CONTEMPORARY MANAGEMENT:

CHAPTER 13 - MOTIVATION

Brian Hynous

Key points we will cover:

The Nature of Motivation

Expectancy TheoryNeed TheoriesEquity Theory

Goal-Setting TheoryLearning TheoriesPay & Motivation

mo·ti·va·tionˌmōtəˈvāSHən

The reason or reasons one has for acting or behaving in a particular way.

The general desire or willingness of someone to do something.

Psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence in the face of obstacles.

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“Even with the BEST strategy in place and an appropriate organizational architecture, an organization will be effective only if it’s members are motivated to perform at a high level.

One reason why leading is such an important managerial activity.”

THE NATURE OF MOTIVATION

*Intrinsically motivated behavior: behavior that is performed for it’s own sake,

motivation is derived from actually performing the behavior. IE. Elementary

school teacher who loves teaching children, commercial photographer who relishes in taking creative photographs, the musician

who enjoys playing guitar every week at the coffee shop.

*Extrinsically motivated behavior: is behavior performed to acquire material or social rewards, or to avoid punishment. IE. A car salesman who is motivated by receiving commission on all cars sold, a lawyer who is motivated by the high salary and status that go along with the job, a factory worker who is motivated by the opportunity to earn a stable secure income.

INTRINSIC & EXTRINSIC CO-EXIST. PEOPLE ARE MOTIVATED BY BOTH.

Examples:

A Nurse who is highly motivated by both caring for patients well-being AND having a secure job with great benefits.

A Walsh graduate student taking courses to complete his/her education (however in this example, it may lean more towards the extrinsic rewards that come with a higher education, rather than the love of learning itself)

*Prosocially motivated behavior: behavior that is performed to benefit or help others

Outcome: Anything a person gets from a job or organization

Input: Anything a person contributes to his or her job or organization

EXPECTANCY THEORY

Belief is that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes.

One of the most popular theories on work motivation. Because it focuses on all three parts of an equation: inputs, performance, and outcomes. People are motivated to put forth more effort only if they think that their effort will pay off in high performance.

• Expectancy: perception (paradigm) about the extent to which effort results in a certain level of performance

•Instrumentality: a perception about the extent to which performance results in the attainment of outcomes

•Valence: how desirable each of the outcomes available from a job or organization is to a person

According to this theory: if ALL THREE are high, HIGHER motivation will be a result.

NEED THEORIESbasic premise is that people are motivated to obtain outcomes at work that satisfy their needs.

Maslow’s Hierarchy of Needs1. Self actualization – Need to realize one’s full potential as a human being2. Esteem Needs- Need to feel good about oneself and capabilities,

recognition3. Belongingness needs – Social interaction, friendship, affection, love (BLUE

on the color chart)4. Safety needs – Security, Stability, Safe environment5. Psychological needs – food, water, shelter, survival/primal

Alderfer’s ERG Theory

As lower level needs (existence) are satisfied, a person is motivated to satisfy higher level needs (growth). When a

person is UNABLE to satisfy higher level needs (or is frustrated), motivation to satisfy lower level needs increases.

This theory of motivation is known as a two factor theory. It is based upon the notion that motivation can be split into hygiene factors and motivation factors.  He concluded that there were two types of motivation: Hygiene Factors which can demotivate when not present. Hygiene Factors affect the level of dissatisfaction, but are rarely quoted as creators of job satisfaction. *supervision *interpersonal relations *physical working conditions *salary

Motivation Factors which will motivate when present.  Job dissatisfaction isn't usually blamed on Motivation Factors, but they are cited as the cause of job satisfaction. *achievement *advancement *recognition *responsibilityThese two separate 'needs' are the need to avoid unpleasantness and discomfort and, at the other end of the motivational scale, the need for personal development. A shortage of the factors that positively encourage employees (the motivating factors) will cause employees to focus on other, non-job related 'hygiene' factors.

Herzberg’s Motivator – Hygiene Theory

Equity TheoryA theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs.

Inequity, or the perception of a lack of fairnessUnderpayment inequity vs. Overpayment inequityMOTIVATION IS HIGHEST WHEN AS MANY PEOPLE AS POSSIBLE IN AN ORGANIZATION PERCEIVE THAT THEY ARE BEING TREATED EQUITABLY – MEANING, THEIR OUTCOMES & INPUTS ARE IN BALANCE

GOAL-SETTING THEORY

Theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these

effects.

*Goals must be specific & difficult to stimulate high motivation (difficult does not mean unattainable)

*Difficult goals also cause people to be more persistent than easy or vague goals.

LEARNING THEORIESFocus on the linkage between performance and outcomes in the motivational equation

•Operant Conditioning Theory: people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.1. Positive Reinforcement2. Negative Reinforcement3. Extinction4. Punishment

Micromanaging makes you frantic and less

productive (USA Today)•Get Feedback (360 degree feedback session)

•Avoid Going Overboard –Some managers have an “on/off” switch and either micromanage or delegate and forget.

•Realize that sometimes you still need to Mmanage

•Develop Good Infrastructure (SYSTEMS THINKING ANYONE?)

*Organizational Behavior Modification (OB MOD): systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors.

Works best for behaviors that are specific, objective, and countable – such as attendance and punctuality, making sales, or assembling something, all of which lend themselves to careful scrutiny and control.

FIVE STEPS IN OB MOD:

Mangers identify an important behavior

Measure frequency the behavior occurs

Determine if people know whether they should be performing the behavior and what consequences they receive if perform

it

Develop & apply strategy entailing use of PR/NR/P/E

Re-measure the frequency of behavior, and maintain using the strategy

*SOCIAL LEARNING THEORYSuggests that motivation results not only from direct experience of rewards and punishments but also from a person’s thoughts and beliefs.

Vicarious Learning: Also known as Observational Learning. Watch and learn. Learner becomes motivated to perform a behavior by watching another person, and the same person being reinforced for doing so.

Self-Reinforcement: Any desired or attractive outcome or reward that a person gives to him or herself for good performance.

Self-Efficacy: A person’s belief about his or her ability to perform a behavior successfully..(SELF EFFACING PROPHECY)Michael Jordan motivational look me in the eyes - YouTube

PAY AND MOTIVATION

Merit Pay: A compensation plan based on performance

1. Commission Pay – paid a % of their sales2. Profit Sharing – employees receive a share of an

organizations profits.

Salary increase or Bonus?

Bonus in form of Employee Stock Options – used as a motivational tool, predicated on the implied notion that the better the employee does, it will have a ripple effect, and the company will overall do better – sending stock prices up.

Carrots, Sticks & Peter Scholtes

It is Management conceit to believe that one can motivate others. Managers can demotivate, but not motivate.

The carrot and the stick approach was developed for use with jackasses and donkeys in mind, and it’s legitimate use is limited to just that species.

People all start out motivated. It is legitimate to discover what happened to that original, intrinsic motivation

To believe that pay motivates is to believe, quite cynically, that people reserve a certain amount of effort to be left unused until it is bribed out of them.

Imagine that beginning next Monday you will be paid twice what you are now paid. Will you work any more effectively?(No, though you may be happier…in the short term)

QUICK EXERCISE

Break into two groups.

Elect a spokesperson for your group.

Keep the discussion amongst your group, careful not to let the other group overhear.

Take 5 minutes to quickly brainstorm.

High Motivation Rules at SAS Institute

•Has won the coveted “100 best companies to Work for 11 years in a row” (2008)

•World’s largest privately owned software company, 10,000 employees worldwide, with $1.9 billion in revenues.

•Employees all work 35 hour work weeks.

•Managers strive to meet intrinsic needs that motivate employees, even if that means encouraging changing jobs within the company to prevent boredom.

•All new product development is in-house, so employees have the opportunity to experience the excitement of seeing their product come to life.

•Work/life balance is a top priority, on-site daycare, medical care, unlimited sick days, high chairs in the cafeteria, and 200 acres that surround HQ for employees to spend time with their families.

So what does this mean to you?

LEADERSHIP IS KEY.

Where in the organization must I exercise control?

•Leaders should not seek to control the individual employees job performance. Leaders won’t succeed, and if they try, they are liable to make things worse

•Leaders have usually sought to control finances. These indeed, must be in control, but leaders are probably not the right people to do it.

•The same applies to marketing and sales. When leaders get involved, they are just as likely to mess things up as to affect them positively.

WHAT SHOULD LEADERS DO?

•Promote Systems Thinking. This includes a fixation on the customers and the smooth flow of interdependent activities and events that serve the customers well.

•Work with all the managers and employees to control the systems, processes, and methods. Control these and continuously improve them.

•Seek to create and maintain outstanding systems. The ideal is: outstanding systems, achieving excellent results, with the ordinary efforts of average people.

Have you heard anyone complain about the EXXXXX Book being too big?  We started developing NSS16 because we heard many complaints that the book was too big. We heard things like “why can’t we just pull the coupons we like out of the EXXXX book that are in our area?” We saw our competitors creating custom products for sports teams and we “couldn’t” because of our “system”. . .   3 ½ years later we are a part of a Division specializing in High School fundraising. We have Football Trifold product, customizable with a national coupon book, a football card, and online membership that allows people to take advantage of 90% of what’s in the book printable online. We have customizable SS16 where we can pull 16 top offers within core areas of our Ebook and members can utilize our online Ebook. We have customizable SS40, developed for competitive situations and within high content areas of the Ebook. We can pull 40 top offers for these situations and people can utilize our online Ebook. In addition, we just launched the FV key tag, a mobile companion, and a mobile coupon app that will eventually be a game changer once the public fully understands what and how they can be used. . .  We now have “home grown experts” all over the country that are raising teams more money than our competitors did the year before. . . Tim Smith, Michele Kish, Dave Baker, Stephanie Webb, Sara Dyke, Lew Gumbiner, Mindy Cleeland, Cam Cleeland, Rachael Neely, Ed Myers, and Steve Grande are all people who consistently drive VDP products toward $40- $50 per student average. This is a major victory when 3 years ago our VDP averages were around $5 per student. . .  Although our products are not perfect, they are very good! Remember when signing for your SS16/SS40 products to keep within areas where we have strong book content. That’s how the products were developed. Our merchant partners will do their best to help but these two programs are not like the football cards where we start from scratch and have to sign unique ongoing offers.  Look at how far we have come in such a short period of time. Imagine where we will be 2 years from now with all these game changing concepts we have going on right now. . . You have made our division and these product lines successful. Thank you.  Management

Be the catalyst and inspiration for systemic

change – leadership that will help bridge personal/shared visions with deep intrinsic

motivation & personal mastery within your organization and

watch your company take off!!!!

If Inspiration is the spark…Motivation is the fuel that keeps us going…

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