This document discusses motivating employee performance. It covers goal setting theory, reinforcing good performance through rewards, performance-related beliefs like expectancy theory, and addressing individual needs through job design. Managers are encouraged to set meaningful and challenging goals, recognize accomplishments, understand what employees value as rewards, and create motivating jobs through techniques like job enrichment to maximize workforce satisfaction and motivation.

1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
 L01: Behaviors managers need to motivate people
 L02: Principles for setting goals that motivate employees
 L03: How to reward good performance effectively
 L04: Key beliefs that affect people’s motivation
 L05: Ways in which people’s individual needs affect their
behavior.
 L06: Ways to create jobs that motivate.
 L07: How people assess fairness and how to achieve
fairness.
 L08: Identify causes and consequences of a satisfied
workforce.
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3. Motivating for Performance
 Motivation
 forces that energize, direct and sustain a person’s
efforts.
 Organizations want to motivate people to:
 Join the organization, and stay
 Come to work regularly
 Work hard to achieve high output and high quality
 Exhibit good citizenship
 be committed and perform above and beyond the call of
duty to help the company
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4. Goal Setting Theory
 Proposes that people have conscious goals that
energize them and direct their thoughts and
behaviors toward a particular end
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5. Well-crafted goals are highly motivating
 Meaningful
 Acceptable
 Challenging but Attainable
 Specific and quantifiable
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6. Stretch Goals
 Targets that are exceptionally demanding, and that
some people would never even think of.
 Vertical stretch goals are aligned with current activities
including productivity and financial results
 Horizontal stretch goals involve people’s professional
development, such as attempting and learning new,
difficult things
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7. Reinforcing Performance
 Law of effect
 Law formulated by Edward Thorndike in 1911
 Behavior that is followed by positive consequences will
likely be repeated
 Reinforcers
 Positive consequences that motivate behavior
 Organizational behavior modification (OB mod)
 Application of reinforcement theory in organizational
settings
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8. Key Consequences of Behavior
1. Positive reinforcement
 applying a consequence that increases the likelihood
that the person will repeat the behavior that led to it.
2. Negative reinforcement
 removing or withholding an undesirable consequence.
3. Punishment
 administering an aversive consequence.
4. Extinction
 withdrawing or failing to provide a reinforcing
consequence.
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9. What do you want to
reinforce?
 Solid solutions NOT quick fixes
 Risk taking NOT risk avoiding
 Applied creativity NOT mindless conformity
 Decision action NOT analysis paralysis
 Smart work NOT busywork
 Simplification NOT needless complication
 Quietly effective behavior NOT squeaky wheels
 Quality work NOT fast work
 Loyalty NOT turnover
 Working together NOT working against
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10. Rewards
 Support the firm’s strategy
 Relate people’s performance in relation to strategic
objectives
 Can be nonmonetary
 intellectual challenge, greater responsibility, autonomy,
recognition, flexible benefits, and greater influence
over decisions
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11. Should you punish mistakes?
Appropriate Inappropriate
 Violation of law, ethical  When poor performance
standards, important is not the individual’s
safety rules fault
 When employees  When managers take out
perform like a slacker their frustrations on the
wrong people
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12. How to Manage Mistakes
 Recognize that everyone makes mistakes
 Handle constructively by discussing and learning from
them
 Praise people who deliver based news to their
bosses
 Don’t punish, unsuccessful good-faith efforts
 Encourage people to try new things and don’t
punish them if what they try doesn’t work out.
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13. Performance-related Beliefs
 Expectancy theory
 people will behave based on their perceived
likelihood that their effort will lead to a certain
outcome and
 on how highly they value that outcome.
Effort ∇ Performance ∇ Outcome
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14. Managerial Implications of Expectancy
Theory
c Increase expectancies
 Provide work environment that facilitates good
performance
 Set realistically attainable performance goals
y Identify positively valent outcomes
 Understand want people want to get out of work
p Make performance instrumental toward
positive outcomes
 Follow good performance by personal recognition
and praise, favorable performance reviewers, pay
increases, and other positive results
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15. Maslow’s Need Hierarchy
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16. Types of Motivation
 Extrinsic motivation
 rewards given to a person by the boss, the company
or some other person - EXTERNAL
 Intrinsic motivation
 rewards a worker derives directly from performing the
job itself - INTERNAL
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17. Designing Motivating Jobs
 Job rotation
 changing from one routine task to another to alleviate
boredom
 Job enlargement
 Giving people additional tasks at the same time to
alleviate boredom
 Job enrichment
 Changing a task to make it inherently more rewarding,
motivating, and satisfying
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18. Herzberg’s two-factor theory
 Proposed two broad categories of factors that affect
people working on their jobs
 Hygiene factor
 Workplace characteristics that can make people dissatisfied
 Company policies, working conditions, pay, and supervision
 Motivators
 Factors that make a job more motivating
 Additional job responsibilities, opportunities for personal
growth and recognition, and feelings of achievement
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19. What is empowerment?
The process of sharing power with employees,
thereby enhancing their confidence in their
ability to perform their jobs and their belief that
they are influential contributors to the
organization.
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20. Equity Theory
 Proposes that people assess how fairly they
have been treated according to two key factors
1. Outcomes – various things the person receives
on the job
2. Inputs – contributions the person makes to the
organization
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21. How people restore equity
 Reducing their inputs
 Increase their outcomes
 Decrease others’ outcomes
 Increase others’ inputs
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22. Quality of work life programs
Create workplace that enhances employee well-being
and satisfaction
Satisfy the full range of employee needs
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24. Feedback should…
 Be useful
 Address your employee’s request for feedback
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25. YOU should be able to
 L01: Identify the kinds of behaviors managers need
to motivate people
 L02: List principles for setting goals that motivate
employees
 L03: Summarize how to reward good performance
effectively
 L04: Describe the key beliefs that affect people’s
motivation
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26. YOU should be able to
 L05: Discuss ways in which people’s individual
needs affect their behavior.
 L06: Define ways to create jobs that motivate.
 L07: Summarize how people assess fairness and
how to achieve fairness.
 L08: Identify causes and consequences of a
satisfied workforce.
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27. 10-27

28. Test Your Knowledge
 Describe the characteristics of goals that most
effectively motivate people.
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29. Test Your Knowledge
Identify four examples of people advertently
reinforcing the wrong behaviors, or
punishing or extinguishing good behaviors
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30. Test Your Knowledge
Discuss the managerial implications of
expectancy theory. Relate them specifically
to expectancy theory.
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31. Test Your Knowledge
A difference between Maslow's Need Hierarchy and
Alderfer's ERG Theory is that
A) ERG theory states that various needs operate
simultaneously.
B) Maslow's hierarchy has more scientific validity.
C) Maslow's hierarchy reminds managers that even if
one need seems to motivate people, other needs may
still need attention.
D) ERG theory focuses on five levels of need.
E) only Maslow's theory serves to remind managers of
the types of reinforcers that can be used to motivate
people. 10-31

32. Test Your Knowledge
Compare and contrast job enlargement, job
enrichment, and job rotation. Give an example
of each.
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33. Procedural Justice making and
Using a fair process in decision
making sure others know that the process was
as fair as possible.
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34. Test Your Knowledge
Describe a time when you felt unfairly treated and
explain why. How did you respond to the
inequity? What other options might you have
had?
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35. Test Your Knowledge
 Identify the cause and consequences of a
satisfied workforce.
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