Chapter 13 Prepared by Deborah Baker Texas Christian University Motivation Management 4th Edition Chuck Williams

What Would You Do? Wegmans is feeling the pressure from Wal-Mart How can Wegmans differentiate themselves in the highly competitive grocery business? Wegmans can’t compete on price, so outstanding customer service is key Wegmans’ Headquarters, Rochester, New York. How can you motivate people to work at Wegmans? How do you motivate them to give exceptional service and make a career there?

Wegmans is feeling the pressure from Wal-Mart

How can Wegmans differentiate themselves in the highly competitive grocery business?

Wegmans can’t compete on price, so outstanding customer service is key

What Is Motivation? After reading this section, you should be able to: explain the basics of motivation.

explain the basics of motivation.

Motivation Initiation Persistence Direction Motivation

Basics of Motivation 1 Extrinsic and Intrinsic Rewards Motivating People Effort and Performance Need Satisfaction

Effort and Performance 1.1 Performance Effort Initiation Direction Persistence

Initiation

Direction

Persistence

Effort and Performance Job performance how well someone performs the job Motivation effort put forth on the job Ability capability to do the job Situational Constraints external factors affecting performance Job Performance = Motivation x Ability x Situational Constraints 1.1

Job performance

how well someone performs the job

Motivation

effort put forth on the job

Ability

capability to do the job

Situational Constraints

external factors affecting performance

Doing the Right Thing Faking It, Not Making It With technology, you may be tempted to look like you’re working hard when you aren’t But, you’re usually leaving “tracks” and “footprints” along the way Motivation is all about effort. Work hard for your company, your customers, and yourself. DOING THE RIGHT THING

Faking It, Not Making It

With technology, you may be tempted to look like you’re working hard when you aren’t

But, you’re usually leaving “tracks” and “footprints” along the way

Motivation is all about effort. Work hard for your company, your customers, and yourself.

Need Satisfaction Needs physical or psychological requirements must be met to ensure survival and well being Unmet needs motivate people Three approaches: Maslow’s Hierarchy of Needs Alderfer’s ERG Theory McClelland’s Learned Needs Theory 1.2

Needs

physical or psychological requirements

must be met to ensure survival and well being

Unmet needs motivate people

Three approaches:

Maslow’s Hierarchy of Needs

Alderfer’s ERG Theory

McClelland’s Learned Needs Theory

Adding Needs Satisfaction to the Model 1.2

Maslow’s Hierarchy of Needs 1.2 Esteem Belongingness Safety Physiological Self-Actualization

Aldefer’s ERG Theory 1.2 Relatedness Existence Growth

McClelland’s Learned Needs Theory 1.2 Achievement Affiliation Power

Needs Classification Adapted From Exhibit 13.4 1.2 McClelland’s Learned Needs Alderfer’s ERG Maslow’s Hierarchy Higher-Order Needs Lower-Order Needs Self-Actualization Esteem Belongingness Safety Physiological Growth Relatedness Existence Power Achievement Affiliation

Extrinsic and Intrinsic Rewards Extrinsic Rewards tangible and visible to others given contingent on performance Intrinsic Rewards natural rewards associated with performing the task for its own sake 1.3

Extrinsic Rewards

tangible and visible to others

given contingent on performance

Intrinsic Rewards

natural rewards

associated with performing the task for its own sake

Extrinsic Rewards Extrinsic Rewards motivate people to: Join the organization Regularly attend their jobs Perform their jobs well Stay with the organization 1.3

Extrinsic Rewards motivate people to:

Join the organization

Regularly attend their jobs

Perform their jobs well

Stay with the organization

Intrinsic Rewards Intrinsic Rewards include: Sense of accomplishment Feeling of responsibility Chance to learn something new The fun that comes from performing an interesting, challenging, and engaging task 1.3

Intrinsic Rewards include:

Sense of accomplishment

Feeling of responsibility

Chance to learn something new

The fun that comes from performing an interesting, challenging, and engaging task

The Most Important Rewards Good benefits Health insurance Job security Vacation time Interesting work Learning new skills Independent work situations 1.3 Extrinsic Intrinsic

Good benefits

Health insurance

Job security

Vacation time

Interesting work

Learning new skills

Independent work situations

Adding Rewards to the Model 1.3

Motivating with the Basics Ask people what their needs are Satisfy lower-order needs first Expect people’s needs to change Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards 1.4 Adapted from Exhibit 13.6

Ask people what their needs are

Satisfy lower-order needs first

Expect people’s needs to change

Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards

How Perceptions and Expectations Affect Motivation After reading these sections, you should be able to: use equity theory to explain how employees’ perceptions of fairness affect motivation. use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation.

use equity theory to explain how employees’ perceptions of fairness affect motivation.

use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation.

Equity Theory Components of Equity Theory Reaction to Perceived Inequity Motivating People Using Equity Theory 2

Components of Equity Theory Inputs employee contributions to the organization Outcomes rewards employees receive from the organization Referents comparison others Outcome/input (O/I) ratio 2.1 Outcomes self Inputs self Outcomes referent Inputs referent =

Inputs

employee contributions to the organization

Outcomes

rewards employees receive from the organization

Referents

comparison others

Outcome/input (O/I) ratio

Inequity When a person’s O/I ratio differs from their referent’s O/I ratio Underreward referent’s O/I ratio is greater than yours experience anger or frustration Overreward referent’s O/I ratio is less than yours experience guilt 2.1

When a person’s O/I ratio differs from their referent’s O/I ratio

Underreward

referent’s O/I ratio is greater than yours

experience anger or frustration

Overreward

referent’s O/I ratio is less than yours

experience guilt

How People Perceive Inequity Are perceptions of equity culturally bound? 2.2

How People React to Perceived Inequity Reduce inputs Increase outcomes Rationalize inputs or outcomes Change the referent Leave 2.2

Reduce inputs

Increase outcomes

Rationalize inputs or outcomes

Change the referent

Leave

Adding Equity Theory to Model 2.2

Motivating with Equity Theory Look for and correct major inequities Reduce employees’ inputs Make sure decision-making processes are fair distributive justice procedural justice 2.3 Adapted from Exhibit 13.9

Look for and correct major inequities

Reduce employees’ inputs

Make sure decision-making processes are fair

distributive justice

procedural justice

Expectancy Theory 3 Motivating with Expectancy Theory Components of Expectancy Theory

Components of Expectancy Theory 3 Valence Expectancy Instrumentality

Adding Expectancy Theory to Model 3

Increasing Expectancy One way to increase expectancy is to train employees. 3.1

Motivating with Expectancy Theory Systematically gather information to find out what employees want from their jobs Clearly link rewards to individual performance Empower employees to make decisions which enhance expectancy perceptions 3.2 Adapted from Exhibit 13.11

Systematically gather information to find out what employees want from their jobs

Clearly link rewards to individual performance

Empower employees to make decisions which enhance expectancy perceptions

How Rewards and Goals Affect Motivation After reading these sections, you should be able to: explain how reinforcement theory works and how it can be used to motivate. describe the components of goal-setting theory and how managers can use them to motivate workers. discuss how the entire motivation model can be used to motivate workers.

explain how reinforcement theory works and how it can be used to motivate.

describe the components of goal-setting theory and how managers can use them to motivate workers.

discuss how the entire motivation model can be used to motivate workers.

Reinforcement Theory 4 Components of Reinforcement Theory Schedules for Delivering Reinforcement Motivating with Reinforcement Theory

Reinforcement Theory 4 Reinforcement Theory A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.

Reinforcement Contingencies Positive reinforcement desirable consequence strengthens behavior Negative reinforcement withholding unpleasant consequence strengthens behavior Punishment unpleasant consequence weakens behavior Extinction no consequence weakens behavior 4.1

Positive reinforcement

desirable consequence strengthens behavior

Negative reinforcement

withholding unpleasant consequence strengthens behavior

Punishment

unpleasant consequence weakens behavior

Extinction

no consequence weakens behavior

Adding Reinforcement Theory to Model 4.1

Schedules for Delivering Reinforcement 4.2 Intermittent Continuous

Continuous Reinforcement Schedules 4.2 Continuous Reinforcement Schedules A schedule that requires a consequence to be administered following every instance of a behavior.

Intermittent Reinforcement Schedules 4.2 Adapted from Exhibit 13.12 Variable Interval (Time) Fixed Ratio (Behavior) consequences follow behavior after a fixed time has elapsed Consequences follow behavior after different times that vary around an average time Consequences follow a specific number of behaviors Consequences follow a different number of behaviors that vary around an average number

Motivating with Reinforcement Theory Identify, measure, analyze, intervene, and evaluate Don’t reinforce the wrong behavior Correctly administer punishment at the appropriate time Choose the simplest and most effective schedule of reinforcement 4.3 Adapted from Exhibit 13.14

Identify, measure, analyze, intervene, and evaluate

Don’t reinforce the wrong behavior

Correctly administer punishment at the appropriate time

Choose the simplest and most effective schedule of reinforcement

What Really Works 4.3 Financial, Nonfinancial, and Social Rewards Financial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall 68% manufacturing 84% service 61% probability of success

What Really Works 4.3 Financial, Nonfinancial, and Social Rewards Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall 58% manufacturing 87% service 54% probability of success

What Really Works 4.3 Financial, Nonfinancial, and Social Rewards Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 63 % Financial and Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 62%

What Really Works 4.3 Financial, Nonfinancial, and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 52 % Nonfinancial and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 61% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 90% Financial and Social Rewards Financial, Nonfinancial, and Social Rewards

Goal-Setting Theory 5 Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort. Performance Effort Initiation Direction Persistence

Goal-Setting Theory Goal Specificity the clarity of goals Goal Difficulty how challenging goals are Goal Acceptance how well goals are agreed to or understood Performance Feedback information on goal progress 5.1

Goal Specificity

the clarity of goals

Goal Difficulty

how challenging goals are

Goal Acceptance

how well goals are agreed to or understood

Performance Feedback

information on goal progress

Setting Goals JetBlue has what is perhaps the industry’s most aggressive goal relative to baggage handling: from plane’s hold to baggage claim in 20 minutes. 5.1

JetBlue has what is perhaps the industry’s most aggressive goal relative to baggage handling: from plane’s hold to baggage claim in 20 minutes.

Adding Goal-Setting Theory to Model 5.1

Motivating with Goal-Setting Theory Assign specific, challenging goals Make sure workers truly accept organizational goals Provide frequent, specific performance-related feedback 5.2

Assign specific, challenging goals

Make sure workers truly accept organizational goals

Provide frequent, specific performance-related feedback

Motivating with the Integrated Model Motivating with the Basics 6 Motivating with Equity Theory Motivating with Expectancy Theory Motivating with Reinforcement Theory Motivating with Goal-Setting Theory

Motivating with the Integrated Model 6