v When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice). Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 22

Exhibit 17 -7 Equity Theory

Exhibit 17 -7 Equity Theory

Motivation and Perception (cont’d) • Equity Theory (cont’d) Ø Distributive Justice v The perceived

Motivation and Perception (cont’d) • Equity Theory (cont’d) Ø Distributive Justice v The perceived fairness of the amount and allocation of rewards among individuals (i. e. , who received what) – Influences an employee’s satisfaction Ø Procedural Justice v The perceived fairness of the process used to determine the distribution of rewards (i. e. , how who received what) – Affects an employee’s organizational commitment 24

Motivation and Perception (cont’d) • Equity Theory (cont’d) Ø Employee responses to perceived inequities:

Motivation and Perception (cont’d) • Equity Theory (cont’d) Ø Employee responses to perceived inequities: v Improve or reduce productivity v Improve or reduce quality of output v Increase absenteeism v Voluntary resignation Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 25

Expectancy Theory Ø States that an individual tends to act in a certain way

Expectancy Theory Ø States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Ø Key to theory is understanding and managing employee goals and the linkages among and between efforts, performance and rewards. v. Effort: employee development abilities and training/ v. Performance: valid appraisal systems v. Rewards (goals) : understanding employee needs

Exhibit 17 -8 expectancy model

Exhibit 17 -8 expectancy model

Expectancy Theory Expectancy relationships Ø Expectancy (effort–performance linkage) v The probability perceived by the

Expectancy Theory Expectancy relationships Ø Expectancy (effort–performance linkage) v The probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance Ø Instrumentality (performance–reward linkage) v The perception that a particular level of performance will result in attaining the desired outcome. Ø Valence v The attractiveness/importance of the performance reward (outcome) to the individual.

Designing Appropriate Rewards Programs Ø Employee recognition programs v Giving personal attention and expressing

Designing Appropriate Rewards Programs Ø Employee recognition programs v Giving personal attention and expressing interest, approval, and appreciation for a job well done. Ø Pay-for-performance Variable compensation plans that reward employees on the basis of their performance: – Piece rates, wage incentives, profit-sharing, and lump-sum bonuses Ø Stock option programs v v Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 29

From Theory to Practice: Guidelines for Motivating Employees • Recognize individual differences • Link

From Theory to Practice: Guidelines for Motivating Employees • Recognize individual differences • Link rewards to performance • Match people to jobs • Check the system for equity • Use goals • Ensure that goals are perceived as attainable • Individualize rewards • Use recognition • Show care and concern for your employees • Don’t ignore money Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16– 30