Every business should have a strategic plan—but the number of businesses that try to operate without a defined plan (or at least a clearly communicated one) might surprise you. Research from OnStrategy shows that 86% of executive teams spend less than one hour per month discussing strategy, and 95% of a typical workforce doesn’t understand its organization’s strategy. Because so many businesses lack in these regards, you can get ahead of the game by using strategic planning. In this article, we will explain what the strategic planning process looks like and the steps involved.

1. 13 - 1
Motivating for
Performance
Chapter Thirteen
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

2. 13 - 2
Quote
“The worst mistake a boss can make is not
to say well done.”
John Ashcroft
“The reward of a thing well done is to have
done it.”
Ralph Waldo Emerson
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

3. 13 - 3
Learning Objectives (1 of 2)
LO 1 Identify the kinds of behaviors managers
need to motivate in people.
LO 2 List principles for setting goals that
motivate employees.
LO 3 Summarize how to reward good
performance effectively.
LO 4 Describe the key beliefs that affect peoples’
motivation.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

4. 13 - 4
Learning Objectives (2 of 2)
LO 5 Discuss ways in which people’s individual
needs affect their behavior.
LO 6 Define ways to create jobs that motivate.
LO 7 Summarize how people assess fairness and
how to achieve it.
LO 8 Identify causes and consequences of a
satisfied workforce.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

5. 13 - 5
Motivating for Performance
• Motivation
– Forces that energize, direct, and sustain a person’s
efforts.
• Managers must motivate people to:
– join the organization.
– remain in the organization.
– come to work regularly.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

6. 13 - 6
Setting Goals
• Goal-setting theory
– A motivation theory stating that people have
conscious goals that energize them and direct
their thoughts and behaviors toward a particular
end.
• Stretch goals
– Targets that are particularly demanding,
sometimes even thought to be impossible.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

7. 13 - 7
Reinforcing Performance (1 of 2)
• Law of effect
– A law formulated by Edward Thorndike in 1911
stating that behavior that is followed by positive
consequences will likely be repeated.
• Reinforcers
– Positive consequences that motivate behavior.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

8. 13 - 8
Question (1 of 2)
___________ is the withdrawing or failing to
provide a reinforcing consequence.
A. Positive reinforcement
B. Negative reinforcement
C. Punishment
D. Extinction
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

9. 13 - 9
Reinforcing Performance (2 of 2)
Positive reinforcement
– Applying consequences
that increase the
likelihood that a person
will repeat the behavior
that led to it.
Punishment
– Administering an
aversive consequence.
Negative reinforcement
– Removing or withholding
an undesirable
consequence.
Extinction
– Withdrawing or failing to
provide a reinforcing
consequence.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

10. 13 - 10
Exhibit
13.3
The
Consequences
of
Behavior
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

11. 13 - 11
Exhibit 13.4 The Greatest
Management Principle in the World
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

12. 13 - 12
Performance-Related Beliefs
• Expectancy theory
–A theory proposing that people will behave
based on the perceived likelihood that
their effort will lead to a certain outcome
that is a highly valued outcome.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

13. 13 - 13
Question (2 of 2)
___________ is the value an outcome holds
for the person contemplating it.
A. Expectancy
B. Valence
C. Instrumentality
D. Anticipation
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

14. 13 - 14
The Performance-to-Outcome Link
• Expectancy
– Employees’ perception of the likelihood that their
efforts will enable them to attain their performance
goals.
• Instrumentality
– The perceived likelihood that performance will be
followed by a particular.
• Valence
– The value an outcome holds for the person
contemplating it.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

15. 13 - 15
Exhibit 13.5 Basic Concepts of Expectancy
Theory
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

16. 13 - 16
Managerial Implications of
Expectancy Theory
Increase expectancies.
Identify positively valent
outcomes.
Make performance instrumental
toward positive outcomes.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

17. 13 - 17
Exhibit 13.6 Maslow’s Need Hierarchy
A conception of human
needs organizing
needs into a hierarchy
of five major types.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

18. 13 - 18
Maslow’s Need Hierarchy
1. Physiological (food, water, sex, and shelter).
2. Safety or security (protection against threat and
deprivation).
3. Social (friendship, affection, belonging, and love).
4. Ego (independence, achievement, freedom, status,
recognition, and self esteem).
5. Self-actualization (realizing one’s full potential,
becoming everything one is capable of being).
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

19. 13 - 19
Alderfer’s ERG Theory
• A human needs
theory suggesting
that people have
three basic sets of
needs that can
operate
simultaneously.
Growth needs
– Motivate people to
productively or creatively
change themselves or their
environment.
Relatedness needs
– Involve relationships with
other people and are
satisfied through the
process of mutually sharing
thoughts and feelings.
Existence needs
– All material and
physiological desires.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

20. 13 - 20
McClelland’s Needs
• Need for achievement
– Characterized by a strong orientation toward
accomplishment and an obsession with success and
goal attainment.
• Need for affiliation
– Reflects a strong desire to be liked by other people.
• Need for power
– A desire to influence or control other people.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

21. 13 - 21
Designing Motivating Jobs
Extrinsic reward
– Reward given to a person by
the boss, the company, or
some other person.
Intrinsic reward
– Reward a worker derives
directly from performing the
job itself.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

22. 13 - 22
Social Enterprise
Giving Veterans a Renewed Sense of Purpose
• Jake Wood co-founded Team Rubicon.
• Staffed by veterans, the organization bridges the gap
between the moment a natural disaster happens and
when other aid organizations respond.
• Wood seeks to solve two problems:
– Respond rapidly during the “crucial window” of
time immediately following a disaster.
– Better reintegrate veterans into society after
serving in the military.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

23. 13 - 23
Social Enterprise Questions
Giving Veterans a Renewed Sense of Purpose
• Of those veterans who would like to work for
Team Rubicon, what types of rewards are
likely to keep them motivated: extrinsic,
intrinsic, or both?
• To what degree do you think Team Rubicon
will make a positive impact on natural disaster
victims? Explain.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

24. 13 - 24
Job Rotation, Enlargement,
and Enrichment
• Job Rotation
– Changing from one task to another to alleviate
boredom.
• Job Enlargement
– Giving people additional tasks at the same time to
alleviate boredom.
• Job Enrichment
– Changing a task to make it inherently more
rewarding, motivating, and satisfying.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

25. 13 - 25
Herzberg’s Two-Factor Theory
• Hygiene factors
– Characteristics of the
workplace, such as
company policies,
working conditions, pay,
and supervision, that can
make people dissatisfied
but do not lead to
motivation.
• Motivators
– Factors that make a job
more motivating, such as
additional job
responsibilities,
opportunities for
personal growth and
recognition, and feelings
of achievement.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

26. 13 - 26
Exhibit
13.7
The
Hackman
and
Oldham
Model
of
Job
Design
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

27. 13 - 27
The Hackman and Oldham
Model of Job Design (1 of 3)
• Skill variety
– Different job activities involving several skills and
talents.
• Task identity
– The completion of a whole, identifiable piece of
work.
• Task significance
– An important, positive impact on the lives of
others.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

28. 13 - 28
The Hackman and Oldham
Model of Job Design (2 of 3)
• Autonomy
– Independence and discretion in making decisions.
• Feedback
– Information about job performance.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

29. 13 - 29
The Hackman and Oldham
Model of Job Design (3 of 3)
• Growth need
strength
– The degree to which
individuals want
personal and
psychological
development.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

30. 13 - 30
Empowerment
The process of sharing power with
employees, thereby enhancing their
confidence in their ability to perform their
jobs and their belief that they are influential
contributors to the organization.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

31. 13 - 31
Exhibit 13.8 Achieving Fairness
• Equity theory
– A theory stating that people assess how fairly they
have been treated according to two key factors:
outcomes and inputs.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

32. 13 - 32
Equity Theory
Outcomes
– The various things
the person receives
on the job:
recognition, pay,
benefits, satisfaction,
security, job
assignments, and
punishments.
Inputs
– The contributions
the person makes to
the organization:
effort, time, talent,
performance, extra
commitment, and
good citizenship.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

33. 13 - 33
Procedural Justice
• Procedural justice
– Using fair process in
decision making and
making sure others
know that the
process was as fair as
possible.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

34. 13 - 34
Quality of Work Life
• Quality of work life (QWL) programs
– Programs designed to create a workplace that
enhances employee well-being.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

35. 13 - 35
QWL Programs (1 of 2)
1. Adequate and fair compensation.
2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. A social environment that fosters personal.
identity, freedom from prejudice, a sense of
community, and upward mobility.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

36. 13 - 36
QWL Programs (2 of 2)
6. Constitutionalism, or the rights of personal
privacy, dissent, and due process.
7. A work role that minimized infringement on
personal leisure and family needs.
8. Socially responsible organizational actions.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

37. 13 - 37
Psychological Contract
• A set of perceptions of
what employees owe
their employers, and
what their employers
owe them.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

38. 13 - 38
Management in Action - Onward
How SAS Makes Work Motivating
• Jennifer Mann, SAS’s vice president of human
resources, says everyone there “is working
toward the same vision and inspiring each
other to do their best work.”
• SAS emphasizes management responsibility
for employee development, a culture of trust
and ensures that work is meaningful.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

39. 13 - 39
Management in Action - Questions
How SAS Makes Work Motivating
• How does SAS make its jobs motivating? What
other principles of job design could enhance
motivation at SAS?
• What elements of SAS’s approach to
motivation do you think would contribute
more to job satisfaction than to performance?
Why?
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education