◦ Provide you with a thorough understanding of  the dynamics of motivation and the ways in  which rewards can be used to m...
   MOTIVATION is the term used to describe    the forces within the individual that    account for the level, direction, ...
   A REWARD is a work outcome of positive    value to the individual.    ◦ EXTRINSIC REWARDS are externally      administ...
   Both Intrinsic and Extrinsic rewards    can help the manager to lead    effectively through motivation, and to    achi...
   Content Theory    ◦ Needs are physiological and      psychological      deficiencies that an      individual feels som...
   Maslows Hierarchy of Needs Theory    ◦ Lower Order Needs      Physiological      Safety      Social    ◦ Higher Ord...
   Deficit Principle    ◦ Holds that a satisfied need is not a motivator of      behavior; people act to satisfy needs in...
   An extension of Maslows theory that    proposes the existence of three needs    as opposed to five.    ◦   Existence N...
   ERG Theory    ◦ Does not assume that lower-level needs must      be satisfied before higher-level needs become      ac...
 Hygiene          Factors    ◦   Working Conditions    ◦   Interpersonal Relations    ◦   Organizational Policies    ◦   ...
 Satisfier        Factors    ◦   Sense of Achievement    ◦   Feeling of Recognition    ◦   Sense of Responsibility    ◦  ...
   David McClelland proposes that people    acquire needs through their life    experiences.   He uses a Thematic Apperc...
◦ Need for Achievement ( nAch)  The desire to do something better or more   efficiently, to solve problems, or to master ...
 The need for Personal Power and,       The need for Social Power◦     Need for Affiliation ( nAff)     The desire to e...
   The most important need for executive      success is the need for social power.   Persons with a high need for affil...
 Equity   Theory ◦ Asserts that when people   believe that they have been   treated inequitably in   comparison to others...
   Equity Theory (cont)    ◦ Perceived Equity -    occurs whenever a        person perceives that their        personal r...
   “ People will do what they can do when    they want to do it.” The question is ‘what    makes them want to do it?’   ...
 Expectancy:    A persons belief that working hard will result in a desired level of task performance. Instrumentality: ...
   Implies that for motivation to be high,    Expectancy, Instrumentality and Valence    must be high.                  M...
 To   Maximize Expectancy ◦ Select workers with ability ◦ Train workers to use ability ◦ Support work effort ◦ Clarify pe...
 To   Maximize Instrumentality    ◦ Clarify psychological contracts    ◦ Communicate performance-      outcome possibilit...
The basic premise is that well-set and well-managed task goals are important sources for motivation. Task     goals ,    ...
 Set Specific Goals Set Challenging Goals Build Goal Acceptance and Commitment Clarify Goal Priorities Reward Goal Ac...
   Unlike the prior motivation theories    which rely on cognitive explanations of    behavior, reinforcement theory focu...
 Operant   Conditioning ◦ A term popularized by B. F.   Skinner, is the process of   controlling behavior by   manipulati...
 Organizational   Behavior Modification ◦ Involves the application of operant   conditioning techniques to   influence hu...
   There Are Two Types of Reinforcement:    ◦    Positive Reinforcement         Increases the frequency of a behavior th...
 Punishment: decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence. Ext...
   Law of Contingent Reinforcement    ◦ In order for a reward to have maximum      reinforcing value, it must be delivere...
   Shaping    ◦ The creation of a new behavior by the      positive reinforcement of successive      approximations of th...
   Clearly identify desired work behaviors   Maintain diverse inventory of rewards   Inform everyone what must be done ...
   Tell the person what is being done    wrong.   Tell the person what is right.   Make sure the punishment matches the...
   There is considerable debate over the    ethics of using OB MOD to influence    behavior.   But as the text notes, "t...
   Motivation leads to Effort which, along    with appropriate Abilities and    Organizational Support, lead to    Perfor...
   Incentive Compensation Systems    ◦ Bonus systems in which employees at all        levels participate.    ◦ Bonus Pay ...
   Pay for Knowledge    ◦ Skill-based pay ties pay to the number of   job-      relevant skills an employee masters.   E...
Thanks  RB         38
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Leading motivation

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Leading motivation

  1. 1. ◦ Provide you with a thorough understanding of the dynamics of motivation and the ways in which rewards can be used to motivate employees.◦ Examine the Content, Process, and Reinforcement Theories of Motivation , and◦ Take a look at the connection between Motivation and Compensation. 1
  2. 2.  MOTIVATION is the term used to describe the forces within the individual that account for the level, direction, and persistence of effort expended at work. 2
  3. 3.  A REWARD is a work outcome of positive value to the individual. ◦ EXTRINSIC REWARDS are externally administered (e.g., pay and verbal praise); the motivational stimulus originates outside the person. ◦ INTRINSIC REWARDS are self- administered; they occur "naturally" as a person performs a task. The feelings of competency, personal development, and self-control people experience in their work. 3
  4. 4.  Both Intrinsic and Extrinsic rewards can help the manager to lead effectively through motivation, and to achieve maximum motivational impact, it is necessary to: ◦ Respect diversity and individual differences. ◦ Clearly understand what people want from work. ◦ Allocate rewards to satisfy the interests of both individuals and the organization. 4
  5. 5.  Content Theory ◦ Needs are physiological and psychological deficiencies that an individual feels some compulsion to eliminate. Process Theory ◦ People give meaning to rewards and the work opportunities available to them. Reinforcement Theory ◦ Peoples behavior is influenced by its environmental consequences. 5
  6. 6.  Maslows Hierarchy of Needs Theory ◦ Lower Order Needs  Physiological  Safety  Social ◦ Higher Order Needs  Esteem  Self-actualization 6
  7. 7.  Deficit Principle ◦ Holds that a satisfied need is not a motivator of behavior; people act to satisfy needs in which a deficit exists. Progression Principle ◦ Holds that the five needs exist in a strict hierarchy of prepotency such that a need at one level doesnt become activated until the next lower-level need is satisfied. 7
  8. 8.  An extension of Maslows theory that proposes the existence of three needs as opposed to five. ◦ Existence Needs: Desires for physiological and material well-being. ◦ Relationship Needs: Desires for satisfying interpersonal relationships. ◦ Growth Needs: Desires for continued psychological growth and development. 8
  9. 9.  ERG Theory ◦ Does not assume that lower-level needs must be satisfied before higher-level needs become activated and, ◦ This theory includes a unique " frustration- regression " principle whereby an already satisfied lower-level need becomes reactivated when a higher-level need is frustrated. 9
  10. 10.  Hygiene Factors ◦ Working Conditions ◦ Interpersonal Relations ◦ Organizational Policies ◦ Quality of Supervision ◦ Base Wage or Salary Improvements in Hygiene Factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction. 10
  11. 11.  Satisfier Factors ◦ Sense of Achievement ◦ Feeling of Recognition ◦ Sense of Responsibility ◦ Opportunity for Advancement ◦ Feelings of Personal Growth Improvements in Satisfier Factors can increase job satisfaction; they will not prevent job dissatisfaction. 11
  12. 12.  David McClelland proposes that people acquire needs through their life experiences. He uses a Thematic Apperception Test (TAT) to measure the strengths of three acquired needs: Achievement - Power - Affiliation 12
  13. 13. ◦ Need for Achievement ( nAch)  The desire to do something better or more efficiently, to solve problems, or to master complex tasks.◦ Need for Power (nPower)  The desire to control other persons, to influence their behavior, or to be responsible for other people. A finer distinction can be made between: 13
  14. 14.  The need for Personal Power and,  The need for Social Power◦ Need for Affiliation ( nAff)  The desire to establish and maintain friendly and warm relations with other persons. 14
  15. 15.  The most important need for executive success is the need for social power. Persons with a high need for affiliation may not make the best managers. While nPower is often accompanied by a high need for achievement the later need in itself is not consistently associated with executive success. 15
  16. 16.  Equity Theory ◦ Asserts that when people believe that they have been treated inequitably in comparison to others, they eliminate the discomfort and restore equity. 16
  17. 17.  Equity Theory (cont) ◦ Perceived Equity - occurs whenever a person perceives that their personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other . ◦ Perceived Inequity - occurs whenever ones rewards/input ratio is perceived to be unequal... 17
  18. 18.  “ People will do what they can do when they want to do it.” The question is ‘what makes them want to do it?’ Vroom suggests that the motivation to work depends on the relationships between the following three expectancy factors: 18
  19. 19.  Expectancy: A persons belief that working hard will result in a desired level of task performance. Instrumentality: A persons belief that successful task performance will be followed by rewards and other potential outcomes. Valence: The value a person assigns to possible rewards and other work-related outcomes. 19
  20. 20.  Implies that for motivation to be high, Expectancy, Instrumentality and Valence must be high. Motivation = Expectancy x Instrumentality x Valence A zero at any location on the right side of the equation will result in zero motivation. 20
  21. 21.  To Maximize Expectancy ◦ Select workers with ability ◦ Train workers to use ability ◦ Support work effort ◦ Clarify performance goals 21
  22. 22.  To Maximize Instrumentality ◦ Clarify psychological contracts ◦ Communicate performance- outcome possibilities ◦ Demonstrate what rewards are contingent on performance To Maximize Valence ◦ ID needs and adjust rewards to match 22
  23. 23. The basic premise is that well-set and well-managed task goals are important sources for motivation. Task goals , in the form of clear and desirable performance targets, ◦ Provide direction, ◦ Energize persistent long-term work efforts, ◦ Clarify performance expectations, and ◦ Serve as a basis for feedback. 23
  24. 24.  Set Specific Goals Set Challenging Goals Build Goal Acceptance and Commitment Clarify Goal Priorities Reward Goal Accomplishment Management-by-Objectives ( MBO ) is one example of a goal-setting system which promotes participation . 24
  25. 25.  Unlike the prior motivation theories which rely on cognitive explanations of behavior, reinforcement theory focuses instead on the impact which external environmental consequences have on behavior. The law of effects states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not likely to be repeated. 25
  26. 26.  Operant Conditioning ◦ A term popularized by B. F. Skinner, is the process of controlling behavior by manipulating its consequences; i.e., learning by reinforcement. 26
  27. 27.  Organizational Behavior Modification ◦ Involves the application of operant conditioning techniques to influence human behavior in work settings. (Reinforcing desirable behaviors while denying reinforcement for unwanted behaviors.) 27
  28. 28.  There Are Two Types of Reinforcement: ◦ Positive Reinforcement  Increases the frequency of a behavior through the contingent presentation of a desirable consequence. ◦ Negative Reinforcement  Increases the frequency of a behavior through the contingent removal of an undesirable consequence. 28
  29. 29.  Punishment: decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence. Extinction: decreases the frequency of a behavior through the contingent removal of a pleasant consequence. 29
  30. 30.  Law of Contingent Reinforcement ◦ In order for a reward to have maximum reinforcing value, it must be delivered only if the desired behavior is exhibited. Law of Immediate Reinforcement ◦ The more immediate the delivery of a reward after the occurrence of a desirable behavior, the greater the reinforcing value of the reward. 30
  31. 31.  Shaping ◦ The creation of a new behavior by the positive reinforcement of successive approximations of the desired behavior.  Intermittent reinforcement only rewards behavior periodically.  Continuous reinforcement administers a reward each time a desired behavior occurs. 31
  32. 32.  Clearly identify desired work behaviors Maintain diverse inventory of rewards Inform everyone what must be done to get rewards. Recognize individual differences when allocating rewards. Follow the laws of immediate and contingent reinforcements. 32
  33. 33.  Tell the person what is being done wrong. Tell the person what is right. Make sure the punishment matches the behavior. Administer the punishment in private. Follow the laws of immediate and contingent reinforcement. 33
  34. 34.  There is considerable debate over the ethics of using OB MOD to influence behavior. But as the text notes, "the real question may be not whether it is ethical to control behavior, but whether it is ethical not to control behavior well enough that the goals of both the organization and the individual are well served." 34
  35. 35.  Motivation leads to Effort which, along with appropriate Abilities and Organizational Support, lead to Performance. This model illustrates how Rewards for performance, when they are perceived as Equitable and possess Reinforcement Value, can produce satisfaction. 35
  36. 36.  Incentive Compensation Systems ◦ Bonus systems in which employees at all levels participate. ◦ Bonus Pay Plans ◦ Profit-Sharing Plans ◦ Gain-Sharing Plans ◦ Employee Stock Ownership Plans 36
  37. 37.  Pay for Knowledge ◦ Skill-based pay ties pay to the number of job- relevant skills an employee masters. Entrepreneurial pay requires individuals to put part of their pay at risk, in return for the right to pursue entrepreneurial ideas, and share in any resulting profits. 37
  38. 38. Thanks RB 38
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