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CHAPTER 7:
MOTIVATION AND
EMPOWERMENT
TABLE OF CONTENTS
 SUMMARY
 LEADERSHIP AND MOTIVATION
 NEEDS-BASED THEORIES OF
MOTIVATION
 OTHER MOTIVATION THEORIES
 EMPOWERING PEOPLE TO MEET
HIGHER NEEDS
 GIVING MEANING TO WORK THROUGH
ENGAGEMENT
 NEW IDEAS FOR MOTIVATION
SUMMARY
SUMMARY
 This chapter introduced a number of important ideas
about motivating people in organizations. Individuals
are motivated to act by various motives and to satisfy
a range of needs.
 The leadership approach to motivation tends to focus
on positive motives and meeting the higher needs of
employees. The role of the leader is to create a
situation in which followers’ higher needs and the
needs of the organization can be met simultaneously.
 Needs-based theories focus on the underlying needs
that motivate how people behave. Maslow’s hierarchy
of needs proposes that individuals satisfy lower
needs before they move on to higher needs.
Herzberg’s two-factor theory holds that dissatisfiers
must be removed and motivators then added to
cause high motivation. McClelland asserted that
people are motivated differently depending on which
needs they have acquired.
SUMMARY
 Other motivation theories, including the reinforcement
perspective, expectancy theory, and equity theory,
focus primarily on extrinsic rewards and
punishments, sometimes called carrotand- stick
methods of motivation.
 The reinforcement perspective proposes that
behavior can be modified by the use of rewards and
punishments.
 Expectancy theory is based on the idea that a
person’s motivation is contingent upon his or her
expectations that a given behavior will result in
desired rewards.
 Equity theory proposes that individuals’ motivation is
affected not only by the rewards they receive but also
by their perceptions of how fairly they are treated in
relation to others. People are motivated to seek
equity in the rewards they receive for performance.
SUMMARY
 A highly effective way to meet higher-level
needs is to empower employees.
Empowerment lets subordinates know the
direction of the organization and gives them
the autonomy to act as they see fit to go in that
direction. Leaders provide employees with the
knowledge to contribute to the organization,
the power to make consequential decisions,
and the necessary resources to do their jobs.
 Jobs can be designed to increase
empowerment. The job characteristics model
proposes that jobs are more empowering and
motivating when they have greater skill variety,
task identity, task importance, autonomy, and
feedback.
SUMMARY
 Employee engagement is tied to the trend toward
helping employees find value and meaning in their
jobs. The most motivated employees are engaged
employees who enjoy their jobs and feel they are
making a valuable contribution. Engaged employees
contribute enthusiastically to meeting goals. Leaders
create the environment that determines employee
engagement.
 Two recent motivational ideas that relate to
engagement are the making progress principle and
creating a thriving workforce. Research suggests that
the single most important factor for motivation is a
sense of making progress toward meaningful goals. A
thriving workforce is made up of people who are
enthusiastically learning and growing as they acquire
new knowledge and skills to apply in their current
jobs or in the future.
LEARNING OUTCOMES
After studying this chapter, you should be able
to:
 Recognize and apply the difference between
intrinsic and extrinsic rewards.
 Appropriately tap into the motives that
induce people to take action to accomplish
important goals.
 Motivate others by meeting their higher-level
needs.
 Apply needs-based theories of motivation
and understand how the concept of equity
applies to motivation.
LEARNING OUTCOMES
 Describe the psychological and structural
elements of empowerment and how
empowerment contributes to motivation.
 Apply the job characteristics model to enrich
jobs.
 Identify factors that play a role in employee
engagement and use engagement to meet
higher-level needs.
 Build a thriving workforce by giving people a
sense of making progress toward
meaningful goals.
INTRODUCTION
INTRODUCTION
 When Dan Price increased his company’s
minimum wage to $70,000, he discovered that
money was not the only motivator for
employees. Paying people well is important,
but motivation is more complex than money.
LEADERSHIP
AND MOTIVATION
MOTIVATION
Motivation refers to the forces
either internal or external to a
person that arouse enthusiasm
and persistence to pursue a
certain course of action.
Employee motivation affects
productivity, so part of a leader’s
job is to channel followers’
motivation toward the
accomplishment of the
organization’s vision and goals.
A SIMPLE MODEL OF MOTIVATION
MOTIVATION
Leaders use
motivation
theory to:
Satisfy
followers’
needs
Encourage
high work
performance
MOTIVATION
 Motivation can lead to high performance
within organizations. High employee
motivation and high organizational
performance and profits go hand in hand.
Motivation
High
performance
INTRINSIC REWARDS
 Intrinsic rewards are the internal
satisfactions a person receives in the process
of performing a particular action. An intrinsic
reward is internal and under the control of the
individual, such as to engage in task behavior
to satisfy a need for competency and self-
determination. Intrinsic rewards appeal to the
“higher” needs of individuals. The leadership
approach strives to motivate people by
providing them with the opportunity to satisfy
higher needs and become intrinsically
rewarded. One way in which leaders try to
enable all followers to achieve intrinsic
rewards is by giving them more control over
their own work and the power to affect
outcomes.
EXTRINSIC REWARDS
 Extrinsic rewards are given by another
person, typically a supervisor, and include
promotions and pay increases. Extrinsic
rewards compel individuals to engage in a
task behavior for an outside source that
provides what they need. Extrinsic rewards
appeal to the “lower” needs of individuals.
Conventional management approaches often
appeal to an individual’s lower, basic needs
and rely on extrinsic rewards and
punishments to motivate people.
NEEDS OF PEOPLE AND
MOTIVATION METHODS
Source: Adapted from William D. Hitt, The Leader-Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 153.
NEEDS OF PEOPLE AND
MOTIVATION METHODS
As a leader, you can provide extrinsic
rewards, such as
promotions, pay raises, and praise, but also
help followers achieve intrinsic rewards and
meet
their higher-level needs for accomplishment,
growth, and fulfillment.
POSITIVE AND NEGATIVE
MOTIVES
People have both
positive and
negative motives
that cause them to
engage in specific
behaviors or
activities.
FOUR CATEGORIES OF MOTIVES
Source: Based on Bruce H. Jackson, ‘‘Influence Behavior: Become a Master Motivator,’’ Leadership Excellence (April 2010), p. 14.
POSITIVE AND NEGATIVE
MOTIVES
Good leaders rely on positive
motives as much as they
can. However, negative
approaches also have value.
In the real world, almost
every leader sometimes has
to impose some form of
punishment or tap into
negative motives.
POSITIVE AND NEGATIVE
MOTIVES
Fear can be a powerful
motivator, but using fear to
motivate people almost
always has negative
consequences for
employee development
and long-term
performance. Effective
leaders avoid the use of
fear tactics.
MOTIVATION
Discussion Question
Can you think of specific
motivational techniques that
would motivate you in each
of the four categories
(positive extrinsic, positive
intrinsic, negative extrinsic,
negative intrinsic)? Describe
them.
MOTIVATION
Discussion Question
 The extrinsic positive approach
includes rewards such as pay
raises, bonuses, and praise. The
extrinsic negative approach would
include threats and punishments.
For the intrinsic positive approach,
helping people enjoy their work and
getting a sense of accomplishment
would be an example. The intrinsic
negative approach would include
tapping into self-doubts and
anxieties.
MOTIVATION
Read an Article
 Dan Price made headlines (and magazine
covers) in 2015 when he committed to
giving every employee at his credit card
processing company Gravity Payments a
minimum wage of $70,000.
 This interview with Gravity Payment’s
CEO Dan Price (DP) was conducted by
our colleague Ted McKinney (TM), as part
of his doctoral studies with Benedictine
University’s Ph.D. program in values-
driven leadership. Ted is also the COO of
Hawthorne Animal Clinics. Below is an
abbreviated version of the interview, which
has been edited for readability.
 Read the article Gravity Payment's Dan
Price On How He Measures Success
After His $70k Experiment
MOTIVATION
Video Time – “Stop Trying to Motivate Your
Employees?”
 Dan Pink
Career analyst Dan Pink examines
the puzzle of motivation, starting
with a fact that social scientists
know but most managers don't:
Traditional rewards aren't always
as effective as we think. Listen for
illuminating stories -- and maybe, a
way forward.
The puzzle of motivation | Dan Pink
NEEDS-BASED
THEORIES OF
MOTIVATION
NEEDS_BASED THEORIES OF
MOTIVATION
Needs-based theories
emphasize the needs
that motivate people.
Leaders can design the
reward system to direct
energies and priorities
toward attainment of
shared goals.
HIERARCHY OF NEEDS
THEORY
Abraham Maslow’s
hierarchy of needs theory
proposes that humans are
motivated by multiple needs
and those needs exist in a
hierarchical order, wherein
the higher needs cannot be
satisfied until the lower
needs are met.
MASLOW’S HIERARCHY OF
NEEDS
MASLOW’S HIERARCHY OF
NEEDS
Maslow identified five general levels of motivating needs. The first
three levels must be satisfied before higher-order needs are activated:
 Physiological. Food, water, and oxygen. In an organization:
adequate heat, air, and base salary.
 Safety. Freedom from violence and for an orderly society. In an
organization: safe jobs, fringe benefits, and job security.
 Belongingness. Be part of a group. In an organization: good
relationships with coworkers, participation in a work team, and a
positive relationship with supervisors.
 Esteem. Positive self-image and attention, recognition, and
appreciation from others. In an organization: recognition, increase
in responsibility, high status, and credit for contributions.
 Self-actualization. Self-fulfillment. In an organization: opportunities
to grow, be empowered and creative, and acquire training for
challenging assignments and advancement.
HIERARCHY OF NEEDS
Discussion Question
Describe the kinds of needs
that people bring to an
organization. How might
one’s personality
characteristics—such as
introversion/extroversion or
openness to experience, as
described in Chapter 4—
influence the needs he or
she brings to work?
HIERARCHY OF NEEDS
Discussion Question
 Humans are motivated by multiple needs that
exist in a hierarchical order; higher needs
cannot be satisfied until the lower needs are
met. Maslow named five categories of needs:
physiological, safety, belongingness, esteem,
and selfactualization. Physiology, safety, and
belonging are deficiency needs. Needs are
satisfied in sequence: Physiological needs are
satisfied before safety needs, safety needs are
satisfied before social needs, and so on. Once
a need has been satisfied, it declines in
importance and the next higher need is
activated.
 Individual differences are discussed in Chapter
4. One way in which leaders try to enable all
followers to achieve intrinsic rewards is by
giving them more control over their own work
and the power to affect outcomes.
HIERARCHY OF NEEDS
Read an Article
 The pyramid, based upon a paper
written in 1943, lays out humankind’s
most fundamental needs. It begins
with our most basic necessities and
then suggests additional tiers of
needs that act as a kind of stairway
that leads to self-actualization,
whereby one achieves their highest
purpose. By considering employee
happiness within the context of this
model, managers can help foster
meaningful employee growth. Here
is a suggested approach.
 Read the article Considering Maslow's
Hierarchy Of Needs To Create An
Empowered Workplace
TWO-FACTOR THEORY
Frederick Herzberg
developed another popular
needs-based theory of
motivation called the two-
factor theory. The work
characteristics associated
with dissatisfaction were
different from those
pertaining to satisfaction.
HERZBERG’S TWO-FACTOR
THEORY
HERZBERG’S TWO-FACTOR
THEORY
 Hygiene factors, the first
dimension, involve the presence or
absence of job dissatisfiers, such as
working conditions, pay, company
policies, and interpersonal
relationships.
 Hygiene factors work in the area of
lower-level needs, and their absence
causes dissatisfaction.
 Good hygiene factors remove the
dissatisfaction, but they do not in
themselves cause people to become
highly satisfied and motivated in their
work.
HYGIENE
FACTORS
Working
conditions
Pay
Company
Policies
Interpersonal
relationships
HERZBERG’S TWO-FACTOR
THEORY
 Motivators, the second
dimension, fulfill high-level
needs such as needs for
achievement, recognition,
responsibility, and
opportunity for growth.
 Herzberg believed that when
motivators are present,
workers are highly motivated
and satisfied.
MOTIVATORS
Achievement
Recognition
Responsibility
Opportunity for
Growth
HERZBERG’S TWO-
FACTOR THEORY
Discussion Question
 Google wants employees to mingle
more but not to waste a lot of time.
So as part of its “people strategy,”
Google analyzes reams of data to
determine the optimal size and
shape for the cafeteria tables and
the best length for the lunch line. If
hygiene factors, as defined in
Herzberg’s two-factor theory, will not
provide increased satisfaction and
motivation, why do you think Google
would try to increase lunchtime
mingling? Discuss.
HERZBERG’S TWO-
FACTOR THEORY
Discussion Question
 Hygiene factors involve the presence or
absence of adequate working conditions,
pay, company policies, or interpersonal
relationships. When hygiene factors are
poor, work is dissatisfying. Good hygiene
factors remove dissatisfaction but do not
cause satisfaction and motivation. In fact,
research has shown that some incentive
programs—using monetary rewards—are
successful, especially when people are
actually motivated by money and lower
needs. Leaders should understand a
program’s strengths and weaknesses and
acknowledge the positive but limited effects
of hygiene factors, i.e., extrinsic motivators.
ACQUIRED NEEDS THEORY
David McClelland’s
acquired needs theory
proposes that certain
types of needs
(achievement, affiliation,
power) are acquired
during an individual’s
lifetime.
ACQUIRED NEEDS THEORY
Three needs most
frequently studied are
as follows:
Need for
achievement
Need for affiliation
Need for power
NEEDS
Achievement
PowerAffiliation
ACQUIRED NEEDS
THEORY
Need for achievement
 Desire to accomplish
something difficult,
attain a high standard
of success, master
complex tasks, and
surpass others
ACQUIRED NEEDS
THEORY
Need for affiliation
•Desire to form close
personal
relationships, avoid
conflict, and establish
warm friendships
ACQUIRED NEEDS
THEORY
Need for power
 Desire to influence
or control others, be
responsible for
others, and have
authority over others
ACQUIRED NEEDS THEORY
 Needs-based theories focus
on underlying needs that
motivate how people behave.
The hierarchy of needs
theory, the two-factor theory,
and the acquired needs
theory all identify the specific
needs that motivate people.
Leaders can work to meet
followers’ needs and elicit
appropriate and successful
work behaviors.
As a leader, you can use good
working conditions, satisfactory
pay,
and comfortable relationships to
reduce job dissatisfaction. To spur
greater follower satisfaction
and enthusiasm, you can employ
motivators—challenge,
responsibility, and recognition.
ACQUIRED NEEDS
THEORY
Discussion Question
As part of the federal health-care
overhaul in the United States,
patient satisfaction survey scores
are now used to help determine
how much the federal
government will pay medical
facilities for treating patients on
Medicare. What motivation
theory described in the chapter
does this example illustrate? Do
you think this approach will
motivate
ACQUIRED NEEDS
THEORY
Discussion Question
 The scenario describes the “carrot-and-stick approach,”
which states that behavior that produces a desired outcome
is rewarded with a “carrot,” such as a pay raise or promotion.
Conversely, undesirable or unproductive behavior brings the
“stick,” such as a demotion or withholding a pay raise. Carrot-
and-stick approaches tend to focus on lower needs, although
higher needs can also be met. Therefore, in this case, if the
patient is more satisfied there is an incentive attached and
vice versa. Higher customer satisfaction makes the incentive
higher. The carrot-and-stick approach is a reward and
punishment motivation practice. Monetary and other
incentives could definitely motivate employees of the call
center to improve grades and attendance. However, despite
numerous successful incentive programs, critics argue that
extrinsic rewards are neither adequate nor productive
motivators and may work against an organization. Reasons
for this criticism include: (1) extrinsic rewards diminish
intrinsic rewards; (2) extrinsic rewards are temporary; (3)
extrinsic rewards assume people are driven by lower needs;
(4) organizations are too complex for carrot-and-stick
approaches; and (5) carrot-and-stick approaches destroy
people’s motivation to work as a group. Over time, the
students would get tired of Happy Meals and might be bored
with cash.
OTHER
MOTIVATION
THEORIES
OTHER MOTIVATION
THEORIES
Three other motivational
theories—the reinforcement
perspective, expectancy
theory, and equity theory—
focus primarily on extrinsic
rewards and punishments,
sometimes referred to as the
carrot-and-stick approach. The
carrot is a reward. The stick is a
punishment.
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Reinforcement theory simply looks at
the relationship between behavior and
its consequences by changing or
modifying followers’ on-the-job behavior
through the appropriate use of
immediate rewards or punishments.
Rewards&Punishments Behavior Consequences
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
Behavior modification is
the set of techniques by
which reinforcement theory
is used to modify behavior.
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
The basic assumption
underlying behavior
modification is the law of
effect which states that:
Positively reinforced
behavior tends to be
repeated.
Behavior that is not
reinforced tends not to be
repeated.
SHAPING BEHAVIOR WITH
REINFORCEMENT
Source: Based on Richard L. Daft and Richard M. Steers, Organizations: A Micro/Macro Approach (Glenview, IL: Scott, Foresman, 1986) p. 109.
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Reinforcement is
anything that causes a
certain behavior to be
repeated or inhibited
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Positive reinforcement
is administration of a
pleasant and rewarding
consequence following
a behavior
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Negative
reinforcement is
withdrawal of an
unpleasant
consequence once a
behavior is improved
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Punishment is
imposition of unpleasant
outcomes on an
employee following
undesirable behavior
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
 Extinction is
withdrawal of a positive
reward, meaning that
behavior is no longer
reinforced and hence is
less likely to occur in
the future
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
As a leader, you can change follower
behavior through the
appropriate use of rewards and punishments.
To establish new behaviors quickly, you can
reinforce the desired behavior after each and
every occurrence. To sustain the behaviors
over a
long time period, try reinforcing the behaviors
intermittently.
REINFORCEMENT
PERSPECTIVE ON MOTIVATION
Leaders can apply reinforcement theory to
influence the behavior of followers.
 Continuous reinforcement reinforces
behavior after each and every
occurrence; effective for establishing
new behaviors.
 Partial reinforcement reinforces
behavior intermittently; effective for
maintaining behavior over extended
time periods.
EXPECTANCY THEORY
Expectancy theory, which
is associated with Victor
Vroom, suggests that
motivation depends on
individuals’ mental
expectations about their
ability to perform tasks and
receive desired rewards.
EXPECTANCY THEORY
Expectancy theory is based
on the relationship among:
The individual’s effort (E).
The possibility of high
performance (P).
The desirability of outcomes
following high performance
(O).
KEY ELEMENTS OF
EXPECTANCY THEORY
EXPECTANCY THEORY
The E>P expectancy is the
probability that putting effort
into a task will lead to high
performance. For this
expectancy to be high, the
individual must have the
ability, previous experience,
and necessary tools,
information, and opportunity
to perform.
EXPECTANCY THEORY
The P>O expectancy involves
whether successful performance
will lead to the desired outcome. If
this expectancy is high, the
individual will be more highly
motivated. Valence refers to the
value of outcomes to the
individual; the value the employee
places on the outcome affects the
employee’s motivation.
EXPECTANCY THEORY
Leaders enhance motivation
by increasing followers’
expectancy—clarifying
individual needs, providing
the desired outcomes, and
ensuring that individuals have
the ability and support
needed to perform well and
attain their desired outcomes.
EXPECTANCY THEORY
Discussion Question
One small business owner says
she doesn’t offer her sales
representatives incentives
because people try to sabotage
one another to get more
business and stop paying
attention to smaller accounts. As
a leader, how would you develop
a program to motivate and
reward high performers without
promoting the wrong type of
behavior?
EXPECTANCY THEORY
Discussion Question
Every person is different, so
leaders have to use a mix of
incentives and rewards to
motivate. A leader’s responsibility
is to understand each follower’s
“unique motivational profile” and
then help followers meet their
needs while attaining
organizational goals.
EQUITY THEORY
 Equity theory proposes that people are
motivated to seek social equity in the
rewards they receive for performance.
According to the theory, if people
perceive their rewards as equal to what
others receive for similar contributions,
they will believe they are treated fairly
and will be more highly motivated. A
state of equity exists whenever the ratio
of one person’s outcomes to inputs
equals the ratio of others’ in the work
group.
EQUITY THEORY
As a leader, you can clarify which rewards a
follower wants and
ensure that he or she has the knowledge,
skills, resources, and support to perform and
obtain the
desired rewards. Keep in mind that perceived
equity or inequity in rewards also influences
motivation.
EQUITY THEORY
Discussion Question
 With the economy still in a slump, some
companies were freezing pay raises or
even cutting pay for some employees
so they could offer substantial raises to
people considered star performers. As a
motivational technique, does this
practice seem like a good one to you?
What might be some disadvantages of
this technique?
EXPECTANCY THEORY
Discussion Question
 The reinforcement perspective proposes that
behavior can be modified by the use of
rewards and punishments. Carrot-and-stick
methods of motivation focus primarily on
extrinsic rewards (raises) and punishments
(pay cuts). Research shows that money does
increase motivation in the short run although
those who received a pay freeze or a pay cut
would consider the situation unfair if others
received raises. Equity theory says that those
who perceived the situation as unfair would not
be motivated at work. Also, many critics of the
carrot-and-stick methods argue that extrinsic
rewards undermine intrinsic rewards, bring
about unintended consequences, are too
simple to capture organizational realities, and
replace workplace cooperation with unhealthy
competition.
EMPOWERING
PEOPLE TO MEET
HIGHER NEEDS
EMPOWERMENT
Empowerment refers to
power sharing, the
delegation of power or
authority to subordinates in
the organization.
Empowerment can enhance
motivation by meeting the
higher-level needs of
employees, which benefits
leaders.
THE PSYCHOLOGICAL MODEL
OF EMPOWERMENT
 Empowerment provides strong
motivation because most people have a
need for self-efficacy, which is the
capacity to produce results or
outcomes.
As a leader, you can give employees greater power and authority
to help meet higher motivational needs. You can implement
empowerment by providing the five
elements of information, knowledge, discretion, significance, and
rewards.
THE PSYCHOLOGICAL MODEL
OF EMPOWERMENT
 Five elements must be in place
before employees can be truly
empowered: information,
knowledge, discretion, meaning,
and rewards.
Empowerment
Information
Knowledge
DiscretionMeaning
Rewards
THE PSYCHOLOGICAL
MODEL OF
EMPOWERMENT
Employees receive
information about
company
performance.
THE PSYCHOLOGICAL
MODEL OF
EMPOWERMENT
Employees receive
knowledge and skills
to contribute to
company goals.
THE PSYCHOLOGICAL
MODEL OF
EMPOWERMENT
Employees have the
power to make
substantive decisions.
THE PSYCHOLOGICAL
MODEL OF
EMPOWERMENT
Employees
understand the
meaning and impact
of their jobs.
THE PSYCHOLOGICAL
MODEL OF
EMPOWERMENT
Employees are
rewarded based on
company
performance.
JOB DESIGN FOR
EMPOWERMENT
Job design refers to
structuring jobs in a way to
meet higher-level needs and
increase motivation toward
the accomplishment of
goals.
JOB DESIGN FOR
EMPOWERMENT
The job characteristics
model is a model of job
design that considers the
core job dimensions of skill
variety, task identity, task
significance, autonomy, and
feedback to enrich jobs and
increase their motivational
potential.
THE JOB CHARACTERISTIC
MODEL
Source: Adapted from J. Richard Hackman and G. R. Oldham, ‘‘Motivation through the Design of Work: Test of a Theory,’’ Organizational Behavior
and Human Performance 16 (1976), p. 256.
JOB DESIGN FOR
EMPOWERMENT
Leaders can make alterations in five dimensions
of jobs to increase the job’s motivational and
empowerment potential:
 Increase skill variety.
 Structure jobs so that an employee can
perform a complete task from beginning to
end.
 Incorporate task significance into the job.
 Give people autonomy for choosing how and
when to perform specific tasks.
 To the extent possible, design jobs to provide
feedback and let employees see the
outcomes of their efforts.
JOB DESIGN FOR
EMPOWERMENT
Job enrichment.
Motivational approach that
incorporates high-level
motivators into the work,
including job responsibility,
recognition and
opportunities for growth,
learning, and achievement
JOB DESIGN FOR
EMPOWERMENT
The first three core job
dimensions shown in Exhibit
8.8—higher skill variety, task
identity, and task significance—
enable the employee to see the
job as meaningful and significant
(experienced meaningfulness of
work), which makes the job
intrinsically satisfying.
JOB DESIGN FOR
EMPOWERMENT
Greater autonomy in a job
leads to a feeling of
increased responsibility for
the success or failure of task
outcomes (experienced
responsibility for outcomes
of the work), thus increasing
commitment.
JOB DESIGN FOR
EMPOWERMENT
The final dimension,
feedback, provides the
employee with knowledge of
the actual results of work
activities. Thus, the
employee knows how he or
she is doing and can adjust
work performance to
increase desired outcomes.
EMPOWERMENT
APPLICATIONS
Current methods of empowering
employees can be classified based
on two dimensions:
The extent to which employees
are involved in defining desired
outcomes
The extent to which they
participate in determining how to
achieve those outcomes.
DEGREES OF
EMPOWERMENT
EMPOWERMENT
APPLICATIONS
When employees are fully
empowered, they are
involved in defining
mission and goals as well
as in determining how to
achieve them.
EMPOWERMENT
Video Time – “Beyond empowerment - are we ready
for the self-managed organization? ”
 Doug Kirkpatrick
Doug is a Northern California-based
executive coach, organizational
consultant, speaker, author and
educator. He is the author of Beyond
Empowerment: The Age of the Self-
Managed Organization. An economics
graduate of Pacific Lutheran University,
he also holds a law degree from
Willamette University College of Law
and a Senior Professional in Human
Resources designation (SPHR). He
enjoys traveling to rough parts of the
world and appreciates the perspective
that he gains from it.
Beyond empowerment - are we ready for
the self-managed organization? Doug
Kirkpatrick at TEDxChico
GIVING MEANING
TO WORK
THROUGH
ENGAGEMENT
ENGAGEMENT
 One path to meaning is through
employee engagement. Engagement
means that people enjoy their jobs and
are satisfied with their work conditions,
contribute enthusiastically to meeting
team and organizational goals, and feel
a sense of belonging and commitment
to the organization. Fully engaged
employees care deeply about the
organization and actively seekways to
serve the mission.
ENGAGEMENT
 It is the behavior of leaders
that makes the biggest
difference in whether people
feel engaged at work. The
Gallup Organization
developed a metric called the
Q12, a list of 12 questions
that provides a way to
evaluate how leaders are
doing in creating an
environment that provides
intrinsic rewards by meeting
higher-level needs.
How Facebook engages
its employees. What
advantages do leaders
and
employees gain from
employee engagement?
ENGAGEMENT
Video Time – “Mark Zuckerberg Instructs Facebook
to Move Fast”
 Mark Zuckerberg discusses
Facebook Home and
philosophy of moving fast
and empowering engineers
to try new things.
 Mark Zuckerberg
Mark Elliot Zuckerberg is an
American technology
entrepreneur and
philanthropist. He is known
for co-founding and leading
Facebook as its chairman
and chief executive officer.
Mark Zuckerberg Instructs Facebook to
Move Fast
ENGAGEMENT
As a leader, you can build an environment
that unleashes
employee potential and allows people to
become engaged with their work and the
organization. You can help people feel good
about their jobs by giving them a sen of
making progress toward meaningful goals.
ENGAGEMENT
Discussion Question
Do you agree that it is
the behavior of leaders
that largely determines
employee engagement,
as defined in the text?
What might be some
other factors that
influence engagement?
ENGAGEMENT
Discussion Question
 Leaders create the environment that
determines employee engagement. It is the
behavior of leaders that makes the biggest
difference in whether people feel engaged at
work. A leader’s role is not to control others but
to organize the workplace in such a way that
each person can learn, contribute, and grow.
Leaders can identify the level of engagement
in their organizations and implement strategies
to facilitate full engagement and improve
performance. When people are fully engaged
with their work, satisfaction, performance, and
profits increase. Other factors that influence
engagement include organization wide
programs such as job enrichment, or incentive
plans.
ENGAGEMENT
Discussion Question
Discuss whether you believe it is
a leader’s responsibility to help
people find meaning in their
work. How might leaders do this
for employees at a credit card
call center? How about for
employees who empty waste
containers and clean restrooms
at sports or entertainment
venues?
ENGAGEMENT
Discussion Question
 One way people get intrinsic rewards at work is
to feel a deep sense of importance and
meaningfulness, such as people who work for
a social cause or mission. Good leaders
channel employee motivation by tapping into
each person’s talents and skills. Leaders can
do this for a credit card call center by finding
out the talents and skills of the employees and
putting them in positions that utilize those
skills. For example, a friendly, extroverted
person makes a good customer support agent.
Leaders could also offer training in marketing
and customer service so that employees could
improve their skills and have a good feeling
about working at the call center. Call centers
often have a career ladder that appeals to
higher needs; a customer support agent could
become a manager.
NEW IDEAS FOR
MOTIVATION
NEW IDEAS FOR
MOTIVATION
Engagement and
empowerment have
such high motivational
potential because they
address higher level
needs and provide
intrinsic rewards.
THE MAKING PROGRESS
PRINCIPLE
The making progress
principle is the idea that the
single most important factor
that can boost motivation,
positive emotions, and
perceptions during a
workday is making progress
toward meaningful goals.
THE MAKING PROGRESS
PRINCIPLE
Discussion Question
Why do you think making
progress in meaningful work
ranks as the most important
factor contributing to motivation
according to a recent study? How
might leaders provide a sense of
progress for employees working
on long-range projects that might
not show results for months or
even years?
THE MAKING PROGRESS
PRINCIPLE
Discussion Question
 Recent research points to the importance of
making progress toward goals as a key to high
motivation. According to the making progress
principle, the single most important factor that
can boost motivation, positive emotions, and
perceptions during a workday is making
progress toward meaningful goals. Leaders
can support making progress by setting clear
goals, giving people autonomy, providing
sufficient time and resources, and helping
people see how they are contributing. In
addition, leader encouragement and
recognition can enable people to see their
work as important and meaningful. Providing
feedback on how well people are progressing
and giving them a way to track their progress
toward goals provides a renewable energy that
fuels motivation.
BUILDING A THRIVING
WORKFORCE
 A thriving workforce is the idea that people
are not just satisfied and productive but also
engaged in creating the future—their own and
that of the organization. Two components of
thriving individuals are vitality and learning.
Vitality Learning
Thriving
workforce
BUILDING A THRIVING
WORKFORCE
Leaders promote thriving by
applying many of the motivational
techniques. A long-term
commitment to empowerment
and engagement can provide the
basis for a thriving workplace.
The goal of empowerment and
engagement is to transform the
culture.
BUILDING A THRIVING
WORKFORCE
Discussion Question
How might empowerment
provide the two conditions
(vitality and learning) for a
thriving workforce as described in
the chapter? Consider both
psychological factors and the job
characteristics model in your
answer.
BUILDING A THRIVING
WORKFORCE
Discussion Question
 Two components of thriving individuals are vitality
and learning. A thriving employee is one who feels
alive, energized, and passionate about what he or
she is doing. The individual has a sense that his or
her work has purpose and meaning. In addition, a
thriving employee is one who is learning and growing,
developing new knowledge, skills, and abilities that
can be applied now and in the future. Leaders
promote thriving by applying many of the motivational
techniques described throughout this chapter, such
as meeting higher level needs, helping people get
intrinsic rewards from their work, and providing
regular feedback on performance and progress. A
long-term commitment to empowerment and
engagement can provide the basis for a thriving
workplace. The goal of empowerment and
engagement is to transform the culture. Leaders talk
with people one on one to understand what each
individual wants and needs to feel engaged and
empowered, and then follow through with everyday
action.
NEW IDEAS FOR MOTIVATION
Video Time – “Stop Trying to Motivate Your
Employees?”
 It’s a misconception that you can motivate
your employees. They’re already
motivated. The key is to unleash their
motivation. The Founder of Aperio
Consulting Group, Kerry Goyette takes a
deeper dive into motivation, how to
leverage it, and the counterproductive
motivations that may be holding us back
from success.
 Kerry Goyette
Kerry is the Founder & President of Aperio
Consulting Group, a corporate consulting
firm that provides workplace analytics and
training to build high performance
cultures. Kerry consults clients across the
world on scientific strategies for
engineering teams that maximize
performance. She is also the founding
authority of the Motivational Research
Institute focused on identifying the key
human factor contributors to success.
Stop Trying to Motivate Your Employees |
Kerry Goyette | TEDxCosmoPark
KEY TERMS AND
CONCEPTS
KEY TERMS AND CONCEPTS
 Motivation: the forces either internal or
external to a person that arouse
enthusiasm and persistence to pursue a
certain course of action.
 Intrinsic rewards: internal satisfactions a
person receives in the process of
performing a particular action.
 Extrinsic rewards: rewards given by
another person, typically a supervisor,
such as pay increases and promotions.
 Hierarchy of needs theory: Maslow’s
theory proposes that humans are
motivated by multiple needs and those
needs exist in a hierarchical order.
 Hygiene factors: the first dimension of
Herzberg’s two-factor theory; involves
working conditions, pay, company
policies, and interpersonal relationships.
 Motivators: the second dimension of
Herzberg’s two-factor theory; involves job
satisfaction and meeting higher-level
needs such as achievement, recognition,
and opportunity for growth.
 Acquired needs theory: McClelland’s
theory that proposes that certain types of
needs (achievement, affiliation, power) are
acquired during an individual’s lifetime.
 Reinforcement theory: a motivational
theory that looks at the relationship
between behavior and its consequences
by changing or modifying followers’ on-
the-job behavior through the appropriate
use of immediate rewards or
punishments.
 Behavior modification: the set of
techniques by which reinforcement theory
is used to modify behavior.
KEY TERMS AND CONCEPTS
 Law of effect: states that positively
reinforced behavior tends to be repeated
and behavior that is not reinforced tends
not to be repeated.
 Reinforcement: anything that causes a
certain behavior to be repeated or
inhibited.
 Positive reinforcement: the
administration of a pleasant and
rewarding consequence following a
behavior.
 Negative reinforcement: the withdrawal
of an unpleasant consequence once a
behavior is improved.
 Punishment: the imposition of unpleasant
outcomes on an employee following
undesirable behavior.
 Extinction: the withdrawal of a positive
reward, meaning that behavior is no
longer reinforced and hence is less likely
to occur in the future.
 Expectancy theory: a theory that
suggests that motivation depends on
individuals’ mental expectations about
their ability to perform tasks and receive
desired rewards.
 Equity theory: a theory that proposes
that people are motivated to seek social
equity in the rewards they receive for
performance.
 Empowerment: power sharing; the
delegation of power or authority to
subordinates in the organization.
 Job design: structuring jobs in a way to
meet higher-level needs and increase
motivation toward the accomplishment of
goals.
KEY TERMS AND CONCEPTS
 Job characteristics model: a model
of job design that considers the core
job dimensions of skill variety, task
identity, task significance, autonomy,
and feedback to enrich jobs and
increase their motivational potential.
 Job enrichment: a motivational
approach that incorporates high-level
motivators into the work, including job
responsibility, recognition, and
opportunities for growth, learning, and
achievement.
 Engagement: when people enjoy their
jobs and are satisfied with their work
conditions, contribute enthusiastically
to meeting team and organizational
goals, and feel a sense of belonging
and commitment to the organization.
 Making progress principle: the idea
that the single most important factor
that can boost motivation, positive
emotions, and perceptions during a
workday is making progress toward
meaningful goals.
 Thriving workforce: a workforce in
which people are not just satisfied and
productive but also engaged in creating
a better future for themselves and the
organization; incorporates vitality and
learning.

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Chapter 7 leadership

  • 2. TABLE OF CONTENTS  SUMMARY  LEADERSHIP AND MOTIVATION  NEEDS-BASED THEORIES OF MOTIVATION  OTHER MOTIVATION THEORIES  EMPOWERING PEOPLE TO MEET HIGHER NEEDS  GIVING MEANING TO WORK THROUGH ENGAGEMENT  NEW IDEAS FOR MOTIVATION
  • 4. SUMMARY  This chapter introduced a number of important ideas about motivating people in organizations. Individuals are motivated to act by various motives and to satisfy a range of needs.  The leadership approach to motivation tends to focus on positive motives and meeting the higher needs of employees. The role of the leader is to create a situation in which followers’ higher needs and the needs of the organization can be met simultaneously.  Needs-based theories focus on the underlying needs that motivate how people behave. Maslow’s hierarchy of needs proposes that individuals satisfy lower needs before they move on to higher needs. Herzberg’s two-factor theory holds that dissatisfiers must be removed and motivators then added to cause high motivation. McClelland asserted that people are motivated differently depending on which needs they have acquired.
  • 5. SUMMARY  Other motivation theories, including the reinforcement perspective, expectancy theory, and equity theory, focus primarily on extrinsic rewards and punishments, sometimes called carrotand- stick methods of motivation.  The reinforcement perspective proposes that behavior can be modified by the use of rewards and punishments.  Expectancy theory is based on the idea that a person’s motivation is contingent upon his or her expectations that a given behavior will result in desired rewards.  Equity theory proposes that individuals’ motivation is affected not only by the rewards they receive but also by their perceptions of how fairly they are treated in relation to others. People are motivated to seek equity in the rewards they receive for performance.
  • 6. SUMMARY  A highly effective way to meet higher-level needs is to empower employees. Empowerment lets subordinates know the direction of the organization and gives them the autonomy to act as they see fit to go in that direction. Leaders provide employees with the knowledge to contribute to the organization, the power to make consequential decisions, and the necessary resources to do their jobs.  Jobs can be designed to increase empowerment. The job characteristics model proposes that jobs are more empowering and motivating when they have greater skill variety, task identity, task importance, autonomy, and feedback.
  • 7. SUMMARY  Employee engagement is tied to the trend toward helping employees find value and meaning in their jobs. The most motivated employees are engaged employees who enjoy their jobs and feel they are making a valuable contribution. Engaged employees contribute enthusiastically to meeting goals. Leaders create the environment that determines employee engagement.  Two recent motivational ideas that relate to engagement are the making progress principle and creating a thriving workforce. Research suggests that the single most important factor for motivation is a sense of making progress toward meaningful goals. A thriving workforce is made up of people who are enthusiastically learning and growing as they acquire new knowledge and skills to apply in their current jobs or in the future.
  • 8. LEARNING OUTCOMES After studying this chapter, you should be able to:  Recognize and apply the difference between intrinsic and extrinsic rewards.  Appropriately tap into the motives that induce people to take action to accomplish important goals.  Motivate others by meeting their higher-level needs.  Apply needs-based theories of motivation and understand how the concept of equity applies to motivation.
  • 9. LEARNING OUTCOMES  Describe the psychological and structural elements of empowerment and how empowerment contributes to motivation.  Apply the job characteristics model to enrich jobs.  Identify factors that play a role in employee engagement and use engagement to meet higher-level needs.  Build a thriving workforce by giving people a sense of making progress toward meaningful goals.
  • 11. INTRODUCTION  When Dan Price increased his company’s minimum wage to $70,000, he discovered that money was not the only motivator for employees. Paying people well is important, but motivation is more complex than money.
  • 13. MOTIVATION Motivation refers to the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Employee motivation affects productivity, so part of a leader’s job is to channel followers’ motivation toward the accomplishment of the organization’s vision and goals.
  • 14. A SIMPLE MODEL OF MOTIVATION
  • 16. MOTIVATION  Motivation can lead to high performance within organizations. High employee motivation and high organizational performance and profits go hand in hand. Motivation High performance
  • 17. INTRINSIC REWARDS  Intrinsic rewards are the internal satisfactions a person receives in the process of performing a particular action. An intrinsic reward is internal and under the control of the individual, such as to engage in task behavior to satisfy a need for competency and self- determination. Intrinsic rewards appeal to the “higher” needs of individuals. The leadership approach strives to motivate people by providing them with the opportunity to satisfy higher needs and become intrinsically rewarded. One way in which leaders try to enable all followers to achieve intrinsic rewards is by giving them more control over their own work and the power to affect outcomes.
  • 18. EXTRINSIC REWARDS  Extrinsic rewards are given by another person, typically a supervisor, and include promotions and pay increases. Extrinsic rewards compel individuals to engage in a task behavior for an outside source that provides what they need. Extrinsic rewards appeal to the “lower” needs of individuals. Conventional management approaches often appeal to an individual’s lower, basic needs and rely on extrinsic rewards and punishments to motivate people.
  • 19. NEEDS OF PEOPLE AND MOTIVATION METHODS Source: Adapted from William D. Hitt, The Leader-Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 153.
  • 20. NEEDS OF PEOPLE AND MOTIVATION METHODS As a leader, you can provide extrinsic rewards, such as promotions, pay raises, and praise, but also help followers achieve intrinsic rewards and meet their higher-level needs for accomplishment, growth, and fulfillment.
  • 21. POSITIVE AND NEGATIVE MOTIVES People have both positive and negative motives that cause them to engage in specific behaviors or activities.
  • 22. FOUR CATEGORIES OF MOTIVES Source: Based on Bruce H. Jackson, ‘‘Influence Behavior: Become a Master Motivator,’’ Leadership Excellence (April 2010), p. 14.
  • 23. POSITIVE AND NEGATIVE MOTIVES Good leaders rely on positive motives as much as they can. However, negative approaches also have value. In the real world, almost every leader sometimes has to impose some form of punishment or tap into negative motives.
  • 24. POSITIVE AND NEGATIVE MOTIVES Fear can be a powerful motivator, but using fear to motivate people almost always has negative consequences for employee development and long-term performance. Effective leaders avoid the use of fear tactics.
  • 25. MOTIVATION Discussion Question Can you think of specific motivational techniques that would motivate you in each of the four categories (positive extrinsic, positive intrinsic, negative extrinsic, negative intrinsic)? Describe them.
  • 26. MOTIVATION Discussion Question  The extrinsic positive approach includes rewards such as pay raises, bonuses, and praise. The extrinsic negative approach would include threats and punishments. For the intrinsic positive approach, helping people enjoy their work and getting a sense of accomplishment would be an example. The intrinsic negative approach would include tapping into self-doubts and anxieties.
  • 27. MOTIVATION Read an Article  Dan Price made headlines (and magazine covers) in 2015 when he committed to giving every employee at his credit card processing company Gravity Payments a minimum wage of $70,000.  This interview with Gravity Payment’s CEO Dan Price (DP) was conducted by our colleague Ted McKinney (TM), as part of his doctoral studies with Benedictine University’s Ph.D. program in values- driven leadership. Ted is also the COO of Hawthorne Animal Clinics. Below is an abbreviated version of the interview, which has been edited for readability.  Read the article Gravity Payment's Dan Price On How He Measures Success After His $70k Experiment
  • 28. MOTIVATION Video Time – “Stop Trying to Motivate Your Employees?”  Dan Pink Career analyst Dan Pink examines the puzzle of motivation, starting with a fact that social scientists know but most managers don't: Traditional rewards aren't always as effective as we think. Listen for illuminating stories -- and maybe, a way forward. The puzzle of motivation | Dan Pink
  • 30. NEEDS_BASED THEORIES OF MOTIVATION Needs-based theories emphasize the needs that motivate people. Leaders can design the reward system to direct energies and priorities toward attainment of shared goals.
  • 31. HIERARCHY OF NEEDS THEORY Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs and those needs exist in a hierarchical order, wherein the higher needs cannot be satisfied until the lower needs are met.
  • 33. MASLOW’S HIERARCHY OF NEEDS Maslow identified five general levels of motivating needs. The first three levels must be satisfied before higher-order needs are activated:  Physiological. Food, water, and oxygen. In an organization: adequate heat, air, and base salary.  Safety. Freedom from violence and for an orderly society. In an organization: safe jobs, fringe benefits, and job security.  Belongingness. Be part of a group. In an organization: good relationships with coworkers, participation in a work team, and a positive relationship with supervisors.  Esteem. Positive self-image and attention, recognition, and appreciation from others. In an organization: recognition, increase in responsibility, high status, and credit for contributions.  Self-actualization. Self-fulfillment. In an organization: opportunities to grow, be empowered and creative, and acquire training for challenging assignments and advancement.
  • 34. HIERARCHY OF NEEDS Discussion Question Describe the kinds of needs that people bring to an organization. How might one’s personality characteristics—such as introversion/extroversion or openness to experience, as described in Chapter 4— influence the needs he or she brings to work?
  • 35. HIERARCHY OF NEEDS Discussion Question  Humans are motivated by multiple needs that exist in a hierarchical order; higher needs cannot be satisfied until the lower needs are met. Maslow named five categories of needs: physiological, safety, belongingness, esteem, and selfactualization. Physiology, safety, and belonging are deficiency needs. Needs are satisfied in sequence: Physiological needs are satisfied before safety needs, safety needs are satisfied before social needs, and so on. Once a need has been satisfied, it declines in importance and the next higher need is activated.  Individual differences are discussed in Chapter 4. One way in which leaders try to enable all followers to achieve intrinsic rewards is by giving them more control over their own work and the power to affect outcomes.
  • 36. HIERARCHY OF NEEDS Read an Article  The pyramid, based upon a paper written in 1943, lays out humankind’s most fundamental needs. It begins with our most basic necessities and then suggests additional tiers of needs that act as a kind of stairway that leads to self-actualization, whereby one achieves their highest purpose. By considering employee happiness within the context of this model, managers can help foster meaningful employee growth. Here is a suggested approach.  Read the article Considering Maslow's Hierarchy Of Needs To Create An Empowered Workplace
  • 37. TWO-FACTOR THEORY Frederick Herzberg developed another popular needs-based theory of motivation called the two- factor theory. The work characteristics associated with dissatisfaction were different from those pertaining to satisfaction.
  • 39. HERZBERG’S TWO-FACTOR THEORY  Hygiene factors, the first dimension, involve the presence or absence of job dissatisfiers, such as working conditions, pay, company policies, and interpersonal relationships.  Hygiene factors work in the area of lower-level needs, and their absence causes dissatisfaction.  Good hygiene factors remove the dissatisfaction, but they do not in themselves cause people to become highly satisfied and motivated in their work. HYGIENE FACTORS Working conditions Pay Company Policies Interpersonal relationships
  • 40. HERZBERG’S TWO-FACTOR THEORY  Motivators, the second dimension, fulfill high-level needs such as needs for achievement, recognition, responsibility, and opportunity for growth.  Herzberg believed that when motivators are present, workers are highly motivated and satisfied. MOTIVATORS Achievement Recognition Responsibility Opportunity for Growth
  • 41. HERZBERG’S TWO- FACTOR THEORY Discussion Question  Google wants employees to mingle more but not to waste a lot of time. So as part of its “people strategy,” Google analyzes reams of data to determine the optimal size and shape for the cafeteria tables and the best length for the lunch line. If hygiene factors, as defined in Herzberg’s two-factor theory, will not provide increased satisfaction and motivation, why do you think Google would try to increase lunchtime mingling? Discuss.
  • 42. HERZBERG’S TWO- FACTOR THEORY Discussion Question  Hygiene factors involve the presence or absence of adequate working conditions, pay, company policies, or interpersonal relationships. When hygiene factors are poor, work is dissatisfying. Good hygiene factors remove dissatisfaction but do not cause satisfaction and motivation. In fact, research has shown that some incentive programs—using monetary rewards—are successful, especially when people are actually motivated by money and lower needs. Leaders should understand a program’s strengths and weaknesses and acknowledge the positive but limited effects of hygiene factors, i.e., extrinsic motivators.
  • 43. ACQUIRED NEEDS THEORY David McClelland’s acquired needs theory proposes that certain types of needs (achievement, affiliation, power) are acquired during an individual’s lifetime.
  • 44. ACQUIRED NEEDS THEORY Three needs most frequently studied are as follows: Need for achievement Need for affiliation Need for power NEEDS Achievement PowerAffiliation
  • 45. ACQUIRED NEEDS THEORY Need for achievement  Desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others
  • 46. ACQUIRED NEEDS THEORY Need for affiliation •Desire to form close personal relationships, avoid conflict, and establish warm friendships
  • 47. ACQUIRED NEEDS THEORY Need for power  Desire to influence or control others, be responsible for others, and have authority over others
  • 48. ACQUIRED NEEDS THEORY  Needs-based theories focus on underlying needs that motivate how people behave. The hierarchy of needs theory, the two-factor theory, and the acquired needs theory all identify the specific needs that motivate people. Leaders can work to meet followers’ needs and elicit appropriate and successful work behaviors. As a leader, you can use good working conditions, satisfactory pay, and comfortable relationships to reduce job dissatisfaction. To spur greater follower satisfaction and enthusiasm, you can employ motivators—challenge, responsibility, and recognition.
  • 49. ACQUIRED NEEDS THEORY Discussion Question As part of the federal health-care overhaul in the United States, patient satisfaction survey scores are now used to help determine how much the federal government will pay medical facilities for treating patients on Medicare. What motivation theory described in the chapter does this example illustrate? Do you think this approach will motivate
  • 50. ACQUIRED NEEDS THEORY Discussion Question  The scenario describes the “carrot-and-stick approach,” which states that behavior that produces a desired outcome is rewarded with a “carrot,” such as a pay raise or promotion. Conversely, undesirable or unproductive behavior brings the “stick,” such as a demotion or withholding a pay raise. Carrot- and-stick approaches tend to focus on lower needs, although higher needs can also be met. Therefore, in this case, if the patient is more satisfied there is an incentive attached and vice versa. Higher customer satisfaction makes the incentive higher. The carrot-and-stick approach is a reward and punishment motivation practice. Monetary and other incentives could definitely motivate employees of the call center to improve grades and attendance. However, despite numerous successful incentive programs, critics argue that extrinsic rewards are neither adequate nor productive motivators and may work against an organization. Reasons for this criticism include: (1) extrinsic rewards diminish intrinsic rewards; (2) extrinsic rewards are temporary; (3) extrinsic rewards assume people are driven by lower needs; (4) organizations are too complex for carrot-and-stick approaches; and (5) carrot-and-stick approaches destroy people’s motivation to work as a group. Over time, the students would get tired of Happy Meals and might be bored with cash.
  • 52. OTHER MOTIVATION THEORIES Three other motivational theories—the reinforcement perspective, expectancy theory, and equity theory— focus primarily on extrinsic rewards and punishments, sometimes referred to as the carrot-and-stick approach. The carrot is a reward. The stick is a punishment.
  • 53. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Reinforcement theory simply looks at the relationship between behavior and its consequences by changing or modifying followers’ on-the-job behavior through the appropriate use of immediate rewards or punishments. Rewards&Punishments Behavior Consequences
  • 54. REINFORCEMENT PERSPECTIVE ON MOTIVATION Behavior modification is the set of techniques by which reinforcement theory is used to modify behavior.
  • 55. REINFORCEMENT PERSPECTIVE ON MOTIVATION The basic assumption underlying behavior modification is the law of effect which states that: Positively reinforced behavior tends to be repeated. Behavior that is not reinforced tends not to be repeated.
  • 56. SHAPING BEHAVIOR WITH REINFORCEMENT Source: Based on Richard L. Daft and Richard M. Steers, Organizations: A Micro/Macro Approach (Glenview, IL: Scott, Foresman, 1986) p. 109.
  • 57. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Reinforcement is anything that causes a certain behavior to be repeated or inhibited
  • 58. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Positive reinforcement is administration of a pleasant and rewarding consequence following a behavior
  • 59. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Negative reinforcement is withdrawal of an unpleasant consequence once a behavior is improved
  • 60. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Punishment is imposition of unpleasant outcomes on an employee following undesirable behavior
  • 61. REINFORCEMENT PERSPECTIVE ON MOTIVATION  Extinction is withdrawal of a positive reward, meaning that behavior is no longer reinforced and hence is less likely to occur in the future
  • 62. REINFORCEMENT PERSPECTIVE ON MOTIVATION As a leader, you can change follower behavior through the appropriate use of rewards and punishments. To establish new behaviors quickly, you can reinforce the desired behavior after each and every occurrence. To sustain the behaviors over a long time period, try reinforcing the behaviors intermittently.
  • 63. REINFORCEMENT PERSPECTIVE ON MOTIVATION Leaders can apply reinforcement theory to influence the behavior of followers.  Continuous reinforcement reinforces behavior after each and every occurrence; effective for establishing new behaviors.  Partial reinforcement reinforces behavior intermittently; effective for maintaining behavior over extended time periods.
  • 64. EXPECTANCY THEORY Expectancy theory, which is associated with Victor Vroom, suggests that motivation depends on individuals’ mental expectations about their ability to perform tasks and receive desired rewards.
  • 65. EXPECTANCY THEORY Expectancy theory is based on the relationship among: The individual’s effort (E). The possibility of high performance (P). The desirability of outcomes following high performance (O).
  • 67. EXPECTANCY THEORY The E>P expectancy is the probability that putting effort into a task will lead to high performance. For this expectancy to be high, the individual must have the ability, previous experience, and necessary tools, information, and opportunity to perform.
  • 68. EXPECTANCY THEORY The P>O expectancy involves whether successful performance will lead to the desired outcome. If this expectancy is high, the individual will be more highly motivated. Valence refers to the value of outcomes to the individual; the value the employee places on the outcome affects the employee’s motivation.
  • 69. EXPECTANCY THEORY Leaders enhance motivation by increasing followers’ expectancy—clarifying individual needs, providing the desired outcomes, and ensuring that individuals have the ability and support needed to perform well and attain their desired outcomes.
  • 70. EXPECTANCY THEORY Discussion Question One small business owner says she doesn’t offer her sales representatives incentives because people try to sabotage one another to get more business and stop paying attention to smaller accounts. As a leader, how would you develop a program to motivate and reward high performers without promoting the wrong type of behavior?
  • 71. EXPECTANCY THEORY Discussion Question Every person is different, so leaders have to use a mix of incentives and rewards to motivate. A leader’s responsibility is to understand each follower’s “unique motivational profile” and then help followers meet their needs while attaining organizational goals.
  • 72. EQUITY THEORY  Equity theory proposes that people are motivated to seek social equity in the rewards they receive for performance. According to the theory, if people perceive their rewards as equal to what others receive for similar contributions, they will believe they are treated fairly and will be more highly motivated. A state of equity exists whenever the ratio of one person’s outcomes to inputs equals the ratio of others’ in the work group.
  • 73. EQUITY THEORY As a leader, you can clarify which rewards a follower wants and ensure that he or she has the knowledge, skills, resources, and support to perform and obtain the desired rewards. Keep in mind that perceived equity or inequity in rewards also influences motivation.
  • 74. EQUITY THEORY Discussion Question  With the economy still in a slump, some companies were freezing pay raises or even cutting pay for some employees so they could offer substantial raises to people considered star performers. As a motivational technique, does this practice seem like a good one to you? What might be some disadvantages of this technique?
  • 75. EXPECTANCY THEORY Discussion Question  The reinforcement perspective proposes that behavior can be modified by the use of rewards and punishments. Carrot-and-stick methods of motivation focus primarily on extrinsic rewards (raises) and punishments (pay cuts). Research shows that money does increase motivation in the short run although those who received a pay freeze or a pay cut would consider the situation unfair if others received raises. Equity theory says that those who perceived the situation as unfair would not be motivated at work. Also, many critics of the carrot-and-stick methods argue that extrinsic rewards undermine intrinsic rewards, bring about unintended consequences, are too simple to capture organizational realities, and replace workplace cooperation with unhealthy competition.
  • 77. EMPOWERMENT Empowerment refers to power sharing, the delegation of power or authority to subordinates in the organization. Empowerment can enhance motivation by meeting the higher-level needs of employees, which benefits leaders.
  • 78. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT  Empowerment provides strong motivation because most people have a need for self-efficacy, which is the capacity to produce results or outcomes. As a leader, you can give employees greater power and authority to help meet higher motivational needs. You can implement empowerment by providing the five elements of information, knowledge, discretion, significance, and rewards.
  • 79. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT  Five elements must be in place before employees can be truly empowered: information, knowledge, discretion, meaning, and rewards. Empowerment Information Knowledge DiscretionMeaning Rewards
  • 80. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT Employees receive information about company performance.
  • 81. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT Employees receive knowledge and skills to contribute to company goals.
  • 82. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT Employees have the power to make substantive decisions.
  • 83. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT Employees understand the meaning and impact of their jobs.
  • 84. THE PSYCHOLOGICAL MODEL OF EMPOWERMENT Employees are rewarded based on company performance.
  • 85. JOB DESIGN FOR EMPOWERMENT Job design refers to structuring jobs in a way to meet higher-level needs and increase motivation toward the accomplishment of goals.
  • 86. JOB DESIGN FOR EMPOWERMENT The job characteristics model is a model of job design that considers the core job dimensions of skill variety, task identity, task significance, autonomy, and feedback to enrich jobs and increase their motivational potential.
  • 87. THE JOB CHARACTERISTIC MODEL Source: Adapted from J. Richard Hackman and G. R. Oldham, ‘‘Motivation through the Design of Work: Test of a Theory,’’ Organizational Behavior and Human Performance 16 (1976), p. 256.
  • 88. JOB DESIGN FOR EMPOWERMENT Leaders can make alterations in five dimensions of jobs to increase the job’s motivational and empowerment potential:  Increase skill variety.  Structure jobs so that an employee can perform a complete task from beginning to end.  Incorporate task significance into the job.  Give people autonomy for choosing how and when to perform specific tasks.  To the extent possible, design jobs to provide feedback and let employees see the outcomes of their efforts.
  • 89. JOB DESIGN FOR EMPOWERMENT Job enrichment. Motivational approach that incorporates high-level motivators into the work, including job responsibility, recognition and opportunities for growth, learning, and achievement
  • 90. JOB DESIGN FOR EMPOWERMENT The first three core job dimensions shown in Exhibit 8.8—higher skill variety, task identity, and task significance— enable the employee to see the job as meaningful and significant (experienced meaningfulness of work), which makes the job intrinsically satisfying.
  • 91. JOB DESIGN FOR EMPOWERMENT Greater autonomy in a job leads to a feeling of increased responsibility for the success or failure of task outcomes (experienced responsibility for outcomes of the work), thus increasing commitment.
  • 92. JOB DESIGN FOR EMPOWERMENT The final dimension, feedback, provides the employee with knowledge of the actual results of work activities. Thus, the employee knows how he or she is doing and can adjust work performance to increase desired outcomes.
  • 93. EMPOWERMENT APPLICATIONS Current methods of empowering employees can be classified based on two dimensions: The extent to which employees are involved in defining desired outcomes The extent to which they participate in determining how to achieve those outcomes.
  • 95. EMPOWERMENT APPLICATIONS When employees are fully empowered, they are involved in defining mission and goals as well as in determining how to achieve them.
  • 96. EMPOWERMENT Video Time – “Beyond empowerment - are we ready for the self-managed organization? ”  Doug Kirkpatrick Doug is a Northern California-based executive coach, organizational consultant, speaker, author and educator. He is the author of Beyond Empowerment: The Age of the Self- Managed Organization. An economics graduate of Pacific Lutheran University, he also holds a law degree from Willamette University College of Law and a Senior Professional in Human Resources designation (SPHR). He enjoys traveling to rough parts of the world and appreciates the perspective that he gains from it. Beyond empowerment - are we ready for the self-managed organization? Doug Kirkpatrick at TEDxChico
  • 98. ENGAGEMENT  One path to meaning is through employee engagement. Engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. Fully engaged employees care deeply about the organization and actively seekways to serve the mission.
  • 99. ENGAGEMENT  It is the behavior of leaders that makes the biggest difference in whether people feel engaged at work. The Gallup Organization developed a metric called the Q12, a list of 12 questions that provides a way to evaluate how leaders are doing in creating an environment that provides intrinsic rewards by meeting higher-level needs. How Facebook engages its employees. What advantages do leaders and employees gain from employee engagement?
  • 100. ENGAGEMENT Video Time – “Mark Zuckerberg Instructs Facebook to Move Fast”  Mark Zuckerberg discusses Facebook Home and philosophy of moving fast and empowering engineers to try new things.  Mark Zuckerberg Mark Elliot Zuckerberg is an American technology entrepreneur and philanthropist. He is known for co-founding and leading Facebook as its chairman and chief executive officer. Mark Zuckerberg Instructs Facebook to Move Fast
  • 101. ENGAGEMENT As a leader, you can build an environment that unleashes employee potential and allows people to become engaged with their work and the organization. You can help people feel good about their jobs by giving them a sen of making progress toward meaningful goals.
  • 102. ENGAGEMENT Discussion Question Do you agree that it is the behavior of leaders that largely determines employee engagement, as defined in the text? What might be some other factors that influence engagement?
  • 103. ENGAGEMENT Discussion Question  Leaders create the environment that determines employee engagement. It is the behavior of leaders that makes the biggest difference in whether people feel engaged at work. A leader’s role is not to control others but to organize the workplace in such a way that each person can learn, contribute, and grow. Leaders can identify the level of engagement in their organizations and implement strategies to facilitate full engagement and improve performance. When people are fully engaged with their work, satisfaction, performance, and profits increase. Other factors that influence engagement include organization wide programs such as job enrichment, or incentive plans.
  • 104. ENGAGEMENT Discussion Question Discuss whether you believe it is a leader’s responsibility to help people find meaning in their work. How might leaders do this for employees at a credit card call center? How about for employees who empty waste containers and clean restrooms at sports or entertainment venues?
  • 105. ENGAGEMENT Discussion Question  One way people get intrinsic rewards at work is to feel a deep sense of importance and meaningfulness, such as people who work for a social cause or mission. Good leaders channel employee motivation by tapping into each person’s talents and skills. Leaders can do this for a credit card call center by finding out the talents and skills of the employees and putting them in positions that utilize those skills. For example, a friendly, extroverted person makes a good customer support agent. Leaders could also offer training in marketing and customer service so that employees could improve their skills and have a good feeling about working at the call center. Call centers often have a career ladder that appeals to higher needs; a customer support agent could become a manager.
  • 107. NEW IDEAS FOR MOTIVATION Engagement and empowerment have such high motivational potential because they address higher level needs and provide intrinsic rewards.
  • 108. THE MAKING PROGRESS PRINCIPLE The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals.
  • 109. THE MAKING PROGRESS PRINCIPLE Discussion Question Why do you think making progress in meaningful work ranks as the most important factor contributing to motivation according to a recent study? How might leaders provide a sense of progress for employees working on long-range projects that might not show results for months or even years?
  • 110. THE MAKING PROGRESS PRINCIPLE Discussion Question  Recent research points to the importance of making progress toward goals as a key to high motivation. According to the making progress principle, the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals. Leaders can support making progress by setting clear goals, giving people autonomy, providing sufficient time and resources, and helping people see how they are contributing. In addition, leader encouragement and recognition can enable people to see their work as important and meaningful. Providing feedback on how well people are progressing and giving them a way to track their progress toward goals provides a renewable energy that fuels motivation.
  • 111. BUILDING A THRIVING WORKFORCE  A thriving workforce is the idea that people are not just satisfied and productive but also engaged in creating the future—their own and that of the organization. Two components of thriving individuals are vitality and learning. Vitality Learning Thriving workforce
  • 112. BUILDING A THRIVING WORKFORCE Leaders promote thriving by applying many of the motivational techniques. A long-term commitment to empowerment and engagement can provide the basis for a thriving workplace. The goal of empowerment and engagement is to transform the culture.
  • 113. BUILDING A THRIVING WORKFORCE Discussion Question How might empowerment provide the two conditions (vitality and learning) for a thriving workforce as described in the chapter? Consider both psychological factors and the job characteristics model in your answer.
  • 114. BUILDING A THRIVING WORKFORCE Discussion Question  Two components of thriving individuals are vitality and learning. A thriving employee is one who feels alive, energized, and passionate about what he or she is doing. The individual has a sense that his or her work has purpose and meaning. In addition, a thriving employee is one who is learning and growing, developing new knowledge, skills, and abilities that can be applied now and in the future. Leaders promote thriving by applying many of the motivational techniques described throughout this chapter, such as meeting higher level needs, helping people get intrinsic rewards from their work, and providing regular feedback on performance and progress. A long-term commitment to empowerment and engagement can provide the basis for a thriving workplace. The goal of empowerment and engagement is to transform the culture. Leaders talk with people one on one to understand what each individual wants and needs to feel engaged and empowered, and then follow through with everyday action.
  • 115. NEW IDEAS FOR MOTIVATION Video Time – “Stop Trying to Motivate Your Employees?”  It’s a misconception that you can motivate your employees. They’re already motivated. The key is to unleash their motivation. The Founder of Aperio Consulting Group, Kerry Goyette takes a deeper dive into motivation, how to leverage it, and the counterproductive motivations that may be holding us back from success.  Kerry Goyette Kerry is the Founder & President of Aperio Consulting Group, a corporate consulting firm that provides workplace analytics and training to build high performance cultures. Kerry consults clients across the world on scientific strategies for engineering teams that maximize performance. She is also the founding authority of the Motivational Research Institute focused on identifying the key human factor contributors to success. Stop Trying to Motivate Your Employees | Kerry Goyette | TEDxCosmoPark
  • 117. KEY TERMS AND CONCEPTS  Motivation: the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action.  Intrinsic rewards: internal satisfactions a person receives in the process of performing a particular action.  Extrinsic rewards: rewards given by another person, typically a supervisor, such as pay increases and promotions.  Hierarchy of needs theory: Maslow’s theory proposes that humans are motivated by multiple needs and those needs exist in a hierarchical order.  Hygiene factors: the first dimension of Herzberg’s two-factor theory; involves working conditions, pay, company policies, and interpersonal relationships.  Motivators: the second dimension of Herzberg’s two-factor theory; involves job satisfaction and meeting higher-level needs such as achievement, recognition, and opportunity for growth.  Acquired needs theory: McClelland’s theory that proposes that certain types of needs (achievement, affiliation, power) are acquired during an individual’s lifetime.  Reinforcement theory: a motivational theory that looks at the relationship between behavior and its consequences by changing or modifying followers’ on- the-job behavior through the appropriate use of immediate rewards or punishments.  Behavior modification: the set of techniques by which reinforcement theory is used to modify behavior.
  • 118. KEY TERMS AND CONCEPTS  Law of effect: states that positively reinforced behavior tends to be repeated and behavior that is not reinforced tends not to be repeated.  Reinforcement: anything that causes a certain behavior to be repeated or inhibited.  Positive reinforcement: the administration of a pleasant and rewarding consequence following a behavior.  Negative reinforcement: the withdrawal of an unpleasant consequence once a behavior is improved.  Punishment: the imposition of unpleasant outcomes on an employee following undesirable behavior.  Extinction: the withdrawal of a positive reward, meaning that behavior is no longer reinforced and hence is less likely to occur in the future.  Expectancy theory: a theory that suggests that motivation depends on individuals’ mental expectations about their ability to perform tasks and receive desired rewards.  Equity theory: a theory that proposes that people are motivated to seek social equity in the rewards they receive for performance.  Empowerment: power sharing; the delegation of power or authority to subordinates in the organization.  Job design: structuring jobs in a way to meet higher-level needs and increase motivation toward the accomplishment of goals.
  • 119. KEY TERMS AND CONCEPTS  Job characteristics model: a model of job design that considers the core job dimensions of skill variety, task identity, task significance, autonomy, and feedback to enrich jobs and increase their motivational potential.  Job enrichment: a motivational approach that incorporates high-level motivators into the work, including job responsibility, recognition, and opportunities for growth, learning, and achievement.  Engagement: when people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization.  Making progress principle: the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals.  Thriving workforce: a workforce in which people are not just satisfied and productive but also engaged in creating a better future for themselves and the organization; incorporates vitality and learning.