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  1. 1. Motivation and RewardWhat does it mean to be motivated?Questions:What motivates you? What demotivates you?How is one motivated?Why is one motivated to do x or y?
  2. 2. Performance problems…Signs and symptoms:-• Organization• Group/Team• Individualrole of ‘motivation’?
  3. 3. Performance Regulation• External regulation (Scientific Mgt)• Subjective regulation (Human Relations)Regulation through understanding andmanaging the employee mind-set(cooperative systems approach)Topic of satisfaction and motivation entered theagenda
  4. 4. Motivation and Reward….for love…isn’t that the reason why we doanything….?Do you love to work? Do you work for love? Do youwork to enable you to love? Would you work if youdidn’t have to?‘Pay might be the reason why millions of people get outof bed in the morning and go to work but what theydo when they get there is an entirely differentmanner’….(the lottery question…)
  5. 5. Herzberg (1968)• The simplest method of getting someone tomove is to kick him in the pants• However, if you kick your dog it moves, butwas it motivated to move?… would certainly be motivated to moveaway!• True motivation comes from within theperson who wants to move=> goal directed
  6. 6. When we go out to play…• How might the concept of play inform ourunderstanding of motivation?• What is play? What is work?• Can we play in work? Can we work in play?
  7. 7. What motivates?Content Theories = taxonomic ‘lists’ of need (e.g. Maslow’sHierarchy), motives (e.g. sensation seeking, need forachievement, need for power)- e.g. Maslow’s Hierarchy: theory of motivation in general versuswork in particular => attractive ‘holistic’ ideasurvival, security/safety, social/belonging, esteem, cognitive,aesthetic, self-actualisingHierarchical proposition => movement into a higher orderdomain presupposes to fulfilment of lower order needs
  8. 8. Evaluation..Popularity versus scientific integrity- intuitive plausibilityDifficult to test – needs can operate simultaneously, depends onrelative salienceArbitrary categorisation – one may seek to fulfil a higher orderneed to satisfy lower order needs - e.g. for employabilityDoes need fulfilment motivate? (complete satisfaction orcontinuous striving)So what? How do ‘needs’ they work? How might we use thetheory?
  9. 9. Two Factor TheoryHerzberg (1968) –intrinsic (from within)extrinsic (from outside)Hygiene needs = ‘disatisfiers’, must be fulfilled toprevent disatisfaction but won’t increase satisfactionMotivators = ‘satisfiers’, but won’t preventdisatisfaction
  10. 10. Evaluation..No direct evidence, but again, plausible- e.g. ‘tip of the iceberg’ effect in absence of satisfiers,dissatisfiers become more salientAlso maybe a threshold of hygiene needs after which more payadds nothing to satisfaction (Law of Diminishing Returns)But, distinction intrinsic and extrinsic dubious e.g. payment(hygiene/extrinsic) makes possible the fulfilment of intrinsic(satisfiers) needs, also depends what ‘pay’ means (could beintrinsic motivator for some)Again, so what?
  11. 11. How does motivation come about?Process theories - e.g. equity theory (distributive justice,procedural justice) instrumentality-expectancy theory, socialexchange theory, goal setting theory…Social comparisons = reference pointPresuppose a superordinate need for equity/justice/balance ofexchangePresuppose rational calculation of inputs/outputsHighly cognitive … where is the sentiment?So what? What do they tell us about motivation?
  12. 12. What, Why and How?Content = what? Arbitrary lists of needsProcess = how? Cognitive mechanismsHow useful is either without an answer to ‘whyis one motivated to do x rather than y?’Importance of theory -> source of explanationand ‘intervention leverage’
  13. 13. Absence of coherent theoryPiecemeal/fragmented, mini-models, laboratory based,decontextualisedA theory of motivation must be able to deal with:-• Individual differences• Motivated behaviour can occur in adversecircumstances - e.g. demoralised but continue towork hard• Why there might be opposite reactions of somepeople to the same objective circumstances
  14. 14. Motivation and SatisfactionAll theories incorporate satisfaction, but, onecan be motivated even if dissatisfiedWhy?Scenario -> professional person in the caringprofessions, there is low morale and highturnover, but not necessarily poorperformance..Work => self-expressive (directly or indirectly)
  15. 15. Motivation as an expression of identityWhat higher order needs does work fulfil?Competence/efficacy, achievement, meaning,esteem /worth / validation…Why are we motivated to do what we do?Can one be motivated in a ‘have to’ situation? - i.e. ispure ‘want to’ or intrinsic motivation possiblewithout constraint?
  16. 16. Implications…An identity theory of motivation…Does the term ‘motivation’ signify somethingunitary (uni-dimensional) or multi-dimensional?Is it more useful as an analytic framework than aconcept?Still doesn’t answer the question of how?
  17. 17. How?Theories of goal directed and self-regulated behaviourPsychological Contract Theory = schema theory(Rousseau) and/or relationship psychology (Herriot)Critical importance of understanding processes, notjust inside the head, but between people and theartefacts in their environment
  18. 18. Universal and Particular• How can universal theories be used inparticular instances?• Importance of context…universal theories are acontextualparticularistic situations – apply only ina particular contextContingency theory….
  19. 19. The context of motivation…Adequacy of individual level of analysisGroups as a critical link pin and source ofpsychological leverageUnderstand group processes – formal andinformal – e.g. how do people maintainmotivation in boring jobs? Informalcompensatory mechanisms where there issome creative licence afforded by mgt(informal job redesign)
  20. 20. The context of rewardPayment systems => rarely truly contingent onperformance (PRP)Complex relationship between payment and intrinsicmotivation – e.g. can change the meaning of workIndividual PRP in a team context can undermineteamwork by creating interpersonal competition
  21. 21. Control or Facilitation• Balance between management control andpersonal/team autonomy• Critical importance of informal as well asformal processes• Imposition of new formal processes (e.g. jobredesign, new technology) can undermineinformal processes with big performancecosts…
  22. 22. Doing more harm than good…• Sweeping ‘potted’ job design solutions, out-of-context, potentially disruptive of informal processesnaturally evolved to increase/maintain motivation inotherwise boring (formal) jobs..• Context, history, meaning– What is the context? Context is created in part by informalprocesses– History? Of the current situation, of the individual/groupsituation..– Meaning? What does work mean to an individual orgroup…
  23. 23. Work flow…• What is the task and task objective?• What are the task conditions and constraints?• How will the task be completed (processes)-optimise process by taking into consideration thetask and its requirements and the people involved-select process that is win-win for task and people;involve people in deciding on processControl versus Autonomy – Formal versus InformalProcesses
  24. 24. Organizational Behavior Course ModelOB Outcomes: Attitudesand BehaviorsEffortJob SatisfactionAbsenteeismTurnoverStressWorkplace ViolenceOrganizational CitizenshipBehavior and CommitmentEmployee TheftSafety and AccidentsSexual HarassmentGrievancesInfluenced by ManagersUsingApplication of IndividualDifferences• Perceptions• Attributions• Attitude change• Values• PersonalityGroup DynamicsReward SystemsJob DesignLeadership
  25. 25. • Motivation Illustration• Misconceptions about Motivation*Current generation has no work ethic* Some people are born “lazy”* Most people are motivated by the same thing
  26. 26. Why is Motivation Important?• Under optimal conditions,effort can often beincreased and sustained• Delegation withoutconstant supervision isalways necessary• Employees can becomeself-motivated• Motivated employees canprovide competitiveadvantage by offeringsuggestions & working tosatisfy customers
  27. 27. Bottom LineMotivation is accomplishingthings through the efforts ofothers. If you cannot do this,you will fail as a manager.
  28. 28. MAJOR THEORIES OF MOTIVATIONI. Need Approaches:- Maslow’s Hierarchy of Needs- Alderfer’s ERG Theory- Herzberg’s Two Factor Theory- McClelland’s Learned Needs TheoryII. Cognitive Approaches:- Expectancy Theory- Equity Theory/ Social Comparison- Goal Setting TheoryIII. REINFORCEMENT THEORY OR OPERANTCONDITIONING : How Rewards & ReinforcementsSustain Motivation Over Time(Behavior Modification)
  29. 29. Job performance = f (ability Xmotivation X organizationalsupport)
  30. 30. “Issues” with Maslow’s Need Model1. Businesses typically do well satisfyinglower order needs.2. Model stipulates that there are 5 needsand that the order is “fixed”. Researchindicates some may only have 2-3 needhierarchy; others 5-6. The order may alsobe inverted and meeting needs outside ofwork not accounted for.3. Model not developed from averageemployees
  31. 31. Alderfer’s ERG Theoryed Growth Needs Needogression RegressiRelatedness NeedsExistence Needs
  32. 32. Herzberg’s Theory Rests on 2 Assumptions1.) Being satisfied with one’s job is equivalentto being motivated; “a satisfied worker is amotivated worker”2.) Job satisfaction and dissatisfaction areseparate concepts with unique determinantsbased on work with accountants and engineers
  33. 33. Herzberg’s 2-Factor TheoryDeterminants of JobDissatisfaction areHygiene* Factors:• Pay, fringe benefits• Working conditions• Quality of supervision• InterpersonalrelationsJob EnvironmentFactors* Poor hygiene can make you,sick, but good hygiene won’tDeterminants of JobSatisfaction areMotivator Factors:• Work itself,responsibility• Advancement• RecognitionJob ContentFactors
  34. 34. Assessment of HerzbergContributions• 1st to argue that jobcontent/job design wasimportant• Job enrichment (the workitself) as a job satisfactionstrategy• Model appealing and easy tounderstandCriticisms• May be “method-bound” byself-serving bias• Some individualdifferences, like desire forpay, rejected as a motivator.• Also, not everyone wants anenriched job• Assumes satisfaction(presence of motivators) =motivation
  35. 35. WORK PREFERENCES OF PERSONS HIGH IN NEEDFOR ACHIEVEMENT, AFFILIATION, AND POWERINDIVIDUAL NEED WORK PREFERENCES JOB EXAMPLEHigh need forachievementHigh need foraffiliationHigh need forpower- Individual responsibility- Challenging butachievable goals- Feedback onperformance- Interpersonalrelationships- Opportunities tocommunicate- Control over otherpersons- Attention- RecognitionField sales personwith challengingquota and opportunityto earn individualbonusCustomer servicerepresentative;member of work unitsubject to groupwage bonus planFormal position ofsupervisoryresponsibility;appointment ashead of special taskforce or committee
  36. 36. A Comparison of Internal Need Theories of Motivationaslow’s Alderfer’s Herzberg’s McClelland’serarchy ERG Two Factor AcquiredNeeds Theory Theory Needs Theoryelf- Achievementctualization GrowthMotivatorsteem PowerRelatednesselonging AffiliationHygieneecurityExistencehysiological
  37. 37. THE GOALS OF COGNITIVETHEORIES ARETO EXPLAIN THOUGHTS ABOUTEFFORT:1.) the decision to expend effort2.) the level of effort to exert3.) how effort can be made topersist over time
  38. 38. Expectancy TheoryInvolves 3 cognitions/perceptions:1. Expectancy - the perceived probability that effortwilllead to task performance. E link2. Instrumentality - the perceived probability thatperformance will lead to rewards.I link3. Valence - the anticipated value of a particularoutcome to an individual.Effort PerformanceRewards orOutcomes
  39. 39. EXPECTANCY THEORY(Text adds “Personal Goals” after Outcomes)E P Expectancy or P O Theory ValenceWhat is the probability What is the probability What value do I placethat I can perform at that my good performance on the potentialthe required level will lead to outcomes? outcomes? (seeif I try? next slide)InstrumentalityEffort Performance Outcomes
  40. 40. Motivation toExertEffortLevel ofPerformanceorProductionMoney (+9)Promotion (+6)Job Satisfaction (+1)PeerDisapproval (-8)ELinkILinkEXPECTANCY THEORY
  41. 41. Effort-Earn high grades-Feeling ofaccomplishment-Learning somethingpracticalPartial Test of Expectancy Theoryas Used in SimulationERewards or Outcomes
  42. 42. Implications for Managers• Need to offer employees valued rewards (highvalences)• Need to insure that if people are willing to put fortheffort that you help them succeed. Maintain the Elink (Provide tools, info, support)• Need to make sure that you follow through withreward system that is tied to performance. Maintainthe I link (Differential rewards for performance)
  43. 43. What is the basis of equity theory?• …the thinking process by which one makesa decision to exert effort is a function ofsocial comparison• Based on individual perceptions ofoutcomes (what your receive fromexpending effort to complete a task), jobinputs (what you bring or contribute tothe task) and perceptions of a referentperson.
  44. 44. Equity Theory: The decision to exert effort is a functionof social comparisonInvolves 3 relevant perceptions:1. Perceptions of outcomes received from performing a task.(e.g., pay)2. Perceptions of inputs required to perform a task.3. Perceptions of the outcomes and inputs of a REFERENCEPERSON.If: Outcomes Self Outcomes Reference Person=Inputs Self Inputs Reference PersonThen equity exists.
  45. 45. How does equity theory work?• Employees mentally construct outcome-to-input ratios for themselves and their referentother and “socially compare”• If equity exists, you experience no tension andpersist at your current level of effort• When Outcome Self =/= Outcome ReferencepersonInput Self Input ReferencepersonTension is created and employees are“motivated” to restore equity
  46. 46. Equity TheoryEquitable Situation:Outcomes Self = Outcomes Reference PersonJob Inputs Self Job Inputs Reference PersonInequitable Situations:A. Under-reward or “Cheated” (from Self’s point of view)Outcomes/Inputs Self 4/5 < Outcomes/Inputs Reference Person 5/5B. Over-reward or “Guilty” (from Self’s point of view)Outcomes/Inputs Self 5/4 > Outcomes/Inputs Reference Person 5/5C. Either way, a person is “motivated” to restore equity with R.P.
  47. 47. ExamplesYou Ref. Person Ways to Reduce Tension3 < 4 Outcomes a. increase outcomes likeask for4 4 Inputs a raise (Δ Your outcome 3 toa 4)b. reduce job inputs like ↓ effort(Δ Your input 4 to a 3)“Under-reward” (What YOU is, from You’s perspective)4 > 3 Outcomes a. increase job inputs like work3 3 Inputs harder (Δ Your input 3 to a4)b. reduce outcomes
  48. 48. RestoringEquityUnder-reward:Increase outcomesReduce inputsOver-reward:Increase inputsReduce Outcomes (?)-criticism of equity theoryOther Options:Leave situation
  49. 49. REASONING BEHIND GOAL SETTINGDirection - specific goals direct your focus to relevant activitiesEffort - need to devote more intense levels of effort toward difficult goals -assumes people are goal drivenPersistence - specific, difficult goals encourage you to persist longer at a task thanwould be the case withoutsuch goalsOnly possible exception ishigh “uncertaintyavoidance” cultures.
  50. 50. Representative Goal Setting StudyUnexcused QualityGoal Concept & Sample Item Effort Absenteeism DefectsGoal Challenge- 4 items(my full range of ability must + - -be used to reach my goals)Goal Clarity- 5 items(The goals for my job are easy + - -to understand)Goal Feedback- 6 items(The feedback I receive + - -concerning my goal progressis helpful)Goal Participation- 4 items(My supervisor asks my opinion not - -when goals are set) relatedKey: + = positively related, - = negatively related
  51. 51. MAJOR THEORIES OF MOTIVATIONII. Cognitive Approaches:- Expectancy Theory- Equity Theory/ Social Comparison- Goal Setting TheoryIII. REINFORCEMENT THEORY OR OPERANT CONDITIONING : How Rewards &Reinforcements Sustain Motivation Over Time (Behavior Modification)●May best address how motivation can be made to persist over time● Behaviors like effort can be sustained or changed by experiencing orobserving reinforcements
  52. 52. Reinforcement Theory of Motivation• Some view as an explanation of motivation; otherslimit it to how motivation is sustained over time.• Does not have to rely on needs, perceptions orcognitions. Managers can design work environmentto provide “reinforcers” that strengthen desiredbehaviors & weaken undesired behaviors.“Motivation is a function of the environment”.• Others allow for cognitions in that people canobserve rewards and punishments applied to others.Called social learning or vicarious learning.
  53. 53. Motivation as a Form of Learning:The Law of Effect• Behavior that leadstoward rewards tends tobe repeated• Behavior that tends tolead toward no rewardsor toward punishmenttends to be avoided• The type of reinforcer &the timing (schedule) ofreinforcement are key
  54. 54. Reinforcers Which Strengthen Behavior: What managers cando to increase the probability of behavior in the futurea. Positive reinforcement--rewards contingent on exhibiting the correct behavior.b. Avoidance Learning—withholding something unpleasant when a desiredbehavior is engaged in (e.g., an annoying alarm is avoided when a machine is usedproperly, not operating in reverse). Or, using social learning, noticing how engagingin some behavior avoids an unpleasant outcome (e.g., arrive on time and the bossdoes not yell). Text: Negative reinforcement
  55. 55. Reinforcers Which Weaken Behavior: Whatmanagers can do to decrease the probability of behavior in the futurea. Punishment--administering unpleasantconsequencesfollowing an undesirable behavior.b. Extinction--when there are no rewards for abehavior which was previously rewarded.
  56. 56. Timing of Reinforcementa. How quickly reinforcers work depends on theirtimingb. Continuous. Used to “shape” new behaviorsc. But continuous reinforcement is impractical1. Costly2. Not as effective in sustaining behaviorover time
  57. 57. Partial Reinforcement Schedules1. Based on passage of timeFixed Interval- Reinforcer given after set period of time.Ex.: Weekly pay.Variable Interval- Reinforcer given randomly with passage of time.Ex.: Surprise bonus based on time.2. Based on behavior exhibited by the employee (team)Fixed Ratio- Reinforcers based on behaviors.Ex.: Piece rate pay.Variable Ratio- Reinforcers applied randomly after exhibition ofbehaviors.Ex.: A company vacation to Hawaii for all employees after a newcontract landed; spot bonuses.
  58. 58. Schedules of ReinforcementSpacing or Timing of ReinforcerFixed VariableBased on# of behaviorsexhibited Fixed Ratio Variable Ratio(ratio) -piece rate -door to doorsalesBasis fordetermining Based on Fixed Interval Variable Intervalfrequency of passage -weekly-Occasionalreinforcer of time paycheck praiseby boss(interval)Which schedule sustains behavior the longest?
  59. 59. Summary of Motivation TheoriesA. View all these approaches as a “bag of tricks.”Alternatives to choose from, remembering that all are notcompatible.B. Judge whether you believe each “works.” Rely on thescientific data presented, your experiences, and yourcommon sense.C. Evaluate your prospects for successfully implementingeach one--we all vary in our interpersonal skills and abilityto render social rewards sincerely.