Motivation © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Essentials of Management

Chapter 11Motivation


Relationship between Motivation and Engagement, and PerformanceMotivation alone does not lead to high

productivity and performance.P = M x A ( P is performance, M is motivation,

and A is ability). Skill and technology contribute to ability.Engagement is level of commitment workers

make to their employer.Commitment enhances performance.


Motivation through Need SatisfactionPeople expend effort toward goal because it

satisfies one or more important needs.A need is a deficit within an individual.Self-interest is a driving force, referred to as

“What’s in it for me?” or WIIFM.Need theory is incorporated into many

explanations of motivation, including the classic ones of Maslow and Herzberg.


Maslow’s Need HierarchyArranges needs into pyramid-shaped model

with basic physiological needs at bottom and self-actualization at top.

Lower-order needs are deficiency needs, and higher order needs are growth needs.

People seek to satisfy needs at one level before moving on, in this order: physiological safety social esteem self-actualization.


Maslow’s Need Hierarchy, continuedMaslow’s need hierarchy recognized

importance of satisfying worker needs for motivation.

Helps explain that it is normal to be constantly searching for new satisfactions.

Need hierarchy relevant in current era because so many workers have to worry about satisfying lower-level needs.


Specific Needs People Attempt to Satisfy1. Achievement, power, and affiliation

(explains much of job behavior)2. Recognition (workplace provides natural

opportunity for attaining recognition)3. Need to be proud (stems from needs for

self-esteem and self-fulfillment)4. Risk taking and thrill seeking (grown in

importance in high-technology era)


Specific Needs People Attempt to Satisfy, continued5. Four drives or needs hardwired into our

brains (extent of satisfaction influences our emotions and behavior):

a. Acquire scarce goodsb. Bond with people and organizations.c. Comprehend or make sense of our corner of

the worldd. Defend ourselves, people we care about,

and our ideas from external threats.


Herzberg’s Two-Factor TheoryJob factors that satisfy and motivate people

are different from those that prevent dissatisfaction.

Satisfier is job factor that if present leads to satisfaction. Similarly, a motivator leads to motivation.

Internal aspects of job tend to be satisfiers and motivators.

Dissatisfiers or hygiene factors are noticed primarily by their absence.


Herzberg’s Two-Factor Theory, continuedPrompted managers to ask what really

motivates workers, yet not entirely true.Theory glosses over individual differences and

may overstate the case for people’s interest in work.

Some people are motivated and satisfied by hygiene factors such as job security and pleasant working conditions.

Benefits play major role in attracting and retaining some employees.


Motivation through Goal SettingGoal setting plays important role in most

motivational programs and managerial methods of motivating employees.

Goal theory states that behavior is regulated by values and goals.

Goal is overall condition one is trying to achieve, or conscious intention to act.

Key findings about goals presented next.


Motivation through Goal Setting, continued1. Specific goals lead to higher performance

than do generalized goals.2. Performance generally increases in direct

proportion to goal difficulty.3. For goals to improve performance,

employee must accept them.4. Goals are more important when they are

used to evaluate performance.


Motivation through Goal Setting, continued

5. Goals should be linked to feedback and rewards.

6. Group goal setting is as important as individual goal setting.

Pygmalion effect states that people live up to expectations set for them.

A key problem with goals is that workers might use unethical means to attain them. (Method of attainment counts.)


Positive Reinforcement and Recognition ProgramsBehavior modification changes behavior by

rewarding right responses and punishing or ignoring wrong response.

Positive reinforcement increases probability that behavior will be repeated by rewarding people for right response.

Positive reinforcement is the most effective behavior modification strategy.


Rules for Application of Positive Reinforcement1. State clearly what behavior will lead to a

reward, and supply ample feedback.2. Use appropriate (effective) rewards.3. Make rewards contingent on good

performance. 4. Administer rewards intermittently.5. Administer rewards promptly.


Rules for Application of Positive Reinforcement, continued6. Change rewards periodically (reward

repeated too often becomes stale).7. Make the rewards visible (seen by others

and noticeable to recipient).8. Reward the team as well as individuals. Positive reinforcement has long history of

improving productivity on job including control of absenteeism.


Recognition and Reward ProgramsRecognition programs are popular for

employee retention. More sophisticated programs attempt to link

recognition awards to performance and behavior tied to corporate objectives.

Recognition rewards sometimes used as substitutes for salary increases, bonuses.

Teams should also receive recognition.


Informal Recognition Including PraisePraising workers for good performance is

major type of informal recognition. Praise should describe performance rather

than merely making an evaluation.Individualized praise better than generic.Praise does not cost money or much time, yet

most workers feel they do not receive enough praise.


Cross-Cultural Differences in Needs and Suitable Recognition AwardsPerson’s culture can influence which needs

are strongest, and the most effective motivational approach to him or her.

Cultural differences are helpful but should be supplemented by observations at work.

One cross-cultural difference is that Americans favor gift certificates.

Standard of living can influence effectiveness of given recognition award.


Basic Model of Expectancy Theory Motivated behavior occurs when:1. Person believes effort will lead to favorable

performance (E O)2. Person believes performance will lead to a

favorable outcome (P O)3. Outcome or reward satisfies an important

need.4. Need satisfaction intense enough.


Basic Model of Expectancy Theory, continuedExpectancies and instrumentalities are

subjective hunches, ranging from 0.0 to 1.0.Valences range (in version presented here)

from -100 to +100.In most work situations there are several

possible outcomes with different valences attached to them. (Example is positive and negative aspects of promotion.)


Implications for Management (of Expectancy Theory)1. Take into account individual differences.2. Help workers feel they are making progress

toward their goals.3. Tie rewards to worthwhile actions.4. Give employees appropriate training and

encouragement.5. Show that performance leads to rewards.6. Explain the meaning of outcomes.


Linking Pay to Performance Including BonusesFinancial incentives more effective when

linked to good performance.Merit pay links pay to performance. Granting lump sums rather than percentage

increases can be more fair.Current trend is to link pay to performance

that reflects business strategy.Pay for performance helps recognize,

motivate, and retain best employees.


Profit Sharing and GainsharingProfit sharing gives workers supplemental

income based on profitability of firm or a selected unit. (Motivation is therefore high to improve profits.)

Gainsharing allows employees to participate financially in gains they have achieved.

Gainsharing includes employee idea submission, and cooperation to improve productivity.


Employee Stock Ownership and Stock Option PlansPossible to motivate workers by making them

part-owners of the business through stock ownership.

Under employee stock ownership plan (ESOP) all employees given stock.

Stock options enable employees to purchase company stock at specified price at sometime in future. Many backdating scandals associated with options.


Problems Associated with Financial Incentives Workers might not agree with managers

about their level of contribution.Individuals are pitted against the group.Perhaps business executive siphon off too

much money for themselves.Focus on compensation detracts from joy in

accomplishment.Financial rewards may not lead to lasting

commitment.

Documents

Motivation © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole