Motivation

Chapter 16
Motivating Employees
Motivation
• Motivation is the process that accounts for an
individual’s intensity, direction, and persistence of
effort toward attaining a goal. It involves:
• Arousal, direction, and persistence of behavior
 Employee motivation affects productivity
 Part of a manager’s job is to channel motivation
toward the accomplishment of organizational goals
2
Two Types of Rewards
Intrinsic rewards--satisfactions a person
receives in the process of performing a
particular action.
Extrinsic rewards--given by another person.
3
16.1 A Simple Model of Motivation
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4

Content Perspectives
on Motivation
If managers understand employees’ needs, they

can design appropriate reward systems
 Needs motivate people
 Needs translate into an internal drive that motivates
behavior
 People have a variety of needs

Traditional (Content) Theories of
Motivation
Emphasize the needs that motivate people
 Maslow’s ‘Hierarchy of Needs Theory’

 Alderfer’s ‘ERG Theory’
 Herzberg’s ‘Two-Factor Theory’
 Mc Clelland’s ‘Acquired Needs Theory’
6
16.2 Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs
• Once a need is satisfied, it declines in
importance and the next higher need is
activated
• There are opportunities for fulfillment off the
job and on the job in each of the five levels of
needs
Experiential Exercise: What Motivates You?
8
ERG Theory
 Existence needs - the needs for physical

well-being
 Relatedness needs - the needs for
satisfactory relationships with others
 Growth needs - the needs that focus on the
development of human potential and the
desire for personal growth
frustration–regression principle: failure to meet a high-order need may
cause a regression to an already satisfied lower-order need

16.4 Herzberg’s Two-Factor Theory

Acquired Needs Theory
David McClelland
• Need for Achievement desire to accomplish
something difficult, master complex tasks, and
surpass others
• Need for Affiliation desire to form close personal
relationships, avoid conflict, and establish warm
friendships
• Need for Power desire to influence or control others
11
Contemporary (Process) Perspectives
on Motivation
How people select behavioral actions

 Goal Setting Theory/MBO
 Adam’s Equity Theory
 Vroom’s Expectancy Theory

Goal Setting Theory
• Increase motivation by setting goals

• Key components of the theory:
» Goal specificity
» Goal difficulty
» Goal acceptance
» Feedback
Management by Objectives (MBO) is an extension of
Goal-setting Theory, but it also includes:
 the joint setting of goals between manager and
subordinate i.e. participation in goal-setting.
Equity Theory’s “Relevant Others”
• Individual perceptions of fairness based on comparison with
one’s four (4) Relevant Others or Referent Groups:
– Self-Inside: The person’s experience in a different
job in the same organization
– Self-Outside: The person’s experience in a different
job in a different organization
– Other-Inside: Another individual or group within the
organization
– Other-Outside: Another individual or group outside
of the organization
7-14
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Equity Theory
• Perceived inequity can be reduced by:

» Changing work effort
» Changing outcomes
» Changing perception
» Leaving the job
• Inequity occurs when the input-to-outcome
ratios are out of balance

Expectancy Theory
• Motivation depends on individuals’

expectations about their ability to perform
tasks and receive desired rewards
• E – P: putting effort into a given task will lead
to high performance
• P – O: successful performance of a task will
lead to the desired outcome
• Valence – the value or attraction an individual
has for an outcome
16.5 Major Elements of
Expectancy Theory

Reinforcement Perspective
on Motivation
Behavior Modification Reinforcement

Reinforcement theory An act that causes a
techniques used to behavior to be
modify behavior repeated or inhibited
Law of Effect
Positively reinforced
behavior tends to be
repeated and
unreinforced behavior
inhibited
Reinforcement Perspective
on Motivation
Positive reinforcement in the

administration of a pleasant and
rewarding consequence.
Avoidance learning is the removal of an
unpleasant consequence following a
desired behavior
Reinforcement .
Tools Punishment is the imposition of
unpleasant outcomes on an employee
.
Extinction is the withdrawal of a
positive reward, behavior is no longer
reinforced and hence is less likely to
occur in the future.
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16.6 Changing Behavior
with Reinforcement

Social Learning Theory
Individual’s motivation can result from thoughts,

beliefs, and observations
– Vicarious learning – observational learning from
seeing others’ behaviors and rewards
– Self-reinforcement – motivating yourself by reaching

goals and providing positive reinforcement for yourself
– Self-efficacy – belief about your own ability to

accomplish tasks
Job Design for Motivation
• Job design = application of motivational
theories to the structure of work for
improving productivity and satisfaction
• Job simplification = job design whose purpose
is to improve task efficiency by reducing the
number of tasks a single person must do
22
• Job Rotation = job design that systematically
moves employees from one job to another to
provide them with variety and stimulation
• Job Enlargement = job design that combines a
series of tasks into one new, broader job to
give employees variety and challenge
23
• Job Enrichment = job design that incorporates
achievement, recognition, and other high-
level motivators into the work
• Work redesign = altering of jobs to increase
both the quality of employee’s work
experience and their productivity
24
Core Job Dimensions
Dimensions that determine a

job’s motivational potential:
Based on:
→ Critical Psychological
 Skill variety States
 Task identity → Personal and Work
Outcomes
 Task significance → Employee Growth-Need
 Autonomy Strength
 Feedback
The Job Characteristics Model
• Five Core Job Dimensions
– Skill Variety: degree to which the job incorporates a number
of different skills and talents
– Task Identity: degree to which the job requires the
completion of a whole and identifiable piece of work
– Task Significance: how the job impacts the lives of others
– Autonomy: identifies how much freedom and
independence the worker has over the job
– Feedback: how much the job generates direct and clear
information about the worker’s performance
Copyright © 2011 Pearson Education 8-26

16.7 The Job Characteristics Model

Innovative Ideas for Motivating
• Organizations are using various types of incentive

compensation to motivate employees to higher
levels of performance
• Variable compensation is a key motivational tool
• Incentive plans can backfire
– They should be combined with motivational ideas and
intrinsic rewards
• Incentives should reward the desired behavior
16.8 New Motivational Compensation Programs

Empowering People to
Meet Higher Needs
 Employees receive information about

company performance
 Employees have knowledge and skills to
contribute to company goals
 Employees have the power to make
substance decisions
 Employees are rewarded based on company
performance
16.9 A Continuum of Empowerment

Giving Meaning to Work
through Engagement
• Instill a sense of support and meaning

• Help employees obtain intrinsic reward
• Focus on learning, contribution, and growth

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Chapter 16

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4

If managers understand employees’ needs, they

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5

 Maslow’s ‘Hierarchy of Needs Theory’

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 7

Experiential Exercise: What Motivates You?

 Existence needs - the needs for physical

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 9

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 10

How people select behavioral actions

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 12

• Increase motivation by setting goals

• Perceived inequity can be reduced by:

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 15

• Motivation depends on individuals’

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17

Behavior Modification Reinforcement

Positive reinforcement in the

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 20

Individual’s motivation can result from thoughts,

– Self-reinforcement – motivating yourself by reaching

– Self-efficacy – belief about your own ability to

Dimensions that determine a

Copyright © 2011 Pearson Education 8-26

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 27

• Organizations are using various types of incentive

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 29

 Employees receive information about

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 31

• Instill a sense of support and meaning

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 32

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