BUSINESS STUDIES

1. 1
Chapter
MOTIVATION IN ORGANIZATIONS
Six

2. Motivation
Energizes Behavior
Directs Behavior
Goals
Organization of Effort
Reaching Equilibrium
Drives
Compulsions
Deprivation/
Disequilibrium
Sustains Behavior
Maintaining motivation
Persistance
Ability to change course
Importance of Feedback
Equilibrium
Need
Satisfaction
Drive

3. 3
Motivation: Its Basic
Components
Desire to
make a good
impression
Arousal Direction Maintenance Goal
Good
impression
made
Work extra hard Persist

4. 4
Need Theories: A Comparison
1. Physiological needs
2. Safety needs
3. Social needs
Deficiency Needs
4. Esteem needs
5. Self-actualization needs
Growth needs
• Growth needs
• Relatedness needs
• Existence needs
Maslow’s need hierarchy theory Alderfer’s ERG theory

5. ERG Theory
(Aldefer)
Relatedness Needs
Growth Needs
Existence Needs
Satisfaction/Progression
Frustration/Regression
Satisfaction/Strengthening

6. Discussion: Considering these
theories, how might companies
motive their employees
• What types of incentives would motivate
employees
• How can employers satisfy employees’
needs
• Would the same type of incentives or
rewards satisfy all employees?

7. Goal Setting
People’s Behavior is Guided by Intentions
• Goals provide direction Specific goals
are more effective
• Goals mobilize behavior Difficult goals
generate more effort
• Feedback about goal attainment sustains
behavior.

8. 11
GOAL SETTING: SOME IMPRESSIVE EFFECTS
Percentage
of
Maximum
Weight
Carried
on
Each
Trip
Before
goal
After Goal
Four-Week Periods
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10 11 12 Seven
Years Later
94
There was a dramatic
improvement in per-
formance after a goal
was set
Performance at the goal level
was sustained seven years after
the goal was first set

9. Goal Commitment
Publically stated goals
+
High nAch
+
Internal Locus of Control
Commitment to
Goals

10. Goal Setting Applications
• Management by Objectives (MBO)
– Performance review procedure by which employees
and managers jointly make goals for next review
period. They also work out the details for reaching
those goals. Performance is regularly monitored.
• Organizational Behavioral Management (OBM)
(remember learning theory?)
– Application of goal setting (or other behavioral science
technology) to change the behavior of large units within
the organization
• Logging example

11. Theory 1: Exchange Theory
If Inputs = Outputs Satisfaction
Effort,
Motivation,
Performance,
Skills,
Expertise
Rewards
Bonus
Promotions
Pay Raise
Recognition
O
I
= 1
Distributive Justice:
Perceptions of how fairly
rewards are distributed

12. Theory 2: Equity Theory --
Compare I/O ratios to others
Self
Outcome
Input
Other
Outcome
Input
= Satisfaction

13. Examples of Equity
Other
4
4
Self
4
4
1. 2.
Self
4
4
Other
8
8
3. Self
4
2
Other
4
2
4.
Other
8
4
Self
4
2
5.
Self
2
4
Other
4
8

14. Examples of Inequity
1. Underpayment = Self O/I < Other O/I
Example
Self Other
4 8
4 4
2. Overpayment = Self O/I < Other O/I
Example
Self Other
4 2
4 4

15. 14
POSSIBLE REACTIONS TO INEQUITY:
A SUMMARY
Type of Inequity
Behavioral
(what you can do is...)
Psychological
(what you can think is...)
Overpayment Raise your inputs (e.g., work Convince yourself that your
inequity harder), or lower your outcomes outcomes are deserved
(e.g. work through a paid based on your inputs (e.g.,
vacation) rationalize that you work
harder than others and so
you deserve more pay)
Underpayment Lower your inputs (e.g., reduce Convince yourself that oth-
inequity effort), or raise your outcomes ers’ inputs are really higher
e.g., get a raise in pay) than your own (e.g., ration-
alize that the comparison
worker is really more quali-
fied and so deserves
higher outcomes)
TYPE OF REACTION

16. 15
Employee Theft: A Reaction to Underpayment
Employees of the factories in which there was a pay cut
Employees of the factories in which there was no pay cut
Theft
Rate
percentage
of
unaccounted
for
loss
of
property
0
1
2
3
4
5
6
7
8
9
Before
Pay Cut
During
Pay Cut
After
Pay Cut
Theft rates were
identical before
pay was cut in
one of them.
Employee theft was
greatest in factories
whose employees
experienced a cut
in their pay.
Theft rates were
identical after pay
was restored to
normal levels.

17. Procedural Justice
• Perceived fairness of the processes by
which organizational decisions are made
– Voice: giving employees a say in how decisions
are made
– Error correction: allow opportunity for errors to
be corrected
– Consistently apply rules and policies
– Bias suppression

18. Interactional Justice
• Quality of interpersonal treatment (by
supervisor) when decisions are made and
communicated
– Information justification: thoroughness of
information received about at decision
– Social sensitivity: amount of dignity and
respect demonstrated in the course of
presenting an undesirable decision.

19. Applications of Justice Theories
• Employee Selection
• Pay systems
– Two-tier wage structures
– Pay secrecy
• Participative Decision Making
• Downsizing

20. Expectancy Theory
People will be motivated to engage in
a behavior (make a choice) to the
degree that they believe that the
behavior will lead to a valued outcome

21. 16
Expectancy Theory: An
Overview
Effort
Performance
Expectancy
Instru-
mentality
Valence of
Rewards
Rewards
Skills and
abilities
Job
Performance
Role perceptions
and opportunities
Motivation
X
X

22. Expectancy Model:
Components
Valence: How much do you value the
rewards you may receive
Instrumentality: The perception that if you
perform well you will be
rewarded
Expectancy: The degree to which you
expect that hard work (effort)
will lead to good performance
or high accomplishments

23. Expectancy Theory, con’t
• Force: the motivation to choose a
particular course of action.
)
*
( I
V
E
Force 

Where: E= Expectancy (probability that effort leads to
performance)
V=Valence (rating of how satisfying various rewards
will be)
I=Instrumentality (relationship between taking this
option and gaining this reward)

24. Example: Choose between Job A vs.
Job B
• 1. What are the possible outcomes I would get
from getting a job, and how much do I value each
of these outcome (Valence)
– Good salary 7
– Good Pension 6
– Interesting work 8
– Travel opportunities 4
Valences are measured on a scale from 1 (not at all
satisfiying) to 10 (extremely satisfying)

25. Expectancy example, cont
• Instrumentality: What is the relationship
(subjective correlation) between choosing
job A or job B and obtaining this outcome?
Instrumentality Instrumentality
for Job A for Job B
High salary .75 .50
Good Pension . .25 .75
Interesting work .50 .75
Travel .75 .25

26. Expectancy example, con’t
• Expectancy: What is the probability that if I
work hard, I will be successful:
– In Job A: .40
– In Job B: .70

27. Force: Which job should I choose
)
*
( I
V
E
Force 

Job A: Valence Instrum. V*I
High salary 7 .75 5.25
Good Pension 6 .25 1.50
Interesting work 8 .50 4.00
Travel 4 .75 3.00
Sum 13.75
Expectancy .40
Force=.40(13.75) = 5.5
Job B. Valence Instrum. V*I
High salary 7 .50 3.50
Good Pension 6 .75 4.50
Interesting work 8 .75 6.00
Travel 4 .25 1.00
Sum 15.00
Expectancy .70
Force=.70(15.00) = 10.5

28. Application of Expectancy
Theory
• Clarify expectancies between effort and
performance and follow through with
rewards.
– Pay for performance
– Stock option plans and other incentive
programs
• Provide valued rewards
– Cafeteria-style benefits

29. Motivating Jobs Through Job
Redesign
• Scientifically managed jobs: boring,
repetitive, few skills utilized
• Job Enlargement: add more tasks of similar
skill level to the job
• Job Enrichment: add more responsibility
and autonomy to the job
Horizontal Loading
Vertical Loading

30. 18
Job Enlargement and Job Enrichment: A Comparison
Level
of
Responsibility
(vertical
job
loading)
(high)
(low)
Number of Tasks
(horizontal job loading)
Task
1
Task
2
Enlarged Job
Task
3
Task
4
Level
of
Responsibility
(vertical
job
loading)
(high)
(low)
Number of Tasks
(horizontal job loading)
Task
1
Task
2
Standard Job
(low)
Number of Tasks
(horizontal job loading)
Task
1
Task
2
Enhanced Job
Level
of
Responsibility
(vertical
job
loading)
(high)
Job enlargement adds more tasks
at the same level of responsibility.
Job enrichment adds
more responsibility
to the same number
of tasks.
(high)
(high)
(high)
(low)
(low)
(low)

31. Job Characteristics model
Job Characteristics Critical Psyc. States
Growth Need Strength
Job Outcomes
Experienced
Meaningfulness of
Work
Responsibility for
work outcomes
Knowledge of
Results
Internal work
motivation
Job satisfaction
Growth
Satisfaction
Low absenteeism
High quality
performance
}
Skill Variety
Task Identity
Task Significance
Autonomy
Feedback

32. 20
Enriching Jobs: Some Suggestions From
the Job Characteristics Model
1. Combines jobs enabling worker to perform Skill variety
the entire job Task identity
2. Establishes client relationships allowing providers Skill variety
of a service to meet the recipients Autonomy
Feedback
3. Load jobs vertically allowing greater responsibility Autonomy
an control over work
4. Open feedback channels giving workers knowledge Feedback
of the results of their work
Principles of Job Description Core Job Dimensions
Incorporated