SIXTH EDITION CHAPTER 6 Process motivation theories ORGANISATIONAL

SIXTH EDITION

CHAPTER 6 Process motivation theories

ORGANISATIONAL BEHAVIOUR Learning Outcomes Discuss the role of perceived inequity in employee motivation Explain Vroom’s expectancy theory of motivation, and Porter and Lawler’s extension of expectancy theory Explain how goal setting motivates people, and identify five practical lessons to be learned from goal-setting research Discuss how a recipient’s characteristics, perception and cognitive evaluation affect how he or she processes feedback Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 3

ORGANISATIONAL BEHAVIOUR Learning Outcomes List at least three practical lessons from feedback research List different types of organisational reward Describe practical recommendations to implement an organisational reward system Specify issues that should be addressed before implementing a motivational programme Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 4

ORGANISATIONAL BEHAVIOUR The self-fulling prophecy Pygmalion Galatea effect Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 5

ORGANISATIONAL BEHAVIOUR Expectancy theory of motivation • Why do people behave the way they do? EQUITY EXPECTANCY THEORY THE GOALSETTING MODEL THEORY • How do organisations get their people to perform as desired? FEEDBACK Copyright © 2018 Mc. Graw-Hill Education REWARDS Chapter 6 - 6

ORGANISATIONAL BEHAVIOUR Vroom’s expectancy theory Figure 6. 2 Vroom’s Expectancy Model Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 7

ORGANISATIONAL BEHAVIOUR Vroom’s expectancy theory • The following factors influence an employee’s expectancy perceptions: o Self-esteem o Self-efficacy o Previous success at the task o Help received from a supervisor and subordinates o Information necessary to complete the task o Good materials and equipment to work with Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 8

ORGANISATIONAL BEHAVIOUR Vroom’s expectancy theory INSTRUMENTALITY • A performance → outcome perception VALENCE • The positive or negative value people place on outcomes • Valence mirrors our personal preferences PORTER AND LAWLER Copyright © 2018 Mc. Graw-Hill Education • A more complex version of the expectancy model • Distinguishes between intrinsic motivation and extrinsic motivation Chapter 6 - 9

ORGANISATIONAL BEHAVIOUR Application of expectancy theory • What is equity theory? • Motivation is a function of fairness in social exchanges. • Fair treatment does not mean treating everyone the same. • The concept of instrumentality is applied very clearly in the concepts of performance-related pay (PRP), or pay-forperformance Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 10

ORGANISATIONAL BEHAVIOUR Equity theory of motivation • Key components: inputs and outcomes. • Comparison of inputs and outcomes with those of other colleagues. • Focuses on what people are motivated to do when they feel treated inequitably. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 11

ORGANISATIONAL BEHAVIOUR Equity theory of motivation INPUTS OUTCOMES Time Pay/bonusses Education/training Fringe benefits Experience Challenging assignments Skills Job security Creativity Career advancement/promotions Seniority Status symbols Loyalty to organisation Pleasant/safe working environment Age Opportunity for personal growth/development Personality traits Supportive supervision Effort expended Recognition Personal appearance Participation in important decisions Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 12

ORGANISATIONAL BEHAVIOUR Negative and positive inequity • An equitable situation (=) • Negative inequity (-) • Positive inequity (+) o Negative inequity is less tolerable than positive inequity o Inequity can be reduced Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 13

ORGANISATIONAL BEHAVIOUR Dynamics of perceived inequity Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 14

ORGANISATIONAL BEHAVIOUR Dynamics of perceived inequity Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 15

ORGANISATIONAL BEHAVIOUR Dynamics of perceived inequity METHODS EXAMPLES Increase inputs Work harder; attend school or training Decrease inputs Don’t work as hard; Take longer breaks Increase outcomes Ask for a raise; Ask for a new title; Seek outside intervention Decrease outcomes Ask for less pay Leaving Absenteeism and turnover Psychological distortion of inputs and outcomes ‘Certain inputs are not important’; ‘Boring and monotonous job’ Psychological distortion of inputs or outcomes of comparison other ‘Other has more experience or works harder’ Change comparison other Pick an new comparison person; Compare to previous job Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 16

ORGANISATIONAL BEHAVIOUR Applying equity in organisations • Employees’ beliefs and attitudes affect job performance. • Managers benefit by allowing employees to participate in making decisions about important work outcomes. • Perceptions of fairness are increased by giving employees the opportunity to appeal decisions that affect them. • Employees are more likely to accept change when they believe the organisation is treating them fairly and equitably. • Managers can promote cooperation and teamwork among work group members by treating them equitably. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 17

ORGANISATIONAL BEHAVIOUR The mechanisms of goal setting Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 18

ORGANISATIONAL BEHAVIOUR Evidence about the goal-setting model • Goal difficulty o. Leads to higher performance. o. Easy goals produce low effort because the goal is too easy to achieve. o. Impossible goals ultimately lead to lower performance because people begin to experience failure. Figure 6. 5 Relationship Between Goal Difficulty and Performance Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 19

ORGANISATIONAL BEHAVIOUR Evidence about the goal-setting model • Goal specificity o Goals may or may not lead to higher performance. o Goal specificity pertains to the how quantifiable the goal is. o Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. • Goal commitment o An individual is expected to persist in attempts to accomplish a goal when he or she is committed. o People with a higher need for achievement have a higher goal commitment and outperform people with a low need for achievement. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 20

ORGANISATIONAL BEHAVIOUR Application of the goal-setting model • Goals should be ‘SMART’. • Goal Conflict - refers to the degree to which people feel that multiple goals are incompatible. • Goal commitment is important because employees are motivated to pursue goals they view as reasonable, obtainable and fair. • Support and feedback in the form of resources and information required to get the job done must be provided. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 21

ORGANISATIONAL BEHAVIOUR A cognitive-processing model of feedback Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 22

ORGANISATIONAL BEHAVIOUR Evidence about motivating through feedback Table 6. 5 Copyright © 2018 Mc. Graw-Hill Education Trouble Signs for Organisational Feedback Systems Chapter 6 - 23

ORGANISATIONAL BEHAVIOUR Application of feedback thinking • Relate feedback to existing performance goals and clear expectations. • Give specific feedback tied to observable behaviour or measurable results. • Channel feedback toward key result areas. • Give feedback as soon as possible. • Give positive feedback for improvement, not just final results. • Focus feedback on performance, not personalities. • Base feedback on accurate and credible information. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 24

ORGANISATIONAL BEHAVIOUR Upward and 360 -degree feedback • Traditional performance appraisal systems have created widespread dissatisfaction. • Team-based organisation structures are replacing traditional hierarchies. This trend requires professionals to have good interpersonal skills that are best evaluated by team members - NOT superiors. • Systems using ‘multiple-raters’ are said to make for more valid feedback than singlesource rating. • Network technology now facilitates multiple-rater systems. • Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment. • Co-workers and subordinates are said to know more about a professional’s strengths and limitations than the boss. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 25

ORGANISATIONAL BEHAVIOUR Upward and 360 -degree feedback • Upward feedback o Generally anonymous o Example: Anonymous lecturer-evaluation surveys • 360 -degree feedback o ‘Full circle feedback’ o Is it really a 270 -degree feedback? (Exclusion of customers) Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 26

ORGANISATIONAL BEHAVIOUR Application of feedback procedures Table 6. 6 Copyright © 2018 Mc. Graw-Hill Education Organisational Conditions for 360 -Degree Feedback Chapter 6 - 27

ORGANISATIONAL BEHAVIOUR Organisational reward systems Figure 6. 7 A General Model of Organisational Reward Systems Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 28

ORGANISATIONAL BEHAVIOUR Types of rewards • Extrinsic rewards: financial, material and social rewards from the environment • Intrinsic rewards: self-granted, psychic rewards • Extrinsic motivation: being motivated by extrinsic rewards, like monetary incentives • Intrinsic motivation: being motivated by intrinsic rewards, like selfdetermination or need of competence Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 29

ORGANISATIONAL BEHAVIOUR Organisational reward norms • Profit maximisation: maximising net gain • Equity: allocation in proportion to contributions o Reward equity norm • Equality: rewarding all parties equally • Need: distributing rewards according to needs Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 30

ORGANISATIONAL BEHAVIOUR Reward distribution criteria • Performance in terms of results • Performance in terms of actions and behaviours • Non-performance considerations Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 31

ORGANISATIONAL BEHAVIOUR Rewards distributtion criteria • Why do rewards fail to motivate? 1. Too much emphasis on monetary rewards. 2. Rewards lack an ‘appreciation effect’. 3. Extensive benefits become entitlements. 4. Counter-productive behaviour is rewarded. 5. Too long a delay between performance and rewards. 6. Too many one-size-fits-all rewards. 7. Use of one-shot rewards with a short-lived motivational impact. 8. Continued use of demotivating practices such as lay-offs, across-the-board pay rises and cuts and excessive executive compensation. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 32

ORGANISATIONAL BEHAVIOUR Evidence about rewards • Interesting work and recognition more valued than money • Extrinsic rewards lose their motivation over time • Mixed results as to the performance-enhancing effect of • Monetary rewards must be large enough to motivate • Pay goal achievement: o Performance goals are under the employees’ control o Goals are quantitative and measurable o Frequent, relatively large payments are made for performance achievement Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 33

ORGANISATIONAL BEHAVIOUR Application of reward mechanisms Mission and Goals • A well-articulated and clear mission and operating vision that is understood and accepted. • Organisational goals that are credible, measurable and verifiable. • Department, work unit and team goals that have a clear line of sight (connection) to the success of the organisation. • Individual goals or work measures that are intuitively related to good performance. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 34

ORGANISATIONAL BEHAVIOUR Application of reward mechanisms Communication and Feedback A pay philosophy that is clearly specified and communicated to employees. Regular communication that keeps employees informed of performance results. Regular feedback to employees to guide and encourage their growth and career progression. Regular communication to recognise the importance of employee efforts and to make clear how their efforts contribute to the organisation. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 35

ORGANISATIONAL BEHAVIOUR Application of reward mechanisms Organisational Culture • An organisational climate that encourages people to look for new and better ways to accomplish goals. • An organisational climate that stimulates people to pursue challenging goals. • An organisational climate that encourages people to tackle new problems and new tasks to accomplish organisational goals. • An organisational climate that emphasises the importance of the individual, his/her needs and aspirations. • Training and development that is seen as an investment in people. • An organisational climate where people have the opportunity to participate in the development of performance measures. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 36

ORGANISATIONAL BEHAVIOUR Application of reward mechanisms Reward System • A reward system that reinforces the importance of good performance at all levels, including both monetary and non-monetary rewards. • A reward system that is implemented in a fair and objective way, including an appeal process for people who believe they have been treated unjustly. • A reward system that encourages people to work together and cooperate, and that also creates opportunities to celebrate people’s accomplishments. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 37

ORGANISATIONAL BEHAVIOUR Putting motivational theories to work • There is no single clear-cut solution to deal effectively with employee motivation. • People are not motivated by the same aspects. • People vary in their intensity and persistence of their motivated behaviour. • In keeping with expectancy theory, organisations should make rewards contingent on performance. • Feedback also needs to be linked to performance. Copyright © 2018 Mc. Graw-Hill Education Chapter 6 - 38