Chapter 4 Motivating Self and Others Chapter 4

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Chapter 4 Motivating Self and Others Chapter 4, Stephen P. Robbins and Nancy Langton,

Chapter 4 Motivating Self and Others Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Self and Others Questions for Consideration 1. What is motivation? 2. How do

Motivating Self and Others Questions for Consideration 1. What is motivation? 2. How do needs motivate people? 3. Are there other ways to motivate people? 4. Do equity and fairness matter? 5. Are there tips for motivating people for different goals? 6. How do you motivate for individual differences? 7. What kinds of mistakes are made in reward systems? 8. Do motivational theories work the same in every country? 9. Could rewards be overrated? Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

What is Motivation? • Motivation – The processes that account for an individual’s intensity,

What is Motivation? • Motivation – The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal • Intensity: how hard a person tries • Direction: where effort is channeled • Persistence: how long effort is maintained Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Theory X and Theory Y • Theory X – The assumption that employees dislike

Theory X and Theory Y • Theory X – The assumption that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform. • Theory Y – The assumption that employees like work, are creative, seek responsibility, and can exercise selfdirection and self-control. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivators • Intrinsic – A person’s internal desire to do something, due to such

Motivators • Intrinsic – A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction. • Extrinsic – Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Needs Theories of Motivation • Basic idea: – Individuals have needs that, when unsatisfied,

Needs Theories of Motivation • Basic idea: – Individuals have needs that, when unsatisfied, will result in motivation • Maslow’s hierarchy of needs • Herzberg’s two factor theory (motivationhygiene theory) • Alderfer’s ERG theory • Mc. Clelland’s theory of needs Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Maslow’s Hierarchy of Needs • Physiological – Includes hunger, thirst, shelter, sex and other

Maslow’s Hierarchy of Needs • Physiological – Includes hunger, thirst, shelter, sex and other bodily needs • Safety – Includes security and protection from physical and emotional harm • Social – Includes affection, belongingness, acceptance, and friendship Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Maslow’s Hierarchy of Needs • Esteem – Includes internal esteem factors such as self

Maslow’s Hierarchy of Needs • Esteem – Includes internal esteem factors such as self -respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention • Self-actualization – The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfilment Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -1 Maslow’s Hierarchy of Needs Selfactualization Esteem Social Safety Physiological Chapter 4,

Exhibit 4 -1 Maslow’s Hierarchy of Needs Selfactualization Esteem Social Safety Physiological Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Herzberg’s Motivation. Hygiene Theory • Hygiene factors - necessary, but not sufficient, for healthy

Herzberg’s Motivation. Hygiene Theory • Hygiene factors - necessary, but not sufficient, for healthy adjustment – Extrinsic factors; context of work • Company policy and administration • Unhappy relationship with employee's supervisor • Poor interpersonal relations with one's peers • Poor working conditions Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Herzberg’s Motivation. Hygiene Theory • Motivators - the sources of satisfaction – Intrinsic factors;

Herzberg’s Motivation. Hygiene Theory • Motivators - the sources of satisfaction – Intrinsic factors; content of work • • • Achievement Recognition Challenging, varied or interesting work Responsibility Advancement Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -2 Contrasting Views of Satisfaction and Dissatisfaction Traditional view Dissatisfaction Satisfaction Herzberg's

Exhibit 4 -2 Contrasting Views of Satisfaction and Dissatisfaction Traditional view Dissatisfaction Satisfaction Herzberg's view Motivators No Satisfaction Hygiene Factors Dissatisfaction No dissatisfaction Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Criticisms of Motivation. Hygiene Theory • The procedure that Herzberg used is limited by

Criticisms of Motivation. Hygiene Theory • The procedure that Herzberg used is limited by its methodology • The reliability of Herzberg’s methodology is questioned • Herzberg did not really produce a theory of motivation • No overall measure of satisfaction was used • The theory is inconsistent with previous research Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Alderfer’s ERG Theory • Existence – Concerned with providing basic material existence requirements •

Alderfer’s ERG Theory • Existence – Concerned with providing basic material existence requirements • Relatedness – Desire for maintaining important interpersonal relationships • Growth – Intrinsic desire for personal development Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Mc. Clelland’s Theory of Needs • Need for Achievement – The drive to excel,

Mc. Clelland’s Theory of Needs • Need for Achievement – The drive to excel, to achieve in relation to a set of standards, to strive to succeed • Need for Power – The need to make others behave in a way that they would not have behaved otherwise • Need for Affiliation – The desire for friendly and close interpersonal relationships Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -4 Summarizing the Various Needs Theories Maslow Alderfer Herzberg Mc. Clelland Growth

Exhibit 4 -4 Summarizing the Various Needs Theories Maslow Alderfer Herzberg Mc. Clelland Growth Motivators Need for Achievement Self-Actualization Esteem Affiliation Security Need for Power Relatedness Hygiene Factors Need for Affiliation Existence Physiological Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Summary: Hierarchy of Needs – Maslow: Argues that lower-order needs must be satisfied before

Summary: Hierarchy of Needs – Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. – Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction. – Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases. – Mc. Clelland: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Summary: Impact of Theory – Maslow: Enjoys wide recognition among practising managers. Most managers

Summary: Impact of Theory – Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. – Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time. – Alderfer: Seen as a more valid version of the need hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks. – Mc. Clelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Summary: Support and Criticism of Theory – Maslow: Research does not generally validate theory.

Summary: Support and Criticism of Theory – Maslow: Research does not generally validate theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. – Herzberg: Not really a theory of motivation: Assumes a link between satisfaction and productivity that was not measured or demonstrated. – Alderfer: Ignores situational variables. – Mc. Clelland: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Process Theories of Motivation • Look at the actual process of motivation – Expectancy

Process Theories of Motivation • Look at the actual process of motivation – Expectancy theory – Goal-setting theory Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Expectancy Theory • The strength of a tendency to act in a certain way

Expectancy Theory • The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Expectancy Relationships • The theory focuses on three relationships: – Effort-performance relationship • The

Expectancy Relationships • The theory focuses on three relationships: – Effort-performance relationship • The perceived probability that exerting a given amount of effort will lead to performance. – Performance-reward relationship • The degree to which the individual believes that performing at a particular level will lead to a desired outcome. – Rewards-personal goals relationship • The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -5 How Does Expectancy Theory Work? My professor offers me $1 million

Exhibit 4 -5 How Does Expectancy Theory Work? My professor offers me $1 million if I memorize the textbook by tomorrow morning. Expectancy Effort Performance Link No matter how much effort I put in, probably not possible to memorize the text in 24 hours E=0 Instrumentality Performance Rewards Link My professor does not look like someone who has $1 million Valence Rewards Personal Goals Link There a lot of wonderful things I could do with $1 million I=0 V=1 Conclusion: Though I value the reward, I will not be motivated to do this task. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -6 Steps to Increasing Motivation, Using Expectancy Theory Improving Expectancy Improve the

Exhibit 4 -6 Steps to Increasing Motivation, Using Expectancy Theory Improving Expectancy Improve the ability of the individual to perform • Make sure employees have skills for the task • Provide training • Assign reasonable tasks and goals Improving Instrumentality Increase the individual’ s belief that performance will lead to reward • Observe and recognize performance • Deliver rewards as promised • Indicate to employees how previous good performance led to greater rewards Improving Valence Make sure that the reward is meaningful to the individual • Ask employees what rewards they value • Give rewards that are valued Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Goal-Setting Theory • The theory that specific and difficult goals lead to higher performance.

Goal-Setting Theory • The theory that specific and difficult goals lead to higher performance. – Goals tell an employee what needs to be done and how much effort will need to be expended. • Specific goals increase performance • Difficult goals, when accepted, result in higher performance than do easy goals • Feedback leads to higher performance than does nonfeedback. – Specific hard goals produce a higher level of output than does the generalized goal of “do your best. ” • The specificity of the goal itself acts as an internal stimulus. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Management by Objectives • A program that encompasses – Specific goals – Participative decision-making

Management by Objectives • A program that encompasses – Specific goals – Participative decision-making – Explicit time period – Performance feedback Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Responses to the Reward System • Equity Theory • Fair Process Chapter 4, Stephen

Responses to the Reward System • Equity Theory • Fair Process Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Equity Theory • Main points – Individuals compare their job inputs and outcomes with

Equity Theory • Main points – Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. – Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -7 Equity Theory Ratio of Output to Input Person 1’s Perception Inequity,

Exhibit 4 -7 Equity Theory Ratio of Output to Input Person 1’s Perception Inequity, underrewarded Person 2 Person 1 Equity Person 2 Person 1 Inequity, overrewarded Person 2 Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Equity Comparisons • • Self-inside Self-outside Other-inside Other-outside Chapter 4, Stephen P. Robbins and

Equity Comparisons • • Self-inside Self-outside Other-inside Other-outside Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Responses to Inequity • • • Change Inputs Change Outcomes Adjust Perceptions of Self

Responses to Inequity • • • Change Inputs Change Outcomes Adjust Perceptions of Self Adjust Perceptions of Others Choose a Different Referent Leave the Field Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Fair Process and Treatment • Historically, equity theory focused on: – Distributive justice •

Fair Process and Treatment • Historically, equity theory focused on: – Distributive justice • However, equity should also consider – Procedural justice Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Fair Process • Distributive Justice – Perceived fairness of the amount and allocation of

Fair Process • Distributive Justice – Perceived fairness of the amount and allocation of rewards among individuals • Procedural Justice – Perceived fairness of the process used to determine the distribution of rewards • Interactional Justice – The quality of the interpersonal treatment received from another Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating to Show People Matter • Employee Recognition Programs – Programs that use multiple

Motivating to Show People Matter • Employee Recognition Programs – Programs that use multiple sources and recognizes both individual and group accomplishments. • Linking Programs and Reinforcement Theory – Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition. • Employee Recognition Programs in Practice – In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Variable Pay Programs • A portion of an employee’s pay is based on some

Variable Pay Programs • A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance. – Individual-based • Piece-rate wages, bonuses • Workers are paid a fixed sum for each unit of production completed. – Group-based • Gainsharing: an incentive plan where improvements in group productivity determine the total amount of money that is allocated. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Variable Pay Programs – Organizational-based • Profit-sharing: organization wide programs that distribute compensation based

Variable Pay Programs – Organizational-based • Profit-sharing: organization wide programs that distribute compensation based on some established formula designed around a company’s profitability. • Employee stock ownership plans (ESOPs): companyestablished benefit plans in which employees acquire stock as part of their benefits. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -8 Comparing Various Pay Programs Chapter 4, Stephen P. Robbins and Nancy

Exhibit 4 -8 Comparing Various Pay Programs Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Variable-Pay Programs • Linking variable-pay plans and expectancy theory – Evidence supports the importance

Variable-Pay Programs • Linking variable-pay plans and expectancy theory – Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems. – Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Rewards for Other Types of Performance • Commissions beyond sales – Customer satisfaction and/or

Rewards for Other Types of Performance • Commissions beyond sales – Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets. • Leadership effectiveness – Employee satisfaction, or how the manager handles his or her employees. • New goals – All employees who contribute to specific organizational goals, such as customer satisfaction, cycle time, or quality measures. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Rewards for Other Types of Performance • Knowledge workers in teams – Performance of

Rewards for Other Types of Performance • Knowledge workers in teams – Performance of knowledge workers and/or professional employees who work on teams. • Competency and/or skills – Abstract knowledge or competencies—for example, knowledge of technology, the international business context, customer service, or social skills. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Specific Groups • • • Professionals Contingent workers Low-skilled service workers Unionized employees

Motivating Specific Groups • • • Professionals Contingent workers Low-skilled service workers Unionized employees Public sector employees Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Professionals • How are “professionals” different? – Receive a great deal of “intrinsic”

Motivating Professionals • How are “professionals” different? – Receive a great deal of “intrinsic” satisfaction from their work. – Strong and long-term commitment to their field of expertise – Well paid/ Chief reward is work itself. – Value support – More focused on work as central life interest. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Professionals • How do we motivate professionals? – Provide challenging projects – Give

Motivating Professionals • How do we motivate professionals? – Provide challenging projects – Give them autonomy in follow interests and structure work. – Reward with educational opportunities. – Recognize their contributions. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Contingent Workers • No simple solutions to motivating contingent workers. – Contingent or

Motivating Contingent Workers • No simple solutions to motivating contingent workers. – Contingent or temporary workers have little or no job security/stability, therefore they don’t identify with the organization or display the commitment of permanent employees. – Contingent or temporary workers are typically provided with little or no health care, pensions, or similar benefits. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Contingent Workers • Greatest motivating factor is the opportunity to gain permanent employment.

Motivating Contingent Workers • Greatest motivating factor is the opportunity to gain permanent employment. • Motivation is also increased if the employee sees that the job he or she is doing for the firm can develop salable skills. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Low-Skilled Service Workers • Many 15 - to 24 -year-olds have “Mc. Jobs”

Motivating Low-Skilled Service Workers • Many 15 - to 24 -year-olds have “Mc. Jobs” with pay levels near minimum wage • To motivate – – Employees want more respect Make jobs more appealing Raise pay levels Find unusual ways to motivate: • Flexible work schedules • Broader responsibility for inventory, scheduling, and hiring • Creation of a “family” atmosphere among employees Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Unionized Employees • Constraints of contract affect some forms of rewards – Some

Motivating Unionized Employees • Constraints of contract affect some forms of rewards – Some unions against pay-for-performance • Additional ideas – Create better work environments – Show appreciation – Provide opportunities for training and advancement – Listen to employees concerns Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Motivating Public Sector Employees • Special challenge – Much work is service-oriented, harder to

Motivating Public Sector Employees • Special challenge – Much work is service-oriented, harder to measure productivity – Hard to link rewards to performance • What to do – Goal setting helps • Goal difficulty and goal specificity help improve motivation Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -10 Management Reward Follies We hope for: But we reward: • Teamwork

Exhibit 4 -10 Management Reward Follies We hope for: But we reward: • Teamwork and collaboration • The best individual team members • Innovative thinking and risk taking • Proven methods and no mistakes • Development of people skills • Technical achievements and accomplishments • Employee involvement and empowerment • High achievement • Long-term growth • Commitment to total quality • Candor • Tight control over operations, resources • Another year’s efforts • Quarterly earnings • Shipment on schedule, even with defects • Reporting good news Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Why Do Managers Engage in Reward Follies? • Stuck in old patterns of rewards

Why Do Managers Engage in Reward Follies? • Stuck in old patterns of rewards and recognition – Stick to rewarding things that can be easily measured • Don’t look at the big picture – Subunits compete with each other • Focus on short-term results Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Cross-Cultural Differences in Motivation • Canada and US rely on extrinsic rewards more than

Cross-Cultural Differences in Motivation • Canada and US rely on extrinsic rewards more than other countries • Japan and Germany rarely use individual incentives – Japan emphasizes group rewards • China more likely to give bonuses to everyone Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -11 Snapshots of Cultural Differences in Motivation Japan: Sales representatives preferred being

Exhibit 4 -11 Snapshots of Cultural Differences in Motivation Japan: Sales representatives preferred being members of a successful team with shared goals and values, rather than financial rewards. Russia: Cotton mill employees given either valued extrinsic rewards (North American T-shirts with logos, children’s sweatpants, tapes of North American music, etc. ) or praise and rewards were more productive. However, rewards did not help for those who worked on Saturdays. China: Bonuses often given to everyone, regardless of individual productivity. Many employees expect jobs for life, rather than jobs based on performance. Mexico: Employees prefer immediate feedback on their work. Therefore daily rewards for exceeding quotas are preferred. Canada and the United States: Managers rely more heavily on extrinsic motivators. Japan and Germany: Firms rarely give rewards based on individual performance. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Are Rewards Overrated? Cognitive Evaluation Theory • Allocating extrinsic rewards for behaviour that had

Are Rewards Overrated? Cognitive Evaluation Theory • Allocating extrinsic rewards for behaviour that had been previously intrinsically rewarded tends to decrease the overall level of motivation. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Abolishing Rewards • Alfie Kohn suggests that organizations should focus less on rewards, more

Abolishing Rewards • Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments – – – Abolish incentives Re-evaluate evaluation Create conditions for authentic motivation Collaboration Content Choice Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Summary • Need Theories – Be aware that individuals differ in their levels and

Summary • Need Theories – Be aware that individuals differ in their levels and types of needs • Goal Setting Theory – Clear and difficult goals lead to higher levels of employee productivity. • Expectancy Theory – Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Summary • Equity Theory – Strongest when predicting absence and turnover behaviours. – Weakest

Summary • Equity Theory – Strongest when predicting absence and turnover behaviours. – Weakest when predicting differences in employee productivity. • Cognitive Evaluation Theory – When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Implications • Recognize Individual Differences – Employees have different needs. – Don’t treat them

Implications • Recognize Individual Differences – Employees have different needs. – Don’t treat them all alike. – Spend the time necessary to understand what’s important to each employee. • Use Goals and Feedback • Allow Employees to Participate in Decisions That Affect Them Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Implications • Link Rewards to Performance – Employees must perceive a clear linkage. •

Implications • Link Rewards to Performance – Employees must perceive a clear linkage. • Check the System for Equity Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

OB at Work Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational

OB at Work Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

For Review 1. What are the implications of Theories X and Y for motivation

For Review 1. What are the implications of Theories X and Y for motivation practices? 2. Identify the variables in expectancy theory. 3. Relate goal-setting theory to the MBO process. How are they similar? Different? 4. What are the pluses and minuses of variablepay programs from an employee’s viewpoint? From management’s viewpoint? Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

For Review 5. What is an ESOP? How might it positively influence employee motivation?

For Review 5. What is an ESOP? How might it positively influence employee motivation? 6. What motivates professional employees? 7. What motivates contingent employees? 8. Explain cognitive evaluation theory. How applicable is it to management practice? 9. What can firms do to create more motivating environments for their employees? Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

For Critical Thinking 1. Identify three activities you really enjoy. Next, identify three activities

For Critical Thinking 1. Identify three activities you really enjoy. Next, identify three activities you really dislike. Using the expectancy model, analyze why some activities stimulate your effort while others don’t. 2. Identify five different criteria by which organizations can compensate employees. Based on your knowledge and experience, is performance the criterion most used in practice? Discuss. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

For Critical Thinking 3. “Recognition may be motivational for the moment but it doesn’t

For Critical Thinking 3. “Recognition may be motivational for the moment but it doesn’t have any staying power. Why? Because they don’t take recognition at Safeway or The Bay!” Do you agree or disagree? Discuss. 4. “Performance can’t be measured, so any effort to link pay with performance is a fantasy. Differences in performance are often caused by the system, which means the organization ends up rewarding the circumstances. It’s the same thing as rewarding the weather forecaster for a pleasant day. ” Do you agree or disagree with this statement? Support your position. 5. Your text argues for recognizing individual differences. It also suggests paying attention to members of diverse groups. Does this view contradict the principles of equity theory? Discuss. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

OB at Work Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational

OB at Work Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Breakout Group Exercises • Form small groups to discuss the following topics: 1. One

Breakout Group Exercises • Form small groups to discuss the following topics: 1. One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. Choose one of the available theories and indicate how theory explains the member’s current behaviour and how theory could be used to motivate the group member to perform more responsibly. 2. You are unhappy with the performance of one of your instructors and would like to encourage the instructor to present more lively classes. Choose one of the available theories and indicate how theory explains the instructor’s current behaviour. How could you as a student use theory to motivate the instructor to present more lively classes? Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Breakout Group Exercises 3. Harvard University recently changed its grading policy to recommend to

Breakout Group Exercises 3. Harvard University recently changed its grading policy to recommend to instructors that the average course mark should be a B. This was the result of a study showing that more than 50 percent of students were receiving an A or Afor coursework. Harvard students are often referred to as “the best and the brightest, ” and they pay $27 000 (US) for their education, so they expect high grades. Discuss the impact of this change in policy on the motivation of Harvard students to study harder. Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exhibit 4 -12 2002 Compensation of Canada’s Five Best-Paid CEOs CEO and Company 2002

Exhibit 4 -12 2002 Compensation of Canada’s Five Best-Paid CEOs CEO and Company 2002 To tal Compensation ($000’s) Rank on share return past 3 years (out of 150) 1. Jozef Straus JDS Uniphase Corp. 229 122 148 2. Eugene Melnyk Biovail Corp. 122 481 28 3. Gerald Schwartz Onex Corp. 49 266 46 4. Peter C. Godsoe Scotiabank 20 365 40 5. Firoz A. Rasul Ballard Power Systems Inc. 19 354 137 Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Supplemental Material Slides for activities I do in my own classroom Chapter 4, Stephen

Supplemental Material Slides for activities I do in my own classroom Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Exercise on Motivation Theories • Jesse has been underperforming at work, coming in late,

Exercise on Motivation Theories • Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously Jesse has been one of your star employees. Using theory assigned to your group, explain what steps you might take to motivate Jesse to perform better. – Describe the plan – Indicate how the plan relates to theory Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.

Theories to Apply • Herzberg Motivation-Hygiene (Two. Factor) Theory • Expectancy • Goal-Setting Theory

Theories to Apply • Herzberg Motivation-Hygiene (Two. Factor) Theory • Expectancy • Goal-Setting Theory • Equity • Cognitive Evaluation Theory Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc.