BUS 51 - Mosley7e ch07


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Cengage Professor, Karen Gordon-Brown, Peralta Community College District @ Merritt College, Oakland, CA

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BUS 51 - Mosley7e ch07

  1. 1. Part 3 Leading Chapter 7 Motivation Mosley • Pietri PowerPoint Presentation by Charlie Cook The University of West Alabama © 2008 Thomson/South-Western All rights reserved.
  2. 2. Learning Objectives Learning Objectives After reading and studying this chapter, you should be able to: 1. Identify the three levels of employee motivation. 2. Explain the relationship between performance and motivation. 3. Understand and explain Maslow’s hierarchy of needs theory and the principle underlying his theory. 4. Differentiate between Herzberg’s dissatisfiers and motivators. 5. Understand and explain expectancy theory. 6. Explain how supervisors can use goal-setting theory to motivate employees. © 2008 Thomson/SouthWestern. All rights reserved. 7–2
  3. 3. Learning Objectives (cont’d) Learning Objectives (cont’d) After reading and studying this chapter, you should be able to: 7. Define equity theory. 8. Define and explain reinforcement theory. 9. Explain how generational differences affect motivation. 10. Identify five steps to motivating employees. © 2008 Thomson/SouthWestern. All rights reserved. 7–3
  4. 4. Motivation: Understanding Human Behavior • Motivation  Is the willingness of individuals and groups, as influenced by various needs and perceptions, to strive toward a goal.  Is the result of a person’s individual perceptions, needs, and goals.  Involves the integration of the needs and goals of individuals with the needs and goals of the organization. © 2008 Thomson/SouthWestern. All rights reserved. 7–4
  5. 5. Historical Insight • The Hawthorne Studies  A series of productivity studies begun in 1934 at Western Electric’s Hawthorne Plant in Chicago.  Increased worker productivity was attributed to improvements to psychological factors within the experimental groups.  Research results indicated that management’s attention to workers and social factors operating within the groups resulted in motivational conditions that increased work performance. © 2008 Thomson/SouthWestern. All rights reserved. 7–5
  6. 6. EXHIBIT 7.1 The Three Levels of Motivation © 2008 Thomson/SouthWestern. All rights reserved. 7–6
  7. 7. Intrinsic and Extrinsic Motivation • Intrinsic Motivation  Behavior that an individual produces because of the pleasant experiences associated with the behavior itself.  Example: Enrolling in a professional development class. • Extrinsic Motivation  Behavior performed not for its own sake, but for the consequences associated with it. Consequences can include pay, benefits, job security, and working conditions.  Example: Working toward receiving a college degree. © 2008 Thomson/SouthWestern. All rights reserved. 7–7
  8. 8. The Motivation–Performance Link • Factors Influencing Employee Performance  Direction of behavior  Level of effort  Persistence of effort  Personal motivation  Personal abilities and skills  Level of organization support  External environment © 2008 Thomson/SouthWestern. All rights reserved. 7–8
  9. 9. EXHIBIT 7.2 Factors Affecting an Individual’s Job Performance © 2008 Thomson/SouthWestern. All rights reserved. 7–9
  10. 10. Maslow’s Hierarchy of Needs Theory • Hierarchy of Needs  Arrangement of people’s needs in a hierarchy, or ranking, of importance. • Underlying Principles  People’s needs can be arranged in a hierarchy, or ranking, of importance.  Once a need has been satisfied, it no longer serves as a primary motivator of behavior. © 2008 Thomson/SouthWestern. All rights reserved. 7–10
  11. 11. EXHIBIT 7.3 Maslow’s Hierarchy of Needs © 2008 Thomson/SouthWestern. All rights reserved. 7–11
  12. 12. Maslow’s Hierarchy of Needs (cont’d) • Physiological Need  The need for food, water, air, and other physical necessities. • Safety Need  The need for protection from danger, threat, or deprivation. • Social Need  The need for belonging, acceptance by colleagues, friendship, and love. • Ego Need  The need for self-confidence, independence, appreciation, and status. • Self-fulfillment Needs  Needs concerned with realizing one’s potential, self- development, and creativity. © 2008 Thomson/SouthWestern. All rights reserved. 7–12
  13. 13. Qualifying the Needs Hierarchy Theory 1. Needs on one level of the hierarchy do not have to be completely satisfied before needs on the next level become important. 2. The theory does not attempt to explain the behavior of the neurotic or the mentally disturbed. 3. Different people have different priorities. Some are less security oriented or achievement oriented than others. 4. Unlike the lower level needs, the two highest levels of needs can hardly ever be fully satisfied as new challenges and opportunities for growth, recognition, and achievement arise. © 2008 Thomson/SouthWestern. All rights reserved. 7–13
  14. 14. Herzberg’s Theory • Two-Factor Theory  Findings disproved the assumption that satisfaction and motivation are always positively connected. • Factors  Dissatisfier (Hygiene) factors  Factors that affect employees negatively, or dissatisfy them about their job, including low pay, low benefits, and unfavorable working conditions.  Satisfier (Motivator) factors  Factors that affect employees positively, such as recognition, advancement, achievement, challenging work, and being one’s own boss. © 2008 Thomson/SouthWestern. All rights reserved. 7–14
  15. 15. EXHIBIT 7.4 Herzberg’s Satisfier/Motivator and Dissatisfier/Hygiene Factors Satisfier/Motivator Factors + + + + + Recognition Advancement Challenging work Being one’s own boss Work itself “The boss says I’ve done a good job.” “I was promoted to team leader.” “I solved a really tough job problem.” “I was given a free hand to do my job.” “I got to design the new system.” Dissatisfier/Hygiene Factors – – – – – Pay Benefits Working conditions Job security Company policy/ administration “I’m not paid fairly for what I do.” “This company doesn’t pay tuition or medical benefits.” “It’s so hot in the plant it’s often unbearable.” “With seasonal work I never know for sure if I’ll have a job.” “We have so much red tape to go through.” © 2008 Thomson/SouthWestern. All rights reserved. 7–15
  16. 16. Qualifying Herzberg’s Theory • Money can be a motivating factor, especially when it is tied to recognition and achievement. • The absence of motivating factors can constitute dissatisfaction. • Herzberg’s findings had a built-in bias.  When asked about something positive on the job, people are biased toward mentioning something in which their behavior is the focal point.  When asked about dissatisfiers, people tend to mention extrinsic factors over which they have no control, such as pay or working conditions. © 2008 Thomson/SouthWestern. All rights reserved. 7–16
  17. 17. Other Theories of Motivation • Expectancy Theory  Views an individual’s motivation as a conscious effort involving the expectancy that a reward will be given for a good result. • Variables in Expectancy Theory 1. Expectancy that effort will lead to a given performance result. 2. Probability of reward(s) associated with the performance result. 3. Value of the reward to the individual. © 2008 Thomson/SouthWestern. All rights reserved. 7–17
  18. 18. EXHIBIT 7.5 Expectancy Theory Motivation = Expectancy that increased effort will lead to a given performance level × (Effort → Performance link) © 2008 Thomson/SouthWestern. All rights reserved. Probability that a specific performance level will lead to a given reward Value × attached to reward (Performance → Reward link) 7–18
  19. 19. EXHIBIT 7.6 Applying Expectancy Theory 1. Hire people who have adequate skill levels. 2. Set clear, recognizable performance goals. 3. Make sure employees know what is expected. 4. Continually stress employee training and skill development. 5. Use performance feedback and coaching to help employees gain skills. 6. Have employees share knowledge and expertise with others. 7. Give employees special jobs or assignments that stretch their abilities. 8. Celebrate performance successes. 9. Reward performance achievement. 10. Develop trust in your commitments by others; do not overpromise rewards. 11. Emphasize multiple rewards such as praise and recognition, being assigned desired work, receiving special training, attending a conference. 12. Determine what different individuals value as rewards (financial, social, being in the know, learning © 2008 Thomson/South- a new skill, etc.) and help make these happen. Western. All rights reserved. 7–19
  20. 20. Perception’s Role in Maximizing Motivation • An employee must perceive that he or she has the ability and appropriate support level to achieve the targeted performance level. • An employee must perceive that if he or she does reach the performance level, he or she will receive the reward • An employee must perceive the reward to be something of value to the employee. © 2008 Thomson/SouthWestern. All rights reserved. 7–20
  21. 21. Applying Expectancy Theory Principles • The Effort → Performance Link  Help employees reach desired performance levels through training and coaching. • The Performance → Reward Link  Deliver on commitments through proper appraisals of performance tied to specific levels of rewards. • The Reward  Rewards for performance must be meaningful to employees—give them what they want, not what you think they want. © 2008 Thomson/SouthWestern. All rights reserved. 7–21
  22. 22. EXHIBIT 7.7 • • • • • • • • • • • • • • Manager’s List of Potential Rewards Raises and bonuses Social functions Outings A night on the town A nice meal or lunch courtesy of the manager Lunch as a group that the manager buys Dinner Day off or time off Picnics for teams Tickets to sports, special events Direct oral praise to individual, one to one Direct praise to individual in presence of others Direct praise/recognition at group events Peer recognition © 2008 Thomson/SouthWestern. All rights reserved. • Letters of recognition to file or place where customers can see them • Passing on customer compliments and commendations in voice mail or in writing • Written praise • Certificates and plaques • Shirts, phones, pins, hats, cups, jackets, and so on, all with the name of the company on them • Opportunity to attend conference, special training course • A parking space • Additional responsibilities • Personal call or visit from CEO or senior executive • New furnishings or equipment • Being assigned more favorable jobs • Allowing people to bid on projects/ tasks they prefer Source: Adapted from Peter Meyer, “Can You Give Good, Inexpensive Rewards? Some Real-Life Answers,” Business Horizons, November– December, 1994, pp. 84–85. Copyright © 1994 by the Trustees of Indiana University, Kelley School of Business. Reprinted with permission. 7–22
  23. 23. Other Theories of Motivation (cont’d) • Goal-Setting Theory  Task goals, properly set and managed, can be an important employee motivator. • Supervisors can use goal setting to motivate by:  Setting specific goals.  Setting challenging but reasonably difficult goals.  Ensuring timely feedback to employees about goal achievement.  Allowing employees to participate in goal setting.  Making sure employees understand goal priorities.  Reinforcing goal accomplishments. © 2008 Thomson/SouthWestern. All rights reserved. 7–23
  24. 24. Other Theories of Motivation (cont’d) • Equity Theory  Posits that when people find themselves in situations of inequity or unfairness, they are motivated to act in ways to change their circumstances.  A perceived imbalance of rewards to inputs in comparison to others: – Equity: Inputs = Outcomes; Inequity: Inputs ≠ Outcomes • Factors Determining Equity  Employee inputs into the job—skill, education, experience, and motivation.  Outputs (performance rewards)—pay, advancement, recognition, or desirable job assignments. © 2008 Thomson/SouthWestern. All rights reserved. 7–24
  25. 25. Other Theories of Motivation (cont’d) • Employee Options for Dealing with Perceived Inequities:  Trying to increase the reward level by appeal to management or filing a grievance.  Decreasing the input level by putting in less job effort, taking longer breaks, or being less cooperative.  If equity cannot be restored, leaving the situation by transfer or seeking employment elsewhere. © 2008 Thomson/SouthWestern. All rights reserved. 7–25
  26. 26. Other Theories of Motivation (cont’d) • Reinforcement Theory  Law of effect: Behavior that is rewarded tends to be repeated.  Behavior that is punished tends to not be repeated.  • Positive Reinforcement  Providing positive consequences to encourage desired employee behaviors. • Punishment  Applying negative consequences to discourage undesired employee behaviors. © 2008 Thomson/SouthWestern. All rights reserved. 7–26
  27. 27. EXHIBIT 7.8 How and When to Praise Bob Nelson, author of 1001 Ways to Reward Employees, says the form of reward rated number one by employees is verbal appreciation or praise from their immediate boss. Written appreciation or praise ranked number two. Below are some guidelines regarding the effective use of praise. 1. 2. 3. 4. 5. Praise should be genuine. Praise should be specific. Give praise for better than expected performance. Praise should be timely. Give praise for its own sake, not as a secondary motive. © 2008 Thomson/SouthWestern. All rights reserved. Source: Bob Nelson, 1001 Ways to Reward Employees (New York: Workman Publishing Co., 1993). 7–27
  28. 28. EXHIBIT 7.9 Characteristics of Different Generations Traditionalists Baby Boomers Generation X Generation Y Pre 1945 1945–1964 1965–1980 1981–Present Age 63– Age 43–62 Age 27–42 Age 1–27 Formative Events Great Depression World Wars Post war Prosperity Globalization Downsizing Tech Boom Networking 9-11, World terrorism Internet Qualities Loyal Self-sacrificing Competitive Optimistic Independent Individualistic Entrepreneurial Lack loyalty Diverse Skilled Demanding Sophisticated Assets Wisdom Experience Persistence Social skills Tech skills Educated Multi-tasking skills Work ethic Lack Technology skills Technology skills Social skills Direction Focus Interpersonal skills Value Family Patriotism Material success Free expression Equity Skills more than titles Work-life balance Patriotism Family Respect Style Directive Take charge Do what’s right Respect authority Micromanage Proactive Work hard Skeptical Reluctant to network Outcome focused Bend rules as needed Plunge right in Negotiate Blend work/play Measure own success Strategies For Managing Respect their experience Value their loyalty Use their knowledge/ experience to help others Give important roles Value their contributions Show respect Minimize conflict Provide autonomy Give quick feedbacks Update their tech skills Give credit for results Train/upgrade Assign meaningful work Use in teams Promote positive, open environment. © 2008 Thomson/SouthWestern. All rights reserved. 7–28 Source: Adapted from Susan P. Eisner, “Managing Generation Y,” SAM Advanced Management Journal 70, Autumn, 2005, v. 70, pp 4–13.
  29. 29. Lessons from the Theories: Five Steps to Motivating Employees 1. Help make employees’ jobs interesting. 2. Provide clear performance objectives. 3. Support employees’ performance efforts. 4. Provide timely performance feedback. 5. Reward employees’ performance. © 2008 Thomson/SouthWestern. All rights reserved. 7–29
  30. 30. Important Terms Important Terms • baby boomer generation • dissatisfier (or hygiene) factors • ego (or esteem) • need equity theory • expectancy theory • extrinsic motivation • Generation X • Generation Y • goal-setting theory • hierarchy of needs © 2008 Thomson/SouthWestern. All rights reserved. • intrinsic motivation • motivation • physiological (or biological) need • reinforcement theory • safety (or security) need • satisfier (or motivator) factors • self-fulfillment (or self actualization) needs • social (or belonging) need • Traditional Generation 7–30