Understanding and Managing Organizational Behavior Chapter 6 The

Chapter Objectives § Appreciate why motivation is of central importance in organizations and the difference between intrinsic and extrinsic motivation § Understand what we can learn about motivation from need theories 6 -2 © 2005 Prentice Hall

Chapter Objectives § Describe why expectancy, valence, and instrumentality are of central importance for work motivation § Appreciate the importance of equity and the dangers of inequity § Understand why procedural justice is so important and how to promote it 6 -3 © 2005 Prentice Hall

Opening Case: Motivating Employees at SAS Institute § How can organizations continue to grow and have satisfied employees in the hard times as well as the good times? § SAS – the largest privately owned software company in the world § 9, 000 employees § 1 of the 100 Best Companies to Work for in America and 100 Best Companies for Working Mothers 6 -4 © 2005 Prentice Hall

What is Work Motivation? § Psychological forces within a person that determine – the direction of a person’s behavior in an organization, – a person’s level of effort, and – a person’s level of persistence in the face of obstacles § Table 6. 1 6 -5 © 2005 Prentice Hall

Motivation and Performance § Performance is an evaluation of the results of a person’s behavior § Motivation is only one factor among many that contributes to an employee’s job performance 6 -6 © 2005 Prentice Hall

Motivation § Intrinsic – Source of motivation is actually performing the behavior – Behavior performed for its own sake 6 -7 § Extrinsic – Source of motivation is acquisition of material or social rewards or to avoid punishment © 2005 Prentice Hall

Theories of Motivation § § 6 -8 Need Theory Expectancy Theory Equity Theory Procedural

Need Theory § What outcomes is an individual motivated to obtain from a job and an organization? § Employees have needs that they are motivated to satisfy in the workplace § Only unsatisfied needs motivate 6 -9 © 2005 Prentice Hall

Expectancy Theory_1 § Does the individual believe that his or her inputs will result in a given level of performance? § Employees will not be motivated to contribute their inputs to the organization unless they believe that their inputs will result in achieving a given level of performance, regardless of available outcomse 6 -10 © 2005 Prentice Hall

Expectancy Theory_2 § Does the individual believe that performance at this level will lead to obtaining desired outcomes? § Employees will be motivated to obtain given level of performance only if that level of performance leads to desired outcomes 6 -11 © 2005 Prentice Hall

Equity Theory § Are outcomes perceived as being at an appropriate level in comparison to inputs? § From past experience or observation, employees will have a sense of what level of inputs should result in a certain level of outcomes § Outcomes based upon inputs § Different employees’ outcome/input ratios equal 6 -12 © 2005 Prentice Hall

Procedural Justice Theory § Are the procedures used to assess inputs and performance and to distribute outcomes perceived as fair? § Employees will not be motivated to contribute inputs unless they perceive that fair procedures will be used to distribute outcomes 6 -13 © 2005 Prentice Hall

Need Theories § Maslow’s Hierarchy of Needs – 5 universal needs – Hierarchy of importance – Once satisfied, need no longer motivates 6 -14 § Alderfer’s ERG Theory – 3 universal needs – Hierarchy of importance – Flexible movement amongst levels © 2005 Prentice Hall

Expectancy Theory § Valence – How desirable is an outcome? § Instrumentality – What is the connection between job performance and an outcome? § Expectancy – What is the connection between effort and job performance? 6 -15 © 2005 Prentice Hall

Yes or No? § Will I be able to obtain outcomes I desire? § Do I need to perform at a high level to obtain these outcomes? § If I try hard, will I be able to perform at a high level? – Motivation occurs only when the answer is YES to all three questions! 6 -16 © 2005 Prentice Hall

Equity Theory § Inputs – Special skills – Training – Education – Work experience – Effort on the job – Time 6 -17 § Outcomes – Pay – Fringe benefits – Job satisfaction – Status – Opportunities for advancement – Job security © 2005 Prentice Hall

Equity Theory_2 § Inputs lead to outcomes § Objective level of outcomes does not determine work motivation § Outcome/input ratio compared to ratio of referent others leads to work motivation 6 -18 © 2005 Prentice Hall

Ways to Restore Equity § § § 6 -19 Change inputs or outcomes Change referent’ inputs or outcomes Change perceptions of inputs and outcomes Change the referent Leave the job Force referent to leave the job © 2005 Prentice Hall

Procedural Justice Theory § Perceived fairness of the procedures used to make decisions about the distribution of outcomes – Not the actual distribution of outcomes § Procedural decisions – How performance levels are evaluated – How grievances are handled – How outcomes are distributed 6 -20 © 2005 Prentice Hall

Procedural Justice Theory_2 § Higher motivation occurs when procedures used to make decisions are perceived as fair § Factors for determination of fairness – Interpersonal treatment of employees – Extent to which managers explain decisions to employees 6 -21 © 2005 Prentice Hall