1-1Copyright © 2017 Pearson Education, Inc. We.docx

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Copyright © 2017 Pearson Education, Inc.
Welcome to this Organizational Behavior course that uses the
17th edition of the textbook, Organizational Behavior by
Robbins and Judge. This is considered among the most widely
used OB textbooks in the world. Robbins and Judge are
recognized as definitive aggregators of OB concepts,
applications, and practices. The course and this book will
provide you with a resource that will benefit you throughout
your degree program and your professional life.
1
Motivation: From Concepts To Applications
8
Chapter 8: Motivations: From Concepts to Applications
2

Learning Objectives
Describe how the job characteristics model motivates by
changing the work environment.
Compare the main ways jobs can be redesigned.
Explain how specific alternative work arrangements can
motivate employees.
Describe how employee involvement measures can motivate
employees.
Demonstrate how the different types of variable-pay programs
can increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of intrinsic rewards.
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After studying this chapter, you should be able to:
Describe how the job characteristics model motivates by
changing the work environment.
Compare the main ways jobs can be redesigned.
Explain how specific alternative work arrangements can
motivate employees.
Describe how employee involvement measures can motivate
employees.
Demonstrate how the different types of variable-pay programs
can increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of intrinsic rewards.
3
The Job Characteristics Model
8-4

LO 1
The Job Characteristics Model (JCM) as shown here in Exhibit
8-1, proposes that any job may be described by five core job
dimensions:
Skill variety is the degree to which the job requires a variety of
different activities, so the worker can use a number of different
skills and talent.
Task identity is the degree to which the job requires completion
of a whole and identifiable piece of work.
Task significance is the degree to which the job has a
substantial impact on the lives or work of other people.
Autonomy is the degree to which the job provides substantial
freedom, independence, and discretion to the individual in
scheduling the work and determining the procedures to be used
in carrying it out.
Feedback is the degree to which carrying out the work activities
required by the job results in the individual obtaining direct and
clear information about the effectiveness of his or her
performance.
The first three dimensions—skill variety, task identity, and task
significance—combine to create meaningful work the incumbent
will view as important, valuable, and worthwhile. From a
motivational standpoint, the JCM proposes that individuals
obtain internal rewards when they learn (knowledge of results)
that they personally (experienced responsibility) have
performed well on a task they care about (experienced
meaningfulness). Individuals with a high growth need are more
likely to experience the critical psychological states when their

jobs are enriched—and respond to them more positively—than
are their counterparts with low growth need.
4
The Job Characteristics Model
The core dimensions of the job characteristics model (JCM) can
be combined into a single predictive index called the motivating
potential score (MPS).
Evidence supports the JCM concept that the presence of a set of
job characteristics does generate higher and more satisfying job
performance.
A few studies have tested the JCM in different cultures, but the
results aren’t very consistent.
8-5
LO 1
The core dimensions of the JCM can be combined into a single
predictive index called the motivating potential score (MPS). To
be high on motivating potential, jobs must be high on at least
one of the three factors that lead to experienced
meaningfulness, and high on both autonomy and feedback. If
jobs score high on motivating potential, the model predicts that
motivation, performance, and satisfaction will improve and
absence and turnover will be reduced.
Much evidence supports the JCM concept that the presence of a
set of job characteristics—variety, identity, significance,

autonomy, and feedback—does generate higher and more
satisfying job performance. But apparently we can better
calculate motivating potential by simply adding the
characteristics rather than using the formula.
A few studies have tested the job characteristics model in
different cultures, but the results aren’t very consistent. One
study suggested that when employees are “other oriented” (i.e.,
concerned with the welfare of others at work), the relationship
between intrinsic job characteristics and job satisfaction was
weaker. The fact that the job characteristics model is relatively
individualistic (i.e., considering the relationship between the
employee and his or her work) suggests job enrichment
strategies may not have the same effects in collectivistic
cultures as in individualistic cultures (such as the United
States). Another study suggested the degree to which jobs had
intrinsic job characteristics predicted job satisfaction and job
involvement equally well for American, Japanese, and
Hungarian employees.
5
Compare the Main Ways
Jobs Can Be Redesigned
Repetitive jobs provide little variety, autonomy, or motivation.
Job Rotation
Referred to as cross-training.
Periodic shifting from one task to another.
Strengths: reduces boredom, increases motivation, and helps
employees better understand their work contributions.
Weaknesses: creates disruptions, requires extra time for
supervisors addressing questions and training time, and reduced
efficiencies.
8-6

LO 2
People generally seek out jobs that are challenging and
stimulating, but repetitive jobs provide little variety, autonomy,
or motivation. One way to make repetitive jobs more interesting
is job rotation, which is also known as cross-training. It
involves periodic shifting of an employee from one task to
another. When an activity is no longer challenging, the
employee is shifted to a different task.
The strengths of job rotation are that it reduces boredom,
increases motivation, and helps employees better understand
their work contributions. Indirect benefits include employees
with wider ranges of skills that give management more
flexibility in scheduling, adapting to changes, and filling
vacancies. Some weaknesses of job rotation include disruptions,
a need for extra time for supervisors addressing questions and
training time, and reduced efficiencies.
6
Compare the Main Ways
Jobs Can Be Redesigned
Relational Job Design
To make jobs more prosocially motivating:
Connect employees with the beneficiaries of their work.
Meet beneficiaries firsthand.
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LO 2

While redesigning jobs on the basis of job characteristics theory
is likely to make work more intrinsically motivating to people,
more contemporary research is focusing on how to make jobs
more prosocially motivating to people. One way to make jobs
more prosocially motivating is to better connect employees with
the beneficiaries of their work, for example, by relating stories
from customers who have found the company’s products or
services to be helpful. Beneficiaries of organizations might
include customers, clients, patients, and users of products or
services. Meeting beneficiaries firsthand allows employees to
see that their actions affect a real, live person, and that their
jobs have tangible consequences. In addition, connections with
beneficiaries make customers or clients more accessible in
memory and more emotionally vivid, which leads employees to
consider the effects of their actions more. Finally, connections
allow employees to easily take the perspective of beneficiaries,
which fosters higher levels of commitment.
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How Specific Alternative Work Arrangements Motivate
Employees
8-8
LO 3
Alternative work arrangements are also used to boost
motivation. They include flextime, defined as flexible work
hours like those shown in Exhibit 8-2. This allows employees

some discretion over when they arrive at and leave work.
Benefits include reduced absenteeism, increased productivity,
reduced overtime expense, reduced hostility toward
management, and increased autonomy and responsibility for
employees. A major drawback is that it’s not applicable to all
jobs or all workers.
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Employees
Job Sharing
Two or more people split a 40-hour-a-week job.
Declining in use.
Can be difficult to find compatible pairs of employees who can
successfully coordinate the intricacies of one job.
Increases flexibility and can increase motivation and
satisfaction when a 40-hour-a-week job is just not practical.
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LO 3
Job sharing allows two or more individuals to split a traditional
40-hour-a-week job. Only 18 percent of larger organizations
now offer job sharing, a 29 percent decrease since 2008.
Reasons it is not more widely adopted are likely the difficulty
of finding compatible partners to share a job and the historically
negative perceptions of individuals not completely committed to
their job and employer. The major drawback is finding
compatible pairs of employees who can successfully coordinate
the intricacies of one job.
However, job sharing allows an organization to draw on the
talents of more than one individual in a given job. From the

employee’s perspective, job sharing increases flexibility and
can increase motivation and satisfaction when a 40-hour-a-week
job is just not practical.
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Employees
Telecommuting
Employees who do their work at home at least two days a week
on a computer that is linked to their office.
Virtual office
Some well-known organizations actively discourage
telecommuting, but for most organizations it remains popular.
8-10
LO 3
Telecommuting refers to employees who do their work at home
at least two days a week on a computer that is linked to their
office.
Large organizations such as Yahoo! And Best Buy have
eliminated telecommuting believing it undermines corporate
culture, but for it remains popular for many organizations.
Well-known organizations that actively encourage
telecommuting include AT&T, IBM, American Express, Sun
Microsystems, and a number of U.S. government agencies.
10
Employees

Telecommuting Advantages
Larger labor pool
Higher productivity
Improved morale
Reduced office-space costs
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LO 3
There are reasons for and against telecommuting. The
advantages include a larger labor pool of workers, higher
productivity, improved morale, and reduced office-space costs.
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Employees
Telecommuting Disadvantages
Employer
Less direct supervision of employees.
Difficult to coordinate teamwork.
Difficult to evaluate non-quantitative performance.
Employee
May not be noticed for his or her efforts.
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LO 3
Disadvantages of telecommuting for the employer include less

direct supervision of employees, difficulty coordinating
teamwork, and difficulty evaluating non-quantitative
performance. Disadvantages for the employee include that he or
she may not be as noticed for his or her efforts.
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Employees
8-13
LO 3
Telecommuting seems to mesh with the cultural transition to
knowledge work.
As the OB poll indicates, people with more education are more
apt to work from home.
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Employee Involvement
and Employee Motivation
Employee Involvement: a participative process that uses
employees’ input to increase their commitment to the
organization’s success.
Examples of Employee Involvement Programs
Participative management
Representative participation
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LO 4

Employee involvement refers to a participative process that uses
employees’ input to increase their commitment to the
organization’s success. Two examples of such programs are
participative management and representative participation.
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Participative management
Joint decision making.
Acts as a panacea for poor morale and low productivity.
Trust and confidence in leaders is essential.
Studies of the participation-performance have yielded mixed
results.
8-15
LO 4
Participative management is the first of the options for
employee involvement programs. Common to all participative
management programs is joint decision making, wherein
subordinates share a significant degree of decision making
power with their immediate superiors. Participative management
has, at times, been promoted as a panacea for poor morale and
low productivity. But for it to work, employees must be engaged
in issues relevant to their interests so they’ll be motivated, they

must have the competence and knowledge to make a useful
contribution, and trust and confidence must exist among all
parties.
Studies of the participation-performance relationship have
yielded mixed findings. Organizations that institute
participative management do have higher stock returns, lower
turnover rates, and higher estimated labor productivity,
although these effects are typically not large. A careful review
of research at the individual level shows participation typically
has only a modest influence on employee productivity,
motivation, and job satisfaction. Of course, this doesn’t mean
participative management can’t be beneficial under the right
conditions. But it is not a sure means for improving
performance.
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Representative participation
Workers are represented by a small group of employees who
actually participate in decision making.
Almost every country in Western Europe requires representative
participation.
The two most common forms:
Works councils
Board representatives
8-16
LO 4
Representative participation is spreading. Almost every country
in Western Europe has some type of legislation requiring it. It is

the most widely legislated form of employee involvement
around the world. The goal is to redistribute power within an
organization, putting labor on a more equal footing with the
interests of management and stockholders.
The two most common forms include works councils that link
employees with management. They are groups of nominated or
elected employees who must be consulted when management
makes decisions involving personnel. Second is board
representatives, who are employees who sit on a company’s
board of directors and represent the interests of the firm’s
employees. The overall influence of representative participation
seems to be minimal. The evidence suggests that works councils
are dominated by management and have little impact on
employees or the organization. If one were interested in
changing employee attitudes or in improving organizational
performance, representative participation would be a poor
choice.
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Variable-Pay Programs
What to Pay:
Complex process that entails balancing internal equity and
external equity.
Some organizations prefer to pay leaders by paying above
market.
Paying more may net better-qualified and more highly
motivated employees who may stay with the firm longer.
8-17
LO 5

Now, let’s talk about using rewards to motivate people, and
specifically, what to pay employees. As we saw in Chapter 3,
pay is not a primary factor driving job satisfaction. However, it
does motivate people, and companies often underestimate its
importance in keeping top talent. A 2006 study found that while
45% of employers thought pay was a key factor in losing top
talent, 71% of top performers called it a top reason.
So, what should an organization do? How should the pay
structure be established? The answer is not easy – it’s a
complex process that entails balancing internal equity and
external equity. Some organizations prefer to pay leaders by
paying above market. Keep in mind that paying more may net
better-qualified and more highly motivated employees who may
stay with the firm longer.
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How to Pay:
Variable pay programs:
Piece-rate plans
Merit-based pay
Bonuses
Profit sharing
Employee stock ownership plans
Earnings therefore fluctuate up and down.
8-18
LO 5

Rewarding individual employees through variable-pay programs
is becoming more common in the workplace. A number of
organizations are moving away from paying solely on
credentials or length of service. Piece-rate plans, merit-based
pay, bonuses, profit sharing, and employee stock ownership
plans are all forms of a variable-pay program, which base a
portion of an employee’s pay on some individual and/or
organizational measure of performance. Individual earnings
therefore fluctuate up and down.
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Piece-Rate Pay
A pure piece-rate plan provides no base salary and pays the
employee only for what he or she produces.
Limitation: not a feasible approach for many jobs.
The main concern for both individual and team piece-rate
workers is financial risk.
8-19
LO 5
The first of the variable pay programs is piece-rate pay plans.
Here, workers are paid a fixed sum for each unit of production
completed. A pure piece-rate plan provides no base salary and
pays the employee only for what he or she produces. The main
concern for both individual and team piece-rate workers is
financial risk.
The main limitation of the piece rate plan is that it doesn’t work
for all types of jobs. Although incentives are motivating and
relevant for some jobs, it is unrealistic to think they can

constitute the only piece of some employees’ pay.
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Merit-Based Pay
Allows employers to differentiate pay based on performance.
Creates perceptions of relationships between performance and
rewards.
Limitations:
Based on annual performance appraisals.
Merit pool fluctuates.
Union resistance.
8-20
LO 5
The second variable pay method is the merit-based pay plan.
These plans are based on performance appraisal ratings. Their
main advantage is that they allow employers to differentiate pay
based on performance, and so create perceptions of
relationships between performance and rewards. Most large
organizations have merit pay plans, particularly for salaried
employees. Limitations to merit-based plans include that they
are based on annual performance appraisals, that the merit pool
fluctuates based on economic conditions, and that unions
typically resist merit-based pay plans.
20
Bonuses
An annual bonus is a significant component of total

compensation for many jobs.
Increasingly include lower-ranking employees.
Many companies now routinely reward production employees
with bonuses when profits improve.
Downside: employees’ pay is more vulnerable to cuts.
8-21
LO 5
The use of bonuses is becoming more common in many
organizations. An annual bonus is a significant component of
total compensation for many jobs.
Bonus plans increasingly include lower-ranking employees;
many companies now routinely reward production employees
with bonuses in the thousands of dollars when profits improve.
The incentive effects of performance bonuses should be higher
than those of merit pay because rather than paying for
performance years ago, which was rolled into base pay, bonuses
reward recent performance. When times are bad, firms can cut
bonuses to reduce compensation costs. The downside of bonuses
is that employees’ pay is more vulnerable to cuts.
21
Profit-Sharing Plans
Organization-wide programs that distribute compensation based
on some established formula centered around a company’s
profitability.
Appear to have positive effects on employee attitudes at the
organizational level.
Employees have a feeling of psychological ownership.

8-22
LO 5
Profit-sharing plans are organization-wide programs that
distribute compensation based on some established formula
centered around a company’s profitability. Compensation can be
direct cash outlays or, particularly for top managers, allocations
of stock options. Profit-sharing plans at the organizational level
appear to have positive impacts on employee attitudes;
employees report a greater feeling of psychological ownership.
22
Employee Stock Ownership Plan (ESOP)
A company-established benefit plan in which employees acquire
stock, often at below-market prices, as part of their benefits.
Increases employee satisfaction and innovation.
Employees need to psychologically experience ownership.
Can reduce unethical behavior.
8-23
LO 5
Another variable-pay option is the employee stock ownership
plan, or ESOP. An ESOP is a company-established benefit plan
in which employees acquire stock, often at below-market prices,
as part of their benefits.

Research on ESOPs indicates that they increase employee
satisfaction and innovation. ESOPs have the potential to
increase employee job satisfaction and work motivation, but
employees need to psychologically experience ownership.
ESOP plans for top management can reduce unethical behavior.
CEOs are more likely to manipulate firm earnings reports to
make themselves look good in the short run when they don’t
have an ownership share, even though this manipulation will
eventually lead to lower stock prices. However, when CEOs
own a large amount of stock, they report earnings accurately
because they don’t want the negative consequences of declining
stock prices.
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Evaluation of Variable Pay
Do variable-pay programs increase motivation and productivity?
Generally, yes, but that doesn’t mean everyone is equally
motivated by them.
8-24
LO 5
Do variable-pay programs increase motivation and productivity?
Generally, yes, but that doesn’t mean everyone is equally
motivated by them.
Managers should monitor their employees’ performance-reward

expectancy, since a combination of elements that makes
employees feel that their greater performance will yield them
greater results will be the most motivating.
24
Show How Flexible Benefits
Turn Benefits Into Motivators
Developing a Benefits Package
Flexible benefits individualize rewards.
Allow each employee to choose the compensation package that
best satisfies his or her current needs and situation.
Today, almost all major corporations in the United States offer
flexible benefits.
However, it may be surprising that their usage is not yet global.
8-25
LO 6
Flexible benefits individualize rewards by allowing each
employee to choose the compensation package that best satisfies
his or her current needs and situation.
Flexible benefits can accommodate differences in employee
needs based on age, marital status, spouses’ benefit status, and
number and age of dependents.
Today, almost all major corporations in the United States offer
flexible benefits.
However, it may be surprising that their usage is not yet global.
25
Identify the Motivational

Benefits of Intrinsic Rewards
Employee Recognition Programs
Organizations are increasingly recognizing that important work
rewards can be both intrinsic and extrinsic.
Rewards are intrinsic in the form of employee recognition
programs and extrinsic in the form of compensation systems.
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LO 7
Organizations are increasingly recognizing that important work
rewards can be both intrinsic and extrinsic. Rewards are
intrinsic in the form of employee recognition programs and
extrinsic in the form of compensation systems.
Employee recognition programs range from a spontaneous and
private thank-you to widely publicized formal programs in
which specific types of behavior are encouraged and the
procedures for attaining recognition are clearly identified.
An obvious advantage of recognition programs is that they are
inexpensive: praise is free! With or without financial rewards,
they can be highly motivating to employees.
26
Implications for Managers
Recognize individual differences.
Spend the time necessary to understand what’s important to
each employee.
Design jobs to align with individual needs and maximize their
motivation potential.
Use goals and feedback.
You should give employees firm, specific goals, and they
should get feedback on how well they are faring in pursuit of

those goals.
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The study of what motivates individuals is ultimately key to
organizational performance. Employees whose differences are
recognized, who feel valued, and who have the opportunity to
work in jobs that are tailored to their strengths and interests
will be motivated to perform at the highest levels. Employee
participation also can increase employee productivity,
commitment to work goals, motivation, and job satisfaction.
However, we cannot overlook the powerful role of
organizational rewards in influencing motivation. Pay, benefits,
and intrinsic rewards must be carefully and thoughtfully
designed in order to enhance employee motivation toward
positive organizational outcomes.
Managers should:
Recognize individual differences. Spend the time necessary to
understand what’s important to each employee. Design jobs to
align with individual needs and maximize their motivation
potential.
Use goals and feedback. You should give employees firm,
specific goals, and they should get feedback on how well they
are faring in pursuit of those goals.
27
Allow employees to participate in decisions that affect them.
Employees can contribute to setting work goals, choosing their
own benefits packages, and solving productivity and quality
problems.

Link rewards to performance.
Rewards should be contingent on performance, and employees
must perceive the link between the two.
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In addition, managers should:
Allow employees to participate in decisions that affect them.
Employees can contribute to setting work goals, choosing their
own benefits packages, and solving productivity and quality
problems.
Link rewards to performance. Rewards should be contingent on
performance, and employees must perceive the link between the
two.
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Check the system for equity.
Employees should perceive that experience, skills, abilities,
effort, and other obvious inputs explain differences in
performance and hence in pay, job assignments, and other
obvious rewards.
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Finally, managers should:
Check the system for equity. Employees should perceive that
experience, skills, abilities, effort, and other obvious inputs
explain differences in performance and hence in pay, job

assignments, and other obvious rewards.
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8-30
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1-1
1
What Is

Organizational
Behavior?
1
Chapter 1: What Is Organizational Behavior?
2
Learning Objectives
Demonstrate the importance of interpersonal skills in the
workplace.
Define organizational behavior (OB).
Show the value to OB of systematic study.
Identify the major behavioral science disciplines that contribute
to OB.
Demonstrate why few absolutes apply to OB.
Identify managers’ challenges and opportunities in applying OB
concepts.
Compare the three levels of analysis in this text’s OB model.
1-3
The first chapter entitled “What is Organizational Behavior,”
begins by defining seven learning objectives for the chapter.
These lay a foundational understanding for the origins of OB
and its applications in management and organizational
existence. You should focus on this chapter to ground yourself,

and as a starting place for the more complex and significant
concepts throughout the book. We will elaborate on each of
these objectives to ensure that you acquire a base knowledge of
the core OB competencies.
3
Demonstrate the Importance of
Interpersonal Skills in the Workplace
Interpersonal skills are important because…
‘Good places to work’ have better financial performance.
Better interpersonal skills result in lower turnover of quality
employees and higher quality applications for recruitment.
There is a strong association between the quality of workplace
relationships and job satisfaction, stress, and turnover.
It fosters social responsibility awareness.
1-4
LO 1
Managers need a cadre of skills to create a productive
workplace, including technical and quantitative skills. However,
leadership and communication skills are critical to
organizational success. When managers have solid interpersonal
skills, there are positive work outcomes for the organization.
These outcomes include lower turnover of strong employees,
improved recruitment pools for filling employment positions,
and a better bottom line.
4
Manager: Someone who gets things done through other people
in organizations.

Organization: A consciously coordinated social unit composed
of two or more people that functions on a relatively continuous
basis to achieve a common goal or set of goals.
Planning, organizing, leading, and controlling.
Mintzberg concluded that managers perform ten different,
highly interrelated roles or sets of behaviors attributable to their
jobs.
1-5
Describe the Manager’s
Functions, Roles, And Skills
LO 2
A manager is someone in the organization who gets things done
through the efforts of other people. It is important to keep in
mind that an organization is defined as a social entity comprised
of two or more people and can be found at any level within the
organization.
The work of managers revolves around four functions: planning,
organizing, leading, and controlling. When thinking about these
functions, one realization comes forward: that they all involve
the interpersonal skills of communication for their effective
implementation.
Henry Mintzberg looked at management differently when he
defined the 10 roles of managers. As shown on the next slide,
you will see that they again involve implementation through the
interpersonal skills of communication.
5

1-6
Functions, Roles, and Skills
LO 2
In fact, if you look at the three categories of roles suggested by
Mintzberg – interpersonal, informational, and decisional – you
will note the distribution of communication and interpersonal
skills such as tact, diplomacy, and the like, focusing on both
internal and external audiences in the role’s activities. For this
reason, developing the interpersonal skills introduced in this
course are essential to the professional development of young
professionals and are essential to managerial success.
6
Functions, Roles, and Skills
Management Skills
Technical Skills – the ability to apply specialized knowledge or
expertise. All jobs require some specialized expertise, and many
people develop their technical skills on the job.
Human Skills – the ability to work with, understand, and
motivate other people, both individually and in groups.
Conceptual Skills – the mental ability to analyze and diagnose
complex situations.
1-7
LO 2

What skills do managers need to effectively achieve their goals?
Researchers have identified several skills that set successful
managers apart from their less effective counterparts. These
include technical skills, human skills, and conceptual skills.
7
Effective Versus Successful Managerial Activities
Luthans and his associates found that all managers engage in
four managerial activities:
Traditional management
Communication
Human resource management
Networking
1-8
LO 2
Luthans and his research associates found that all managers
engage in four managerial activities.
Traditional management is decision making, planning, and
controlling. The average manager spent 32 percent of his or her
time performing this activity.
Communication involves exchanging routine information and
processing paperwork. The average manager spent 29 percent of
his or her time performing this activity.

Human resource management includes motivating, disciplining,
managing conflict, staffing, and training. The average manager
spent 20 percent of his or her time performing this activity.
Networking is socializing, politicking, and interacting with
outsiders. The average manager spent 19 percent of his or her
time performing this activity.
8
Effective Versus Successful Managerial Activities
1-9
LO 2
Managers who were high performing in these activities were
found to be fast-tracked through organizational promotion.
9
Define Organizational Behavior
Organizational behavior (OB) is a field of study that
investigates the impact that individuals, groups, and structure
have on behavior within organizations for the purpose of
applying such knowledge toward improving an organization’s
effectiveness.
1-10
LO 2

Organizational behavior (OB) is a field of study that
investigates the impact that individuals, groups, and structure
have on behavior within organizations for the purpose of
applying such knowledge toward improving an organization’s
effectiveness. More specifically, OB explores motivation;
leader behavior and power; interpersonal communication; group
structure and processes; attitude development and perception;
change processes; conflict and negotiation; and work design.
10
Complementing Intuition
with Systematic Study
.
Systematic Study of Behavior
Behavior generally is predictable if we know how the person
perceived the situation and what is important to him or her.
Evidence-Based Management (EBM)
Complements systematic study.
Argues for managers to make decisions based on evidence.
Intuition
Systematic study and EBM add to intuition, or those “gut
feelings” about “why I do what I do” and “what makes others
tick.”
If we make all decisions with intuition or gut instinct, we’re
likely working with incomplete information.
1-11
LO 3

Many people say that the ideas and concepts of OB are common
sense. However, the systematic study of OB has come closer to
finding ways to predict the behavior of individuals and groups
through an understanding of the situation and composition of
the people. Evidence-based management (EBM) complements
systematic study by basing managerial decisions on the best
available scientific evidence.
“Intuition” is a decision-making approach advocated by
numerous managers and pundits. However, if we make all
decisions with intuition or gut instinct, we’re likely working
with incomplete information. EBM and the systematic study of
behavior enhance the understanding of these internal
contributors to organization behavior.
11
Big Data
Background:
The use of Big Data for managerial practices is a relatively new
area, but one that holds convincing promise.
Current Usage:
The reasons for data analytics include predicting any event,
detecting how much risk is incurred at any time, and preventing
catastrophes.
New Trends:
The use of Big Data for understanding, helping, and managing
people is relatively new but holds promise.
Limitations:
Use evidence as much as possible to inform your intuition and
experience.
1-12
LO 3

The recent availability of “big data” shows promise for the field
of OB, potentially providing evidence that can be used to
support intuition and experience.
12
Organizational behavior is an applied behavioral science that is
built upon contributions from a number of behavioral
disciplines:
Psychology
Social psychology
Sociology
Anthropology
1-13
Identify the Major Behavioral Science Disciplines That
Contribute to OB
LO 4
OB is a behavioral social science that merges concepts from a
number of different social sciences to apply specifically to the
organizational setting at both the individual (or micro) and
group (or macro) levels. The most significant social sciences
are psychology, social psychology, sociology, and
anthropology. Look at each for a moment.
13
1-14

Contribute to OB
LO 4
This exhibit shows the contributions made by other disciplines
to the development of organizational behavior. Notice the
predominant areas of psychology, social psychology, sociology,
and anthropology. Each of the disciplines has contributed
specific concepts and theories to the study of OB and its
increasing applications.
14
Contribute to OB
Psychology
seeks to measure, explain, and sometimes change the behavior
of humans and other animals.
Social psychology
blends the concepts of psychology and sociology.
1-15
LO 4
Psychology focuses on the individual level by seeking to
measure, explain, and sometimes change behaviors in
individuals. This area of study offers insights into such areas as
learning, training, decision making, and employee selection.

Social psychology moves beyond individual analysis to look at
group behavior and how individuals can influence one another.
It blends together sociology and psychology and looks primarily
at change, communication, and group interactions.
15
Sociology
studies people in relation to their social environment or culture.
Anthropology
is the study of societies to learn about human beings and their
activities.
1-16
Contribute to OB
LO 4
Sociology looks at the relationship between people and their
environment. Sociologists’ main contribution to OB has been a
better understanding of group behavior, particularly in formal
and complex organizations. Another key area that sociologists
contribute to in OB is organizational culture, a key factor in OB
studies.
Anthropologists study societies to learn about human beings and
their activities. They help us understand the differences between
different groups in terms of their values, attitudes, and
behaviors.

16
Demonstrate Why Few
Absolutes Apply to OB
There are few, if any, simple and universal principles that
explain organizational behavior.
Contingency variables
situational factors are variables that moderate the relationship
between the independent and dependent variables.
1-17
LO 5
There are few absolutes in organizational behavior. When
making decisions, you must always take into account the
situational factors that can change the relationship between two
variables. Every situation has the potential to have unseen
factors or even known factors that can change rapidly. Opening
your minds to detecting these changes and unseen factors, and
to being ready with optional responses, is essential to effective
management.
17
Identify the Challenges and
Opportunities of OB Concepts
1-18
LO 6

Today’s economic uncertainty has created new challenges in the
workplace. This exhibit shows some of the types of options
individuals may have or would like to have.
18
Responding to economic pressure
In tough economic times, effective management is an asset.
In good times, understanding how to reward, satisfy, and retain
employees is at a premium.
In bad times, issues like stress, decision making, and coping
come to the forefront.
1-19
LO 6
During economic difficulties, the need for effective
management is heightened. Anyone can manage during good
times; it is much tougher to manage effectively through
economic struggles.
In bad economic times, resource constraints may force managers
to make tough decisions, such as whether to lay off employees.
It can also be difficult to motivate employees when resources
are limited. Moreover, managers must be able to deal with
employees who are stressed about their futures.
19

Responding to globalization
Increased foreign assignments.
Working with people from different cultures.
Overseeing movement of jobs to countries with low-cost labor.
Adapting to differing cultural and regulatory norms.
1-20
LO 6
Globalization means that organizations now exist in an
environment with no national borders. As a result, the
manager’s job has changed. Managers today need to have a
broader perspective when making decisions.
As foreign assignments increase, you will need to be able to
manage a workforce that is different than what you may be used
to, and which may bring different needs, aspirations, and
attitudes to the workplace.
You will also have individuals who come from different
cultures coming to work in your own country. You will need to
find ways to accommodate their needs and help them assimilate
to your workplace culture.
As more jobs move to countries with low-cost labor, managers
will need to balance the needs of their organizations with the
needs of the countries in which they operate.
In the new global village, managers need to understand the
implications of differing cultural and legal practices on their

operations. Violating local regulations and practices could have
serious consequences for the organization.
20
1-21
LO 6
As students of OB, we can investigate what factors lead
employees to make various choices and how their experiences
affect their perceptions of their workplaces. In turn, this can
help us predict organizational outcomes. As shown in the OB
Poll for example, the days when women stayed home because it
was expected are just a memory in some cultures, while in
others, women still face significant barriers to entry into the
workplace.
21
Managing workforce diversity
Workforce diversity – organizations are becoming more
heterogeneous in terms of gender, age, race, ethnicity, sexual
orientation, and inclusion of other diverse groups.
1-22
LO 6

As the borders are disappearing, we are seeing more and more
heterogeneity in the workplace. Managers today need to
embrace diversity and find ways to manage it effectively. The
changing demographics have shifted management philosophy in
a way that recognizes and utilizes differences to create
productivity, profitability, and welcoming workplace cultures.
22
Improving customer service
Service employees have substantial interaction with customers.
Employee attitudes and behavior are associated with customer
satisfaction.
Need a customer-responsive culture.
1-23
LO 6
Many jobs today involve substantial interaction with customers.
Managers can increase the chance that these interactions will be
successful by focusing on employee attitudes and behavior.
Companies need to develop customer-responsive cultures
wherein employees are friendly and courteous, accessible,
knowledgeable, prompt with their responses, and willing to do
what is necessary to ensure that customers are satisfied.
23

Improving people skills
People skills are essential to managerial effectiveness.
OB provides the concepts and theories that allow managers to
predict employee behavior in given situations.
1-24
LO 6
Because organizations are comprised of people, organizations
cannot achieve desired outcomes without them. Therefore, the
skills to manage people successfully are essential to the
effectiveness of anyone in a managerial or leadership role. OB
provides the concepts and theories that help predict behavior to
create a more effective organization, accomplishing desired
goals.
24
Working in networked organizations
Networked organizations are becoming more pronounced.
A manager’s job is fundamentally different in networked
organizations.
Challenges of motivating and leading “online” require different
techniques.
1-25
LO 6

Networked organizations are proliferating. These are
organizations that are spread over geographic, time, or other
boundaries and that are connected by technology. Managing and
leading people who never see each other but who work together
requires a different set of management and leadership skills.
25
Using social media at work
Policies on accessing social media at work.
When, where, and for what purpose.
Impact of social media on employee well-being.
1-26
LO 6
Social media is a difficult issue for today’s manager, presenting
both a challenge and an opportunity for OB.
26
Enhancing employee well-being at work
The creation of the global workforce means work no longer
sleeps.
Communication technology has provided a vehicle for working
at any time or any place.
Employees are working longer hours per week.
The lifestyles of families have changed —creating conflict.
Balancing work and life demands now surpasses job security as

an employee priority.
1-27
LO 6
Because of the expansion of networked business to global
competition, time is no longer a definable boundary of
organizational activity and personnel responsibility. Managers
and leaders of organizations are challenged to help employees
find ways to balance work and life roles to ensure they remain
effective and viable members of the team. Employees who feel
as though they don’t get a break and who believe they must
work twenty-four hours a day can be less effective, suffering
from burnout and dissatisfaction.
27
Creating a positive work environment
Positive organizational scholarship is concerned with how
organizations develop human strength, foster vitality and
resilience, and unlock potential.
This field of study focuses on employees’ strengths versus their
limitations, as employees share situations in which they
performed at their personal best.
1-28
LO 6

Creating a positive work environment has been found to be a
basis for employee satisfaction, increased productivity, and
longevity of skilled personnel. Responsibility for positive work
environments is not a part of traditional management practice,
but as the work environment has changed in terms of
characteristics and behaviors of younger generations, the focus
on making work a good place to be has become more important
for success. Positive organizational scholarship studies what is
“good” about organizations.
28
Improving ethical behavior
Ethical dilemmas and ethical choices are situations in which an
individual is required to define right and wrong conduct.
Good ethical behavior is not so easily defined.
Organizations distribute codes of ethics to guide employees
through ethical dilemmas.
Managers need to create an ethically healthy climate.
1-29
LO 6
Increased scrutiny by society and governmental entities has
increased business concerns with ethical behavior. Lapses in
ethical behavior have resulted in everything ranging from public
sanctions against businesses to legal penalties against a firm
and its managers.
Ethical dilemmas require managers to make decisions involving

right and wrong conduct. Managers and leaders must clearly
define what constitutes appropriate, ethical behavior by the
organization and its people, and they must lead by example.
29
Three Levels of Analysis in
This Text’s OB Model
1-30
LO 7
This book proposes three types of variables—inputs, processes,
and outcomes—at three levels of analysis: individual, group,
and organizational.
The basic OB model here proceeds from left to right, with
inputs leading to processes and processes leading to outcomes.
Notice that the model also shows that outcomes can influence
inputs in the future.
30
This Book’s OB Model
1-31
Inputs
Variables like personality, group structure, and organizational
culture that lead to processes.
Group structure, roles, and team responsibilities are typically
assigned immediately before or after a group is formed.
Organizational structure and culture change over time.

LO 7
Inputs are factors that exist in advance of the employment
relationships. For example, individual diversity characteristics,
personality, and values are shaped by a combination of an
individual’s genetic inheritance and childhood environment.
Group structure, roles, and team responsibilities are typically
assigned immediately before or after a group is formed.
Finally, organizational structure and culture are usually the
result of years of development and change as the organization
adapts to its environment and builds up customs and norms.
31
1-32
Processes
If inputs are like the nouns in organizational behavior,
processes are like verbs.
Defined as actions that individuals, groups, and organizations
engage in as a result of inputs, and that lead to certain
outcomes.
LO 7

Processes are actions that individuals, groups, and organizations
engage in as a result of inputs, and that lead to certain
outcomes.
At the individual level, processes include emotions and moods,
motivation, perception, and decision making.
At the group level, they include communication, leadership,
power and politics, and conflict and negotiation.
Finally, at the organizational level, processes include human
resource management and change practices.
32
1-33
Outcomes
Key variables that you want to explain or predict, and that are
affected by some other variables.
LO 7
Scholars have emphasized individual-level outcomes like
attitudes and satisfaction, task performance, citizenship
behavior, and withdrawal behavior.
At the group level, cohesion and functioning are the dependent
variables.
Finally, at the organizational level, we look at overall
profitability and survival.

Because these outcomes will be covered in all of the chapters,
we’ll briefly discuss each of them on the following slides, so
you can understand what the “goal” of OB will be.
33
Outcome Variables
Attitudes and stress
Employee attitudes are the evaluations employees make, ranging
from positive to negative, about objects, people, or events.
Stress is an unpleasant psychological process that occurs in
response to environmental pressures.
1-34
LO 7
The belief that satisfied employees are more productive than
dissatisfied employees has been a basic tenet among managers
for years, though only now has research begun to support it.
Some people might think that influencing employee attitudes
and stress is purely soft stuff, and not the business of serious
managers, but as we will show, attitudes often have behavioral
consequences that relate directly to organizational
effectiveness.
34
Outcome Variables
Task performance
The combination of effectiveness and efficiency at doing your
core job tasks is a reflection of your level of task performance.
1-35
LO 7

Task performance is the most important human output
contributing to organizational effectiveness, so in every chapter
we devote considerable time to discussing how task
performance is affected by specific topics.
35
Outcome Variables
Organizational citizenship behavior
The discretionary behavior that is not part of an employee’s
formal job requirements, and that contributes to the
psychological and social environment of the workplace, is
called organizational citizenship behavior.
1-36
LO 7
In today’s dynamic workplace, where tasks are increasingly
performed by teams and flexibility is critical, employees who
engage in good citizenship behaviors help others on their team
by volunteering for extra work, avoiding unnecessary conflicts,
respecting the spirit as well as the letter of rules and
regulations, and gracefully tolerating occasional work-related
impositions and nuisances.
36
Outcome Variables

Withdrawal behavior
Withdrawal behavior is the set of actions that employees take to
separate themselves from the organization.
1-37
LO 7
Employee withdrawal can have a very negative effect on an
organization. The cost of employee turnover alone has been
estimated to run into the thousands of dollars, even for entry-
level positions. Absenteeism also costs organizations significant
amounts of money and time every year. For instance, a recent
survey found the average direct cost to U.S. employers of
unscheduled absences is 8.7 percent of payroll.
37
Outcome Variables
Group cohesion
Group cohesion is the extent to which members of a group
support and validate one another at work.
Group functioning
Group functioning refers to the quantity and quality of a
group’s work output.
1-38
LO 7
When employees trust one another, seek common goals, and

work together to achieve these common goals, the group is
cohesive. Conversely, when employees are divided among
themselves in terms of what they want to achieve and have little
loyalty to one another, the group is not cohesive. And the
greater the group’s cohesion, the greater the affect of group
functioning that leads to effective outcomes and satisfying
impacts on group members.
38
Outcome Variables
Productivity
An organization is productive if it achieves its goals by
transforming inputs into outputs at the lowest cost. This
requires both effectiveness and efficiency.
Survival
The final outcome is organizational survival, which is simply
evidence that the organization is able to exist and grow over the
long term.
1-39
LO 7
Popular measures of organizational efficiency include return on
investment, profit per dollar of sales, and output per hour of
labor. Service organizations must include customer needs and
requirements in assessing their effectiveness. These measures of
productivity are affected by the behaviors of managers,
employees, and supervisors. Increased productivity leads to the
ultimate goal of most organizations, which is the survival of the
firm.
39

The Plan of the Text
1-40
LO 7
As you can see in this exhibit, we will deal with inputs,
processes, and outcomes at all three levels of analysis, but we
group the chapters as shown here to correspond with the typical
ways that research has been done in these areas.
40
Resist the inclination to rely on generalizations; some provide
valid insights into human behavior, but many are erroneous.
Use metrics and situational variables rather than “hunches” to
explain cause-and-effect relationships.
Work on your interpersonal skills to increase your leadership
potential.
1-41
This first chapter has provided a firm foundation that will be
the basis for the study and application of concepts and practices
that make the young professional more successful in
productivity, job satisfaction, and career development. The
systematic study of OB can improve predictability of behavior
and, while it’s not perfect, it provides excellent roadmaps to
guide managers and leaders. These studies help to ensure that
contingencies are in place to better understand people’s

behaviors and how to influence them for the success of the
employee and the organization.
41
Improve your technical skills and conceptual skills through
training and staying current with OB trends like “big data”.
OB can improve your employees’ work quality and productivity
by showing you how to empower your employees, design and
implement change programs, improve customer service, and
help your employees balance work-life conflicts.
1-42
It is important for managers to develop their interpersonal
“people skills” to be effective. Understanding OB makes their
organizations work more effectively by improving productivity,
reducing absenteeism, turnover, and deviant workplace
behavior, and increasing organizational citizenship behavior and
job satisfaction.
42
1-43
43

1-1
1
Motivation
Concepts
7
Chapter 7: Motivation Concepts
2
Learning Objectives

Describe the three key elements of motivation.
Compare the early theories of motivation.
Contrast the elements of self-determination theory and goal-
setting theory.
Demonstrate the differences among self-efficacy theory,
reinforcement theory, equity theory, and expectancy theory.
Identify the implications of employee job engagement for
managers.
Describe how the contemporary theories of motivation
complement one another.
7-3
After studying this chapter, you should be able to:
Describe the three key elements of motivation.
Compare the early theories of motivation.
Contrast the elements of self-determination theory and goal-
setting theory.
Demonstrate the differences among self-efficacy theory,
reinforcement theory, equity theory, and expectancy theory.
Identify the implications of employee job engagement for
managers.
Describe how the contemporary theories of motivation
complement one another.
3
Describe the Three
Key Elements of Motivation
Motivation is the processes that account for an individual’s
intensity, direction, and persistence of effort toward attaining a
goal.
The level of motivation varies both between individuals and

within individuals at different times.
7-4
LO 1
Motivation is the processes that account for an individual’s
intensity, direction, and persistence of effort toward attaining a
goal. We will narrow the focus to organizational goals in order
to reflect our singular interest in work-related behavior. Keep in
mind that the level of motivation varies both between
individuals and within individuals at different times.
4
Describe the Three
Key Elements of Motivation
The three key elements of motivation are:
Intensity: concerned with how hard a person tries.
Direction: the orientation that benefits the organization.
Persistence: a measure of how long a person can maintain
his/her effort.
7-5
LO 1
The three key elements of our definition of motivation are
intensity, direction, and persistence. Intensity is concerned with
how hard a person tries to do anything. This is the element most
of us focus on when we talk about motivation. Direction is the

orientation that benefits the organization; it can be positive or
negative. Persistence is a measure of how long a person can
maintain his or her effort. Motivated individuals stay with a
task long enough to achieve their goal.
5
Compare the Early
Theories of Motivation
7-6
LO 2
Abraham Maslow’s hierarchy of needs is the most well-known
theory of motivation. Maslow hypothesized that within every
human being there exists a hierarchy of five needs, beginning
with physiological needs that include hunger, thirst, shelter,
sex, and other bodily needs. The second level is safety needs
that include security and protection from physical and
emotional harm. The next level is social needs that include
affection, belongingness, acceptance, and friendship. Reaching
a higher level, we find esteem needs that include internal
esteem factors such as self-respect, autonomy, and achievement,
and external esteem factors such as status, recognition, and
attention. At the top of the hierarchy is self-actualization needs;
this is the drive to become what one is capable of becoming,
and includes growth, achieving one’s potential, and self-
fulfillment.
Maslow separated the five needs into higher and lower orders.
As a need becomes substantially satisfied, the next need

becomes dominant. No need is ever fully gratified; a
substantially satisfied need no longer motivates.
6
Compare the Early
Maslow’s need theory has received wide recognition,
particularly among practicing managers.
It is intuitively logical and easy to understand and some
research has validated it.
However, most research does, especially when the theory is
applied to diverse cultures.
7-7
LO 2
Maslow’s need theory has received wide recognition,
particularly among practicing managers. It is intuitively logical
and easy to understand and some research has validated it.
However, most research does, especially when the theory is
applied to diverse cultures.
7
Compare the Early
7-8
LO 1

Proposed by psychologist Frederick Herzberg when he
investigated the question, “What do people want from their
jobs?” the two-factor theory is sometimes also called
motivation-hygiene theory. Herzberg asked people to describe
situations in which they felt exceptionally good or bad about
their jobs. These responses were then tabulated and categorized.
From the categorized responses, as shown here in Exhibit 7-2,
Herzberg concluded that intrinsic factors, such as advancement,
recognition, responsibility, and achievement seem to be related
to job satisfaction. Dissatisfied respondents tended to cite
extrinsic factors, such as supervision, pay, company policies,
and working conditions.
Moreover, the opposite of satisfaction is not dissatisfaction.
Removing dissatisfying characteristics from a job does not
necessarily make the job satisfying. Job satisfaction factors are
separate and distinct from job dissatisfaction factors.
8
Compare the Early
7-9
LO 2
Managers who eliminate job dissatisfaction factors may not

necessarily bring about motivation. Exhibit 7-3 reveals that
when hygiene factors are adequate, people will not be
dissatisfied. Neither will they be satisfied. To motivate people,
managers must emphasize intrinsically rewarding factors that
are associated with the work itself or to outcomes directly
derived from it.
9
Compare the Early
Criticisms of Herzberg’s theory:
Limited because it relies on self-reports.
Reliability of methodology is questioned.
No overall measure of satisfaction was utilized.
7-10
LO 2
Recent reviews of Herzberg’s research have resulted in many
criticisms of the theory. The procedure that Herzberg used is
limited by its methodology, therefore, the reliability of
Herzberg’s methodology is questioned. For example, no overall
measure of satisfaction was utilized.
Regardless of criticisms, Herzberg’s theory has been widely
read, and few managers are unfamiliar with his
recommendations.
10
Compare the Early

McClelland’s Theory of Needs
The theory focuses on three needs:
Need for achievement (nAch): drive to excel, to achieve in
relation to a set of standards, to strive to succeed.
Need for power (nPow): need to make others behave in a way
that they would not have behaved otherwise.
Need for affiliation (nAfl): desire for friendly and close
interpersonal relationships.
7-11
LO 2
Another traditional theory is McClelland’s Theory of Needs.
This theory focuses on three needs: achievement, power, and
affiliation. Let’s look at each one in more detail.
The first of this theory’s variables is achievement need,
abbreviated as nAch, which is the drive to excel, to achieve in
relation to a set of standards, and to strive to succeed. High
achievers perform best when they perceive their probability of
success as 50/50. They like to set goals that require stretching
themselves a little.
Need for power, the second variable, is the need to make others
behave in a way that they would not have behaved otherwise.
The need for power, abbreviated as nPow, is the desire to have
impact, to be influential, and to control others. Individuals high
in nPow enjoy being “in charge.” They strive for influence over
others. They prefer to be placed into competitive and status-
oriented situations. They also tend to be more concerned with

prestige and gaining influence over others than with effective
performance.
Finally, the need for affiliation, abbreviated as nAfl, is the
desire for friendly and close personal relationships. This need
has received the least attention from researchers. In general,
individuals with high affiliation strive for friendship and prefer
cooperative situations over competitive ones. They typically
desire relationships involving a high degree of mutual
understanding.
11
Compare the Early
McClelland’s theory has had the best support.
It has less practical effect than the others.
Because McClelland argued that the three needs are
subconscious—we may rank high on them but not know it—
measuring them is not easy.
It is more common to find situations in which managers aware
of these motivational drivers label employees based on
observations made over time.
7-12
LO 2
Among the early theories of motivation, McClelland’s has had
the best research support. Unfortunately, it has less practical
effect than the others. McClelland argued that the three needs
are subconscious – we may rank high on them, but not know it.

Because of this, measuring them is not easy.
It is more common to find situations in which managers aware
of these motivational drivers label employees based on
observations made over time.
12
Self-Determination Theory
vs. Goal-Setting Theory
People prefer to feel they have control over their actions.
People paid for work feel less like they want to do it and more
like they have to it.
Proposes that in addition to being driven by a need for
autonomy, people seek ways to achieve competence and positive
connections to others.
7-13
LO 3
Early theories of motivation have not been supported by
research or have fallen out favor. In contrast, contemporary
theories have generally been supported, but caution is still in
order.
We begin our discussion of contemporary motivation theories
with self-determination theory, which proposes that people
prefer to feel they have control over their actions, so anything
that makes a previously enjoyed task feel more like an
obligation than a freely chosen activity will undermine
motivation. Much research on self-determination theory in OB
has focused on cognitive evaluation theory, which hypothesizes
that extrinsic rewards will reduce intrinsic interest in a task. For

example, when people are paid for work, it feels less like
something they want to do and more like something they have to
do. Self-determination theory also proposes that in addition to
being driven by a need for autonomy, people seek ways to
achieve competence and positive connections to others. A large
number of studies support self-determination theory. Its major
implications relate to work rewards.
13
When extrinsic rewards are used as payoffs for performance,
employees feel they are doing a good job.
Eliminating extrinsic rewards can also shift an individual’s
perception of why he or she works on a task from an external to
an internal explanation.
Self-determination theory acknowledges that extrinsic rewards
can improve even intrinsic motivation under specific
circumstances.
7-14
LO 3
When organizations use extrinsic rewards as payoffs for
superior performance, employees feel they are doing a good job
less because of their own intrinsic desire to excel than because
that’s what the organization wants. Eliminating extrinsic
rewards can also shift an individual’s perception of why he or
she works on a task from an external to an internal explanation.
For example, if you’re reading a novel a week because your
English literature instructor requires you to, you can attribute
your reading behavior to an external source. However, if you

find yourself continuing to read a novel each week after the
course is over, your natural inclination is to say, “I must enjoy
reading novels because I’m still reading one each week.”
Studies examining how extrinsic rewards increased motivation
for some creative tasks suggest we might need to place
cognitive evaluation theory’s predictions in a broader context.
Goal setting is more effective in improving motivation, for
instance, when we provide rewards for achieving the goals. The
original authors of self-determination theory acknowledge that
extrinsic rewards, such as verbal praise and feedback about
competence, can improve even intrinsic motivation under
specific circumstances. Deadlines and specific work standards
do, too, if people believe they are in control of their behavior.
This is consistent with the central theme of self-determination
theory: rewards and deadlines diminish motivation if people see
them as coercive.
14
What does self-determination theory suggest for providing
rewards?
Self-concordance: considers how strongly people’s reasons for
pursuing goals are consistent with their interests and core
values.
7-15
LO 3
Self-determination theory creates suggestions for providing
rewards. For example, if a senior sales representative really

enjoys selling and making the deal, a commission indicates he’s
been doing a good job and increases his sense of competence by
providing feedback that could improve intrinsic motivation. If a
computer programmer values writing code because she likes to
solve problems, a reward for working toward an externally
imposed standard she does not accept, such as writing a certain
number of lines of code every day, could feel coercive, and her
intrinsic motivation could suffer. She could be less interested in
the task and might reduce her effort.
A recent outgrowth of self-determination theory is self-
concordance, which considers how strongly peoples’ reasons for
pursuing goals are consistent with their interests and core
values. If individuals pursue goals because of an intrinsic
interest, they are more likely to attain their goals and are happy
even if they do not. The process of striving toward them is fun.
In contrast, people who pursue goals for extrinsic reasons, like
money or status, are less likely to attain their goals and are less
happy even when they do because the goals are less meaningful
to them. OB research suggests that people who pursue work
goals for intrinsic reasons are more satisfied with their jobs,
feel they fit into their organizations better, and may perform
better.
15
What does all of this mean?
For individuals:
Choose your job for reasons other than extrinsic rewards.
For organizations:
Provide intrinsic as well as extrinsic incentives.
7-16

LO 3
What does all of this mean? For individuals, it means to choose
your job for reasons other than extrinsic rewards. For
organizations, it means managers should provide intrinsic as
well as extrinsic incentives. They need to make the work
interesting, provide recognition, and support employee growth
and development. Employees who feel what they do is within
their control and a result of free choice are likely to be more
motivated by their work and committed to their employers.
16
Goal-Setting Theory
Goals tell an employee what needs to be done and how much
effort is needed.
Evidence suggests:
Specific goals increase performance.
Difficult goals, when accepted, result in higher performance
than do easy goals.
Feedback leads to higher performance than does non-feedback.
7-17
LO 3
Edwin Locke’s goal-setting theory proposed that intentions to

work toward a goal are a major source of work motivation.
Goals tell an employee what needs to be done and how much
effort is needed. Evidence strongly suggests that specific goals
increase performance, and that difficult goals, when accepted,
result in higher performance than do easy goals. Also, people
will do better when they get feedback on how well they are
progressing toward their goals. Self-generated feedback is more
powerful a motivator than externally generated feedback.
17
Three other factors influencing the goals-performance
relationship:
Goal commitment
Task characteristics
National culture
7-18
LO 3
There are contingencies in goal-setting theory. In addition to
goal acceptance, difficulty level, and feedback, three other
factors influence the goals-performance relationship: goal
commitment, task characteristics, and national culture.
Goal-setting theory presupposes that an individual is committed
to the goal, believes it can be achieved, and wants to achieve it.
Goal commitment is most likely to occur when goals are made
public, when the individual has an internal locus of control, and

when the goals are self-set rather than assigned.
Goals themselves seem to affect performance more strongly
when task characteristics are: simple rather than complex; well-
learned rather than novel; and independent rather than
interdependent. On interdependent tasks, group goals are
preferable.
Setting specific, difficult individual goals may have different
effects in different cultures. Research has not shown that group-
based goals are more effective in collectivists than in
individualist cultures. In collectivist and high-power-distance
cultures, achievable moderate goals can be more highly
motivating than difficult ones. Finally, assigned goals appear to
generate greater goal commitment in high than in low power-
distance cultures. More research is needed to assess how goal
constructs might differ across cultures.
18
People differ in the way they regulate their thoughts and
behaviors.
Those with a promotion focus strive for advancement and
accomplishment and approach conditions that move them closer
toward desired goals.
Those with a prevention focus strive to fulfill duties and
obligations and avoid conditions that pull them away from
desired goals.
7-19
LO 3

Research has also found that people differ in the way they
regulate their thoughts and behaviors during goal pursuit.
Generally, people fall into one of two categories, though they
could belong to both. Those with a promotion focus strive for
advancement and accomplishment and approach conditions that
move them closer toward desired goals. Those with a prevention
focus strive to fulfill duties and obligations and avoid
conditions that pull them away from desired goals. Which is the
better strategy? Ideally, it’s probably best to be both promotion
and prevention oriented.
19
7-20
LO 3
How do you put goal-setting operations into practice?
Management by Objectives (MBO) allows employees to
participatively set goals that are tangible, verifiable, and
measurable. As shown in Exhibit 7-4, an organization’s overall
objectives are translated into specific objectives for each
succeeding level. Four ingredients common to MBO programs
are: goal specificity; participation in decision making; explicit
time period; and performance feedback. MBO programs are
common in many business, healthcare, educational, government,
and nonprofit organizations.
20

Goal Setting and Ethics
The relationship between goal setting and ethics is quite
complex: if we emphasize the attainment of goals, what is the
cost?
We may forgo mastering tasks and adopt avoidance techniques
so we don’t look bad, both of which can incline us toward
unethical choices.
7-21
LO 3
The relationship between goal setting and ethics is quite
complex: if we emphasize the attainment of goals, what is the
cost? The answer is probably found in the standards we set for
goal achievement. If we are put under time pressure and worry
about that, thoughts about time turn against us.
Time pressure often increases as we are nearing a goal, which
can tempt us to act unethically to achieve it. We may forgo
mastering tasks and adopt avoidance techniques so we don’t
look bad, both of which can incline us toward unethical choices.
21
Self-Efficacy, Reinforcement,
Equity, and Expectancy Theory
Self-efficacy theory is an individual’s belief that he or she is
capable of performing a task.
Enactive mastery
Vicarious modeling
Verbal persuasion

Arousal
Also known as social cognitive theory and social learning
theory.
7-22
LO 4
Self-efficacy theory, also known as social cognitive theory and
social learning theory, is a new theory gaining much attention.
The theory defines four characteristics: enactive mastery, or
gaining relevant experience with the task or job; vicarious
modeling, or becoming more confident because you see
someone else doing the task; verbal persuasion, occurring when
a person is more confident because someone convinces him that
he has the skills; and arousal, which leads to an energized state,
driving a person to complete the task.
22
7-23
LO 4
Goal-setting theory and self-efficacy theory don’t compete with
one another; they complement each other, as shown in Exhibit

7-5.
23
Implications of self-efficacy theory:
The best way for a manager to use verbal persuasion is through
the Pygmalion effect.
A form of self-fulfilling prophecy – believing in something can
make it true.
Training programs often make use of enactive mastery by
having people practice and build their skills.
7-24
LO 4
What are the implications of self-efficacy theory? First, training
programs often make use of enactive mastery by having people
practice and build their skills. In fact, one reason training works
is that it increases self-efficacy. Second, individuals with higher
levels of self-efficacy also appear to reap more benefits from
training programs and are more likely to use their training on
the job.
The best way for a manager to use verbal persuasion is through
the Pygmalion effect. A form of self-fulfilling prophecy –
believing in something can make it true.
24

Reinforcement theory: behavior is a function of its
consequences.
Reinforcement conditions behavior.
Behavior is environmentally caused.
Goal setting is a cognitive approach: an individual’s purposes
direct his or her action.
Operant conditioning theory: people learn to behave to get
something they want or to avoid something they don’t want.
B.F. Skinner’s behaviorism.
7-25
LO 4
Let’s look at reinforcement theory. While goal setting is a
cognitive approach proposing that an individual’s purposes
direct his or her action, reinforcement theory, by contrast, takes
a behavioristic view, arguing that reinforcement conditions
behavior. The two theories are clearly at odds, philosophically.
Reinforcement theorists see behavior as environmentally
caused, ignoring the inner state of the individual and
concentrating solely on what happens when he or she takes
some action. Because it does not concern itself with what
initiates behavior, it is not, strictly speaking, a theory of
motivation. But it does provide a powerful means of analyzing
what controls behavior, and this is why we typically consider it
in discussions of motivation.
Operant conditioning theory argues that people learn to behave
to get something they want or to avoid something they don’t
want. Unlike reflexive or unlearned behavior, operant behavior
is influenced by the reinforcement or lack of reinforcement

brought about by its consequences. Reinforcement strengthens a
behavior and increases the likelihood it will be repeated. B. F.
Skinner, one of the most prominent advocates of operant
conditioning, argued that creating pleasing consequences to
follow specific forms of behavior would increase the frequency
of that behavior – a theory known as behaviorism. He
demonstrated that people will most likely engage in desired
behaviors if they are positively reinforced for doing so, that
rewards are most effective if they immediately follow the
desired response, and that behavior that is not rewarded or is
punished is less likely to be repeated.
25
Social-learning theory: we can learn through both observation
and direct experience.
Models are central, and four processes determine their influence
on an individual:
Attentional processes
Retention processes
Motor reproduction processes
Reinforcement processes
7-26
LO 4
Social-learning theory argues that we can learn through both
observation and direct experience. Models are central to the
social-learning viewpoint. Four processes determine their
influence on an individual:

Attentional processes: people learn from a model only when
they recognize and pay attention to its critical features.
Retention processes: a model’s influence depends on how well
the individual remembers the model’s action after the model is
no longer readily available.
Motor reproduction processes: after a person has seen a new
behavior by observing the model, watching must be converted to
doing.
Reinforcement processes: individuals are motivated to exhibit
the modeled behavior if positive incentives or rewards are
provided.
26
7-27
LO 4
What role does equity play in motivation? Equity theory argues
that individuals make comparisons of their job inputs and
outcomes relative to those of others and then respond to any
inequities. If we perceive our ratio to be equal to that of the
relevant others with whom we compare ourselves, a state of
equity is said to exist. We perceive our situation as fair. When
we see the ratio as unequal, we experience equity tension.
27

When employees perceive an inequity, they can be predicted to
make one of six choices:
Change their inputs.
Change their outcomes.
Distort perceptions of self.
Distort perceptions of others.
Choose a different referent.
Leave the field.
7-28
LO 4
When employees perceive an inequity, they can be predicted to
make one of six choices: they can change their inputs; change
their outcomes; distort perceptions of self; distort perceptions
of others; choose a different referent; or they can leave the
field.
28
7-29
LO 4
However, organizational justice draws a bigger picture.
Organizational justice is concerned with how employees feel
they are treated by authorities and decisions-makers at work.

For the most part, employees make their evaluations along four
dimensions, as shown in Exhibit 7-7.
Distributive justice is concerned with the fairness of the
outcomes, such as pay and recognition that employees receive.
Although employees care a lot about what outcomes are
distributed (distributive justice), they also care a lot about how
outcomes are distributed. While distributive justice looks at
what outcomes are allocated, procedural justice examines how
outcomes are allocated. Having direct influence over how
decisions or made, or at the very least being able to present
your opinion to decision-makers, creates a sense of control and
makes us feel empowered. Employees also perceive that
procedures are fairer when decision-makers follow several
“rules.” It turns out that procedural and distributive justice
combine to influence people’s perceptions of fairness. If
outcomes are favorable and individuals get what they want, they
care less about the process, so procedural justice doesn’t matter
as much when distributions are perceived to be fair.
Research has shown that employees care about two other types
of fairness that have to do with the way they are treated during
interactions with others.
The first type is informational justice, which reflects whether
managers provide employees with explanations for key
decisions and keep them informed of important organizational
matters. The second type of justice relevant to interactions
between managers and employees is interpersonal justice, which
reflects whether employees are treated with dignity and respect.
29
Expectancy theory: a tendency to act in a certain way depends
on an expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the

individual.
Three relationships:
Effort-performance relationship
Performance-reward relationship
Rewards-personal goals relationship
7-30
LO 4
Expectancy theory is one of the most widely accepted
explanations of motivation. Victor Vroom’s expectancy theory
has its critics, but most of the research is supported. Expectancy
theory argues that the strength of one’s tendency to act in a
certain way depends on the strength of the expectation that the
act will be followed by a given outcome and on the
attractiveness of that outcome to the individual. It says that an
employee will be motivated to exert a high level of effort when
he or she believes that effort will lead to a good performance
appraisal, that a good appraisal will lead to organizational
rewards, and that the rewards will satisfy his or her personal
goals.
30
7-31
LO 4

Exhibit 7-8 shows the three key relationships: the effort-
performance relationship, which is the probability perceived by
the individual that exerting a given amount of effort will lead to
performance; the performance-reward relationship, which is the
degree to which the individual believes that performing at a
particular level will lead to the attainment of a desired outcome;
and the rewards-personal goals relationship, which is the degree
to which organizational rewards satisfy an individual’s personal
goals or needs and the attractiveness of those potential rewards
for the individual.
31
Expectancy theory helps explain why a lot of workers aren’t
motivated and do only the minimum.
Three questions employees need to answer in the affirmative if
their motivation is to be maximized:
If I give maximum effort, will it be recognized in my
performance appraisal?
If I get a good performance appraisal, will it lead to
organizational rewards?
If I’m rewarded, are the rewards attractive to me?
7-32
LO 4
Expectancy theory helps explain why a lot of workers aren’t
motivated on their jobs and do only the minimum necessary to
get by. We can look at the theory’s three relationships by asking

three questions that employees would need to answer
affirmatively if they are to be motivated: First, if I give
maximum effort, will it be recognized in my performance
appraisal? Second, if I get a good performance appraisal, will it
lead to organizational rewards? Third, if I’m rewarded, are the
rewards attractive to me?
32
Implications of Job
Engagement for Management
Job engagement: the investment of an employee’s physical,
cognitive, and emotional energies into job performance.
Gallup organization: more engaged employees in successful
organizations than in average organizations.
Academic studies: job engagement is positively associated with
performance and citizenship behaviors.
7-33
LO 5
Job engagement is the investment of an employee’s physical,
cognitive, and emotional energies into job performance.
Practicing managers and scholars alike have lately become
interested in facilitating job engagement, believing something
deeper than liking a job or finding it interesting drives
performance. Many studies attempt to measure this deeper level
of commitment.
The Gallup organization has been using twelve questions to
assess the extent to which employee engagement is linked to

positive work outcomes for millions of employees over the past
30 years. There are far more engaged employees in highly
successful organizations than in average organizations, and
groups with more engaged employees have higher levels of
productivity, fewer safety incidents, and lower turnover.
Academic studies have also found positive outcomes. One study
found higher levels of engagement were associated with task
performance and citizenship behavior.
33
Implications of Job
What makes people more engaged in their job?
The degree to which an employee believes it is meaningful to
engage in work.
A match between the individual’s values and the organization’s.
Leadership behaviors that inspire workers to a greater sense of
mission.
7-34
LO 5
What makes people more likely to be engaged in their jobs? One
key is the degree to which an employee believes it is
meaningful to engage in work. This is partially determined by
job characteristics and access to sufficient resources to work
effectively. Another factor is a match between the individual’s
values and those of the organization. In addition, leadership
behaviors that inspire workers to a greater sense of mission also
increase employee engagement.
34

Implications of Job
Are highly engaged employees getting “too much of a good
thing?”
Construct is partially redundant with job attitudes.
It may have a “dark side.”
Positive relationships between engagement and work-family
conflict.
7-35
LO 5
One of the critiques of engagement is that the construct is
partially redundant with job attitudes like satisfaction or stress.
However, engagement questionnaires usually assess motivation
and absorption in a task, quite unlike job satisfaction
questionnaires. Engagement may also predict important work
outcomes better than traditional job attitudes. Others critics
note there may be a “dark side” to engagement, as evidenced by
positive relationships between engagement and work-family
conflict.
Individuals might grow so engaged in their work roles that
family responsibilities become an unwelcomed intrusion.
Further research exploring how engagement relates to these
negative outcomes may help clarify whether some highly
engaged employees might be getting “too much of a good
thing.”
35
Compare Contemporary

7-36
LO 6
Exhibit 7-9 integrates much of what we know about motivation.
Its basic foundation is the expectancy model. Expectancy theory
predicts that an employee will exert a high level of effort if he
or she perceives that there is a strong relationship between
effort and performance, performance and rewards, and rewards
and satisfaction of personal goals. Each of these relationships,
in turn, is influenced by certain factors. For effort to lead to
good performance, the individual must have the requisite ability
to perform, and the performance appraisal system must be
perceived as being fair and objective. The final link in
expectancy theory is the rewards-goals relationship.
The model also considers the achievement, need, reinforcement,
and equity/organizational justice theories. High achievers are
internally driven as long as the jobs they are doing provide them
with personal responsibility, feedback, and moderate risks.
Reinforcement theory recognizes that the organization’s rewards
reinforce the individual’s performance. Individuals will
compare the rewards they receive (outcomes) from the inputs
they make with the outcome-input ratio of relevant others, and
inequities may influence the effort expended.
36
Make sure extrinsic rewards for employees are not viewed as
coercive, but instead provide information about competence and
relatedness.

Consider goal-setting theory, as clear and difficult goals often
lead to higher levels of employee productivity.
7-37
The motivation theories in this chapter differ in their predictive
strength. Maslow’s hierarchy, McClelland’s needs, and the two-
factor theory focus on needs. None has found widespread
support, although McClelland’s is the strongest, particularly
regarding the relationship between achievement and
productivity. Self-determination theory and related theories
have merits to consider. Goal-setting theory can be helpful but
does not cover absenteeism, turnover, or job satisfaction. Self-
efficacy theory contributes to our understanding of personal
motivation. Reinforcement theory can be helpful, but not
regarding employee satisfaction or the decision to quit. Equity
theory’s strongest legacy is that it provided the spark for
research on organizational justice, which has more support in
the literature. Expectancy theory can be helpful, but assumes
employees have few constraints on decision making, such as
bias or incomplete information, and this limits its applicability.
Job engagement goes a long way toward explaining employee
commitment.
37
Consider reinforcement theory regarding quality and quantity of
work, persistence of effort, absenteeism, tardiness, and accident
rates.
Consult equity theory to help understand productivity,
satisfaction, absence, and turnover variables.
Expectancy theory also offers a powerful explanation of

performance variables such as employee productivity,
absenteeism, and turnover.
7-38
In addition, managers should consider reinforcement theory
regarding quality and quantity of work, persistence of effort,
absenteeism, tardiness, and accident rates. Managers should
also consult equity theory to help understand productivity,
satisfaction, absence, and turnover variables. Finally, managers
need to recognize that expectancy theory also offers a powerful
explanation of performance variables such as employee
productivity, absenteeism, and turnover.
38
7-39
39
1-1

1
Diversity
in
Organizations
2
Chapter 2: Diversity in Organizations
2
Learning Objectives
Describe the two major forms of workplace diversity.
Demonstrate how workplace discrimination undermines
organizational effectiveness.
Describe how the key biographical characteristics are relevant
to OB.
Explain how other differentiating characteristics factor into OB.

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