Starbucks Corporation

Founded

Founder(s) Headquarters Number of locations Area served Key people

Pike Place Market in Seattle, Washington (March 30, 1971 (1971-0330)) Jerry Baldwin Gordon Bowker Zev Siegl Seattle, Washington, U.S. 17,009 (FY 2010) 50 countries Howard Schultz (Chairman, President and CEO)

INTENSITY How hard a person tries.

DIRECTION Orientation towards goals

PERSISTENCE How long can maintain effort

 Motivation has got three common characteristics: 1. It concerns with what activates human behavior 2. It involves what directs this behavior towards a particular goal 3. Motivation concerns how this behavior is sustained (supported)

Motivation Process
Need Drive/Goal Directed Behavior Goal

Incentive/Relief

McClelland s Theory of Needs

nAch Derive satisfaction from reaching goals Feeling of successful task accomplishment Immediate feedback on performance Moderate risk takers Work independently

McClelland s Theory of Needs

nPow Derives satisfaction from his or her ability to control others Actual achievement of goal is not very important but the means are of primary importance Derive satisfaction from being in positions of influence and control

McClelland s Theory of Needs

nAff Satisfaction from social and interpersonal activities Strong interpersonal ties and to get close to people psychologically

Assumptions of the theory

Individuals with a high need to achieve prefer job situations with personal responsibility, feedback, moderate risk A high need to achieve does not necessarily leads to being a good manager, especially in large organizations as they are more interested in how well they do personally The needs for affiliation and power tend to be closely related to managerial success. The best managers are high in their need for power and low in their need for affiliation

Goal Setting Theory (Locke & Latham 1990)

Challenging goals produce a higher level of output than do the generalized goals More difficult the goal, the higher the level of performance People do well when they get feedback Goal serves as a motivator, because it causes people to compare their present capacity to perform with that required to succeed at the goal

Goal Setting Theory

There are four contingencies inn goal setting theory: 1. Goal Commitment 2. Adequate self-efficacy 3. Task characteristics 4. National culture ( North American)

EQUITY THEORY (Adams)

Employees make comparisons of their job inputs and outcomes relative to those of others If an individual feels that his input-output is equal to that of others, a state of equity exists He will perceive the situation as fair If ratio is unequal, the individual experience inequity

Referent comparisons used by employees

SELF-INSIDE An employee s experiences in a different position inside his or her current organization SELF-OUTSIDE An employee s experiences in a situation or position outside his or her current organization OTHER-INSIDE Another individual or group of individuals inside the employee s organization OTHER-OUTSIDE Another individual or group of individuals outside the employee s organization

Crucial Issues in Equity Theory

Employees with short tenure in their current organizations tend to have little information about others Employees with long tenure rely more heavily on co-workers for comparison Upper level employees will make more otheroutside comparisons

Choice in Inequity
Change their inputs Change their outcomes Distort perceptions of self Distort perceptions of others Choose a different referent Leave the field

Organizational Justice
1. DISTRIBUTIVE JUSTICE The perceived fairness of the way rewards are distributed among people 2. PROCEDURAL JUSTICE Perceptions of the fairness of the procedures used to determine outcomes 3. INTERACTIONAL JUSTICE The perceived fairness of the interpersonal treatment used to determine organizational outcomes

EXPECTANCY THEORY Victor H. Vroom

VALENCY X EXPECTANCY MOTIVATION ACTION GOAL ACHIEVEMENT SATISFACTION

Determinants of Motivation
EXPECTANCY The belief that one s efforts will positively influence one s performance INSTRUMENTALITY An individual s beliefs regarding the likelihood of being rewarded in accord with his or her own level of performance VALENCE The value a person places on the rewards he or she expects to receive from an organization OTHER DETERMINANTS Skills, abilities, role perceptions, opportunity to perform etc

Key Relationships in Expectancy Theory

Individual Effort Individual Performance Organizational Rewards Personal Goals

Three Key Relationships

EFFORT PERFORMANCE RELATIONSHIP PERFORMANCE REWARD RELATIONSHIP REWARDS PERSONAL GOALS RELATIONSHIP

PERFORMANCE FORMULA
Performance of an employee is based on ABILITY, OPPORTUNITY AND MOTIVATION Therefore PERFORMANCE = f ( A X M X O ) Where A is ability M is motivation O is opportunity

ABILITY

PERFORMANCE

MOTIVATION

OPPORTUNITY