Chapter 6 Work Motivation Michael A Hitt C

Chapter 6 Work Motivation Michael A. Hitt C. Chet Miller Adrienne Colella Slides by Ralph R. Braithwaite 6 -1

W. L. Gore & Associates – Four Guiding Principles Wilbert Gore • The ability to make one’s own commitments and keep them • Freedom to encourage, help, and allow other associates to grow in knowledge, skill and scope of responsibility • Consultation with others before undertaking actions that could impact the reputation of the company • Fairness to each other and everyone with whom contact is made Exploring Behavior in Action 6 -2

Work Motivation at W. L. Gore & Associates Wilbert Gore • What are your thoughts about Bill Gore’s lattice structure? • What are your reactions to the four principles that govern behavior? • Would these principles work in other organizations? Why or why not? • Do you think the company can maintain its philosophy as it continues to grow? Exploring Behavior in Action 6 -3

Knowledge Objectives 1. Define work motivation and explain why it is important to organizational success. 2. Discuss how managers can use Maslow’s need 3. 4. hierarchy and ERG theory to motivate associates. Describe how need for achievement, need for affiliation, and need for power relate to work performance and motivation. Explain how Herzberg’s two-factor theory of motivation has influenced current management practice. More 6 -4

Knowledge Objectives 5. Discuss the application of expectancy theory to 6. 7. 8. 9. motivation. Understand equity theory and procedural justice, and discuss how fairness judgments influence work motivation. Explain how goal-setting theory can be used to motivate associates. Describe how jobs can be enriched and how job enrichment can enhance motivation. Based on all major theories of work motivation, describe specific actions that can be taken to increase and sustain employee motivation. 6 -5

What is Motivation? Forces coming from within a person that account for the willful direction, intensity, and persistence of the person’s efforts toward achieving specific goals, where achievement is not due solely to ability or to environmental factors 6 -6

Equation Person’s level of performance is a function (f) of both ability and motivation: Performance = f (Ability x Motivation) Environmental factors also play a role 6 -7

Theories of Motivation • Content Theories • • Maslow’s need hierarchy Alderfer’s ERG theory Mc. Clelland’s need theory Herzberg’s two-factor theory • Process Theories • Expectancy theory • Equity theory • Goal-setting theory 6 -8

Abraham Maslow Need Hierarchy 6 -9

Mu st wo rk yo ur wa yu p… Maslow’s Need Hierarchy Self. Actualization Esteem Needs Social and Belongingness Needs Safety Needs Physiological Needs 6 -10

Clayton Alderfer ERG Theory 6 -11

ERG Theory Existence Needs Relatedness Needs Growth Needs Satisfaction and Progression Frustration and Regression 6 -12

Comparison of Two Theories Self. Actualization Growth Needs Esteem Needs Social and Belongingness Needs Relatedness Needs Safety Needs Existence Needs Physiological Needs Maslow’s Need Hierarchy Alderfer’s ERG Theory Adapted from Exhibit 6 -1: Maslow’s Need Hierarchy and Alderfer’s ERG Theory Compared 6 -13

Theory of Needs David C. Mc. Clelland 6 -14

Mc. Clelland’s Theory of Needs Achievement Affiliation Power 6 -15

Conclusion • People with a high need for institutional power are particularly good at • Increasing morale • Creating clear expectations • Getting others to work for the good of the organization • Effective managers have both a high need for achievement and a high need for institutional power 6 -16

Managers Over the Edge Managerial Advice 1. Why do you think there have been changes in the need for achievement over the last 20+ years? 2. Do you agree or disagree with the two reasons (coerciveness and shortcuts) given that can cause problems? 3. It is suggested that understanding needs and managing needs are two guidelines that will help high-achievement managers. Do you agree or disagree with this idea? 6 -17

Frederick Herzberg 6 -18

Two-Factor Theory • Emphasizes two sets of rewards or outcomes – • • those related to job satisfaction and those related to job dissatisfaction The two sets are not opposite ends of the same continuum but are independent states Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa 6 -19

Herzberg’s Two-Factor Theory Motivators Hygiene Factors 6 -20

Two-Factor Theory Motivators Hygiene Factors When increased, lead to greater satisfaction When deficient, lead to greater dissatisfaction • • • Achievement Recognition Responsibility Opportunity for advancement or promotion Challenging work Potential for personal growth • • Pay Technical supervision Working conditions Company policies and procedures Interpersonal relationships with others Status Security 6 -21

Process Theories Expectancy Equity Goal-Setting 6 -22

Expectancy Theory MF = E x (I x V) MF = Motivational Force I = Instrumentality E = Expectancy V = Valence Victor Vroom V 1 I 1 Outcome V 2 MF = Effort E Performance I 2 Outcome V 3 I 3 Adapted from Exhibit 6 -2: Expectancy Theory Outcome 6 -23

Expectancy Theory To increase motivation • Heighten expectancy by increasing associates’ • • beliefs that exerting effort will lead to higher levels of performance Increase instrumentalities by clearly linking high performance to outcomes Increase valence by providing outcomes that are highly valued 6 -24

Equity Theory Motivation is based on a person’s assessment of the ratio of the outcomes received (pay, status) for inputs on the job (effort, ability) compared to the same ratio for a comparison other My Outcomes My inputs vs. Other’s Outcomes Other’s Inputs 6 -25

Equity Theory Perceived inequity, employees may: • • • Increase or decrease inputs Change their outcomes Distort perceptions of inputs and/or outcomes Distort perceptions of other’s inputs and/or outcomes Change the referent others Leave the organization 6 -26

Reactions to Inequity Sensitives – pay a great deal of attention to outcome-input ratios, motivated to resolve any inequity – favorable or unfavorable Benevolents – tolerant of inequity that is unfavorable but not comfortable with inequity that favors them Entitleds – do not tolerate unfavorable inequity but are comfortable with inequity that favors them 6 -27

Reactions to Equity Feelings of equity frequently lead to outcome satisfaction and job satisfaction, organizational commitment, and organizational citizenship behaviors. Organizational Citizenship – an associate’s willingness to engage in organizationally important behaviors that go beyond prescribed job duties – helping co-workers, expending extra effort, etc. 6 -28

Distributive Justice A form of justice that relates to perceptions of fairness in outcomes. Often tied to perceptions of inequity. 6 -29

Procedural Justice The degree to which people think the procedures used to determine outcomes are fair. Some rules: Based on accurate information Formal grievance procedures Procedures free from bias Ethical code Procedures applied consistently Voice in the decision process Treated with respect Procedural Justice Given reasons for decisions 6 -30

Goal-Setting Theory Challenging and specific goals increase human performance because they affect attention, effort, and persistence. To be effective, managers should address: • • • Edwin Locke Goal difficulty Goal specificity Goal commitment Participation in setting goals Feedback 6 -31

Factors Affecting Goal Commitment Factors Increasing the Desirability of Attaining a Given Goal Factors Increasing the Perceived Ability of Attaining a Given Goal Adapted From Exhibit 6 -3: Factors Affecting Goal Commitment 6 -32

Conclusions Feedback on performance, even in the absence of established goals, is likely to have a positive effect on motivation. Feedback is especially important when performance goals exist and when they are relatively difficult to achieve. 6 -33

Making Visible Change Motivate employees by: • • • Providing a well-defined career path Thoughts? Providing valued rewards and benefits Setting specific, challenging goals Providing support to help build client base Avoiding layoffs of associates Engaging associates in a variety of organizational decisions Experiencing Strategic OB John and Maryanne Mc. Cormack 6 -34

Motivating Associates: Integration of Theory Motivation Practices Motivation Theories Find Rewards Maslow ERG X Mc. Clelland X Tie to Performance X Redesign Jobs Provide Feedback Clarify Goals X X X Herzberg Expectancy X X Equity X X X X Goal Setting Adapted from Exhibit 6 -4: Motivation Factors Resulting from Motivation Theories 6 -35

Motivating Associates: Integration of Theory • Find meaningful individual rewards • Tie rewards to performance • Redesign jobs – job enlargement and job • • enrichment Provide feedback Clarify expectations and goals – some use MBO 6 -36

Job Enrichment Richard Hackman Skill Variety Task Identity Task Significance Greg Oldham Autonomy Feedback 6 -37

Connecting People in the Workplace Deloitte recommends: Thoughts? • Design physical space that fosters connections • Build an organizational cushion of time and space • Cultivate communities • Stimulate rich networks of high-quality relationships • Provide collaboration tools Experiencing Strategic OB 6 -38

Provide Feedback • Feedback is most effective when provided in conjunction with goals • Feedback should be repeated and provided at • • • regular intervals Feedback should contain information about how associates can improve their performance Feedback should come from a credible source Feedback should focus on the performance, not the person 6 -39

The Strategic Lens 1. Assume that you are managing a talented but unmotivated associate. Also assume that organizational resources needed for the job are generally sufficient. What factors would you consider first in attempting to motivate the associate? Why those factors? 2. A number of theories of motivation suggest that different rewards might be important to different people. How difficult is it to reward people differently for performing similar work? 3. How will your individual motivation affect your career opportunities? 6 -40

Questions 6 -41