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Chapter Outline
Defining Motivation Needs Theories of Motivation Process Theories of Motivation Responses to the Reward System Creating a Motivating Workplace: Rewards and Job Design Chapter 4, Nancy Langton and Stephen P. Robbins, Evaluating Use of Rewards in theThird Workplace Fundamentals ofthe Organizational Behaviour, Canadian
Edition 4-2 Copyright 2007 Pearson Education Canada
Theories of Motivation
What is motivation? How do needs motivate people? Are there other ways to motivate people? Do equity and fairness matter? How can rewards and job design motivate employees? 6. What kinds Langton of mistakes are made reward Chapter 4, Nancy and Stephen P. in Robbins, systems? Fundamentals of Organizational Behaviour, Third Canadian
Edition 4-3 Copyright 2007 Pearson Education Canada
1. 2. 3. 4. 5.
What Is Motivation?
Motivation
The intensity, direction, and persistence of effort a person shows in reaching a goal:
Intensity: How hard a person tries Direction: Where effort is channelled Persistence: How long effort is maintained Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-4 Copyright 2007 Pearson Education Canada
Theory Y
Assumes that employees like work, are creative, seek responsibility, and can exercise self-direction and selfcontrol. Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-5 Copyright 2007 Pearson Education Canada
Motivators
Intrinsic Motivators
A persons internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic Motivators
Motivation that comes from outside the person Chapter 4, Nancy Langton Stephen P. Robbins, and includes such and things as pay, bonuses, and Fundamentals of Organizational other tangible rewards.Behaviour, Third Canadian
Edition 4-6 Copyright 2007 Pearson Education Canada
Safety
Includes security and protection from physical and emotional harm.
Social Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Includes affection, belongingness, acceptance, Edition and friendship. 4-8 Copyright 2007 Pearson Education Canada
Self-actualization
The drive Langton to become one is capable of Chapter 4, Nancy andwhat Stephen P. Robbins, becoming; includes growth, achieving ones Fundamentals of Organizational Behaviour, Third Canadian Editionpotential, and self-fulfillment. 4-9 Copyright 2007 Pearson Education Canada
Exhibit 4-1
Selfactualization Esteem Social
Chapter 4, Nancy Langton and Stephen P. Robbins, Safety Fundamentals of Organizational Behaviour, Third Canadian Physiological Edition 4-10 Copyright 2007 Pearson Education Canada
Relatedness
Desire for maintaining important interpersonal relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Growth Fundamentals of Organizational Behaviour, Third Canadian Intrinsic desire for personal development. Edition 4-11 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-15 Copyright 2007 Pearson Education Canada
Source: Reprinted by permission of Harvard Business Review. An exhibit from Frederick Herzberg, One More Time: How Do You Motivate Employees? Harvard Business Review 81, no. 1 (January 2003), p. 90. Copyright 1987 by the President and Fellows of Harvard College; all rights reserved.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-16 Copyright 2007 Pearson Education Canada
Alderfer
Herzberg
McClelland
Chapter 4, Nancy Langton and Stephen P. Robbins, Physiological Fundamentals of Organizational Behaviour, Third Canadian Edition 4-18 Copyright 2007 Pearson Education Canada
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-20 Copyright 2007 Pearson Education Canada
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-21 Copyright 2007 Pearson Education Canada
Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. Herzberg: Not really a theory of motivation. Assumes a link between satisfaction and productivity that was not measured or demonstrated. Alderfer: Ignores situational variables. McClelland: Mixed empirical support, but theory is consistent with our knowledge of and individual differences among people. Chapter 4, Nancy Langton Stephen P. Robbins, Good empirical support, particularly on needs achievement.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-22 Copyright 2007 Pearson Education Canada
Expectancy Theory
The theory that individuals act depending on whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whether that outcome is attractive to them.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-23 Copyright 2007 Pearson Education Canada
Expectancy Relationships
The theory focuses on three relationships: Effort-Performance Relationship
The perceived probability that exerting a given amount of effort will lead to performance
Performance-Reward Relationship
The degree to which the individual believes that performing at a particular level will lead to a desired outcome
Rewards-Personal Relationship Chapter 4, Nancy LangtonGoals and Stephen P. Robbins, The degree to which organizational rewards satisfy an Fundamentals of Organizational Behaviour, Third Canadian personal goals or needs and are attractive to the Edition individuals individual 4-24 Copyright 2007 Pearson Education Canada
Instrumentality
Performance Rewards Link
Valence
Rewards Personal Goals Link There are a lot of wonderful things I could do with $1 million V=1
No matter how much effort I put in, probably not possible to memorize the text in 24 hours E=0
My professor does not look like someone who has $1 million I=0
Conclusion: Though I value the reward, I will not be Robbins, motivated to do this task. Chapter 4, Nancy Langton and Stephen P. Fundamentals of Organizational Behaviour, Third Canadian Edition 4-25 Copyright 2007 Pearson Education Canada
Improving Instrumentality
Increase the individuals belief that performance will lead to reward Observe and recognize performance Deliver rewards as promised Indicate to employees how previous good performance led to greater rewards
Improving Valence
Make sure that the reward is meaningful to the individual Ask employees what rewards they value Give rewards that are valued
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-26 Copyright 2007 Pearson Education Canada
Goal-Setting Theory
The theory that specific and difficult goals lead to higher performance.
Goals tell an employee what needs to be done and how much effort will need to be expended.
Specific goals increase performance. Difficult goals, when accepted, result in higher performance than do easy goals. Feedback leads to higher performance than does nonfeedback.
Chapter 4, Nancy Langton and Stephen P. Robbins, Specific hard goals produce a higher level of output than Fundamentals of Organizational Behaviour, Third Canadian does the generalized goal of do your best. Edition The specificity of the goal itself acts as an internal stimulus. 4-27 Copyright 2007 Pearson Education Canada
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-28 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-30 Copyright 2007 Pearson Education Canada
Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A. Locke.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-31 Copyright 2007 Pearson Education Canada
Person 1s Perception
Person 1 Chapter 4, Nancy Langton and Stephen Inequity, overrewarded P. Robbins, Person 2 Fundamentals of Organizational Behaviour, Third Canadian Edition 4-33 Copyright 2007 Pearson Education Canada
Equity Theory
Main points:
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the Chapterrelationship 4, Nancy Langton and Stephen P.what Robbins, of this amount to others Fundamentals of Organizational Behaviour, Third Canadian receive.
Edition 4-34 Copyright 2007 Pearson Education Canada
Responses to Inequity
Change their inputs. Change their outcomes. Adjust perceptions of self. Adjust perceptions of others. Choose a different referent. Chapter 4, Nancy Langton and Stephen P. Robbins, Leave the Fundamentals of field. Organizational Behaviour, Third Canadian
Edition 4-35 Copyright 2007 Pearson Education Canada
Procedural Justice
Perceived fairness of the process used to determine the distribution of rewards. Chapter 4, Nancy Justice Langton and Stephen P. Robbins, Interactional Fundamentals of Organizational Behaviour, Third Canadian The quality of the interpersonal treatment received from a Editionmanager. 4-37 Copyright 2007 Pearson Education Canada
Motivators
Intrinsic
A persons internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic
Motivation that comes from outside the person, Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals ofpay, Organizational Behaviour, Third Canadian such as bonuses, and other tangible rewards. Edition 4-39 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-41 Copyright 2007 Pearson Education Canada
Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and Commitment. Copyright K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved. www.bkconnection.com.
Employee Recognition
Employee recognition programs use multiple sources and recognize both individual and group accomplishments. In contrast to most other motivators, recognizing an employees superior performance often and costs little P. orRobbins, no money. Chapter 4, Nancy Langton Stephen
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-42 Copyright 2007 Pearson Education Canada
Variable-Pay Programs
A portion of an employees pay is based on some individual and/or organizational measure of performance.
Individual-based
Piece-rate wages, bonuses
Group-based
Gainsharing
Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational-based Fundamentals of Organizational Behaviour, Third Canadian Profit sharing Edition Employee stock ownership plans (ESOPs) 4-43 Copyright 2007 Pearson Education Canada
Bonuses
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-44 Copyright 2007 Pearson Education Canada
One-time rewards for defined work rather than Chapter 4, Nancy Langton and Stephen P. Robbins, ongoing entitlements.
Research Findings
Linking variable-pay programs and expectancy theory:
Variable-pay programs seem to be consistent with expectancy theory predictions. Employees are motivated when there is a perceived strong relationship between Chapter 4, Nancy Langton and Stephen P. Robbins, performance and rewards. Fundamentals of Organizational Behaviour, Third Canadian
Edition 4-47 Copyright 2007 Pearson Education Canada
Leadership effectiveness
Employee satisfaction, or how the manager handles his or her employees.
Chapter 4, Nancy Langton and Stephen P. Robbins, All employees who contribute to specific organizational Fundamentals of Organizational Behaviour, Third Canadian goals, such as customer satisfaction, cycle time, or quality Editionmeasures. 4-48 Copyright 2007 Pearson Education Canada
New goals
Performance of knowledge workers and/or professional employees who work on teams. Abstract knowledge or competenciesfor example, knowledge of technology, the international business context, customer service, or social skills. Chapter 4, Nancy Langton and Stephen P. Robbins, Skill-based Fundamentals of Organizational Behaviour, Third Canadian Pay is based on how many skills an employee has, or how Editionmany jobs he or she can do. 4-49 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-50 Copyright 2007 Pearson Education Canada
Expands theLangton employees independence, Chapter 4, Nancy andfreedom Stephenand P. Robbins, increases and provides feedback. Fundamentals ofresponsibility, Organizational Behaviour, Third Canadian Edition 4-51 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-52 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-53 Copyright 2007 Pearson Education Canada
Skill Variety
Task Identity
Chapter 4, Nancy Langton and Stephen P. Robbins, Feedback Fundamentals of Organizational Behaviour, Third Canadian High feedback An electronics factory worker who assembles a radio and then tests it to determine if it operates properly Edition Low feedback An electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests it for proper operation and makes needed adjustments 4-54 Copyright 2007 Pearson Education Canada
Source: G. Johns, Organizational Behavior: Understanding and Managing Life at Work , 4th ed. Copyright 1997. Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ.
High autonomy A telephone installer who schedules his or her own work for the day, makes visits without supervision, and decides on the most effective techniques for a particular installation Low autonomy A telephone operator who must handle calls as they come according to a routine, highly specified procedure
Autonomy
Feedback
Chapter 4, Nancy Langton and Knowledge of the Stephen P. Robbins, Low absenteeism actual results of and turnover the work activities Behaviour, Third Canadian Fundamentals of Organizational Edition Employee growthneed strength 4-55 Copyright 2007 Pearson Education Canada
Source: J. R. Hackman, G. R. Oldham, Work Design (excerpted from pages 78-80). Copyright 1980 by Addison-Wesley Publishing Co. Reprinted by permission of Addison-Wesley Longman.
Chapter 4, Nancy Langton and Stephen P. Robbins, Quarterly earnings Fundamentals of OrganizationalBehaviour, Third Canadian Shipment on schedule, even with defects Candor; surfacing bad news early Edition Reporting good news, whether its true or not; agreeing with the manager, 4-57 whether or not (s)hes right Copyright 2007 Pearson Education Canada
Source: Constructed from S. Kerr, On the Folly of Rewarding A, While Hoping for B, Academy of Management Executive 9, no. 1 (1995), pp. 7-14; and More on the Folly, Academy of Management Executive 9, no. 1 (1995), pp. 15-16. Reprinted by permission.
OB at Work
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-65 Copyright 2007 Pearson Education Canada
For Review
1. What are the implications of Theories X and Y for motivation practices? 2. Identify the variables in expectancy theory. 3. Describe the four ways in which goal setting motivates. Chapter 4, Nancy Langton and Stephen P. Robbins, 4. Explain evaluation theory. How Fundamentals ofcognitive Organizational Behaviour, Third Canadian applicable is it to management practice? Edition
4-66 Copyright 2007 Pearson Education Canada
For Review
5. What are the pluses and minuses of variable-pay programs from an employees viewpoint? From managements viewpoint? 6. What is an ESOP? How might it positively influence employee motivation? 7. Describe the five core dimensions in the JCM. 8. Describe three jobs that score high on the JCM. Describe three jobs that score low. Chapter 4, Nancy Langton and Stephen P. Robbins, 9. What can do to create more motivating Fundamentals of firms Organizational Behaviour, Third Canadian environments for their employees? Edition
4-67 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-70 Copyright 2007 Pearson Education Canada
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-72 Copyright 2007 Pearson Education Canada
$1 313 000
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$9 647 000
$675 000
$8 972 000
Chapter 4, Nancy Langton$76 and Stephen 4. Jeffrey Orr/Robert Gratton 139 000 $9P. 898Robbins, 000 $66 241 000 Power Financial Corporation Montreal, Quebec Fundamentals of Organizational Behaviour, Third Canadian 5. Gerald Schwartz $26 163 000 $4 709 000 $21 454 000 Edition Onex Toronto, Ontario 4-73 Copyright 2007 Pearson Education Canada
Supplemental Material
Slides for activities I do in my own classroom
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-74 Copyright 2007 Pearson Education Canada
Theories to Apply
Herzberg Motivation-Hygiene (Two-Factor) Theory Expectancy Goal-Setting Theory Equity Chapter 4, Nancy Langton and Stephen P. Robbins, Cognitive Theory Fundamentals of Evaluation Organizational Behaviour, Third Canadian
Edition 4-76 Copyright 2007 Pearson Education Canada