Motivation

7-1

Defining Motivation
The result of the interaction between the individual and the situation.
The processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal specifically, an organizational goal. Three key elements:
Intensity how hard a person tries Direction effort that is channeled toward, and

consistent with, organizational goals Persistence how long a person can maintain effort
7-2

Early Theories of Motivation

These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers.
1.Maslows Hierarchy of Needs Theory
2.McGregors Theory X and Theory Y 3.Herzbergs Two-Factor Theory

4.McClellands Theory of Needs

7-3

1. Maslows Hierarchy of Needs

There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant.
Assumptions Self-Actualization
Individuals cannot

Higher Order Internal Lower Order External

Esteem

Social
Safety Physiological

move to the next higher level until all needs at the current (lower) level are satisfied
Must

move in hierarchical order

7-4

2. McGregors Theory X and Theory Y

Two distinct views of human beings: Theory X

(basically negative) and Theory Y (positive).

Managers used a set of assumptions based on their

view The assumptions molded their behavior toward employees

Theory X Workers have little ambition Dislike work Avoid responsibility Theory Y Workers are selfdirected Enjoy work Accept responsibility

No empirical evidence to support this theory.

7-5

3. Herzbergs Two-Factor Theory

Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs
Hygiene Factors
Company Policies Salary Work Conditions

Motivators

Growth
Responsibility

Extrinsic and Related to Dissatisfaction

Intrinsic and Related to Satisfaction

Achievement

7-6

Criticisms of the Two-Factor Theory

Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur.
Herzberg is limited by his methodology
Participants had self-serving bias

Reliability of raters questioned

Bias or errors of observation

No overall measure of satisfaction was used Herzberg assumed, but didnt research, a strong relationship between satisfaction and productivity
7-7

4. McClellands Three Needs Theory

Need for Achievement (nAch)
The drive to excel, to achieve in relation to a set of

standards, to strive to succeed

Need for Power (nPow)

The need to make others behave in a way that they

would not have behaved otherwise

Need for Affiliation (nAff)

The desire for friendly and close interpersonal

relationships

People have varying levels of each of the three

needs.

Hard to measure
7-8

Performance Predictions for High-nAch People

People with a high need for achievement are likely to:
Prefer to undertake activities with a 50/50 chance of

success, avoiding very low- or high-risk situations Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk Not necessarily make good managers too personal a focus. Most good general managers are NOT high on nAch Need high level of nPow and low nAff for managerial success

Good research support, but it is not a very practical theory

7-9

1. 2. Goal-Setting Theory
3. Self-Efficacy Theory

Contemporary Theories of Self-Determination Theory Motivation

Management by Objectives (MBO) Also known as Social Cognitive Theory or Social Learning Theory

4. Reinforcement Theory 5. Equity Theory 6. Expectancy Theory

7-10

Lockes Goal-Setting Theory

Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance

Difficult Goals:

Focus and direct attention Energize the person to work harder Difficulty increases persistence Force people to be more effective and efficient

7-11

Implementation of Goal-Setting: Management by Objectives

MBO is a systematic way to utilize goal-

setting. Goals must be:

Tangible Verifiable Measurable

Corporate goals are broken down into smaller,

more specific goals at each level of organization. Four common ingredients to MBO programs:

Goal specificity Participative decision making Explicit time period Performance feedback
7-12

Vrooms Expectancy Theory

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual.
Expectancy of performance success Instrumentality of success in getting reward Valuation of the reward in employees eyes

7-13

The Job Characteristics Five Core Job Dimensions Model

1.

Skill Variety: degree to which the job incorporates a number of different skills and talents

2. 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 4. Autonomy: identifies how much freedom and independence the worker has over the job 5. Feedback: how much the job generates direct and clear information about the workers performance
3.
814

How Can Jobs be Redesigned? Job Rotation

The shifting of an employee from one task to another with similar skill requirements.

Job Enrichment
The expansion of a job by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.
8-15

Strengths of Job Rotation

8-16

Alternative Work Flextime Arrangements Flextime allows employees to choose the hours
they work within a defined period of time.
Job sharing allows two or more individuals to split

Job Sharing
a traditional 40-hour-a-week job.

Telecommuting
Telecommuting allows workers to work from

home at least 2 days a week on a computer linked to the employers office.

8-17

Employee Involvement
Employee involvement is a participative process that uses employees input to increase their commitment to the organizations success.

Examples of Employee Involvement Programs Participative Management Representative Participation

818

How to Pay
Variable-Pay Programs
Piece-Rate Pay Merit-Based Pay Bonuses

Skill-Based Pay
Profit-Sharing Plans Gainsharing

Employee

Stock

Ownership

Plans
819

Types of Variable-Pay Programs

Piece-Rate Pay
Pays a fixed sum of money for each unit of production

completed. For example: Workers selling peanuts and soda get Rs.10 for each bag of peanuts sold.

Merit-Based Pay
Pays for individual performance based on performance

appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay.

Bonuses
Pay a lump sum at the end of a designated period of time

based on individual and/or organizational performance.

820

 Skill-Based Pay

More Types of Variable-Pay Programs

Pays based on the number of skills employees have or

Profit-Sharing Plans Gainsharing

the number of jobs they can do.

Pays out a portion of the organizations profitability. It

is an organization-wide program and is based on a predetermined formula. period to another. It is a group incentive plan.

Pays for improvements in group productivity from one

Employee Stock Ownership Plans (ESOP)

Provides each employee with the opportunity to

acquire stock as part of their benefit package.

821

Flexible Benefits
Flexible benefits give individual rewards by

allowing each employee to choose the compensation package that best satisfies his or her current needs and situations.

822

 Employee rewards need to be intrinsic and extrinsic. Employee recognition programs are Programs

Employee Recognition

a good method of intrinsic rewards.

The rewards can range from a simple thank-you to

more widely publicized formal programs. Advantages of recognition programs are that they are inexpensive and effective. Some critics say they can be politically motivated and if they are perceived to be applied unfairly, they can cause more harm than good.

8-23