This chapter discusses theories of motivation and rewards in organizational behavior. It covers reinforcement theory, which holds that behaviors leading to positive outcomes will be repeated. Social learning theory extends this to include observational learning. Intrinsic motivation comes from the task itself, while extrinsic motivation involves external rewards. Performance management aims to discuss employee performance and results but often suffers from biases and negative perceptions. Proper motivation involves rewarding both results and positive behaviors to reduce unethical actions and achieve desired outcomes.

1. CHAPTER 8:
MOTIVATION:
LEARNING AND
REWARDS

2. AGENDA
• Reinforcement theory
• Social learning theory
• Intrinsic and extrinsic motivation
• Pay and performance management
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3. THE MEANING OF MONEY
Gifts are
viewed by an
employer as
acts of
kindness that
carry more
meaning than
cash.
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Source: Kube, Marechal, and Puppe: “The Currency of Reciprocity,” American Economic Review, 2012.
Retrieved from HBR.org.

4. REINFORCEMENT THEORY
• Based on the law of effect
• Past actions leading to positive
outcomes tend to be repeated,
• whereas past actions that led to
negative outcomes will diminish.
• Led to the development of operant
conditioning
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5. REINFORCERS
• The two kinds of reinforcement that
increase behavior:
• Positive reinforcement
• Negative reinforcement
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6. PUNISHMENT
The presentation of an adverse event
causes a decrease in the behavior it
follows; there are two kinds of
punishment:
1. Punishment by application
2. Punishment by removal (also called
extinction)
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7. CONTINGENCIES OF REINFORCEMENT
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8. SCHEDULES OF REINFORCEMENT
• Continuous
• Not seen often in organizations
• Useful during the learning process
(training)
• Partial reinforcement
• Based on time (interval) or the number
of times the response is given (ratio)
• Fixed or variable (random)
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9. SCHEDULES OF PARTIAL
REINFORCEMENT
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10. ORGANIZATIONAL BEHAVIOR
MODIFICATION (OB MOD)
• Used to increase performance and reduce
absenteeism
• Meta-analysis found that OB Mod
increased task performance by 17%
• However, results of interventions using OB
Mod were stronger in manufacturing than
service organizations
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11. ABC ANALYSIS
• Antecedents: What is causing the behavior?
• Behavior: What is the current behavior?
What is the desired behavior?
• Consequences: What is currently
reinforcing the behavior? What needs to be
changed?
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12. APPLIED
BEHAVIOR
MODIFICATION
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13. APPLIED BEHAVIOR MODIFICATION EXAMPLE
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14. SOCIAL LEARNING THEORY
• Extends operant conditioning
• People can learn from watching other
people succeed or fail.
• Known as observational learning (or
modeling)
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15. THE MODELING PROCESS
1. Attention
2. Retention
3. Reproduction
4. Motivation
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16. INTRINSIC VS. EXTRINSIC
REWARDS
• Intrinsic motivation
• Gain satisfaction from the task itself
• Extrinsic motivation
• Performance  outcome expectancies
• Satisfaction comes from the extrinsic
reward (e.g., money)
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17. SELF-DETERMINATION THEORY
• Intrinsic motivation is a function of a
person’s needs for autonomy and
competence
• The problem is that rewards may have
conflicting effects (i.e., the person sees a
monetary reward as both controlling and
informational).
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18. RELATIONSHIP BETWEEN INTRINSIC
AND EXTRINSIC REWARDS
• Extrinsics in service of intrinsics
• Motivation–work cycle match
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19. WHAT MONEY CAN AND
CANNOT DO
• Hospital study: pay level practices and pay
structures combined to affect:
• Resource efficiency, patient care outcomes,
and financial performance
• On the other hand, tying pay directly to
performance can have dysfunctional or
even unethical consequences.
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20. PAY DISPERSION
• When employees receive different levels of
rewards for individual efforts
• Can cause jealously among employees
and/or harm team performance
• If pay dispersion creates pay inequity
due to discrimination, it may result in
litigation under the Equal Pay Act.
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21. PERFORMANCE MANAGEMENT
• Pay for performance incentive systems
• The performance management
meeting is an opportunity to regularly
discuss an employee’s performance
and results.
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22. SOURCES OF PERFORMANCE
MANAGEMENT RATINGS
• Self-ratings
• Immediate supervisor
• Human resources
• Managers one level above the supervisor
• Higher management
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23. SOURCES OF PERFORMANCE
MANAGEMENT RATINGS
(CONTINUED)
Peers (coworkers)
Subordinates/employee’s followers
Customers
(360-degree performance appraisal)
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24. PERFORMANCE MANAGEMENT
METHODS
• BARS-Behaviorally-Anchored Rating Scales
• Ranking
• Graphic rating scale
• Frequent discussions/monthly “reviews”
• Providing more frequent feedback
rather than once a year
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25. PROBLEMS WITH
PERFORMANCE REVIEWS
• Perceptions of bias in the process
• Fear of punishment
• Time consumed by the process
• Employees don’t like negative feedback.
• Employees may tune out the boss once the
rating is known.
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26. THE SOLUTION
• Reward for the results AND the
behaviors
• This way, desired results are
achieved, and the proper behaviors
occur
• Reduces potential unethical or
harmful behavior
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27. FEEDBACK SEEKING BY FOLLOWERS
Five patterns of feedback seeking:
1. How frequently people seek feedback
2. How they seek it (e.g., observing, comparing,
asking)
3. The timing
4. Who they ask for feedback from (e.g., the boss)
5. What they ask for feedback about (e.g.,
successful completion of a task)
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28. ANTECEDENTS AND CONSEQUENCES OF
FEEDBACK-SEEKING
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Source: Ashford, S. J., Blatt, R., & Vandewalle, D. (2003). Reflections on the looking glass: A review of research on feedback-seeking behavior in
organizations. Journal of Management, 29(6), 773–779. p. 775.

29. LEADERSHIP IMPLICATIONS
• Leaders motivate followers with
• Frequent feedback
• Proper rewards
• Implementing a fair and rewarding
compensation system
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30. OPEN-ACCESS
STUDENT
RESOURCES
• Checklist action plan
• Learning objective summaries
• Mobile-friendly quizzes
• Mobile-friendly eFlashcards
• Video and multimedia resources
• SAGE journal articles
edge.sagepub.com/scandura
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