*Section FiveMotivation in Organizations

*MotivationMotivation is the processes that account for an individual's intensity, direction and persistence of effort toward attaining a goalIt is not a personality trait

*MotivationIntensity: how hard a person tries

Direction: the quality channelled effort so as to benefit the organization

Persistence: how long a person can maintain his or her effort

*Review of Motivation TheoriesMaslow Hierarchy of Needs TheoryMcGregor Theory X and Theory YHerzbergs Two-Factor (Motivation-Hygiene) Theory

ERG TheoryMcClellands Theory of NeedsGoal-setting TheoryEquity TheoryExpectancy Theory

*1. Hierarchy of Needs TheoryPhysiological Needsmost basic human physical needsSafety Needssafe and secure physical and emotional environmentBelongingness Needsdesire to be accepted by ones peersEsteem Needsdesire for a positive self-imageand to receive attentionSelf-ActualizationNeedsrepresent the need forself-fulfillmentAbraham Maslow is known for the theory that human beings are motivated by a hierarchy of unsatisfied needs.

*Maslow Hierarchy of needsPhysiological: includes hunger, thirst, shelter and other bodily needs Safety: includes security and protection from physical and emotional harm Social: includes affection, belongingness, acceptance and friendship Esteem: includes Internal esteem factors (self respect, achievement, etc.) External esteem factors (status, recognition, etc.) Selfactualization: drive to become what one is capable of becoming

*People are lazyPeople lack ambition Dislike responsibilityPeople are self-centeredPeople dont like changePeople are energeticPeople want to make contributionsPeople do have ambitionPeople will seek responsibility2. Douglas McGregor Theory X & YTheory XTheory Y

*3. Two Factor Theory (motivation- hygiene)Area of SatisfactionArea of DissatisfactionMotivators influence level of satisfaction.Hygiene factors influence levelof dissatisfaction.MotivatorsHygieneFactorsAchievementRecognitionResponsibilityWork itselfPersonal growthWorking conditionsPay and securityCompany policiesSupervisorsInterpersonal relationships

*Two-Factor theory (motivation hygiene)Five factors Motivators stood out as strong determinants of job satisfaction:

Achievement Recognition Work itself Responsibility Advancement The Hygiene determinants of job dissatisfaction were found to be:

Company policy Administrative policies Supervision Salary Interpersonal relations Working conditions

*4. ERG TheoryThe theory collapses Maslows five need categories into three: Existence needsdesire for physiological and material well-beingRelatedness needsdesire for satisfying interpersonal relationshipsGrowth needsdesire for continued personal growth and developmentMore than one need may be activated at the same timeERG theory emphasizes a unique frustration-regression component:An already satisfied lower level need can become activated (surface as key motivator) when a higher level need cannot be satisfied.

*5. McClellands Theory of NeedsWhich target would you try for?

*McClellands theory of needsUnderlying need that he believes is important for understanding individual behavior:Need for achievement (nAch)The desire to do something better or more efficiently, to solve problems, or to master complex tasks.Need for affiliation (nAff)The desire to establish and maintain friendly and warm relations with others.Need for power (nPow)The desire to control others, to influence their behavior, or to be responsible for othersNeeds are acquired over time, as a result of life experiences

*McClellands theory of needsCharacteristics of Achievement motivated individuals:The capacity to set moderate goalsThe concern for personal achievement rather than the rewards of successThe desire for job-relevant feedback (how well am I doing?) rather than for attitudinal feedback (how well do you like me?)

*Matching Achievers and JobsA high need to achieve does not necessarily lead tobeing a good manager

*The best managers are high in their need for power and low in their need for affiliation.

*6. Goal-Setting TheoryProposed in 1960s by Edwin Locke

Specific and difficult goals lead to higher performance.

*Goal-Setting TheorySpecific and hard goals Higher performance

Work towards a goal is a major source of work motivationDifficult goals, when accepted, result in higher performanceFactors like ability to achieve goals should be consideredFeedback leads to higher performance than does non-feedbackSelf-generated feedback has been shown to be a more powerful motivator than externally generated feedbackParticipatively set goals In some cases lead to superior performanceIn other cases, individuals performed best when assigned goals by their boss

*Factors influencing Goals/Performance RelationshipGoal commitmentGoals are made public Individual has an internal locus of controlGoals are self-set rather than assigned.

Adequate self-efficacySelf-efficacy: belief that one is capable of performing a jobLow self-efficacy lessen their effort or give up altogetherHigh self-efficacy will try harder to master the challenge

National culture

*7. Equity Theory Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities

*Equity TheoryReferent Comparisons

Evidence indicates that the referent chosen is an important variable in equity theoryThere are four referent comparisons that an employee can use:Self-inside: An employees experiences in a different position inside his or her current organizationSelf-outside: An employees experiences in a situation or position outside his or her current organizationOther-inside: Another individual or group of individuals inside the employees organizationOther-outside: Another individual or group of individuals outside the employees organization

*Equity TheoryPeople will act to eliminate any felt inequity in the rewards received for their work in comparison with others through:Change work inputs (e.g., reduce performance efforts)Change the outcomes (reduce quality/increase number)Leave the situation (e.g., quit)Change the comparison points Compare self to a different co-worker)Psychologically distort the comparisons Rationalize that the inequity is only temporary and will be resolved in the future)Take actions to change the inputs or outputs of the comparison person Get a co-worker to accept more work

*8. Expectancy Theory (Victor Vroom)

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*Expectancy TheoryThe 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 that outcome to the individual

*Expectancy TheoryA person is motivated to the degree that he or she believes thatEffort will yield acceptable performanceThe probability assigned by an individual that work effort will be followed by a given level of achieved task performance is called Expectancy. Performance will be rewardedInstrumentality is the probability assigned by the individual that a given level of achieved task performance will lead to various work outcomes.The value of the rewards is highly positiveValence is the value attached by the individual to various work outcomes.Vroom posits that motivation (M), expectancy (E), instrumentality (I ), and valence (V) are related to one another by the equation: M = (E) (I) (V).

*MotivationFrom Concepts to ApplicationsManagement By Objectives (MBO)

Employee recognition programs

Employee involvement programs

Variable pay programs

*1. Management By Objectives

Converts overall organizational objectives into specific objectives for organizational units and individual members.Finance HR TechnicalObjectives

*Management By ObjectivesSpecificity: concise statements of expected accomplishments that can be measured and evaluated

Participative decision making: not unilaterally set by the boss. The manager and employee jointly choose goals and agree on how they will be measured

Explicit time period: objectives have a specific time period

Feedback: continuous feedback on progress toward goals so individuals can monitor and correct their actions

*SMART ObjectivesSpecific and challenging objectives serve to focus individuals attention on exactly what needs to be done

Measurable, quantitative objectives are useful as a basis for feedback about objectives progress

Agreed upon objectives guarantee individual dedication & management commitment to help him/her

Realistic objectives (challenging but not blocking) help reaching high end goals gradually

Time bound objectives enhance measurability

*Types of Objectives Operational

Values

Leadership

Personal Development

*Values objectivesGlobal growth Mindset

Breakthrough PerformanceInnovation, RiskGlobal ThinkingProfitable Growth

*Values objectivesResults Focus

Priority On ResultsActionAccountabilityBroad Impact

*Values objectivesObsessed with customers

Customer DrivenExternal StandardsCompetitive ValueOutstanding Service

*Values objectivesWorkplace that is open

OpenDiverseSupportiveTeamwork

*Values objectivesSpeed

ActionEmpowermentRapid Adjustment

*Leadership objectivesCoachingCommunicationDecision-makingDelegationLeadershipProblem solving

*Personal development objectives

Knowledge acquisition

Training

Career development

*2. Employee Recognition ProgramsAre specific programs aimed at recognizing both individual and group accomplishmentThe use of the suggestions system is one of the most well-known and widely used recognition devicesOther devices:Personal attentionExpressing interestApproval and appreciation for a job well done

*3. Employee Involvement Programs

A participative process that uses the entire capacity of employees and is designed to encourage increasedcommitment to the organizations success.

*Employee Involvement ProgramsParticipative managementA process in which subordinates share a significant degree of decision making power with their immediate superiors

Representative participationWorkers participate through a small group of representative employees in organizational decision makingQuality circlesWork councils board representatives

Employee stock ownership plans

*4. Variable-pay programsA portion of an employees pay is based on some individual/organizational measure of performance. For example:Piece-rate pay plansProfit-sharing plans

*SMSs1. Most people want to:

Make a difference

Do meaningful work

Be recognized for it

*SMSs2. Need for EsteemSelf-esteem: People need to feel good about themselves and the work they do. Esteem of others: People need to feel recognized by others for the work they do.Recognizing effort and making it possible for employees to maintain and enhance their self-esteem have such profound impacts and are so easy and inexpensive that it is puzzling that they are not more widely used.

*SMSs3. Job enrichmentIf you want someone to do a good job, give them a good job to do, Herzberg. Make the job as interesting as possibleBuild in some variety, some autonomy, plenty of feedbackGive them a sense of the significance of the task the big picture.

*SMSs4. Expectancy TheoryWhen trying to motivate behavior, a manager needs to ask: Do employees value the reward Im giving? Are the rewards Im offering associated with good performance, and do employees see the connection?Are employees capable of and trained to do the jobs they are assigned?

*SMSs5. GoalsThe goal must be both specific and difficult enough (challenging) to be motivatingMake sure that people are aware of their goals. To be motivating, a goal must be accepted by the employeeTo reach a goal, an individual must receive feedback on how well he is progressing toward the goal

*Can be defined as the force that: Energize behaviourDirects behaviourSustains behaviourEnergies behaviour- determines the level of effort and how hard a person workswhat initiates a behaviour, behavioural patterns, or changes in behaviour? What determines the level of effort and how hard a person works? This aspect of motivation deals with the question of "what motivates people." Directs behaviour-determines which behaviours an individual chooses what determines which behaviours an individual chooses? This aspect of motivation deals with the question of choice and conflict among competing behavioural alternatives. Sustains behaviour- determines an individual level of persistencewhat determines and individuals level of persistence with respect to behavioural patterns? This aspect of motivation deals with how behaviour is sustained and stopped.

*McGregor / Maslow: needs, motivation*Physiological: hunger, thirst, bodily comfortsSafety: includes security and protection from physical and emotional harmSocial:belongingness, aaffiliate with others, be acceptedEsteem: to achieve, be competent, gain approval and recognitionSelf-actualisation: to find self-fulfilment and realize one's potentialMain Entry: 1esteem 1 archaic : WORTH, VALUE 2 archaic : OPINION, JUDGMENT 3 : the regard in which one is held; especially : high regard Main Entry: self-esteem 1 : a confidence and satisfaction in oneself : SELF-RESPECT 2 : SELF-CONCEIT

*In fact, a high power motive may be a requirement for managerial effectiveness. Of course, what the cause is and what the effect is are arguable. It has been suggested that a high power need may occur simply as a function of ones level in a hierarchical organization. The latter argument proposes that the higher the level an individual rises to in the organization, the greater is the incumbents power motive. As a result, powerful positions would be the stimulus to a high power motive.

*There is no evidence that goal setting is associated with increased job satisfaction.*Specific hard goals produce a higher level of output than does the generalized goal of do your best. The specificity of the goal itself acts as an internal stimulus.Goals tell an employee what needs to be done and how much effort will need to be expendedSpecific goals increase performance; That difficult goals, when accepted, result in higher performance than do easy goals; And that feedback leads to higher performance than does no feedbackReinforcement TheoryA counterpoint to the goal-setting theory. In reinforcement theory, a behaviouristic approach, which argues that reinforcement conditions behaviour. Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action. Because it does not concern itself with what initiates behaviour, it is not, strictly speaking, a theory of motivation. It does however provide a powerful means of analysis of what controls behaviour.Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive. Historically, equity theory focused on: Distributive justice or the perceived fairness of the amount and allocation of rewards among individuals. However, equity should also consider procedural justice or the perceived fairness of the process used to determine the distribution of rewards.

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** (Stacy Adams)Felt negative inequity exists when an individual feels that he or she has received relatively less than others have in proportion to work inputs. Felt positive inequity exists when an individual feels that he or she has received relatively more than others have.

* The probability assigned by an individual that work effort will be followed by a given level of achieved task performance is called expectancy. Expectancy would equal 0 if the person felt it were impossible to achieve the given performance level; it would equal 1 if a person were 100 percent certain that the performance could be achieved. Instrumentality is the probability assigned by the individual that a given level of achieved task performance will lead to various work outcomes. Instrumentality also varies from 0 to 1. (Strictly speaking, Vrooms treatment of instrumentality would allow it to vary from 1 to +1. We use the probability definition here and the 0 to +1 range for pedagogical purposes; it is consistent with the instrumentality notion.) Valence is the value attached by the individual to various work outcomes.Valences form a scale from 1 (very undesirable outcome) to +1 (very desirable outcome).

Vroom posits that motivation (M), expectancy (E), instrumentality (I ), and valence (V) are related to one another by the equation: M =(E) (I) (V). This multiplier effect means that the motivational appeal of a given work path is sharply reduced whenever any one or more of thesefactors approaches the value of zero. Conversely, for a given reward to have a high and positive motivational impact as a work outcome, the expectancy, instrumentality, and valence associated with the reward all must be high and positive.

* The probability assigned by an individual that work effort will be followed by a given level of achieved task performance is called expectancy. Expectancy would equal 0 if the person felt it were impossible to achieve the given performance level; it would equal 1 if a person were 100 percent certain that the performance could be achieved. Instrumentality is the probability assigned by the individual that a given level of achieved task performance will lead to various work outcomes. Instrumentality also varies from 0 to 1. (Strictly speaking, Vrooms treatment of instrumentality would allow it to vary from 1 to +1. We use the probability definition here and the 0 to +1 range for pedagogical purposes; it is consistent with the instrumentality notion.) Valence is the value attached by the individual to various work outcomes.Valences form a scale from 1 (very undesirable outcome) to +1 (very desirable outcome).

Vroom posits that motivation (M), expectancy (E), instrumentality (I ), and valence (V) are related to one another by the equation: M =(E) (I) (V). This multiplier effect means that the motivational appeal of a given work path is sharply reduced whenever any one or more of thesefactors approaches the value of zero. Conversely, for a given reward to have a high and positive motivational impact as a work outcome, the expectancy, instrumentality, and valence associated with the reward all must be high and positive.

*Employee involvement is a participative process designed to encourage employees commitment to the organizations success.There are mainly four forms of employee involvement:Participative managementThere are 4 conditions for PM to work:The issues must be relevant to the employee.There must be adequate time for the employee.Abilities (skills, knowledge, intelligence. Communications skills)The organization culture must support it.Although it can be beneficial under the right conditions, it is not a sure thing for improving performance.Representative participationAlmost every country in western Europe has a legislation requiring companies to practice RP.The overall influence of RP seems to be minimal.Quality Circles are much more likely to affect productivity, have a little or no effect on satisfaction.Employee stock ownership plans: ESOP have the potential to increase satisfaction and work motivation but for this potential to be realized, employees need to experience the ownership psychologically. That is why its impact on performance is less clear.The evidence suggests that it takes both ownership and participative style to achieve improvement in organizations performance.

*Recognition can take several forms:Personally congratulate for a good work or sending an email/ hand written memo. If the person needs social acceptance, you can recognize accomplishments in public.Ideal regarding the costs associatedFor Teams you can celebrate Team success.For Example the visit of Siemens CEO to Egypt.Based on reinforcement theory which states that rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetitionPiece-rate pay plans: where workers are paid a fixed sum for each unit of production completedProfit-sharing plans: organization wide programs that distribute compensation designed around the companys profitabilityStudies support that:Companies with Profit-sharing programs have higher profitability levels.Also gain-sharing has been found to improve productivity in the majority of cases and often has a positive effect on the employees attitude.Main disadvantages:First from the employees side is its unpredictability.Second, it is usually taken for granted, if it is discontinued, employees become disgruntled.Piece-rate pay plans: where workers are paid a fixed sum for each unit of production completedProfit-sharing plans: organization wide programs that distribute compensation designed around the companys profitability