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8th edition
Steven P. Robbins
Mary Coulter

PowerPoint Presentation by Charlie Cook
Copyright © 2005 Prentice Hall, Inc.
All rights reserved.
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

What Is Motivation?
• Define motivation.
• Explain motivation as a need-satisfying process.

Early Theories of Motivation
• Describe the five levels in Maslow’s hierarchy and how
Maslow’s hierarchy can be used in motivational efforts.
• Discuss how Theory X and Theory Y managers approach
motivation.
• Describe Herzberg’s motivation-hygiene theory.
• Explain Herzberg’s views of satisfaction and
dissatisfaction.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–2
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.

Contemporary Theories of Motivation
• Describe the three needs McClelland proposed as being
present in work settings.
• Explain how goal-setting and reinforcement theories
explain employee motivation.
• Describe the job characteristics model as a way to design
motivating jobs.
• Discuss the motivation implications of equity theory.
• Contrast distributive and procedural justice.
• Explain the three key linkages in expectancy theory and
their role in motivation.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–3
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.

Current Issues in Motivation
• Describe the cross-cultural challenges of motivation.
• Discuss the challenges managers face in motivating
unique groups of workers.
• Describe open-book management and employee
recognition, pay-for-performance, and stock option
programs.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–4
What Is Motivation?
• Motivation
 The processes that account for an individual’s
willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s
ability to satisfy some individual need.
 Effort:

a measure of intensity or drive.
 Direction: toward organizational goals
 Need: personalized reason to exert effort

 Motivation works best when individual needs are
compatible with organizational goals.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–5
What Is Motivation?
• Need
 An internal state that makes certain outcomes appear
attractive.
 An unsatisfied need creates tension which is reduced
by an individual’s efforts to satisfy the need.

• Early Theories of Motivation
 Maslow’s Hierarchy of Needs
 MacGregor’s Theories X and Y
 Herzberg’s Motivation-Hygiene Theory
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–6
Early Theories of Motivation
• Maslow’s Hierarchy of Needs Theory
 Needs were categorized as five levels of lower- to
higher-order needs.
 Individuals

must satisfy lower-order needs before they
can satisfy higher order needs.
 Satisfied needs will no longer motivate.
 Motivating a person depends on knowing at what level
that person is on the hierarchy.

 Hierarchy of needs
 Lower-order

(external): physiological, safety
 Higher-order (internal): social, esteem, self-actualization
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–7
Early Theories of Motivation (cont’d)
• McGregor’s Theory X and Theory Y
 Theory X
 Assumes

that workers have little ambition, dislike work,
avoid responsibility, and require close supervision.

 Theory Y
 Assumes

that workers can exercise self-direction,
desire responsibility, and like to work.

 Motivation is maximized by participative decision
making, interesting jobs, and good group relations.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–8
Early Theories of Motivation (cont’d)
• Herzberg’s Motivation-Hygiene Theory
 Job satisfaction and job dissatisfaction are created by
different factors.
 Hygiene

factors: extrinsic (environmental) factors that
create job dissatisfaction.
 Motivators: intrinsic (psychological) factors that create
job satisfaction.

 Attempted to explain why job satisfaction does not
result in increased performance.
 The

opposite of satisfaction is not dissatisfaction, but
rather no satisfaction.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–9
Contemporary Theories of Motivation
• Three-Needs Theory
• Goal-Setting Theory
• Reinforcement Theory
• Designing Motivating Jobs
• Equity Theory
• Expectancy Theory

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–10
Motivation and Needs
• Three-Needs Theory
 There are three major acquired needs that are major
motives in work.
 Need for achievement (nAch)
 The

drive to excel and succeed

 Need for power (nPow)
 The

need to influence the behavior of others

 Need of affiliation (nAff)
 The

desire for interpersonal relationships

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–11
Motivation and Goals
• Goal-Setting Theory
 Proposes that setting goals that are accepted,
specific, and challenging yet achievable will result in
higher performance than having no or easy goals.

• Benefits of Participation in Goal-Setting
 Increases the acceptance of goals.
 Fosters commitment to difficult, public goals.
 Provides for self-feedback (internal locus of control)
that guides behavior and motivates performance (selfefficacy).
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–12
Motivation and Behavior
• Reinforcement Theory
 Assumes that a desired behavior is a function of its
consequences, is externally caused, and if reinforced,
is likely to be repeated.
 Positive

reinforcement is preferred for its long-term
effects on performance
 Ignoring undesired behavior is better than punishment
which may create additional dysfunctional behaviors.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–13
Designing Motivating Jobs
• Job Design
 The way into which tasks can be combined to form
complete jobs.
 Factors influencing job design:
 Changing

organizational environment/structure
 The organization’s technology
 Employees’ skill, abilities, and preferences

 Job enlargement
 Increasing

the scope (number of tasks) in a job.

 Job enrichment
 Increasing

responsibility and autonomy (depth) in a job.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–14
Designing Motivating Jobs (cont’d)
• Job Characteristics Model (JCM)
 A conceptual framework for designing motivating jobs
that create meaningful work experiences that satisfy
employees’ growth needs.
 Five primary job characteristics:
 Skill

variety: how many skills and talents are needed?

 Task

identity: does the job produced a completed work?

 Task

significance: how important is the job?

 Autonomy:

how independence do the jobholder have?

 Feedback:

do workers know how well they are doing?

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–15
Designing Motivating Jobs (cont’d)
• Suggestions for Using the JCM
 Combine tasks (job enlargement) to create more
meaningful work.
 Create natural work units to make employees’ work
important and whole.
 Establish external and internal client relationships to
provide feedback.
 Expand jobs vertically (job enrichment) by giving
employees more autonomy.
 Open feedback channels to let employees know how
well they are doing.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–16
Motivation and Perception
• Equity Theory
 Proposes that employees perceive what they get from
a job situation (outcomes) in relation to what they put
in (inputs) and then compare their inputs-outcomes
ratio with the inputs-outcomes ratios of relevant
others.
 If

the ratios are perceived as equal then a state of
equity (fairness) exists.
 If the ratios are perceived as unequal, inequity exists
and the person feels under- or over-rewarded.
 When inequities occur, employees will attempt to do
something to rebalance the ratios (seek justice).
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–17
Motivation and Perception (cont’d)
• Equity Theory (cont’d)
 Employee responses to perceived inequities:
 Distort

own or others’ ratios.
 Induce others to change their own inputs or outcomes.
 Change own inputs (increase or decrease efforts) or
outcomes (seek greater rewards).
 Choose a different comparison (referent) other (person,
systems, or self).
 Quit their job.

 Employees are concerned with both the absolute and
relative nature of organizational rewards.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–18
Motivation and Perception (cont’d)
• Equity Theory (cont’d)
 Distributive justice
 The

perceived fairness of the amount and allocation of
rewards among individuals (i.e., who received what).
– Influences an employee’s satisfaction.

 Distributive
 The

perceived fairness of the process use to determine
the distribution of rewards (i.e., how who received
what).
– Affects an employee’s organizational commitment.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–19
Motivation, Perception, and Behavior
• Expectancy Theory
 States that an individual tends to act in a certain way
based on the expectation that the act will be followed
by a given outcome and on the attractiveness of that
outcome to the individual.
 Key to the theory is understanding and managing
employee goals and the linkages among and between
effort, performance and rewards.
 Effort:

employee abilities and training/development

 Performance:
 Rewards

valid appraisal systems

(goals): understanding employee needs

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–20
Motivation, Perception, and Behavior
(cont’d)
• Expectancy Relationships
 Expectancy (effort-performance linkage)
 The

perceived probability that an individual’s effort will
result in a certain level of performance.

 Instrumentality
 The

perception that a particular level of performance will
result in the attaining a desired outcome (reward).

 Valence
 The

attractiveness/importance of the performance
reward (outcome) to the individual.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–21
Current Issues in Motivation
• Cross-Cultural Challenges
 Motivational programs are most applicable in cultures
where individualism and quality of life are cultural
characteristics
 Uncertainty

avoidance of some cultures inverts
Maslow’s needs hierarchy.
 The need for achievement (nAch) is lacking in other
cultures.
 Collectivist cultures view rewards as “entitlements” to be
distributed based on individual needs, not individual
performance.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–22
Current Issues in Motivation (cont’d)
• Cross-Cultural Consistencies
 Interesting work is widely desired, as is growth,
achievement, and responsibility.

• Motivating Unique Groups of Workers
 Motivating a diverse workforce through flexibility:
 Men

desire more autonomy than do women.

 Women

desire to learning opportunities, flexible work
schedules, and good interpersonal relations.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–23
Current Issues in Motivation (cont’d)
• Flexible Work/Job schedules
 Compressed work week
 Longer

daily hours, but fewer days

 Flexible work hours (flextime)
 Specific

weekly hours with varying arrival, departure,
lunch and break times around certain core hours during
which all employees must be present.

 Job Sharing
 Having

two or more people split a full-time job.

 Telecommuting
 Having

employees work from home using computer

links.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–24
Current Issues in Motivation (cont’d)
• Motivating Professionals
 Characteristics of professionals
 Strong

and long-term commitment to their field of
expertise.
 Loyalty is to their profession, not to the employer
 Have the need to regularly update their knowledge
 Don’t define their workweek as 8:00 am to 5:00 pm.

 Motivators for professionals
 Job

challenge
 Organizational support of their work
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–25
Current Issues in Motivation (cont’d)
• Motivating Contingent Workers
 Opportunity to become a permanent employee.
 Opportunity for training
 Equity in compensation and benefits

• Motivating Low-Skilled, Minimum-Wage
Employees
 Employee recognition programs
 Providing sincere praise

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–26
Current Issues in Motivation (cont’d)
• Designing Appropriate Rewards Programs
 Open-book management
 Involving

employees in workplace decision by opening
up the financial statements of the employer.

 Employee recognition programs
 Giving

personal attention and expressing interest,
approval, and appreciation for a job well done.

 Pay-for-performance
 Variable

compensation plans that reward employees on
the basis of their performance:
– Piece rates, wage incentives, profit-sharing, and lump-sum
bonuses

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–27
Current Issues in Motivation (cont’d)
• Designing Appropriate Rewards Programs
(cont’d)
 Stock option programs
 Using

financial instruments (in lieu of monetary
compensation) that give employees the right to
purchase shares of company stock at a set (option)
price.
 Options have value if the stock price rises above the set
price; they are worthless if the stock price falls below
the option price.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–28
From Theory to Practice:
Guidelines for Motivating Employees
• Recognize individual
differences

• Link rewards to
performance

• Match people to jobs

• Check the system for
equity

• Use goals
• Ensure that goals are
perceived as attainable

• Use recognition
• Don’t ignore money

• Individualize rewards
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

16–29

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Management ch16

  • 1. 8th edition Steven P. Robbins Mary Coulter PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved.
  • 2. LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. What Is Motivation? • Define motivation. • Explain motivation as a need-satisfying process. Early Theories of Motivation • Describe the five levels in Maslow’s hierarchy and how Maslow’s hierarchy can be used in motivational efforts. • Discuss how Theory X and Theory Y managers approach motivation. • Describe Herzberg’s motivation-hygiene theory. • Explain Herzberg’s views of satisfaction and dissatisfaction. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–2
  • 3. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Contemporary Theories of Motivation • Describe the three needs McClelland proposed as being present in work settings. • Explain how goal-setting and reinforcement theories explain employee motivation. • Describe the job characteristics model as a way to design motivating jobs. • Discuss the motivation implications of equity theory. • Contrast distributive and procedural justice. • Explain the three key linkages in expectancy theory and their role in motivation. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–3
  • 4. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Current Issues in Motivation • Describe the cross-cultural challenges of motivation. • Discuss the challenges managers face in motivating unique groups of workers. • Describe open-book management and employee recognition, pay-for-performance, and stock option programs. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–4
  • 5. What Is Motivation? • Motivation  The processes that account for an individual’s willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need.  Effort: a measure of intensity or drive.  Direction: toward organizational goals  Need: personalized reason to exert effort  Motivation works best when individual needs are compatible with organizational goals. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–5
  • 6. What Is Motivation? • Need  An internal state that makes certain outcomes appear attractive.  An unsatisfied need creates tension which is reduced by an individual’s efforts to satisfy the need. • Early Theories of Motivation  Maslow’s Hierarchy of Needs  MacGregor’s Theories X and Y  Herzberg’s Motivation-Hygiene Theory Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–6
  • 7. Early Theories of Motivation • Maslow’s Hierarchy of Needs Theory  Needs were categorized as five levels of lower- to higher-order needs.  Individuals must satisfy lower-order needs before they can satisfy higher order needs.  Satisfied needs will no longer motivate.  Motivating a person depends on knowing at what level that person is on the hierarchy.  Hierarchy of needs  Lower-order (external): physiological, safety  Higher-order (internal): social, esteem, self-actualization Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–7
  • 8. Early Theories of Motivation (cont’d) • McGregor’s Theory X and Theory Y  Theory X  Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision.  Theory Y  Assumes that workers can exercise self-direction, desire responsibility, and like to work.  Motivation is maximized by participative decision making, interesting jobs, and good group relations. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–8
  • 9. Early Theories of Motivation (cont’d) • Herzberg’s Motivation-Hygiene Theory  Job satisfaction and job dissatisfaction are created by different factors.  Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction.  Motivators: intrinsic (psychological) factors that create job satisfaction.  Attempted to explain why job satisfaction does not result in increased performance.  The opposite of satisfaction is not dissatisfaction, but rather no satisfaction. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–9
  • 10. Contemporary Theories of Motivation • Three-Needs Theory • Goal-Setting Theory • Reinforcement Theory • Designing Motivating Jobs • Equity Theory • Expectancy Theory Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–10
  • 11. Motivation and Needs • Three-Needs Theory  There are three major acquired needs that are major motives in work.  Need for achievement (nAch)  The drive to excel and succeed  Need for power (nPow)  The need to influence the behavior of others  Need of affiliation (nAff)  The desire for interpersonal relationships Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–11
  • 12. Motivation and Goals • Goal-Setting Theory  Proposes that setting goals that are accepted, specific, and challenging yet achievable will result in higher performance than having no or easy goals. • Benefits of Participation in Goal-Setting  Increases the acceptance of goals.  Fosters commitment to difficult, public goals.  Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (selfefficacy). Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–12
  • 13. Motivation and Behavior • Reinforcement Theory  Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated.  Positive reinforcement is preferred for its long-term effects on performance  Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–13
  • 14. Designing Motivating Jobs • Job Design  The way into which tasks can be combined to form complete jobs.  Factors influencing job design:  Changing organizational environment/structure  The organization’s technology  Employees’ skill, abilities, and preferences  Job enlargement  Increasing the scope (number of tasks) in a job.  Job enrichment  Increasing responsibility and autonomy (depth) in a job. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–14
  • 15. Designing Motivating Jobs (cont’d) • Job Characteristics Model (JCM)  A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs.  Five primary job characteristics:  Skill variety: how many skills and talents are needed?  Task identity: does the job produced a completed work?  Task significance: how important is the job?  Autonomy: how independence do the jobholder have?  Feedback: do workers know how well they are doing? Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–15
  • 16. Designing Motivating Jobs (cont’d) • Suggestions for Using the JCM  Combine tasks (job enlargement) to create more meaningful work.  Create natural work units to make employees’ work important and whole.  Establish external and internal client relationships to provide feedback.  Expand jobs vertically (job enrichment) by giving employees more autonomy.  Open feedback channels to let employees know how well they are doing. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–16
  • 17. Motivation and Perception • Equity Theory  Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.  If the ratios are perceived as equal then a state of equity (fairness) exists.  If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded.  When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice). Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–17
  • 18. Motivation and Perception (cont’d) • Equity Theory (cont’d)  Employee responses to perceived inequities:  Distort own or others’ ratios.  Induce others to change their own inputs or outcomes.  Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards).  Choose a different comparison (referent) other (person, systems, or self).  Quit their job.  Employees are concerned with both the absolute and relative nature of organizational rewards. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–18
  • 19. Motivation and Perception (cont’d) • Equity Theory (cont’d)  Distributive justice  The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). – Influences an employee’s satisfaction.  Distributive  The perceived fairness of the process use to determine the distribution of rewards (i.e., how who received what). – Affects an employee’s organizational commitment. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–19
  • 20. Motivation, Perception, and Behavior • Expectancy Theory  States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.  Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards.  Effort: employee abilities and training/development  Performance:  Rewards valid appraisal systems (goals): understanding employee needs Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–20
  • 21. Motivation, Perception, and Behavior (cont’d) • Expectancy Relationships  Expectancy (effort-performance linkage)  The perceived probability that an individual’s effort will result in a certain level of performance.  Instrumentality  The perception that a particular level of performance will result in the attaining a desired outcome (reward).  Valence  The attractiveness/importance of the performance reward (outcome) to the individual. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–21
  • 22. Current Issues in Motivation • Cross-Cultural Challenges  Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics  Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy.  The need for achievement (nAch) is lacking in other cultures.  Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–22
  • 23. Current Issues in Motivation (cont’d) • Cross-Cultural Consistencies  Interesting work is widely desired, as is growth, achievement, and responsibility. • Motivating Unique Groups of Workers  Motivating a diverse workforce through flexibility:  Men desire more autonomy than do women.  Women desire to learning opportunities, flexible work schedules, and good interpersonal relations. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–23
  • 24. Current Issues in Motivation (cont’d) • Flexible Work/Job schedules  Compressed work week  Longer daily hours, but fewer days  Flexible work hours (flextime)  Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present.  Job Sharing  Having two or more people split a full-time job.  Telecommuting  Having employees work from home using computer links. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–24
  • 25. Current Issues in Motivation (cont’d) • Motivating Professionals  Characteristics of professionals  Strong and long-term commitment to their field of expertise.  Loyalty is to their profession, not to the employer  Have the need to regularly update their knowledge  Don’t define their workweek as 8:00 am to 5:00 pm.  Motivators for professionals  Job challenge  Organizational support of their work Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–25
  • 26. Current Issues in Motivation (cont’d) • Motivating Contingent Workers  Opportunity to become a permanent employee.  Opportunity for training  Equity in compensation and benefits • Motivating Low-Skilled, Minimum-Wage Employees  Employee recognition programs  Providing sincere praise Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–26
  • 27. Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs  Open-book management  Involving employees in workplace decision by opening up the financial statements of the employer.  Employee recognition programs  Giving personal attention and expressing interest, approval, and appreciation for a job well done.  Pay-for-performance  Variable compensation plans that reward employees on the basis of their performance: – Piece rates, wage incentives, profit-sharing, and lump-sum bonuses Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–27
  • 28. Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs (cont’d)  Stock option programs  Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price.  Options have value if the stock price rises above the set price; they are worthless if the stock price falls below the option price. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–28
  • 29. From Theory to Practice: Guidelines for Motivating Employees • Recognize individual differences • Link rewards to performance • Match people to jobs • Check the system for equity • Use goals • Ensure that goals are perceived as attainable • Use recognition • Don’t ignore money • Individualize rewards Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16–29