Introduction to Organisational Behaviour and Application to Management
Introduction to Organisational Behaviour and Application to Management The Individual –Motivation
What is motivation? “The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organisational goal. ” Motivation, or, to put it another way – why people do what they do – is behind most of our actions. We all do things for a reason; however, that reason is not always clear. http: //www. thersa. org/events/video/animate/rsaanimate-drive
3 elements of motivation • Intensity – how hard a person tries • Direction – effort that is channeled toward, and consistent with, organisational goals • Persistence – how long a person can maintain effort
Rowing upstream or downstream?
Early Theories of Motivation • Maslow’s Hierarchy of Needs Theory • Mc. Gregor’s Theory X and Theory Y • Herzberg’s Two-Factor Theory • Mc. Clelland’s Theory of Needs
Maslow’s hierarchy of needs Maslow’s theory is that people are motivated by needs. Once people have what they need, their needs change and develop. In the next diagram, you can see that these start at the bottom with basic physiological needs such as food and water. They then progress and change until self-actualisation is achieved.
Maslow’s hierarchy of needs - diagram Selfactualisation Esteem Love Safety Physiological
What does it mean? Maslow’s hierarchy looks at a person’s whole life, not just their work life. However, work can fulfil some of a person’s needs to help them be more fulfilled and therefore motivated. The next diagram offers suggestions of how to interpret Maslow’s needs in a workplace context.
What does this mean? Maslow Fulfilment activities Workplace fulfilment activities Physiological Food, water, sleep, sex Money, working conditions, kitchen Safety, security, stability, protection Safe environment, job security, benefits Social Love, affection, belonging Friendly supervision, good relationship with colleagues, membership of groups Esteem Self-esteem, self-respect, prestige, status Job status, job title, positive feedback, recognition Selfactualisation Growth, advancement, creativity Challenging work, opportunities for autonomy, achievement, promotion
Criticisms of Maslow • People can be on multiple steps at the same time • People will move between different stages in both directions • Not based on research
Herzberg’s two factor theory Herzberg’s theory is in some ways similar to Maslow’s. He puts forward the suggestion that people have two sets of factors which contribute to their motivation: Extrinsic and Related to Dissatisfaction Hygiene Factors Motivators Company Policies Growth Salary Responsibility Work Conditions Achievement Intrinsic and Related to Satisfaction
Criticisms of Two-Factor Theory Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur. • Herzberg is limited by his methodology – Participants had self-serving bias • Reliability of raters questioned – Bias or errors of observation • No overall measure of satisfaction was used • Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity
Mc. Gregor’s Theory X and Theory Y • Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive). Theory X • Workers have little ambition • Dislike work • Avoid responsibility Theory Y • Workers are selfdirected • Enjoy work • Accept responsibility
Criticisms of Mc. Gregor • Managers used a set of assumptions based on their view • The assumptions molded their behavior toward employees • No empirical evidence to support this theory.
Mc. Clelland’s achievement motivation theory The final older theory we will look at on motivation is Mc. Clelland’s achievement motivation theory. He suggests that there are four main needs that everyone has: • • The Achievement motive (n-Ach) The Power motive (n-Pow) The Affiliate motive (n-Affil) The Avoidance motive (n-Avoid)
Mc. Clelland’s four needs He suggests that everyone has a combination of these needs but that one tends to dominate. He has identified personal characteristics for each dominant motive. Do they look familiar to you? • The Achievement motive (n-Ach) People with a high achievement need like to be successful and have positive feedback. • The Power motive (n-Pow) People with a high power need like to be in charge of people and/or organisations. • The Affiliate motive (n-Affil) People with a high affiliation need prefer to work with other people in teams and groups. • The Avoidance motive (n-Avoid) People with a high avoidance need will avoid situations which may provoke negative emotions in them. You can find more detail about the different motivations here: http: //www. newworldencyclopedia. org/entry/David_Mc. Clelland
Criticisms of Mc. Clelland • Focus in the research was mostly on n. Ach • Not very practical to use in organisations as a tool because of time taken to undertaken and expertise needed • Motivators are internal and difficult to identify and measure
Activity – individual reflection • What motivates you? • What makes you get out of bed in the morning? • What makes you attend lectures? • What makes you want to do well? Select a theory and analyse your own motivations.
Contemporary Theories of Motivation • • • Self-Determination Theory Goal-Setting Theory Management by Objectives (MBO) Self-Efficacy Theory Also known as Social Cognitive Theory or Social Learning Theory • Reinforcement Theory • Equity Theory • Expectancy Theory
Self-Determination Theory People prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation. • Major Implications for Work Rewards • Intrinsic and extrinsic rewards are not independent • Extrinsic rewards may decrease intrinsic rewards • Goal setting is more effective in improving motivation • Verbal rewards increase intrinsic motivation; tangible rewards reduce it
Locke’s Goal-Setting Theory That specific and difficult goals, with self-generated feedback, lead to higher performance Difficult Goals: • Focus and direct attention • Energize the person to work harder • Difficulty increases persistence • Force people to be more effective and efficient Relationship between goals and performance depends on: • Goal commitment (the more public the better!) • Task characteristics (simple, well-learned) • Culture (best match is in North America)
Implementation: Management by Objectives MBO is a systematic way to utilize goal-setting. Goals must be: • Tangible • Verifiable • Measurable Corporate goals are broken down into smaller, more specific goals at each level of organisation. Four common ingredients to MBO programs: • Goal specificity • Participative decision making • Explicit time period • Performance feedback
Bandura’s Self-Efficacy Theory Increased Confidence An individual’s belief that he or she is capable of performing a task. Higher efficacy is related to: • Greater confidence • Greater persistence in the face of difficulties • Better response to negative feedback (work harder) • Self-efficacy complements Goal-Setting Theory Given Hard Goal Higher Performance Higher Self -Set Goal
Increasing Self-Efficacy (1 -4) Enactive mastery • Most important source of efficacy • Gaining relevant experience with task or job • “Practice makes perfect” Vicarious modeling • Increasing confidence by watching others perform the task • Most effective when observer sees the model to be similar to him- or herself
Increasing Self-Efficacy Verbal persuasion • Motivation through verbal conviction • Pygmalion and Galatea effects - self-fulfilling prophecies Arousal • Getting “psyched up” – emotionally aroused – to complete task • Can hurt performance if emotion is not a component of the task
Activity - group Sally is a new student from another University. You are trying to help her increase her self-efficacy so she can do well in her studies. • How would you do this? • What activities would you do with Sally?
Adams’ Equity Theory • Employees compare their ratios of outcomes-toinputs of relevant others. – When ratios are equal: state of equity exists – there is no tension as the situation is considered fair – When ratios are unequal: tension exists due to unfairness – Underrewarded states cause anger – Overrewarded states cause guilt • Tension motivates people to act to bring their situation into equity
Equity Theory’s “Relevant Others” Can be four different situations: Self-Inside • The person’s experience in a different job in the same organisation Self-Outside • The person’s experience in a different job in a different organisation Other-Inside • Another individual or group within the organisation Other-Outside • Another individual or group outside of the organisation
Reactions to Inequity Employee behaviors to create equity: • • • Change inputs (slack off) Change outcomes (increase output) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person (focus on another person to reference) • Leave the field (quit the job)
Reactions to Equity Propositions relating to inequitable pay: Paid by time: • Overrewarded employees produce more • Underrewarded employees produce less with low quality Paid by quality: • Overrewarded employees give higher quality • Underrewarded employees make more of low quality
Vroom’s 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 the outcome to the individual. • ie, people will do more if they believe there is a good reward
Vroom’s Expectancy Theory Expectancy of performance success Instrumentality of success in getting reward Valuation of the reward in employee’s eyes
Global Implications Motivation theories are often culture-bound: Maslow’s Hierarchy of Needs Theory • Order of needs is not universal Mc. Clelland’s Three Needs Theory • n. Ach presupposes a willingness to accept risk and performance concerns – not universal traits Adams’ Equity Theory • A desire for equity is not universal • “Each according to his need” – socialist/former communists • Desire for interesting work seems to be universal. There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal
Reading • Read the Chapter on Motivation Concepts (Chapter 7 in my book) • Watch the RSA video “Drive”
Introduction to Organisational Behaviour and Application to Management The Individual –Motivation Application
Application of theory There a lot of theories around motivation, but how can we use them in the workplace or in our wider lives? In order to apply theories, we need to know about the situations they will be applied in. In this case, the workplace and job roles.
The Job Characteristics Model • Five Core Job Dimensions – Skill Variety: degree to which the job incorporates a number of different skills and talents – Task Identity: degree to which the job requires the completion of a whole and identifiable piece of work – Task Significance: how the job impacts the lives of others – Autonomy: identifies how much freedom and independence the worker has over the job – Feedback: how much the job generates direct and clear information about the worker’s performance 8 -37
How Can Jobs be Redesigned? Job Rotation • The shifting of an employee from one task to another with similar skill requirements. Job Enrichment • The expansion of a job by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.
Strengths of Job Rotation Helps managers in scheduling Reduces boredom Increased skills Increases understanding of work contribution
Job Enrichment – Possible Actions Combine Tasks Form Natural Work Units Establish Client Relations Expand Jobs Vertically Open Feedback Channels
Alternative Work Arrangements • Flextime – Flextime allows employees to choose the hours they work within a defined period of time. • Job Sharing – Job Sharing allows two or more individuals to split a traditional 40 -hour-a-week job. • Telecommuting – Telecommuting allows workers to work from home at least 2 days a week on a computer linked to the employer’s office. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8 -41
Social and Physical Context of Work • Social Context – Some social characteristics that improve job performance include: • Interdependence • Social support • Interactions with other people outside of work • Physical Context – The work context will also affect employee satisfaction • Work that is hot, loud, and dangerous is less satisfying • Work that is controlled, relatively quiet, and safe will be more satisfying
Employee Involvement • Definition: A participative process that uses employees’ input to increase their commitment to the organisation’s success. Examples of Employee Involvement Programs • Participative Management • Representative Participation
Using Rewards to Motivate Employees • Although pay is not the primary factor driving job satisfaction, it is a motivator. – Establish a pay structure – Variable-pay programs There are different ways in which this can be done.
Establishing a Pay Structure Internal Pay Equity External Pay Equity
How to Pay • Variable-Pay Programs • Piece-Rate Pay • Merit-Based Pay • Bonuses • Skill-Based Pay • Profit-Sharing Plans • Gainsharing • Employee Stock Ownership Plans
Types of Variable-Pay Programs • Piece-Rate Pay – Pays a fixed sum of money for each unit of production completed. For example: Ballpark workers selling peanuts and soda get $1 for each bag of peanuts and soda sold. • Merit-Based Pay – Pays for individual performance based on performance appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay. • Bonuses – Pay a lump sum at the end of a designated period of time based on individual and/or organisational performance.
Types of Variable-Pay Programs • Skill-Based Pay – Pays based on the number of skills employees have or the number of jobs they can do. • Profit-Sharing Plans – Pays out a portion of the organisation’s profitability. It is an organisation-wide program and is based on a predetermined formula. • Gainsharing – Pays for improvements in group productivity from one period to another. It is a group incentive plan. • Employee Stock Ownership Plans (ESOP) – Provides each employee with the opportunity to acquire stock as part of their benefit package.
Flexible Benefits • Flexible benefits give individual rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situations. • These can range from financial to nonfinancial.
Employee Recognition Programs • Employee rewards need to be intrinsic and extrinsic. Employee recognition programs are a good method of intrinsic rewards. – The rewards can range from a simple thank-you to more widely publicized formal programs. – Advantages of recognition programs are that they are inexpensive and effective. – Some critics say they can be politically motivated and if they are perceived to be applied unfairly, they can cause more harm than good.
Other motivational techniques Some techniques that companies use to assist in boosting extrinsic and intrinsic motivation are: • • financial rewards holiday time use of a kitchen or cafeteria staff discounts free or discounted training office parties non-financial prizes flexi-time • working from home opportunities • well-being, occupational therapy or healthcare access • use of people management skills • personal development reviews
Business Examples • http: //www. nationwide-jobs. co. uk/workingfor-us/how-we-reward-you. aspx • http: //corporate. marksandspencer. com/ho wwedobusiness/our_policies/our_people • http: //www. kpmgcareers. co. uk/Workingat. K PMG/default. aspx? pg=5742
Global Implications • Job Characteristics and Job Enrichment – Studies do not yield consistent results about applicability to other cultures • Telecommuting – Most common in the United States • Variable Pay – Most believe variable pay systems work best in individualistic cultures such as the United States. – Fairness is an important factor • Flexible Benefits – Popular in all cultures • Employee Involvement – Differ among countries
Reading • Read the Chapter “Motivation: From Concepts to Applications” (Chapter 8 in my book) • Look at the Times Businesses link I gave you on Monday to see how organisations structure their reward systems • Have a look at some organisations you might want to work for and see how they reward employees.
Activity - group • Imagine you were in charge of motivating students to attend lectures at the International Business School. You have a budget of 1000 RMB per year. • What would you do? • How would you do it? • Think about the different motivations of students, the facilities available. If you are successful in increasing attendance by 25%, you will receive the money next year. • Organise yourselves into suitable groups per task. • You may use the computer or the blackboard
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