Chapter 4

Motivating Self and Others

What is Motivation?

Motivation The processes that account for

an individual’s intensity, direction,

and persistence of effort toward attaining a goal

Intensity: how hard a person tries

Direction: where effort is channeled

Persistence: how long effort is maintained

Theory X and Theory Y

Theory X The assumption that employees dislike work, will

attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform.

Theory Y The assumption that employees like work, are

creative, seek responsibility, and can exercise self-direction and self-control.

Motivators

IntrinsicA person’s internal desire to do something,

due to such things as interest, challenge, and personal satisfaction.

Extrinsic Motivation that comes from outside

the person, such as pay, bonuses,

and other tangible rewards.

Needs Theories of Motivation

Basic idea: Individuals have needs that, when

unsatisfied, will result in motivation Maslow’s hierarchy of needsHerzberg’s two factor theory (motivation-hygiene

theory)Alderfer’s ERG theoryMcClelland’s theory of needs

Less Important

Maslow’s Hierarchy of Needs

Physiological

Safety

Social

Esteem

Self-

actualization

Herzberg’s Motivation-Hygiene Theory

Hygiene factors - necessary, but not sufficient, for healthy adjustment Extrinsic factors; context of work

Company policy and administrationUnhappy relationship with employee's supervisorPoor interpersonal relations with one's peersPoor working conditions

These needs must be met so employee is not dissatisfied – but they do not necessarily lead to satisfaction

Herzberg’s Motivation-Hygiene Theory

Motivators - the sources of satisfaction Intrinsic factors; content of work

AchievementRecognitionChallenging, varied or interesting workResponsibilityAdvancement

Contrasting Views of Satisfaction and Dissatisfaction

Dissatisfaction Satisfaction

Traditional view

No Satisfaction Satisfaction

Herzberg's view

Dissatisfaction No dissatisfaction

Hygiene Factors

Motivators

Alderfer’s ERG Theory

ExistenceConcerned with providing basic material

existence requirementsRelatedness

Desire for maintaining important interpersonal relationships

Growth Intrinsic desire for personal development

McClelland’s Theory of Needs

Need for AchievementThe drive to excel, to achieve in relation to a

set of standards, to strive to succeedNeed for Power

The need to make others behave in a way that they would not have behaved otherwise

Need for AffiliationThe desire for friendly and close

interpersonal relationships

Factors

Motivators

Herzberg

Summarizing the Various Needs Theories

Hygiene

Self-Actualization

Esteem

Affiliation

Security

Physiological

Maslow

Relatedness

Existence

Growth

Alderfer

Need for Achievement

Need for Power

Need for Affiliation

McClelland

Summary: Hierarchy of Needs

Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs.

Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction.

Summary: Impact of Theory

Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it.

Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time

Process Theories of Motivation

Look at the actual process of motivation

Expectancy theoryGoal-setting theory

Expectancy Theory

An employee will be motivated to exert a high level of effort when he/she believes:

That effort will lead to good performance That performance will lead to organizational

rewards The rewards will satisfy the employee’s

personal goals

Expectancy Relationships

The theory focuses on three relationships: Effort-performance relationship

The perceived probability that exerting a given amount of effort will lead to performance.

Performance-reward relationship The degree to which the individual believes that

performing at a particular level will lead to a desired outcome.

Rewards-personal goals relationship The degree to which organizational rewards satisfy

an individual’s personal goals or needs and are attractive to the individual.

How Does Expectancy Theory Work?

Expectancy

Effort Performance Link

E=0

No matter how much effort I put in, probably not possible

to memorize the text in 24 hours

Instrumentality

Performance Rewards Link

I=0

My professor does not looklike someone who has $1 million

Valence

Rewards Personal Goals Link

V=1

There are a lot of wonderful things I could do with $1 million

My professor offers me $1 million if I memorize the textbook by tomorrow morning.

Conclusion: Though I value the reward, I will not be motivated to do this task.

Steps to Increasing Motivation, Using Expectancy Theory

Improving Expectancy

Improve the ability of the

individual to perform

Improving Instrumentality Improving Valence

Increase the individual’ s belief that

performance will lead to reward

Make sure that the reward is

meaningful to the individual

Steps to Increasing Motivation, Using Expectancy Theory

Improving Expectancy

Improve the ability of the

individual to perform

• Make sure employees have skills

for the task

• Provide training

• Assign reasonable tasks and goals

Improving Instrumentality Improving Valence

Increase the individual ’s belief that

performance will lead to reward

• Observe and recognize performance

• Deliver rewards as promised

• Indicate to employees how previous

good performance led to greater

rewards

Make sure that the reward is

meaningful to the individual

• Ask employees what rewards they

value

• Give rewards that are valued

Goal-Setting Theory

The theory that specific and difficult goals lead to higher performance. Goals tell an employee what needs to be done and

how much effort will need to be expended. Specific goals increase performance Difficult goals, when accepted, result in higher

performance than do easy goals Feedback leads to higher performance than does

nonfeedback. 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.

Management by Objectives

A program that encompassesSpecific goalsParticipative decision-makingExplicit time periodPerformance feedback

Summary so far …

What is motivation?Needs theory of motivation

Maslow’s HierarchyMotivation-Hygiene Theory

Process Theories of MotivationExpectancy TheoryGoal-setting TheoryManagement by Objectives

Responses to the Reward System

Two more theories of motivation

Equity TheoryFair Process

Equity Theory

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

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.

Exhibit 4-7 Equity Theory

Person 1Inequity, underrewarded

Equity

Inequity, overrewarded

Ratio of Output to Input Person 1’s Perception

Person 2

Person 1

Person 2

Person 1

Person 2

Responses to Inequity

Change InputsChange Outcomes Adjust Perceptions of Self Adjust Perceptions of OthersChoose a Different Referent Leave the Field

Fair Process and Treatment

Historically, equity theory focused on:Distributive justice

However, equity should also considerProcedural justice

Fair Process

Distributive Justice Perceived fairness of the amount and allocation of

rewards among individuals

Procedural Justice Perceived fairness of the process used to

determine the distribution of rewards

Interactional Justice The quality of the interpersonal treatment received

from another

Summary of motivation theories …

Needs theories of motivation Maslow’s Hierarchy Motivation-Hygiene Theory (Hertzberg)

Process Theories of Motivation Expectancy Theory Goal-setting Theory Management by Objectives

Equity Theory Fair Process Theory

Group Exercise on Motivation Theories

Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously Jesse has been one of your star employees. Using the theory assigned to your group, explain what steps you might take to motivate Jesse to perform better. Describe the plan Indicate how the plan relates to the theory

Theories to Apply

Herzberg Motivation-Hygiene (Two-Factor) Theory

Expectancy TheoryGoal-Setting TheoryEquity TheoryFair Process Theory

Motivating to Show People Matter

Employee Recognition Programs Programs that use multiple sources and recognizes

both individual and group accomplishments. Linking Programs and Reinforcement Theory

Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition.

Employee Recognition Programs in Practice In contrast to most other motivators, recognizing an

employee’s superior performance often costs little or no money, making them highly attractive to industry.

Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance. Individual-based

Piece-rate wages, bonuses Workers are paid a fixed sum for each unit of

production completed. Group-based

Gainsharing: an incentive plan where improvements in group productivity determine the total amount of money that is allocated.

Variable Pay Programs

Organizational-based Profit-sharing: organization wide programs that

distribute compensation based on some established formula designed around a company’s profitability.

Employee stock ownership plans (ESOPs): company-established benefit plans in which employees acquire stock as part of their benefits.

Variable-Pay Programs

Linking variable-pay plans and expectancy theory Evidence supports the importance of this linkage,

especially for operative employees working under piece-rate systems.

Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.

Rewards for Other Types of Performance

Commissions beyond sales Customer satisfaction and/or sales team outcomes,

such as meeting revenue or profit targets.

Leadership effectiveness Employee satisfaction, or how the manager handles

his or her employees.

New goals All employees who contribute to specific

organizational goals, such as customer satisfaction, cycle time, or quality measures.

Rewards for Other Types of Performance

Knowledge workers in teams Performance of knowledge workers and/or

professional employees who work on teams.

Competency and/or skills Abstract knowledge or competencies—for example,

knowledge of technology, the international business context, customer service, or social skills.

Management Reward Follies

Teamwork and collaboration The best individual team members

Innovative ideas and risk taking Proven methods and not making mistakes

Development of people skills Technical achievements and accomplishments

Employee involvement and empowerment Tight control over operations and resources

High achievement Another year’s effort

Long-term growth; environmental responsibility

Quarterly earnings

Commitment to total quality Shipping on schedule, even with defects

Candour, surfacing bad news early Reporting good news, whether its true or not; agreeing with the manager, whether or not he/she’s right

We hope for … But we reward …

Why Do Managers Engage in Reward Follies?

Stuck in old patterns of rewards and recognitionStick to rewarding things that can be easily

measuredDon’t look at the big picture

Subunits compete with each otherFocus on short-term results

Cross-Cultural Differences in Motivation

Canada and US rely on extrinsic rewards more than other countries

Japan and Germany rarely use individual incentivesJapan emphasizes group rewards

China more likely to give bonuses to everyone

Are Rewards Overrated? Cognitive Evaluation Theory

Allocating extrinsic rewards for behaviour that had been previously intrinsically rewarded tends to decrease the overall level of motivation.

Abolishing Rewards

Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments Abolish incentives Re-evaluate evaluation Create conditions for authentic motivation Collaboration Content Choice

Summary

Need Theories Be aware that individuals differ in their levels and

types of needs

Goal Setting Theory Clear and difficult goals lead to higher levels of

employee productivity.

Expectancy Theory Offers a relatively powerful explanation of employee

productivity, absenteeism, and turnover.

Summary

Equity Theory Strongest when predicting absence and turnover

behaviours. Weakest when predicting differences in employee

productivity. Cognitive Evaluation Theory

When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation.

Implications

Recognize Individual DifferencesEmployees have different needs.Don’t treat them all alike.Spend the time necessary to understand

what’s important to each employee.Use Goals and FeedbackAllow Employees to Participate in

Decisions That Affect Them

Implications

Link Rewards to PerformanceEmployees must perceive a clear linkage.

Check the System for Equity

Homework

“Rewards for Workforce Diversity” – page 135

Chose 3 of the employees described in the case and design a benefits package for them

Why would your benefit package be best for motivating them?