CHAPTER 7 MOTIVATION Learning Objectives After studying this

CHAPTER 7 MOTIVATION

Learning Objectives • After studying this chapter, you should be able to explain: – Content (need) theories of motivation: • • Maslow’s hierarchy of needs Alderfer’s ERG Herzberg’s extrinsic and intrinsic motivators Mc. Clelland’s theory of learned needs – Process theories of motivation: • Expectancy • Equity • Goal setting

Motivation • The most difficult tasks in international management concern people • One of the key areas firm must focus on as they internationalize is motivating a wide range of people in different settings to do their work well • This difficulty comes from the fact that what motivates people in one region of the world may be much different in another region • Culture is important in discussing motivation in international settings because employees in various cultural settings have different values that affect their needs and they might be motivated

Motivation Composition • Motivation is an internal state or condition that activates a person’s behavior and gives it direction toward accomplishing a task. • Motivation energizes and directs goal-oriented behavior as well as the intensity and direction of behavior. • It is based on emotion, particularly on the search for positive emotional experiences and the avoidance of negative ones • Motivation is important as it determines an individual’s effort toward performing a task.

Motivation Composition • A person’s level of effort is affected by the organization’s capacity to satisfy that individual’s needs and life interests, plus the person’s ability to achieve the desired outcome. • Motivation can be represented by: – Motivation = Ability * Values * Life Interests and Goals. • An individual’s cultural values will affect what motivates them.

Content (Need) Theories of Motivation • Abraham Maslow’s Needs theory • Needs are things or conditions people have that can trigger behaviors to satisfy those needs • Unfulfilled needs create a tension that makes people want to find ways to satisfy those needs – In an organizational setting, • Physiological needs could be represented by a need for a minimum level of basic salary. • Safety needs correspond to employee needs for good working conditions and job security. • Belongingness need could include a job that provides some opportunities for teamwork and social activities.

Content (Need) Theories of Motivation • Abraham Maslow’s Needs theory (cont. ) • Self-esteem can be attained both through personal achievement and via recognition from others. • Self-actualization is a sense that a key goal has been accomplished. • A person’s behavior is motivated primarily by the lowest unsatisfied need at that moment in time. • The progression up the needs hierarchy is known as the satisfaction-progression process • The theory predicts that even if a person is unable to satisfy a higher need, he or she will be motivated by the possibility of fulfilling it until it is satisfied – The model is criticized for failing to explain the specifics of employee needs and neglecting job interests.

Content (Need) Theories of Motivation • Alderfer’s ERG theory – Developed by Clayton Aldelfer to overcome problems associated to Maslow’s hierarchy of needs theory. – Groups human needs into three categories existence, relatedness, and growth. – Existence needs include a person’s physiological and physically related safety needs; eg. Need for food, shelter and safe working conditions. – Relatedness needs include a person’s need to interact with other people, receive public recognition, and feel secure around people.

Content (Need) Theories of Motivation • Alderfer’s ERG theory (cont. ): – Growth needs consist of a person’s selfesteem as well as the concept of selfactualization. – The theory states that an employee’s behavior is motivated simultaneously by more than one need level; which is different from Maslow. – It includes a frustration–regression process whereby those who are unable to satisfy a higher need become frustrated and regress back to the next lower need level.

Content (Need) Theories of Motivation • Motivation–Hygiene theory – Management scholar Frederick Herzberg examined extrinsic (external) as well as intrinsic (internal, task related) motivators. – Motivators are positive influencers that are intrinsic to a job and that can push employees to higher levels of performance. – Intrinsic motivators include achievement, recognition for achievement, the work itself, responsibility, and growth or advancement.

Content (Need) Theories of Motivation • Motivation–Hygiene theory (cont. ): – Extrinsic factors include company policy and administration, supervision, interpersonal relationships, working conditions, salary, status, and security. – Herzberg argued that intrinsic factors tend to be motivators. The extrinsic, hygiene factors can serve to de-motivate, but not motivate. – This theory breaks the concept of motivation into factors that motivate to take action, and factors that create dissatisfaction and might cause people to avoid certain thing, but will not motivate them – Thus, motivation is not just putting things in place to encourage behavior, it also is concerned with removing things that could discourage desired behaviors – Herzberg states that it is necessary to have both motivators and hygiene factors (also called ‘‘dissatisfiers’’) to be successful.

Content (Need) Theories of Motivation • Learned-Needs theory – Harvard psychologist David Mc. Clelland identified three needs that shape motivation: need for achievement (n. Ach), need for affiliation (n. Aff), and the need for power (n. Pow). – People with high n. Ach want to accomplish reasonably challenging goals through their own efforts – People with a high n. Ach accomplish challenging goals through their own efforts, and prefer positive feedback and recognition for their successes. – Need for achievement explains why some societies are able to produce more than others.

Content (Need) Theories of Motivation • Learned-Needs theory (cont. ): – Need for affiliation (n. Aff) refers to the desire for approval from others, as a result, conforming to their wishes and expectations and avoiding conflict. – Employees with high n. Aff prefer working with others, tend to have better attendance records, and are better at mediating conflicts.

Content (Need) Theories of Motivation • Learned-Needs theory (cont. ): – High n. Aff employees are effective in coordinating roles and in social interaction. – High n. Aff employees tend to be less effective at allocating scarce resources and making decisions that require conflict or confrontation. – Need for power (n. Pow) refers to the desire to exercise authority over people and resources.

Content (Need) Theories of Motivation • Learned-Needs theory (cont. ): – Power is a symbol of status and a tool to fulfill personal needs, rather than a delicate instrument to serve stakeholders. – People have a high need for personalized power or socialized power. – People with a high n. Pow are motivated by the opportunity to be in a position of authority.

Process Theories of Motivation • Process theories explain how employee behavior is initiated, redirected, and halted. • Among the most widely recognized are expectancy theory, equity theory, and expectancy theory

Process Theories of Motivation • Expectancy theory – Postulates that motivation is largely influenced by a multiplicative combination of a person’s belief that (a) effort will lead to performance, (b) performance will lead to specific outcomes, and ( c) the outcomes will be of value to the individual – In addition, theory predicts that high performance followed by high rewards will lead to high satisfaction. – An individual’s effort level depends on three factors: effort-toperformance (E→P) expectancy, performance-to-outcome (P→O) expectancy, and outcome valences (V). – If any component weakens, motivation weakens – The effort-to-performance (E→P) expectancy is an individual’s perception that his or her effort will result in a particular level of performance.

Process Theories of Motivation • Expectancy theory (cont. ): – Expectancy is defined as a probability, and therefore ranges from 0. 0 to 1. 0. – E→P expectancy can be improved by providing the necessary tools and competencies, counseling, coaching, and positive feedback.

Process Theories of Motivation • Expectancy theory (cont. ): – The P→O expectancy is the perceived probability that a specific behavior or performance level will lead to specific outcomes. – This probability is developed from previous experience or social learning derived from watching others. – They can be improved by measuring employee performance accurately and distributing more valued rewards to those with higher job performance.

Process Theories of Motivation • Expectancy theory (cont. ): – Valence refers to one’s anticipated satisfaction or dissatisfaction with an outcome. – The number may range from -100 to +100 to reflect the overall value placed on the outcome. – A maximum positive valence of +100 would be highly desired.

Process Theories of Motivation • Expectancy theory (cont. ): – The lowest valence of -100 would be something that a person would work hard to avoid, and a valence of 0 would mean no motivation at all. – Increasing outcome valences are affected by those things that are valued by employees.

Process Theories of Motivation • Equity theory – Focuses on how motivation is affected by people’s perception of how they are being treated – Explains how people develop perceptions of fairness in the distribution and exchange of resources. – The theory holds that if people perceive that they are being treated equitably, this perception will have a positive effect on their job performance and satisfaction, and there is no need to strife for equity. – Conversely, if they believe they are not being treated fairly, especially in relation to relevant others, they will be dissatisfied, and this belief will have a negative effect in their job performance, and they will strive to restore equity.

Process Theories of Motivation • Equity theory (cont. ): – This theory has been criticized for being too calculative and too material-achievement focused. – The four main elements of equity theory are outcome/input ratio, comparison other, equity evaluation, and consequences of inequity. – The outcome/input ratio is the value of the outcomes received divided by the value of inputs provided in an exchange relationship.

Process Theories of Motivation • Equity theory (cont. ): – Inputs include skills, effort, experience, amount of time worked, performance results, and other employee contributions to the organization. – Outcomes are things that employees receive from an organization in exchange for inputs, such as pay, promotions, and recognition. – Individuals compare situations with a ‘‘comparison other, ’’ who may be another person or group of people in the same job, another job, or another organization.

Process Theories of Motivation • Equity theory (cont. ): – An equity evaluation is formed after determining one’s own outcome/input ratio and comparing this with other’s ratio.

Process Theories of Motivation • Equity theory (cont. ): – If the outcome of the evaluation indicates that inequity exists, the employees will be motivated to take the following actions to reduce feelings of inequality: • • • Change inputs. Change outcomes. Change perceptions. Get away from the inequitable situation. Change the referent.

Process Theories of Motivation • Equity theory (cont. ): – Workplace inequity extends beyond employee motivation to the organization’s ethical conduct. – It particularly relates to the rule of distributive justice. – Distributive justice asserts that inequality is acceptable if employees have fair access to resources and opportunities such that they recognize any inequality to be the result of their own effort and not because of favoritism by management.

Process Theories of Motivation • Equity theory (cont. ): – Applying the distributive justice rule is challenging because it is difficult to determine how far ‘‘the least well off’’ benefit is from those who receive higher rewards. – Individuals vary in their equity sensitivity, which is outcome/input preferences and reaction to various outcome/input ratios.

Process Theories of Motivation • Goal setting – Focuses on how individuals go about setting goals and responding to them and the overall impact of this process on motivation. – Goals are the immediate or ultimate objectives that employees are trying to accomplish from their work effort. – Goal setting is the process of motivating employees and clarifying their role perceptions by establishing performance objectives. – Goals must have a measurable outcome and a time or date to determine if that goal has been reached.

Process Theories of Motivation • Goal setting (cont. ): – Six conditions to maximize task effort and performance: specific goals, relevant goals, challenging goals, goal commitment, participation in goal formation (sometimes), and goal feedback. – Specific goals communicate more precise performance expectations, so employees can direct their effort more efficiently and reliably.

Process Theories of Motivation • Goal setting (cont. ): – Many companies apply goal setting through a formal process known as management by objectives (MBO). – Challenging goals fulfill a person’s selfactualization and other intrinsic needs associated with self-efficacy and achievement satisfaction. – Self-set goals have the effect of increasing employees’ acceptance of the goal.

Process Theories of Motivation • Goal setting (cont. ): – The optimal range of goal difficulty is one in which the employee perceives a goal to be difficult, but achievable, and believes that a strategy can be crafted to achieve that goal. – Goals must be relevant to an individual’s job and within control. – Employees also should be involved in the goal -setting process.

Process Theories of Motivation • Goal setting (cont. ): – Participation ensures that employees accept the goals and have the competencies and resources necessary to accomplish them. – Effective goal setting requires measurable feedback that matches the specific metrics of the goal. – Feedback lets employees know whether they have achieved the goal or are properly directing their efforts toward it.

Process Theories of Motivation • Limitations of goal setting – When goals are tied to monetary incentives, many employees may try to select easy goals or negotiate performance goals that are already near completion. – Goal setting cannot be applied to every performance dimension of every task.

Employee Interests • Life interests indicate whether an employee is likely to be interested in doing the job. • Timothy Butler and James Waldroop identified eight life interests, also called ‘‘job interests. ’’

Employee Interests • The eight life interests: – Application of technology – Quantitative analysis – Theory development and conceptual thinking – Creative production – Counseling and mentoring – Managing people and relationships – Enterprise control – Influence through language and ideas