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    Mgt4201#10 Mgt4201#10 Presentation Transcript

    • Principles of Management Managing Employee Motivation and Performance Lecture 10
    • The Nature of Motivation
      • Motivation
        • The set of forces that cause people to behave in certain ways.
        • The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.
      • The Importance of Motivation in the Workplace
        • Determinants of Individual Performance
          • Motivation—the desire to do the job.
          • Ability—the capability to do the job.
          • Work environment—the resources to do the job.
      16–
    • Figure 16.1: The Motivation Framework 16–
    • Content Perspectives on Motivation
      • Content Perspectives
        • Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?”
      • Content Perspectives of Motivation
        • Maslow’s Hierarchy of Needs
        • Aldefer’s ERG Theory
        • Herzberg’s Two-Factor Theory
        • McClelland’s Achievement, Power, and Affiliation Needs
      16–
    • Content Perspectives on Motivation (cont’d)
      • The Need Hierarchy Approach
        • Maslow’s Hierarchy of Needs
          • Physiological—basic survival and biological function.
          • Security—a safe physical and emotional environment.
          • Belongingness—love and affection.
          • Esteem—positive self-image/self-respect and recognition and respect from others.
          • Self-actualization—realizing one’s potential for personal growth and development.
        • Weakness of Maslow’s theory
          • Five levels of need are not always present.
          • Ordering or importance of needs is not always the same.
          • Cultural differences.
      16–
    • Figure 16.2: Maslow’s Hierarchy of Needs 16–
    • Content Perspectives on Motivation (cont’d)
      • The ERG Theory
        • Needs are grouped into three overlapping categories:
          • Existence needs—physiological and security needs.
          • Relatedness needs—belongingness and esteem by others.
          • Growth needs—self-esteem and self-actualization.
        • ERG theory assumes that:
          • Multiple needs can be operative at one time (there is no absolute hierarchy of needs).
          • If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).
      16–
    • Content Perspectives on Motivation (cont’d)
      • The Two-Factor Theory (Herzberg)
        • Satisfaction and dissatisfaction are influenced by two independent sets of factors.
        • Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums:
          • Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.
          • Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
      16–
    • Content Perspectives on Motivation (cont’d)
      • The Two-Factor Theory (cont’d)
        • Theory posits that motivation is a two-step process:
          • Ensuring that the hygiene factors are not deficient and not blocking motivation.
          • Giving employees the opportunity to experience motivational factors through job enrichment.
      16–
    • Figure 16.3: The Two-Factor Theory of Motivation 16–
    • Content Perspectives on Motivation (cont’d)
      • Individual Human Needs (McClelland)
        • The need for achievement
          • The desire to accomplish a goal or task more effectively than in the past.
        • The need for affiliation
          • The desire for human companionship and acceptance.
        • The need for power
          • The desire to be influential in a group and to be in control of one’s environment.
      • Implications of the Content Perspectives
        • Content (what causes motivation) -> Process (how motivation occurs)
      16–
    • Process Perspectives on Motivation
      • Process Perspectives
        • Approaches to motivation that focus on:
          • Why people choose certain behavioral options to satisfy their needs
          • How they evaluate their satisfaction after they have attained their goals.
      • Process Perspectives of Motivation
        • Expectancy Theory
        • Porter-Lawler Extension of Expectancy Theory
        • Equity Theory
        • Goal-Setting Theory
      16–
    • Process Perspectives on Motivation (cont’d)
      • Expectancy Theory
        • Motivation depends on how much we want something and how likely we are to get it.
        • Assumes that:
          • Behavior is determined by personal and environmental forces.
          • People make decisions about their behavior in organizations.
          • People have different types of needs, desires, and goals.
          • People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.
          • Motivation leads to effort that, when combined with ability and environmental factors, results in performance which leads to various outcomes that have value ( valence ) to employees.
      16–
    • Process Perspectives on Motivation (cont’d)
      • Elements of Expectancy Theory
        • Effort-to-Performance Expectancy
          • The employee’s perception of the probability that effort will lead to a high level of performance.
        • Performance-to-Outcome Expectancy
          • The employee’s perception of the probability that performance will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.
      16–
    • Process Perspectives on Motivation (cont’d)
      • Elements of Expectancy Theory (cont’d)
        • Valence
          • An index of how much an individual values a particular outcome.
          • It is the attractiveness of the outcome to the individual.
            • Attractive outcomes have positive valences and unattractive outcomes have negative valences.
            • Outcomes to which an individual is indifferent have zero valences.
        • For motivated behavior to occur:
          • Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.
          • The sum of the valences must be greater than zero.
      16–
    • Figure 16.4: The Expectancy Model of Motivation 16–
    • Process Perspectives on Motivation (cont’d)
      • The Porter-Lawler Extension of Expectancy Theory
        • Assumptions:
          • If performance results in equitable and fair rewards, people will be more satisfied.
          • High performance can lead to rewards and high satisfaction.
        • Types of rewards:
          • Extrinsic rewards are outcomes set and awarded by external parties (e.g., pay and promotions).
          • Intrinsic rewards are outcomes internal to the individual (e.g., self-esteem and feelings of accomplishment).
      16–
    • Figure 16.5: The Porter-Lawler Extension of Expectancy Theory 16–
    • Process Perspectives on Motivation (cont’d)
      • Equity Theory
        • People are motivated to seek social equity in the rewards they receive for performance.
          • Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others.
        • Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.
      16– outcomes (self) inputs (self) = outcomes (other) inputs (other)
    • Process Perspectives on Motivation (cont’d)
      • Equity Theory (cont’d)
        • Conditions of and reactions to equity comparisons:
          • Feeling equitably rewarded.
            • Maintain performance and accept comparison as fair estimate.
          • Feeling under-rewarded—try to reduce inequity.
            • Change inputs by trying harder or slacking off.
            • Change outcomes by demanding a raise.
            • Distort the ratios by altering perceptions of self or of others.
            • Leave situation by quitting the job.
            • Change comparisons by choosing another object person.
          • Feeling over-rewarded.
            • Increase or decrease inputs.
            • Distort ratios by rationalizing.
            • Help the object person gain more outcomes.
      16–
    • Process Perspectives on Motivation (cont’d)
      • Goal-Setting Theory
        • Assumptions
          • Behavior is a result of conscious goals and intentions.
          • Setting goals influence the behavior of people in organizations.
      • Characteristics of Goals
        • Goal difficulty
          • Extent to which a goal is challenging and requires effort.
          • People work harder to achieve more difficult goals.
          • Goals should be difficult but attainable.
        • Goal specificity
          • Clarity and precision of the goal.
          • Goals vary in their ability to be stated specifically
      16–
    • Process Perspectives on Motivation (cont’d)
      • Characteristics of Goals (cont’d)
        • Goal acceptance
          • The extent to which persons accept a goal as their own.
        • Goal commitment
          • The extent to which an individual is personally interested in reaching a goal.
      • Implications of the Process Perspectives
        • If rewards are to motivate employees, they must be perceived as being valued, attainable, fair and equitable.
      16–
    • Figure 16.6: The Expanded Goal-setting Theory of Motivation 16–
    • Reinforcement Perspectives on Motivation
      • Reinforcement Theory
        • The role of rewards as they cause behavior to change or remain the same over time.
        • Assumes that:
          • Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.
      16–
    • Reinforcement Perspectives on Motivation (cont’d)
      • Kinds of Reinforcement in Organizations
        • Positive reinforcement
          • Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.
        • Avoidance
          • Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed.
        • Punishment
          • Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.
        • Extinction
          • Weakens undesired behavior by simply ignoring or not reinforcing that behavior.
      16–
    • Reinforcement Perspectives on Motivation (cont’d)
      • Providing Reinforcement in Organizations
        • Reinforcement schedules
          • Fixed interval schedule —reinforcement applied at fixed time intervals, regardless of behavior.
          • Variable interval —reinforcement applied at variable time intervals.
          • Fixed ratio —reinforcement applied after a fixed number of behaviors, regardless of time.
          • Variable Ratio —reinforcement applied after a variable number of behaviors, regardless of time.
      16–
    • Table 16.1: Elements of Reinforcement Theory 16–
    • Reinforcement Perspectives on Motivation (cont’d)
      • Providing Reinforcement in Organizations (cont’d)
        • Behavior modification (OB mod)
          • A method for applying the basic elements of reinforcement theory in an organizational setting.
          • Specific behaviors are tied to specific forms of reinforcement.
      • Implications of the Reinforcement Perspectives
        • Consistently applied reinforcement helps maintain employee motivation by:
          • encouraging (rewarding) positive behaviors
          • discouraging (punishing) dysfunctional behaviors in an organization.
      16–
    • Popular Motivational Strategies
      • Empowerment and Participation
        • Empowerment
          • Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.
        • Participation
          • Giving employees a voice in making decisions about their work.
        • Areas of participation for employees:
          • Making decisions about their jobs.
          • Decisions about administrative matters (e.g., work schedules).
          • Participating in decision making about broader issues of product quality.
      16–
    • Popular Motivational Strategies (cont’d)
      • Techniques and Issues in Empowerment
        • Using work teams
          • Collections of employees empowered to plan, organize, direct, and control their work.
        • Decentralization
          • Changing the overall method of organizing the firm
        • Conditions necessary for empowerment:
          • Power spread to lower organizational levels
          • Commitment to empowering workers
          • Systematic and patient efforts to empower workers.
          • Increased commitment to training.
      16–
    • Using Reward Systems to Motivate Performance (cont’d)
      • Reward System
        • The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.
      • Effects of Organizational Rewards
        • Higher-level performance-based rewards motivate employees to work harder.
        • Rewards help align employee self-interest with organizational goals.
        • Rewards foster increased retention and citizenship
      16–
    • Using Reward Systems to Motivate Performance (cont’d)
      • Merit Reward Systems
        • Base a meaningful portion of individual compensation on merit —th e relative value of an individual’s contributions to the organization.
          • Employees who make greater contributions are given higher pay than those who make lesser contributions.
      • Incentive Reward Systems
        • Concept: employee pay is based on employee output.
        • Assume that:
          • Performance is under the control of the individual worker.
          • The employee work at a single task continuously.
          • Pay is tightly tied to performance (i.e., pay varies with output).
      16–
    • Using Reward Systems to Motivate Performance (cont’d)
      • Incentive Reward Systems (cont’d)
        • Incentive pay plans
          • Piece-rate systems
          • Sales commissions
        • Other forms of incentives
          • Non-monetary incentives (perks)
      • Team and Group Incentive Reward Systems
        • Gainsharing programs
        • Scanlon Plan
        • Employee stock ownership plans (ESOPs)
      16–
    • Using Reward Systems to Motivate Performance (cont’d)
      • Executive Compensation
        • Standard forms of executive compensation
          • Base salary
          • Incentive pay (bonuses)
        • Special forms of executive compensation
          • Stock option plans
          • Executive perks
        • Criticism of executive compensation
          • Excessively large compensation amounts
          • Compensation not tied to overall performance of the organization
          • Earnings gap between executive pay and typical employee pay
      16–
    • Using Reward Systems to Motivate Performance (cont’d)
      • New Approaches to Performance-Based Rewards
        • Leveraging the value of incentives
          • Allowing individuals and groups in the organization to have a say in how rewards are distributed.
        • Getting increasingly innovative in incentive programs:
          • Offering stock options to all employees
          • Individualizing the rewards available to individuals in reward systems
      16–
    • Key Terms
      • motivation
      • content perspectives
      • Maslow’s hierarchy of needs
      • ERG theory of motivation
      • two-factor theory of motivation
      • need for affiliation
      • need for achievement
      • need for power
      • process perspectives
      • expectancy theory
      • effort-to-performance expectancy
      • outcomes
      • valence
      • equity theory
      • avoidance
      • positive reinforcement
      • extinction
      • variable-ratio schedule
      • variable-interval schedule
      • participation
      16–
    • Key Terms
      • behavior modification (OB Mod)
      • compressed work schedule
      • job sharing
      • telecommuting
      • merit pay plan
      • reward system
      • piece-rate incentive plan
      • gainsharing programs
      • Scanlon plan
      • stock option plan
      16–