Contemporary theories of motivation

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  • 1. Contemporary Theories of Motivation Gonzalo Campuzano Enrique Flores
  • 2. OUTLINE  Introduction  Early Theories of Motivation (Overview)  Goal Setting Theory  MBO Programs  Equity Theory  Expectancy Theory  Integrating Contemporary Theories of Motivation  References  Questions & Answers
  • 3. 55% of U.S. employees have no enthusiasm for their job. As cited in D. Jones, “Firms spend Billions to Fire Up Workers – With Little Luck”, USA Today, May 10, 2001
  • 4. INTRODUCTION  Motivation is the result of the interaction of the individual and the situation.  Individuals differ in their basic motivational drive.  i.e. Texbook Vs. Novel  The level of motivation varies both between individuals and within individuals at different times.  Motivation: “The process that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.” [1]
  • 5. EARLY THEORIES OF MOTIVATION  1950’s:  Hierarchy of needs theory  Theories X and Y  The two-factor theory.  They represent a foundation from which contemporary theories have grown.  Practicing managers still regularly use this theories and their terminology in explaining employee motivation.  Contemporary way of thinking
  • 6. GOAL-SETTING THEORY  Goals tell an employee what needs to be done and how much effort will need to be expended.  In order to increase performance:  Set specific goals.  Difficult goals, when accepted, result in higher performance than does easy goals.  Provide feedback.  An individual is committed to the goal when he believes he can achieve the goal, and wants to achieve it.
  • 7. MBO PROGRAMS: Putting Goal-Setting T. Into Practice  Converting overall organizational objectives into specific objectives for organizational units and individual members.  Four ingredients common to MBO programs:  Goal specification.  Participation in decision making.  An explicit time period.  Performance feedback.  Failures may come from:  Unrealistic expectations regarding results.  Lack of commitment by top management.  Cultural incompatibilities.  Fujitsu
  • 8. EQUITY THEORY  Employees make comparison of their job inputs and outcomes relative to those of others:  When employees perceive inequity, the can:  Change their inputs.  Change their outcomes.  Distort perceptions of self.  Distort perception of others.  Choose a different referent  Leave the field
  • 9. EQUITY THEORY  Given payment by time:  Overrewarded employees will produce more than will equitably paid employees.  Underrewarded employees will produce less or poorer quality of output.  Given payment by quantity of production:  Overrewarded employees will produce fewer, but higher-quality, units than will equitably paid employees.  Underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.
  • 10. EQUITY THEORY: Conclusions  Motivation is influenced significantly by others’ rewards as well as by one’s own rewards.  Inequities created by overpayment do not seem to have a very significant impact on behaviour.  Most research has focused on pay, but employees seem to look for equity in the distribution of other rewards.  Historically, equity theory focused on distributive justice. But increasingly equity is thought of from the standpoint of organizational justice.  Managers should consider openly sharing information on how allocation decisions are made, following consistent and unbiased procedures.
  • 11. EXPECTANCY THEORY  The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that the outcome to the individual.  The theory focuses on three relationships:  1. Effort-performance.  2. Performance-reward.  3. Rewards-personal goals. I n d iv u d u a l E f f o r t P e r s o n a l G o a ls O r g a n iz a tio n a l R e w a r d s I n d iv id u a l P e r f o r m a n c e 1 32
  • 12. EXPECTANCY THEORY  Giving maximum effort not always means being recognized.  Good performance appraisal not always leads to organizational rewards.  Rewards are not always found attractive by employees:  Managers limited in the rewards they can distribute.  Managers incorrectly assume that all employees want the same.
  • 13. EXPECTANCY THEORY: Conclusions  The key is the understanding of an individual’s goal and the linkage between the three relationships.  There is no universal principle for explaining everyone’s motivations.
  • 14. INTEGRATING CONTEMPORARY THEORIES OF MOTIVATION  Many theories are complementary.  Its basic foundation is the expectancy model. In d iv u d u a l E ffo r t P e r s o n a l G o a ls O r g a n iz a tio n a l R e w a r d s In d iv id u a l P e r fo r m a n c e O p p o r tu n ity A b ility O b je c tiv e P e r fo r m a n c e E v a lu a tio n S y s te m P e r fo r m a n c e E v a lu a tio n C r ite r ia D o m in a n t N e e d s E q u ity C o m p a r is o n / O r g a n iz a tio n a l J u s tic e BA I O I O : R e in fo r c e m e n t G o a ls D ir e c t B e h a v io r H ig h A c h ie v e m e n t N e e d J o b D e s ig n
  • 15. J o b D e s ig n In d iv u d u a l E ffo r t P e r s o n a l G o a ls O r g a n iz a tio n a l R e w a r d s In d iv id u a l P e r fo r m a n c e O p p o r tu n ity G o a ls D ir e c t B e h a v io r A b ility O b je c tiv e P e r fo r m a n c e E v a lu a tio n S y s te m P e r fo r m a n c e E v a lu a tio n C r ite r ia D o m in a n t N e e d s H ig h A c h ie v e m e n t N e e d R e in fo r c e m e n t E q u ity C o m p a r is o n / O r g a n iz a tio n a l J u s tic e BA I O I O :
  • 16. REFERENCES Robbins and Judge, “Organizational Behavior”, 12th Edition, Pearson Prentice Hall, 2007. D. Jones, “Firms spend Billions to Fire Up Workers – With Little Luck”, USA Today, May 10, 2001 [1] T.R. Mitchell, “Matching Motivational Strategies with Organizational Contexts”, Research in Organizational Behavior, vol. 19, pp 60-62 P.C. Early, P. Wojnaroski, and W. Prest, “Task Planning and Energy Expended: Explorations of How Goals Influence Performance”, Journal of Applied Psychology, Feb 1987. J. Greenberg and S. Ornstein, “High Status Job Title as Compensation for Underpayment: A Test of Equity Theory”, Journal of Applied Psychology, May 1983.
  • 17. Questions & Answers