CHAPTER 2A

Performance management and motivation

The ways in which performance management

processes can motivate people to improve their
performance and develop their capabilities has
been summarized in the first part of the chapter.

Explanations are also provided through the

following theories:
Reinforcement Theory
Expectancy Theory
Self-Efficacy theory
Attribution theory
Role Modeling

REINFORCEMENT THEORY
It says that behavior is a function of its consequences.
Consequences that immediately follow a behavior and
increase the probability that the behavior will be
repeated are called reinforcers
It is based on law of effect, i.e., individuals
behavior with positive consequences tends to be
repeated, but individuals behavior with negative
consequences tends not to be repeated.
Successes in achieving goals and rewards act as
positive incentives and reinforce the successful
behavior
Positive feedback therefore provides for positive
reinforcement
Constructive feedback also reinforces behaviors

For example - Immediately praising an

employee for coming early for job. This will
increase probability of outstanding behavior
occurring again.

Reward is a positive reinforcer if and only if

the employees behavior improves.

EXPECTANCY THEORY
The most comprehensive explanation of how
employees are motivated is Victor Vrooms
expectancy theory and called as valencyinstrumentality-expectancy theory.
Expectancy:
Expectancy can be described as the belief that
higher or increased effort will yield better
performance. This can be explained by the thinking
of "If I work harder, I will make something better".

Instrumentality:
Instrumentality can be described as the
thought(belief) that if an individual performs well,
then a valued outcome will come to that individual.

EXPECTANCY THEORY
Valence:
Valence means "value" and refers to beliefs about
outcome desirability (Redmond, 2010).
There are individual differences in the level of value
associated with any specific outcome.
For instance, abonus may not increase motivation
foran employee who is motivated by formal recognition
or by increased status such as promotion.
Valence can be thought of as the pressure or
importance that a person puts on an expected outcome.
Vroom concludes that the force of motivation in an
employee can be calculated using the formula:
Motivation =
Valence*Expectancy*Instrumentality

Expectancy theory recognizes that there is no

universal principle for explaining what motivates
individuals and thus stresses that managers
understand why employees view certain outcomes
as attractive or unattractive.
According to expectancy theory, motivation is only
likely when a clearly perceived and usable
relationship exists between performance and
outcomes, and the outcome is seen as a means of
satisfying needs.
Extrinsic financial motivation will only work as a
motivator if the link between effort and reward is
clear and the value of reward is worth the effort.

EXPECTANCY THEORY
An expectancy based motivational model for
individual performance improvement was
designed by DeNisi and Pritchard (2006) :
It is based on the belief that People allocate
energy to actions in a way that will maximize
their anticipated need satisfaction.
The sequence is:
Actions > results > evaluation > outcomes
> need satisfaction > performance
The stronger the links between each element
in the motivation process, the greater will be
the motivation of employees to improve their
performance

SELF-EFFICACY THEORY
Developed by bandura ,Indicates that Selfmotivation will be directly linked to the selfbelief of individuals that they will be able to
accomplish certain tasks, achieve certain
goals or learn certain things .
Role of managers is important to encourage
self belief in the minds of those whom they
discuss performance and development.
Also the Aim of performance management is
to increase self efficacy in individuals

SOCIAL LEARNING THEORY

Also developed by bandura.
It combines aspects of reinforcement and
expectancy theory .
It recognizes reinforcement as a detriment of
future behavior
But it also emphasizes Internal psychological
factors are also important, especially
expectations about the values of goals and
the ability of individuals to reach them

ATTRIBUTION THEORY
It is concerned with how people explain their
performance .
Five types of explanation may be used to account
for either success or failure: ability, effort, task
difficulty, circumstances and luck .
If success or failure is explained in terms of effort,
then high motivation may follow.
If on the other hand failure to achieve is explained
in terms of task difficulty or adverse circumstances
and bad luck the result may be a loss in motivation.
Incorrect attribution may result from inadequate
feedback and managers can do much to influence
attributions and therefore motivation by providing
relevant feedback, discussing in a positive way

ROLE MODELING
If behavior of people is based on a role
model then they can be motivated.
That is someone whose approach to work
and ability to get things done is inspirational.
This creates a desire to follow the example.
For example: managers and team leaders
can function as role models, and
performance management can enhance this
process by dialogue and coaching