Management Lecture 16 Motivation

8/6/2019 Management Lecture 16 Motivation

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Principles of Management

Management and Motivation


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Motivation

The force that moves people to initiate, direct,and sustain behaviour and action.

The psychological forces acting on an individualthat determine: Directionpossible behaviors the individual could

engage in

Efforthow hard the individual will work

Persistencewhether the individual will keep trying or

give up Explains why people behave the way they do in

organizations


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The Motivation Process

Need A perceived deficiency.

Intrinsic Rewards Internally experienced rewards that resultdirectly from a persons behaviour

Extrinsic Rewards Rewards that are provided by others as aconsequence of a particular behaviour

Intrinsically Motivated Behavior Behavior that is performed for its own sake.

The source of the motivation that comes from actually engaging in thebehavior.

The sense of accomplishment and achievement derived from doing the workitself

Extrinsically Motivated Behavior Behavior that is performed to acquire material or social rewards or to

avoid punishment. The source of the motivation is the consequences of the behavior and not

the behavior itself.


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The Motivation Framework

Search for ways

to satisfy need

Choice of

behavior tosatisfy need

Determination offuture needs and

search/choice for

satisfaction

Evaluation of

need satisfaction

Need or

deficiency


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Outcomes and Inputs

Outcome

Anything a person gets from a job or an

organization

Pay, job security, autonomy, accomplishment

Input

Anything a person contributes to his or her job

or organization Time, effort, skills, knowledge, work behaviors


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The Motivation Equation


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Theories of Motivation

Need A requirement for survival and well-being.

Need Theories Theories of motivation that focus on what needs people are trying to

satisfy at work and what outcomes will satisfy those needs.

Basic premise is that people are motivated to obtain outcomes at workto satisfy their needs.

Managers must determine what needs a worker wants satisfied and ensurethat a person receives the outcomes when performing well.

Theories of motivation that focus on the needs that cause people to actin certain ways.

Maslows hierarchy of needs:

Physiological needs Safety needs

Social needs

Esteem needs

Self actualization needs


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Theories of Motivation

Expectancy Theory Motivation will be high when workers believe:

High levels of effort will lead to high performance.

High performance will lead to the attainment of desiredoutcomes.

Motivation is highest when expectancy,instrumentality, and valence levels are high.

If one of the values is low, motivation will be low.

Workers do not believe they can perform well. Workers do not believe that performance and rewards are

closely linked.

Workers do not value the rewards offered for performance.


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Expectancy, Instrumentality, and

Valence


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Expectancy Theory


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Alderfers ERG Theory

After lower level needs satisfied, person seeks higher needs. WhenAfter lower level needs satisfied, person seeks higher needs. When

unable to satisfy higher needs, lower needs motivation is raised.unable to satisfy higher needs, lower needs motivation is raised.

GrowthGrowth

SelfSelf--development,development,

creative workcreative work

ContinuallyContinually

improve skillsimprove skills

RelatednessRelatednessInterpersonalInterpersonal

relations, feelingsrelations, feelings

Good relations,Good relations,

accurate feedbackaccurate feedback

ExistenceExistenceFood, water,Food, water,

clothing, and shelterclothing, and shelter

Adequate payAdequate pay

for necessitiesfor necessities

NeedsNeeds DescriptionDescription ExamplesExamples

HighestHighest--levellevel

needsneeds

LowestLowest--levellevelneedsneeds


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Two-Factor Theory

Presented by Fredrik Herzberg

A need theory arguing that job dissatisfaction and lack ofmotivation are derived from factors separate from thosethat affect satisfaction and motivation.

Focuses on outcomes that lead to higher motivation andjob satisfaction, and those outcomes that can preventdissatisfaction. Motivator needs relate to the nature of the work itself

autonomy, responsibility, interesting work.

Hygiene needs are related to the physical and psychological

context of the workcomfortable work environment, pay, jobsecurity.

Unsatisfied hygiene needs create dissatisfaction; satisfaction ofhygiene needs does not lead to motivation or job satisfaction.


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McClellands Acquired-Needs Theory

A need theory suggesting that needs areacquired or learned through life and that somepeople are more oriented to certain needs thanto other needs.

Need forAchievement A strong need to perform challenging tasks well and

meet personal standards for excellence

Need forAffiliation

A concern for good interpersonal relations, beingliked, and getting along

Need forPower A desire to control or influence others


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Equity Theory

Suggested by J. Stacy Adams

A process theory suggesting that people are motivatedto seek equitable treatment compared with others insimilar situations.

Focuses on peoples perceptions of the fairness (or lackof fairness) of their work outcomes in proportion to theirwork inputs. A relative outcome to input ratio comparison to oneself or to

another person (referent) perceived as similar to oneself.

Equity exists when a person perceives that their outcome/inputratio to be equal to the referents ratio.

If the referent receives more outcomes, they should also give moreinputs to achieve equity.


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Equity Theory

Inequity exists when workers outcome/input ratio is notequal to referent. Underpayment inequity: ratio is less than the referent.

Workers feel they are not getting the outcomes they should for theirinputs.

Overpayment inequity: ratio is higher than the referent. Workers feel they are getting more outcomes than they should for

their inputs.

Restoring Equity: Inequity creates tension in workerscausing them to attempt to restore equity. In underpayment, workers may reduce input levels to correct

(rebalance) the ratio or seek a raise. In overpayment, workers may change the referent person and

readjust their ratio perception.

If inequity persists, workers will often choose to leave theorganization.


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Goal Setting Theory

Focuses on identifying the types of goals that are effective inproducing high levels of motivation and explaining why goals havethese effects.

Considers how managers can ensure that workers focus their inputsin the direction of high performance and the achievement of

organizational goals. Goal What a person is trying to accomplish.

Characteristics of Motivating Goals Specific and not vague in providing direction

Difficult but not impossible to attain

Accepted and committed to by workers Feedback on goal attainment is important.

Goals point out what is important to the firm. Workers should be encouraged to develop action plans to attain goals.


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Goal Setting Theory

Goal-Directed

Effort

Organizational

support

Performance Satisfaction

Extrinsic

Rewards

Individual

abilities and

traits

Goal

commitment

Goal

difficulty

Goal

specificity

Intrinsic

Rewards

Goal

acceptance


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Operant Conditioning Theory

Operant Conditioning People learn to perform behaviors that lead to desired

consequences and learn not to perform behaviors that lead toundesired consequences.

Linking specific behaviors to the attainment of specific outcomes

can motivate high performance and prevent behaviors thatdetract from organizational effectiveness.

Positive Reinforcement Getting desired outcomes for performing needed work behaviors

Positive reinforcers: Pay, praises, or promotions

Negative Reinforcement Eliminating undesired outcomes once the desired behavioroccurs

Negative reinforcers: criticisms, pay cuts, suspension


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Operant Conditioning Theory

Extinction

Curtailing the performance of a dysfunctional

behavior by eliminating whatever is reinforcing it.

Behavior is not rewarded and over time, the worker stopsperforming it.

Punishment

Administering an undesired/negative consequence to

immediately stop a dysfunctional behavior. Manager administers an undesired consequence to worker

(verbal reprimand, demotion, pay cut).


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Organizational Behaviour

Modification

The systematic application of operant

conditioning techniques to organizationally

functional behaviors and discourage

dysfunctional behaviors.

Improves productivity, attendance,

punctuality and other behaviors that are

specific, objective and countable.


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Steps inOrganizational

Behavior

Modification


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Social Learning Theory

A theory that takes into account how learning

and motivation are influenced by peoples

thoughts and beliefs and their observations of

other peoples behavior. Vicarious Learning (Observational Learning)

Learning that occurs when a learner is motivated to

perform a behavior by watching another person

perform and be rewarded. People are motivated to imitate models who are highly

competent, expert, receive attractive reinforcers, and are

friendly or approachable.


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Social Learning Theory

Self-Reinforcement

Any desired or attractive outcome or award that a

person can give himself or herself for good

performance. The self-management of behavior

Self-efficacy

A persons belief about his or her ability to perform a

behavior successfully. Influences motivation both when managers provide

reinforcement and when workers themselves provide it.


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Pay and Motivation

Pay as a Motivator

Expectancy: Instrumentality, the association between

performance and outcomes, must be high for

motivation to be high. Need Theory: pay is used to satisfy many needs.

Equity Theory: pay is given in relation to inputs.

Goal Setting Theory: pay is linked to attainment of

goals. Learning Theory: outcomes (pay), is distributed upon

performance of functional behaviors.


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Merit Pay and Performance

Merit Pay Plan A compensation plan that bases pay on based on individual, group

and/or organization performance.

Individual plan: when individual performance (sales) can accuratelymeasured.

Group plan: when group that works closely together is measured andrewarded as a group.

Organization plan: when group or individual outcomes not easilymeasured.

Piece-rate Pay Employees pay is based on the number of units that the employee

produces.

Commission Pay Employees pay is based on a percentage of sales that the employee

makes.

Organization-based Merit Plans Scanlon planfocuses on reduced expenses or cutting costs

Profit sharingemployees receive a share of an organizations profits


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Gainsharing The Scanlon Plan is the oldest and most widely used type of gainsharing

plan. It's based on the historical ratio of labour cost to sales value ofproduction. And, because it rewards labour savings, it is most appropriatefor companies that have a "high touch labour" content.

The Rucker Plan is based on the premise that the ratio of labour costs toproduction value (actual net sales plus or minus inventory changes, minusoutside purchased materials and services) is historically stable in themanufacturing industry. This principle became the underlying precept of the

Rucker Plan, which tracks the value added to a product as a measure ofproductivity. Because this plan utilizes a multicost formula, it's mostappropriate for organizations that want to improve other variables, such asscrap reduction or energy consumption, in addition to labour.

Improshare measures changes in the relationship between outputs and thetime (input) required to produce them. This plan is minimally affected bychanges in sales volume, technology and capital equipment, product mix, orprice and wage increases. It's the easiest of the gainsharing plans tounderstand and install.

Custom plans are used to customize components of a gainsharing plan tosupport a unique aspect of an organization's environment. Typically, theseplans modify either the "textbook descriptions" of the bonus formula or theemployee- involvement system.

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Management Lecture 16 Motivation