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  • 1. Motivation and Performance Management
  • 2. Focus on motivation before exam
  • 3. Goals
    • Many different ways to motivate employees.
    • People have preferences for different types of motivation.
    • Link Motivation to leadership style
    • Link Motivation to organizational culture.
  • 4. Performance
    • Performance = motivation X ability X situational factors (leadership support, resources, peer support, etc).
    • Attributions.
    • Ability is relatively fixed. Ability linked to wages.
    • Supervisors can work largely on motivation or situational factors. In this class focus on leadership support and peer support (teams). Other classes resource (ex. MIS).
  • 5. Focus on Motivation for now.
  • 6. Motivation is important in management
    • Basic job motivation. Most firms have average workers. Exceptional firms motivate average workers. (note some firms have high pay and select talented employees).
    • Change efforts
    • Supervision is easier if people are trying.
  • 7. Think of a time when you were highly motivated
    • Describe the circumstances.
  • 8. Intrinsic vs. Extrinsic Motivation
    • Intrinsic Motivation being driven by positive feelings associated with doing well on a task or job
    • Extrinsic Motivation motivation caused by the desire to attain specific outcomes
    8-18 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  • 9. A Model of Intrinsic Motivation Opportunity Rewards Accomplishment Rewards From Task Activities From Task Purpose 8-19 Figure 8-6 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Sense of Progress Sense of Meaningfulness Sense of Competence Sense of Choice
  • 10. Models of intrinsic motivation
    • Video
    • How do they create meaning, choice, competence, progress?
  • 11. . The Job Characteristics Model 8-15 Figure 8-5 McGraw-Hill
    • High work
    • effectiveness
    • High growth
    • satisfaction
    • High general job satisfaction
    • High intrinsic
    • work motivation
    • Knowledge of the
    • actual results of
    • the work activities
    • Experienced
    • responsibility for outcomes of the work
    • Experienced
    • meaningfulness of work
    Critical psychological state
    • Feedback from
    • job
    • Autonomy
    • Skill variety
    • Task identity
    • Task significance
    Core job characteristics
    • Moderators
    • Knowledge and skill
    • Growth need strength
    • Context satisfaction
  • 12. Advantages of intrinsic Motivation
    • Low cost
    • Persistence is high
    • Unleash employees for change.
    • Builds relationships internally and externally
  • 13. Disadvantages
    • Control freaks nightmare
    • Strategic change is difficult.
  • 14. Intrinsic Motivation
    • Often ignored in today’s work environment.
    • Its what many of the best firms do! Very few average or below average firms do not.
    • Not leadership per se but more organizational culture.
    • Leadership style needs to be supportive to create the culture.
  • 15. Extrinsic Motivation
    • Many different approaches.
    • Debate highlighted these issues.
  • 16. First, What can be used as rewards
  • 17. Punishments.
  • 18. Equity approaches
    • Discussed earlier.
  • 19. Negative and Positive Inequity A. An Equitable Situation Self Other 9-5 Figure 9-1 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. $2 1 hour = $2 per hour $4 2 hours = $2 per hour
  • 20. Factors Considered When Making Equity Comparisons Outcomes Inputs 9-2 Table 9-1 McGraw-Hill . Challenging assignments Experience Fringe benefits Education/training Pay/bonuses Time Time off with pay/Job security Recognition Past Performance Ability and Skill Effort
  • 21. Outcomes Inputs Factors Considered When Making Equity Comparisons 9-3 Table 9-1 cont. McGraw-Hill Pleasant/safe working environment Loyalty to organization Status symbols Seniority Career advancement/promotions Creativity Opportunity for personal growth/development Age
  • 22. Since perceptual many ways to manage Examples Methods 9-9 Table 9-2 l Ask for a raise; ask for a new title;seek outside intervention
    • Person can attempt to increase his or her outcomes
    Don’t work as hard; take longer breaks
    • Person can attempt to increase his
    • or her inputs
    Work harder; attend school or a specialized program
    • Person can increase his or her inputs
    Ask for less pay
    • Person can decrease his or her outcomes
  • 23. Management
    • Perceived Justice is important to employee.
    • Some are more equity sensitive than others.
    • Depends.
    • Some questions. Debate if pay should be made public. What would equity theory suggest?
  • 24.
    • Susan is a single parent. She needs to come in late to drop her kids at school. How do you manage this? How could equity theory guide your choices?
    • Can you be best friends or have intimate relations with your one subordinate?
    • Here is a tough one. Which leadership style is most equity sensitive? Least equity sensitive?
  • 25. Expectancy theory is closely linked to reward theory.
    • Assumes People will do what is most rewarding for them.
    • So as students, choice to work and earn more money or study.
    • Work for a course where all get As or course where full range distribution.
    • Work in a course where can get an A or work in a course where lucky to get B but unlikely to fail.
  • 26. Employees make the same choices.
    • What gets you ahead on your job. Playing golf with your boss or doing a good job.
    • Your job is MIS systems. You are the nerd of all nerds. Love programming and hate people. Job requires meeting clients needs. Spend more time programming or talking to clients?
  • 27.
    • Effort Performance Outcomes
  • 28. Vroom’s Expectancy Theory
    • Expectancy belief that effort leads to a specific level of performance
    • Instrumentality a performance outcome perception
    • Valence the value of a reward or outcome
    9-14 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  • 29. Factors that Influence and Employee’s Expectancy Perceptions
    • Self-esteem
    • Self-efficacy
    • Previous success at the task
    • Help received from a supervisor and subordinates
    • Information necessary to complete the task
    • Good materials and equipment to do work with
  • 30. Factors that influence Instrumentalities
    • Written statements/policies
    • Historical evidence.
    • Past perceptions from experiences of self and others
    • Role ambiguity
  • 31. Valences
    • Individual differences.
  • 32. Lets go back to Mary Martin
    • Using expectancy theory, what would you do using expectancy theory.
  • 33. Managerial implications
    • Make reward systems explicit and clear.
    • Make job standards explicit and clear.
    • Prepare people to succeed at job standards.
    • Links to which leadership style.
    • Expectancies are supervisory based. Instrumentalities can be supervisor or organizational culture.
  • 34. Prerequisites to Linking Performance and Rewards
    • Managers should:
    • Develop and communicate performance standards
    • Give valid and accurate performance ratings
    • Determine the relative mix of individual vs. team contribution to performance and reward accordingly
    • Use the performance ratings to differentially allocate rewards among employees
    9-20 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  • 35. video
  • 36. Problems
    • Very general and difficult to implement in reality.
  • 37. MBO/Goal Setting
    • My favorite extrinsic mode of motivation.
    • Effective managers work with subordinates to set specific, objective performance standards. All jobs.
    • Retails sales easiest.
    • Police officer
    • Football athletic trainer.
  • 38. Locke’s Model of Goal Setting Encouraging the development of goal- attainment strategies or action plans Increasing one’s persistence Regulating one’s effort Directing one’s attention Goals motivate the individual by... Task performance 9-22 Figure 9-3
  • 39. Insights from Goal Setting Research
    • Difficult goals lead to higher performance
    • Specific, difficult goals lead to higher performance for simple rather than complex tasks
    • Feedback enhances the effect of specific, difficult goals
    • Participative goals, assigned goals, and self-set goals are equally effective
    • Goal commitment and monetary incentives affect goal-setting outcomes
    9-24 Table 9-4 .
  • 40. MBO
    • Starts at the top. Officers set strategic goals. Target. 5% revenue Growth through repeat customers -- quality and choice at a low price.
    • Store manager goals
    • Dept manager goals
    • Floor attendants goals
    • Check out goals
  • 41. Goes beyond goals
    • Goals are a tool to both motivate and identify performance problems (performance management).
    • Goals setting done jointly long time frame.
    • Monitor (indirectly) if goals are being attained.
    • Provide feedback daily, weekly, monthly
  • 42.
    • Supervisor monitors.
    • Gives recognition if goals on target
    • Problems solves if goals are not on target. Done in supportive manner. What does supervisor need to do to help? What does subordinate need to do to help?
    • Bonuses given if goals are met.
  • 43. Research supports
    • But not widely used.
  • 44. Managerial implications
    • Steps to adoption are specific and clear.
    • Monitoring and feedback.
    • Leadership style.
    • Organizational culture.
  • 45. Dark side
    • Game playing/Ethical lapses with outcome measurements.
    • Poor goal assessment.
  • 46. Motivation
    • Different approaches
    • Choice based on beliefs about employees, leadership style and organizational culture.
    • All can be proven to be effective at achieving different things.