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Leading Through Motivation

We Will: Provide you with a thorough understanding of

the dynamics of motivation and the ways in which rewards can be used to motivate employees.

Examine the Content, Process, and Reinforcement Theories of Motivation, and

Take a look at the connection between Motivation and Compensation.

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Motivation and Rewards

MOTIVATION is the term used to

describe the forces within the individual

that account for the level, direction, and

persistence of effort expended at work.

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Motivation and Rewards

A REWARD is a work outcome of positive value to the individual. EXTRINSIC REWARDS are externally

administered (e.g., pay and verbal praise); the motivational stimulus originates outside the person.

INTRINSIC REWARDS are self-administered; they occur "naturally" as a person performs a task. The feelings of competency, personal development, and self-control people experience in their work.

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Rewards and Performance

Both Intrinsic and Extrinsic rewards can help the manager to lead effectively through motivation, and to achieve maximum motivational impact, it is necessary to:

Respect diversity and individual differences.

Clearly understand what people want from work.

Allocate rewards to satisfy the interests of both individuals and the organization.

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Three Types of Motivation Theory

Content Theory Needs are physiological and psychological

deficiencies that an individual feels some compulsion to eliminate.

Process Theory People give meaning to rewards and the work

opportunities available to them.

Reinforcement Theory People's behavior is influenced by its

environmental consequences.

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Content Theories of Motivation

Maslow's Hierarchy of Needs Theory Lower Order Needs

PhysiologicalSafetySocial

Higher Order NeedsEsteemSelf-actualization

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Hierarchy of Needs Theory

Deficit Principle Holds that a satisfied need is not a motivator

of behavior; people act to satisfy needs in which a deficit exists.

Progression Principle Holds that the five needs exist in a strict

hierarchy of prepotency such that a need at one level doesn't become activated until the next lower-level need is satisfied.

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Alderfer's ERG Theory

An extension of Maslow's theory that proposes the existence of three needs as opposed to five. Existence Needs: Desires for physiological

and material well-being. Relationship Needs: Desires for satisfying

interpersonal relationships. Growth Needs: Desires for continued

psychological growth and development.

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Alderfer's ERG Theory

ERG Theory Does not assume that lower-level needs must

be satisfied before higher-level needs become activated and,

This theory includes a unique "frustration-regression" principle whereby an already satisfied lower-level need becomes reactivated when a higher-level need is frustrated.

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Herzberg's Two-Factor Theory

Hygiene Factors Working Conditions Interpersonal Relations Organizational Policies Quality of Supervision Base Wage or Salary

Improvements in Hygiene Factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction.

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Herzberg's Two-Factor Theory

Satisfier Factors Sense of Achievement Feeling of Recognition Sense of Responsibility Opportunity for Advancement Feelings of Personal Growth

Improvements in Satisfier Factors can increase job satisfaction; they will not prevent job dissatisfaction.

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McClelland's Acquired-Needs Theory

David McClelland proposes that people acquire needs through their life experiences.

He uses a Thematic Apperception Test (TAT) to measure the strengths of three acquired needs:

Achievement - Power - Affiliation

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McClelland's Acquired-Needs Theory

Need for Achievement (nAch)The desire to do something better or more

efficiently, to solve problems, or to master complex tasks.

Need for Power (nPower)The desire to control other persons, to

influence their behavior, or to be responsible for other people. A finer distinction can be made between:

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McClelland's Acquired-Needs Theory

–The need for Personal Power and,–The need for Social Power

Need for Affiliation (nAff)The desire to establish and maintain

friendly and warm relations with other persons.

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The Need Profile of Successful Executives

The most important need for executive success is the need for social power.

Persons with a high need for affiliation may not make the best managers.

While nPower is often accompanied by a high need for achievement the later need in itself is not consistently associated with executive success.

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Process Theories of Motivation

Equity Theory

Asserts that when people believe that they have been treated inequitably in comparison to others, they eliminate the discomfort and restore equity.

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Process Theories of Motivation

Equity Theory (cont)

Perceived Equity - occurs whenever a person perceives that their personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other.

Perceived Inequity - occurs whenever one's rewards/input ratio is perceived to be unequal...

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Expectancy Theory

“People will do what they can do when they want to do it.” The question is ‘what makes them want to do it?’

Vroom suggests that the motivation to work depends on the relationships between the following three expectancy factors:

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Expectancy Theory

Expectancy: A person's belief that working hard will result in a desired level of task performance.

Instrumentality: A person's belief that successful task performance will be followed by rewards and other potential outcomes.

Valence: The value a person assigns to possible rewards and other work-related outcomes.

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Expectancy Theory Multiplier Effect

Implies that for motivation to be high, Expectancy, Instrumentality and Valence must be high.

Motivation =

Expectancy x Instrumentality x Valence

A zero at any location on the right side of the equation will result in zero

motivation.

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Expectancy Theory

To Maximize Expectancy

Select workers with ability

Train workers to use ability

Support work effort

Clarify performance goals

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Expectancy Theory

To Maximize InstrumentalityClarify psychological contractsCommunicate performance-outcome

possibilitiesDemonstrate what rewards are

contingent on performance To Maximize Valence

ID needs and adjust rewards to match

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Goal-Setting Theory

The basic premise is that well-set and well-managed task goals are important sources for motivation.

Task goals, in the form of clear and desirable performance targets, Provide direction, Energize persistent long-term work efforts, Clarify performance expectations, and Serve as a basis for feedback.

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Goal-Setting Theory

Set Specific Goals Set Challenging Goals Build Goal Acceptance and Commitment Clarify Goal Priorities Reward Goal Accomplishment

Management-by-Objectives ( MBO ) is one example of a goal-setting

system which promotes participation.

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Reinforcement Theory

Unlike the prior motivation theories which rely on cognitive explanations of behavior, reinforcement theory focuses instead on the impact which external environmental consequences have on behavior.

The law of effects states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not likely to be repeated.

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Reinforcement Theory

Operant ConditioningA term popularized by B. F. Skinner, is

the process of controlling behavior by manipulating its consequences; i.e., learning by reinforcement.

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Reinforcement Theory

Organizational Behavior Modification

Involves the application of operant conditioning techniques to influence human behavior in work settings. (Reinforcing desirable behaviors while denying reinforcement for unwanted behaviors.)

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Reinforcement Theory

There Are Two Types of Reinforcement: Positive Reinforcement

Increases the frequency of a behavior through the contingent presentation of a desirable consequence.

Negative ReinforcementIncreases the frequency of a behavior

through the contingent removal of an undesirable consequence.

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Reinforcement Theory

Punishment: decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence.

Extinction: decreases the frequency of a behavior through the contingent removal of a pleasant consequence.

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Positive Reinforcement

Law of Contingent Reinforcement In order for a reward to have maximum

reinforcing value, it must be delivered only if the desired behavior is exhibited.

Law of Immediate Reinforcement

The more immediate the delivery of a reward after the occurrence of a desirable behavior, the greater the reinforcing value of the reward.

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Positive Reinforcement

Shaping The creation of a new behavior by the

positive reinforcement of successive approximations of the desired behavior. Intermittent reinforcement only rewards

behavior periodically. Continuous reinforcement administers a

reward each time a desired behavior occurs.

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Guidelines for Positive Reinforcement and Punishment

Clearly identify desired work behaviors

Maintain diverse inventory of rewards

Inform everyone what must be done to get rewards.

Recognize individual differences when allocating rewards.

Follow the laws of immediate and contingent reinforcements.

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Guidelines for Positive Reinforcement and Punishment

Tell the person what is being done wrong.

Tell the person what is right.

Make sure the punishment matches the behavior.

Administer the punishment in private.

Follow the laws of immediate and contingent reinforcement.

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The Ethics of Operant Behavior Modification

There is considerable debate over the ethics of using OB MOD to influence behavior.

But as the text notes, "the real question may be not whether it is ethical to control behavior, but whether it is ethical not to control behavior well enough that the goals of both the organization and the individual are well served."

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An Integrated Model of Individual Motivation

Motivation leads to Effort which, along with appropriate Abilities and Organizational Support, lead to Performance.

This model illustrates how Rewards for performance, when they are perceived as Equitable and possess Reinforcement Value, can produce satisfaction.

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MOTIVATION and COMPEN$ATION

Incentive Compensation Systems Bonus systems in which employees at all

levels participate. Bonus Pay Plans Profit-Sharing Plans Gain-Sharing Plans Employee Stock Ownership Plans

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MOTIVATION and COMPEN$ATION

Pay for Knowledge Skill-based pay ties pay to the number of

job-relevant skills an employee masters.

Entrepreneurial pay requires individuals to put part of their pay at risk, in return for the right to pursue entrepreneurial ideas, and share in any resulting profits.