MOTIVATION MOTIVATION
Concepts and RewardsConcepts and Rewards
MOTIVATION DEFINEDMOTIVATION DEFINED
Willingness to exert high levels of effort to Willingness to exert high levels of effort to reach organizational goals.reach organizational goals.
BASIC ASSUMPTIONS
Everyone is motivatedEveryone is motivated Key?Key?
Two types of motivationTwo types of motivation IntrinsicIntrinsic ExtrinsicExtrinsic
TYPES OF MOTIVATION
Extrinsic Motivation:Extrinsic Motivation: "What gets rewarded gets done""What gets rewarded gets done" Based on extrinsic/tangible rewardsBased on extrinsic/tangible rewards
Intrinsic Motivation:Intrinsic Motivation: "What is rewarding gets done""What is rewarding gets done" Based on intrinsic/intangible rewardsBased on intrinsic/intangible rewards
Motivation TheoriesMotivation Theories
Need (Maslow & ERG)Need (Maslow & ERG) EquityEquity ReinforcementReinforcement Expectancy TheoryExpectancy Theory Goal-Setting TheoryGoal-Setting Theory
Needs (stage of development)
MaslowMaslow Self actualizationSelf actualization Self esteemSelf esteem Social (love)Social (love) SafetySafety PhysiologicalPhysiological
Alderfer (ERG)Alderfer (ERG) GrowthGrowth RelatednessRelatedness ExistenceExistence
NEED THEORIES OF MOTIVATIONNEED THEORIES OF MOTIVATION
What are the implications of need-based What are the implications of need-based theories for managers?theories for managers?
TODAY’S TOPICTODAY’S TOPIC
MotivationMotivation
EQUITY THEORYEQUITY THEORY
People compare their People compare their outcome/input ratio to outcome/input ratio to that of othersthat of others
ConclusionsConclusions Ratios are equal Ratios are equal
(equity exists)(equity exists) Ratios are unequal Ratios are unequal
(inequity exists)(inequity exists)
RESPONSES TO EQUITY/INEQUITYRESPONSES TO EQUITY/INEQUITY
Equity: MaintenanceEquity: Maintenance Inequity:Inequity:
Change InputsChange Inputs Change OutcomesChange Outcomes QuitQuit
Forms of JusticeForms of Justice
REINFORCEMENT THEORYREINFORCEMENT THEORY
Behavior is a function Behavior is a function of consequencesof consequences
Behavior that is Behavior that is rewarded persistsrewarded persists
To increase behaviorTo increase behavior Positive reinforcementPositive reinforcement negative reinforcementnegative reinforcement
REINFORCEMENT THEORYREINFORCEMENT THEORY
To reduce behaviorTo reduce behavior ExtinctionExtinction PunishmentPunishment
Immediacy is crucialImmediacy is crucial Implications?Implications?
REWARDING B
BUT WE BUT WE REWARD:REWARD:
WE HOPE FOR:WE HOPE FOR: Long-term growthLong-term growth Setting challenging Setting challenging
goalsgoals Total QualityTotal Quality CandorCandor
TeamworkTeamwork
EXPECTANCY THEORYEXPECTANCY THEORY
People are motivated to do that which they People are motivated to do that which they believe is believe is possiblepossible and and valuablevaluable
Expectancy: Belief that you can performExpectancy: Belief that you can perform Instrumentality: Belief that performance Instrumentality: Belief that performance
will lead to an outcomewill lead to an outcome Valence: Value of the outcomeValence: Value of the outcome
EXPECTANCY THEORYEXPECTANCY THEORY
According to expectancy theory, what must According to expectancy theory, what must managers do to motivate their employees?managers do to motivate their employees?
GOAL SETTING THEORYGOAL SETTING THEORY
People naturally set goalsPeople naturally set goals Benefits of Goals:Benefits of Goals:
Increase effortIncrease effort Direct effortDirect effort Increase persistenceIncrease persistence
Most effective goals are:Most effective goals are:
Making MBO Work:SMARTER GoalsMaking MBO Work:SMARTER Goals
S S MM
Improve conflict management process vs.Improve conflict management process vs. 80% reduction in grievances filed by second quarter80% reduction in grievances filed by second quarter
AA RR TT EE RR
Motivation TheoriesMotivation Theories
Need (Maslow & ERG)Need (Maslow & ERG) EquityEquity ReinforcementReinforcement Expectancy TheoryExpectancy Theory Goal-Setting TheoryGoal-Setting Theory
Effective Rewards & Incentive Systems:Effective Rewards & Incentive Systems:
NORDSTROMSNORDSTROMS
Using theories of motivation & related keys to Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive effective incentive systems, evaluate the Incentive system in place at Nordstroms.system in place at Nordstroms. What do you see as its strengths?What do you see as its strengths? Any concerns/questions regarding the system? Any concerns/questions regarding the system?
Are Nordstrom employees pressured Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By inappropriately by the sales-per-hour system? By management?management?
What (if any) changes would you recommend? What (if any) changes would you recommend?
NORDSTROMSNORDSTROMS
Using theories of motivation & related keys Using theories of motivation & related keys to effective incentive systems, evaluate the to effective incentive systems, evaluate the Incentive system in place at Nordstroms.Incentive system in place at Nordstroms. What do you see as its strengths?What do you see as its strengths?
NORDSTROMS
““This is Your Business. Treat This is Your Business. Treat it Like Your Own Business.”it Like Your Own Business.”
Highest sales productivity Earnings > $80,000 Compound growth in sales,
earnings, stores sq. ft. Highly, educated workforce
NORDSTROMSNORDSTROMS
Using theories of motivation & related keys Using theories of motivation & related keys to effective incentive systems, evaluate the to effective incentive systems, evaluate the Incentive system in place at Nordstroms.Incentive system in place at Nordstroms. What do you see as its strengths?What do you see as its strengths? Any potential concerns? Any potential concerns?
NORDSTROMS
“It’s fear that Provides Great Customer Service”
Local 1001 publicity campaign Union complaint with
Washington Dept. L & I NLRB charges $15 million reserve against
earnings shareholder class action suit employee class action suit Wall Street Journal story 60 Minutes TV story
““This is Your Business. Treat This is Your Business. Treat it Like Your Own Business.”it Like Your Own Business.”
Highest sales productivity Earnings > $80,000 Compound growth in sales,
earnings, stores sq. ft. Highly, educated workforce
NORDSTROMSNORDSTROMS
Are Nordstrom employees pressured Are Nordstrom employees pressured inappropriately by the sales-per-hour inappropriately by the sales-per-hour system? By management?system? By management?
NORDSTROMS
ACTIVITY SELL NONSELL Drive to another store to pick up merchandise for a customer
Home delivery
Obtain merchandise from another department for a customer
Thank you notes
Merchandise stocking
Store displays
Sales meetings
Inventory count
Record keeping
NORDSTROMSNORDSTROMS
Using theories of motivation & related keys to Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive effective incentive systems, evaluate the Incentive system in place at Nordstroms.system in place at Nordstroms. What do you see as its strengths?What do you see as its strengths? Any concerns/questions regarding the system? Any concerns/questions regarding the system?
Are Nordstrom employees pressured Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By inappropriately by the sales-per-hour system? By management?management?
What (if any) changes would you recommend? What (if any) changes would you recommend?