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ninth edition
STEPHEN P. ROBBINS
PowerPoint Presentation by Charlie Cook
The University of West Alabama
MARY COULTER
© 2007 Prentice Hall, Inc.
All rights reserved.
Motivating
Employees
Chapter
16
© 2007 Prentice Hall, Inc. All rights reserved. 16–2
L E A R N I N G O U T L I N E
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 Maslow’s hierarchy of needs and how it can be
used to motivate.
‱ Discuss how Theory X and Theory Y managers approach
motivation.
‱ Describe Herzberg’s motivation-hygiene theory.
‱ Explain Herzberg’s views of satisfaction and
dissatisfaction.
© 2007 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.
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 justice and procedural justice.
‱ Explain the three key linkages in expectancy theory and
their role in motivation.
© 2007 Prentice Hall, Inc. All rights reserved. 16–4
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, employee recognition,
pay-for-performance, and stock option programs.
© 2007 Prentice Hall, Inc. All rights reserved. 16–5
What Is Motivation?
‱ Motivation
Is the result of an interaction between the person and
a situation; it is not a personal trait.
Is the process by which a person’s efforts are
energized, directed, and sustained towards attaining
a goal.
 Energy: a measure of intensity or drive.
 Direction: toward organizational goals
 Persistence: exerting effort to achieve goals.
Motivation works best when individual needs are
compatible with organizational goals.
© 2007 Prentice Hall, Inc. All rights reserved. 16–6
Early Theories of Motivation
‱ Maslow’s Hierarchy of Needs
‱ MacGregor’s Theories X and Y
‱ Herzberg’s Two-Factor Theory
© 2007 Prentice Hall, Inc. All rights reserved. 16–7
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
© 2007 Prentice Hall, Inc. All rights reserved. 16–8
Exhibit 16–1 Maslow’s Hierarchy of Needs
© 2007 Prentice Hall, Inc. All rights reserved. 16–9
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.
Assumption:
 Motivation is maximized by participative decision making,
interesting jobs, and good group relations.
© 2007 Prentice Hall, Inc. All rights reserved. 16–10
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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–11
Exhibit 16–2 Herzberg’s Motivation-Hygiene Theory
© 2007 Prentice Hall, Inc. All rights reserved. 16–12
Exhibit 16–3 Contrasting Views of Satisfaction-Dissatisfaction
© 2007 Prentice Hall, Inc. All rights reserved. 16–13
Contemporary Theories of Motivation
‱ Three-Needs Theory
‱ Goal-Setting Theory
‱ Reinforcement Theory
‱ Designing Motivating Jobs
‱ Equity Theory
‱ Expectancy Theory
© 2007 Prentice Hall, Inc. All rights reserved. 16–14
Motivation and Needs
‱ Three-Needs Theory (McClelland)
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
© 2007 Prentice Hall, Inc. All rights reserved. 16–15
Exhibit 16–4 Examples of Pictures Used for Assessing Levels of nAch,
nAff, and nPow
© 2007 Prentice Hall, Inc. All rights reserved. 16–16
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.
Is culture bound to the U.S. and Canada.
‱ 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 (self-
efficacy).
© 2007 Prentice Hall, Inc. All rights reserved. 16–17
Exhibit 16–5 Goal-Setting Theory
© 2007 Prentice Hall, Inc. All rights reserved. 16–18
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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–19
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 job’s scope (number and frequency of tasks)
Job enrichment
 Increasing responsibility and autonomy (depth) in a job.
© 2007 Prentice Hall, Inc. All rights reserved. 16–20
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 produce a complete work?
 Task significance: how important is the job?
 Autonomy: how much independence does the jobholder
have?
 Feedback: do workers know how well they are doing?
© 2007 Prentice Hall, Inc. All rights reserved. 16–21
Exhibit 16–6 Job Characteristics Model
Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work
(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
© 2007 Prentice Hall, Inc. All rights reserved. 16–22
Exhibit 16–7 Guidelines for Job Redesign
Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work
(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
© 2007 Prentice Hall, Inc. All rights reserved. 16–23
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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–24
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).
© 2007 Prentice Hall, Inc. All rights reserved. 16–25
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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–26
Exhibit 16–8 Equity Theory
© 2007 Prentice Hall, Inc. All rights reserved. 16–27
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.
Procedural justice
 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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–28
Motivation and Behavior
‱ Expectancy Theory (Vroom)
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: valid appraisal systems
 Rewards (goals): understanding employee needs
© 2007 Prentice Hall, Inc. All rights reserved. 16–29
Exhibit 16–9 Simplified Expectancy Model
© 2007 Prentice Hall, Inc. All rights reserved. 16–30
Motivation 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.
© 2007 Prentice Hall, Inc. All rights reserved. 16–31
Exhibit 16–10 Integrating Contemporary Theories of Motivation
© 2007 Prentice Hall, Inc. All rights reserved. 16–32
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.
Cross-Cultural Consistencies
 Interesting work is widely desired, as is growth, achievement,
and responsibility.
© 2007 Prentice Hall, Inc. All rights reserved. 16–33
Current Issues in Motivation (cont’d)
‱ Motivating Unique Groups of Workers
Motivating a diverse workforce through flexibility:
 Men desire more autonomy than do women.
 Women desire learning opportunities, flexible work
schedules, and good interpersonal relations.
© 2007 Prentice Hall, Inc. All rights reserved. 16–34
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
 Two or more people split a full-time job.
Telecommuting
 Employees work from home using computer links.
© 2007 Prentice Hall, Inc. All rights reserved. 16–35
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
© 2007 Prentice Hall, Inc. All rights reserved. 16–36
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
Provision of sincere praise
© 2007 Prentice Hall, Inc. All rights reserved. 16–37
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
© 2007 Prentice Hall, Inc. All rights reserved. 16–38
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 option
price; they become worthless if the stock price falls below the
option price.
© 2007 Prentice Hall, Inc. All rights reserved. 16–39
Exhibit 16–11 Recommendations for Designing Stock Options
* Vesting refers to the time that must pass before a person can exercise the option.
Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, “Effective Employee Stock Option Design: Reconciling
Stakeholder, Strategic, and Motivational Factors,” Academy of Management Executive, February 2003, p. 84.
© 2007 Prentice Hall, Inc. All rights reserved. 16–40
Exhibit 16–11 (cont’d) Recommendations for Designing Stock Options
Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, “Effective Employee Stock Option Design: Reconciling
Stakeholder, Strategic, and Motivational Factors,” Academy of Management Executive, February 2003, p. 84.
© 2007 Prentice Hall, Inc. All rights reserved. 16–41
From Theory to Practice:
Guidelines for Motivating Employees
‱ Use goals
‱ Ensure that goals are
perceived as attainable
‱ Individualize rewards
‱ Link rewards to
performance
‱ Check the system for
equity
‱ Use recognition
‱ Show care and concern
for employees
‱ Don’t ignore money
© 2007 Prentice Hall, Inc. All rights reserved. 16–42
Terms to Know
‱ motivation
‱ hierarchy of needs theory
‱ physiological needs
‱ safety needs
‱ social needs
‱ esteem needs
‱ self-actualization needs
‱ Theory X
‱ Theory Y
‱ motivation-hygiene theory
‱ hygiene factors
‱ motivators
‱ three-needs theory
‱ need for achievement
(nAch)
‱ need for power (nPow)
‱ need for affiliation (nAff)
‱ goal-setting theory
‱ self-efficacy
‱ reinforcement theory
‱ reinforcers
‱ job design
‱ job scope
‱ job enlargement
© 2007 Prentice Hall, Inc. All rights reserved. 16–43
Terms to Know (cont’d)
‱ job enrichment
‱ job depth
‱ job characteristics
model (JCM)
‱ skill variety
‱ task identity
‱ task significance
‱ autonomy
‱ feedback
‱ equity theory
‱ referents
‱ distributive justice
‱ procedural justice
‱ expectancy theory
‱ compressed workweek
‱ flexible work hours (flextime)
‱ job sharing
‱ telecommuting
‱ open-book management
‱ employee recognition
programs
‱ pay-for-performance
programs
‱ stock options

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Motivating Employees

  • 1. ninth edition STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. All rights reserved. Motivating Employees Chapter 16
  • 2. © 2007 Prentice Hall, Inc. All rights reserved. 16–2 L E A R N I N G O U T L I N E 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 Maslow’s hierarchy of needs and how it can be used to motivate. ‱ Discuss how Theory X and Theory Y managers approach motivation. ‱ Describe Herzberg’s motivation-hygiene theory. ‱ Explain Herzberg’s views of satisfaction and dissatisfaction.
  • 3. © 2007 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. 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 justice and procedural justice. ‱ Explain the three key linkages in expectancy theory and their role in motivation.
  • 4. © 2007 Prentice Hall, Inc. All rights reserved. 16–4 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, employee recognition, pay-for-performance, and stock option programs.
  • 5. © 2007 Prentice Hall, Inc. All rights reserved. 16–5 What Is Motivation? ‱ Motivation Is the result of an interaction between the person and a situation; it is not a personal trait. Is the process by which a person’s efforts are energized, directed, and sustained towards attaining a goal.  Energy: a measure of intensity or drive.  Direction: toward organizational goals  Persistence: exerting effort to achieve goals. Motivation works best when individual needs are compatible with organizational goals.
  • 6. © 2007 Prentice Hall, Inc. All rights reserved. 16–6 Early Theories of Motivation ‱ Maslow’s Hierarchy of Needs ‱ MacGregor’s Theories X and Y ‱ Herzberg’s Two-Factor Theory
  • 7. © 2007 Prentice Hall, Inc. All rights reserved. 16–7 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
  • 8. © 2007 Prentice Hall, Inc. All rights reserved. 16–8 Exhibit 16–1 Maslow’s Hierarchy of Needs
  • 9. © 2007 Prentice Hall, Inc. All rights reserved. 16–9 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. Assumption:  Motivation is maximized by participative decision making, interesting jobs, and good group relations.
  • 10. © 2007 Prentice Hall, Inc. All rights reserved. 16–10 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.
  • 11. © 2007 Prentice Hall, Inc. All rights reserved. 16–11 Exhibit 16–2 Herzberg’s Motivation-Hygiene Theory
  • 12. © 2007 Prentice Hall, Inc. All rights reserved. 16–12 Exhibit 16–3 Contrasting Views of Satisfaction-Dissatisfaction
  • 13. © 2007 Prentice Hall, Inc. All rights reserved. 16–13 Contemporary Theories of Motivation ‱ Three-Needs Theory ‱ Goal-Setting Theory ‱ Reinforcement Theory ‱ Designing Motivating Jobs ‱ Equity Theory ‱ Expectancy Theory
  • 14. © 2007 Prentice Hall, Inc. All rights reserved. 16–14 Motivation and Needs ‱ Three-Needs Theory (McClelland) 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
  • 15. © 2007 Prentice Hall, Inc. All rights reserved. 16–15 Exhibit 16–4 Examples of Pictures Used for Assessing Levels of nAch, nAff, and nPow
  • 16. © 2007 Prentice Hall, Inc. All rights reserved. 16–16 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. Is culture bound to the U.S. and Canada. ‱ 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 (self- efficacy).
  • 17. © 2007 Prentice Hall, Inc. All rights reserved. 16–17 Exhibit 16–5 Goal-Setting Theory
  • 18. © 2007 Prentice Hall, Inc. All rights reserved. 16–18 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.
  • 19. © 2007 Prentice Hall, Inc. All rights reserved. 16–19 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 job’s scope (number and frequency of tasks) Job enrichment  Increasing responsibility and autonomy (depth) in a job.
  • 20. © 2007 Prentice Hall, Inc. All rights reserved. 16–20 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 produce a complete work?  Task significance: how important is the job?  Autonomy: how much independence does the jobholder have?  Feedback: do workers know how well they are doing?
  • 21. © 2007 Prentice Hall, Inc. All rights reserved. 16–21 Exhibit 16–6 Job Characteristics Model Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
  • 22. © 2007 Prentice Hall, Inc. All rights reserved. 16–22 Exhibit 16–7 Guidelines for Job Redesign Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
  • 23. © 2007 Prentice Hall, Inc. All rights reserved. 16–23 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.
  • 24. © 2007 Prentice Hall, Inc. All rights reserved. 16–24 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).
  • 25. © 2007 Prentice Hall, Inc. All rights reserved. 16–25 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.
  • 26. © 2007 Prentice Hall, Inc. All rights reserved. 16–26 Exhibit 16–8 Equity Theory
  • 27. © 2007 Prentice Hall, Inc. All rights reserved. 16–27 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. Procedural justice  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.
  • 28. © 2007 Prentice Hall, Inc. All rights reserved. 16–28 Motivation and Behavior ‱ Expectancy Theory (Vroom) 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: valid appraisal systems  Rewards (goals): understanding employee needs
  • 29. © 2007 Prentice Hall, Inc. All rights reserved. 16–29 Exhibit 16–9 Simplified Expectancy Model
  • 30. © 2007 Prentice Hall, Inc. All rights reserved. 16–30 Motivation 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.
  • 31. © 2007 Prentice Hall, Inc. All rights reserved. 16–31 Exhibit 16–10 Integrating Contemporary Theories of Motivation
  • 32. © 2007 Prentice Hall, Inc. All rights reserved. 16–32 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. Cross-Cultural Consistencies  Interesting work is widely desired, as is growth, achievement, and responsibility.
  • 33. © 2007 Prentice Hall, Inc. All rights reserved. 16–33 Current Issues in Motivation (cont’d) ‱ Motivating Unique Groups of Workers Motivating a diverse workforce through flexibility:  Men desire more autonomy than do women.  Women desire learning opportunities, flexible work schedules, and good interpersonal relations.
  • 34. © 2007 Prentice Hall, Inc. All rights reserved. 16–34 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  Two or more people split a full-time job. Telecommuting  Employees work from home using computer links.
  • 35. © 2007 Prentice Hall, Inc. All rights reserved. 16–35 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
  • 36. © 2007 Prentice Hall, Inc. All rights reserved. 16–36 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 Provision of sincere praise
  • 37. © 2007 Prentice Hall, Inc. All rights reserved. 16–37 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
  • 38. © 2007 Prentice Hall, Inc. All rights reserved. 16–38 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 option price; they become worthless if the stock price falls below the option price.
  • 39. © 2007 Prentice Hall, Inc. All rights reserved. 16–39 Exhibit 16–11 Recommendations for Designing Stock Options * Vesting refers to the time that must pass before a person can exercise the option. Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, “Effective Employee Stock Option Design: Reconciling Stakeholder, Strategic, and Motivational Factors,” Academy of Management Executive, February 2003, p. 84.
  • 40. © 2007 Prentice Hall, Inc. All rights reserved. 16–40 Exhibit 16–11 (cont’d) Recommendations for Designing Stock Options Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, “Effective Employee Stock Option Design: Reconciling Stakeholder, Strategic, and Motivational Factors,” Academy of Management Executive, February 2003, p. 84.
  • 41. © 2007 Prentice Hall, Inc. All rights reserved. 16–41 From Theory to Practice: Guidelines for Motivating Employees ‱ Use goals ‱ Ensure that goals are perceived as attainable ‱ Individualize rewards ‱ Link rewards to performance ‱ Check the system for equity ‱ Use recognition ‱ Show care and concern for employees ‱ Don’t ignore money
  • 42. © 2007 Prentice Hall, Inc. All rights reserved. 16–42 Terms to Know ‱ motivation ‱ hierarchy of needs theory ‱ physiological needs ‱ safety needs ‱ social needs ‱ esteem needs ‱ self-actualization needs ‱ Theory X ‱ Theory Y ‱ motivation-hygiene theory ‱ hygiene factors ‱ motivators ‱ three-needs theory ‱ need for achievement (nAch) ‱ need for power (nPow) ‱ need for affiliation (nAff) ‱ goal-setting theory ‱ self-efficacy ‱ reinforcement theory ‱ reinforcers ‱ job design ‱ job scope ‱ job enlargement
  • 43. © 2007 Prentice Hall, Inc. All rights reserved. 16–43 Terms to Know (cont’d) ‱ job enrichment ‱ job depth ‱ job characteristics model (JCM) ‱ skill variety ‱ task identity ‱ task significance ‱ autonomy ‱ feedback ‱ equity theory ‱ referents ‱ distributive justice ‱ procedural justice ‱ expectancy theory ‱ compressed workweek ‱ flexible work hours (flextime) ‱ job sharing ‱ telecommuting ‱ open-book management ‱ employee recognition programs ‱ pay-for-performance programs ‱ stock options