HR Performance Issues and Motivation

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4Motivational Processes

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Learning Objectives

After reading this chapter and studying the materials, you should be able to:

Discuss the nature of motivation and its role in the workplace. Apply early theories of motivation to speci�ic jobs and activities. Utilize the principles of behaviorism and reinforcement to improve performance. Employ the concepts present in equity theory. Implement expectancy theory to enhance employee motivation.

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4.1 The Nature of Motivation Motivation ranks as one of the most frequently used terms in business. Seeking to understand the nature of motivation has been a constant goal in management and organizational literature. After all, understanding the nature of motivation helps organizations increase levels of effort and subsequently improve levels of performance. For decades, motivation was one of the most frequently studied subjects in organizational behavior (Ambrose & Kulik, 1999). As a result, a rich variety of theories, ideas, concepts, and programs about motivation emerged. Some confusion and disagreement about the nature of the concept resulted as well.

Differences begin with the de�inition. The word "motivation" is derived from the Latin movere, or "to move." Some authors conceptualize motivation in term of drives, unful�illed needs, and more cognitive concepts (see Figure 4.1). Others portray it in terms of intensity, direction, and persistence of effort toward attaining a goal (Mitchell, 1997). This de�inition also leaves room for interpretation, such as what exactly "intensity" means in that context.

Figure 4.1: Concepts of motivation

Some models of motivation, such as the one shown, portray motivation as a drive, while others consider intensity, direction, and persistence of effort toward attaining a goal to be a more accurate depiction.

In any case, motivation can be considered in a more general manner or as it speci�ically applies to a workplace setting. In considering motivation at work, perhaps the best way to think of it is in terms of an end result: behavior. M. R. Jones (1955) de�ined motivation as

1. what starts behaviors, 2. what maintains behaviors, and 3. what stops behaviors.

Table 4.1 displays workplace behaviors worthy of being started and maintained as well as those that are best when stopped.

Table 4.1: Behaviors at work Start and maintain Stop

Attendance Unhealthy habits

Punctuality Unsafe work practices

Productivity/effort Unproductive con�lict

Cooperation with others Vandalism

Citizenship behaviors Unethical actions

To encourage or discourage the behaviors displayed in Table 4.1, various motivational theories may be applied. In 1980, Szilagyi and Wallace conceptualized motivation into two categories: content and process. Content theories of motivation examine factors within individuals, notably needs, that lead to behaviors. Content theories describe the essence or content of motives, which are often viewed as unsatis�ied or unful�illed needs. For example, individuals might be motivated to work because it helps them meet certain physical needs, such as those for food, clothing, and shelter.

Process theories examine the progression of events that lead to motivated behavior. Process theories can be subdivided into two sets, based on whether they examine operant processes or cognitive processes. Operant process theories of motivation explore external factors, such as rewards given by managers to employees that increase and decrease behaviors, using Skinner's behaviorism principles. Cognitive process theories of motivation examine the thought processes or mental reasoning processes that lead to behaviors, such as when an employee believes he or she is treated unfairly and responds by looking for a job elsewhere. Table 4.2 presents the theories of motivation that will be discussed in this chapter.

Table 4.2: Motivation theories Content theories Operant process theories Cognitive process theories

Maslow's hierarchy of needs theory Reinforcement theory Equity theory

Alderfer's ERG theory Organizational behavior modi�ication (OB Mod) Expectancy theory

McClelland's need theory

Herzberg's two-factor theory

Each of these theories contributes to our knowledge of how employees behave on the job; however, more work remains to be done. Gallup Poll surveys from 2011 through 2015 indicated that a substantial number of American employees reported they were "not engaged" or were "actively disengaged" with their jobs. More than ever, managers trying to improve levels of productivity need to engage and motivate the workforce. OB in Action: Edward Jones describes how this takes place in one company.

OB in Action: Edward Jones—Employee Motivation in Financial Services

What does it take to become one of Fortune magazine's "100 Best Companies to Work For"? The answer at Edward Jones includes a balanced approach to serving clients and motivating workers (Fortune, 2011). In 2016, the organization reached the rank of 10th in the nation by Fortune. The St. Louis-based company has maintained an impressive record of success in the �inancial services industry even during the 2008 recession and the turbulent stock market of that time.

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Companies that prioritize employee development often see higher retention rates.

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Employees hired at Edward Jones tend to remain with the company for long periods of time. To get them started properly, employees receive quality training both in person and through an online system. Questions are quickly answered through the home-of�ice employee support system. Mentoring programs are coupled with a regional support system to further assist individuals in reaching their full career potential.

The compensation system begins with hourly wages that are based on geographic location, the level of the position, and levels of performance. Wages are enhanced through the application of bonuses based on pro�itability of the �irm, the branch, and individual productivity. A companywide pro�it-sharing program further stimulates individual effort and builds a spirit of cooperation. The bene�its package includes medical, dental, and life insurance, sick leave, vacation pay, a 401(k) plan, and the ability to purchase securities at a discount. For higher-ranking employees, top management encourages investment and ownership in the company through a limited partnership plan, which further emphasizes the connections between personal efforts, cooperative efforts, and organizational rewards. According to Fortune, employees give Edward Jones high marks in the areas of managerial credibility and camaraderie within the organization.

The company, which had a workforce that was 93% Caucasian in 2010, has begun an intensive diversity program. Company documents proclaim that Edward Jones "does not aspire to be a �irm of middle-aged white men." Instead, management believes that a more diverse work force adds energy and ingenuity to operations and would likely lead to an expansion of the company's clientele.

As a privately held company, Edward Jones has managed to build a powerful presence based on relationships. As is the case in similar organizations, private ownership can engender a more "family" type of atmosphere with fewer constraints dictated by mandates from outside entities, such as shareholder groups or members from outside boards of directors. Relationships among employees lead to strong, personal bonds. Relationships with clients lead to longterm business success.

Re�lection and Application Questions

1. What role do bene�its such as life, health, and dental insurance play in motivational levels of employees? 2. Do you think group incentives such as those offered by Edward Jones generate a different kind of motivation than do individual incentives? 3. What role does being a privately held company play, in terms of a �irm's ability to structure its motivational program?

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Though Maslow's hierarchy of needs offers a useful frame of reference regarding motivation, it is important to note that each individual's priorities may deviate from the model.

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4.2 Early Motivation Theories In the 1950s, motivation theories that concentrated primarily on human needs emerged in the United States. The basic premise was that people act to ful�ill such needs. These content theories formed the basis for later conceptual development, and many practicing managers continue to use the principles established in these early theories.

Maslow's Hierarchy of Needs

Perhaps the best known need-based theory of motivation was developed by psychologist Abraham Maslow (1954), whose humanist perspective in�luenced the �ields of management and organizational behavior. Maslow's belief that people are essentially good and that they seek to improve throughout life is re�lected in his hierarchy of needs approach, which can be described as a satisfaction–progression model. In essence, an individual regularly experiences a need until it is regularly satis�ied. At that point, the person "progresses" or moves toward the next need level. The progression is as follows:

Physiological → Safety → Social → Esteem → Self-actualization

Physiological needs include food, clothing, shelter, water, and sex—the basic bodily needs. Holding a steady job helps satisfy physiological needs. Safety needs are those associated with security and protection. A workplace free of physical and emotional danger ful�ills this need. Social needs include a sense of belonging, love, affection, acceptance, and friendship. Making friends and building a social network on the job meets social needs. Esteem results from being held in high regard by peers, through respect, prestige, and recognition. Company awards, favorable performance reviews, and promotions generate esteem by others. Selfactualization consists of feeling that one's life work is helpful or meaningful to other people and that the work ful�ills personal needs for growth, achieving one's potential, and being true to oneself. A self-actualized person on the job does work that he or she wishes to do, and the work helps other people.

Maslow considered physiological and safety needs to be lower-order, physically based needs. Social needs, esteem, and self-actualization constitute higher-order needs that have a psychological or mental basis. Maslow surmised that relatively few people achieve self-actualization.

Maslow's hierarchy enjoys the bene�it of being logical and intuitively sound but is unsupported by empirical research (Lawler & Suttle, 1972). Additional problems associated with theory include the following:

It does not explain the degree of satisfaction needed to progress to the next level. It fails to account for individuals that experience needs in a different order. It does not recognize other key needs, such as the need for power. It cannot predict the type of behavior associated with any given need.

Consider the �irst criticism. In terms of feeling "safe," how should that term be interpreted? When does one feel safe enough to progress to social needs, such as belongingness and love? A person who lives in constant fear of losing a job, or someone who works in a dangerous country or region, might view safety in a different light than people in other places. It would be dif�icult to discern the degree of safety needed to move forward to the next level.

The same problem exists at other levels. What degree of "esteem" must be met for someone to progress to needs for self-actualization? Where does esteem come from—the plaudits given by others on the job (plaques, trophies, positive performance reviews, promotions), or from other sources such as social standing in one's community or religious organization? Without a clear idea of what would completely satisfy this need, it becomes impossible to discern when a person might progress.

In terms of the order of needs, the "starving artist" is a person who forsakes safety and security, and perhaps social well-being, in search of self-actualization. Clearly this represents a different order than speci�ied in the hierarchy. Further, for some, the ultimate expression of a well-lived life would be to have strong bonds with family and friends, deeming those relationships far more important than esteem or self-actualization.

The third criticism of the theory notes that other needs exist beyond those mentioned in the hierarchy. Power clearly is one. Another would be the need for autonomy. The hierarchy, in essence, expresses a highly limited view of needs that might serve as motivators.

Regarding predicting behaviors, the way a person seeks to ful�ill each need could vary greatly from others. To feel safe, some believe owning a gun and living in a well-forti�ied and locked house is necessary. To feel secure, one person might believe a healthy pension plan is the key while another may think being debtfree is the most important.

Seeking to meet esteem needs might also result in divergent behaviors. At the most basic level, some might consider the approval of others (af�irmation) to be the best indicator of being held in esteem by others, whereas others look to different outcomes. For instance, a vote for "employee of the year" might boil down to a popularity contest that indicates approval by peers and therefore serves as a major motivator for one employee. Another employee would value tangible achievements, such as improving personal sales �igures, �inalizing the development of a new product that reaches the market, or some other outcome as the best measure of personal success, and derive esteem from that source.

In general, the hierarchy of needs theory provided some basic ideas about how different factors might serve as motivators at various stages of life or in personal situations. Although research efforts could not demonstrate that everyone experiences needs in this order, or in any order for that matter, the theory did lead to the development of content theories and eventually to newer conceptualizations of the nature of motivation.

Alderfer's ERG Theory

Clayton Alderfer (1972) sought to simplify the hierarchy of needs by breaking it down into three concepts. Thus, the progression in the ERG model is

Existence → Relatedness → Growth

Existence needs equate to concepts of physiological and safety needs. Relatedness needs match social needs. Growth needs incorporate needs for esteem and self-actualization. Notice that existence needs could be considered as physical in nature, relatedness as social in nature, and growth as psychological in nature, or

Physical → Social → Psychological

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According to McClelland, effective management arises out of several different individual needs, which must be tempered by self-knowledge and maturity.

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In addition to Maslow's concept of satisfaction-progression, Alderfer added a second concept: frustration–regression. If, for example, a worker has met physical needs but is socially unskilled, the employee will become frustrated by the inability to make friends. Such a person would "regress" back to the existence level and feel that need more strongly. The individual would become obsessed with possessions and other physical objects.

An employee with routinely satis�ied physical and social needs working in a dead-end job could not progress to ful�ill growth needs. As a response to the frustration, that worker might greatly expand his or her social network. This concept resonated with the times in which the theory emerged. Numerous articles appeared in popular press literature and academic circles depicting the idea that workers suffered from blue-collar blues.

When many jobs in the United States were performed in factories and other manufacturing facilities, and employees only performed mundane, routine, repeated tasks daily, they could not ful�ill growth needs even as physical needs were well met through solid pay and bene�it packages. Alderfer's theory predicted that the logical response to blue-collar blues would be to engage more intensely in social activities such as religious organizations, hobbies (bowling, softball, playing card clubs), and in other places where people could interact with family members and friends. A great deal of colloquial evidence supported this idea, as bowling alleys and playing �ields were �illed with contestants, and other social groups (Lions Club, Fraternal Order of Eagles, Rotary Club, Veterans of Foreign Wars) �lourished during the 1950s and 1960s.

While the ERG model added to the ideas present in the hierarchy of needs, it did not solve any of the problems associated with that theory. Thus, progression- based models of need ful�illment were soon replaced by new approaches.

McClelland's Need Theory

David McClelland (1961)identi�ied a series of needs not mentioned by Maslow or Alderfer. Of these, three have been associated with management and organizational behavior. Needs for power, achievement, and af�iliation relate to many on-the-job issues.

The need for achievement re�lects the degree to which an individual exhibits the drive to excel and generate accomplishments. Individuals with high needs for achievement tend to take moderate levels of risk, depending on their con�idence that they can complete the task. Those with high needs for achievement prefer immediate feedback, value accomplishment as much as money and material rewards, tend to become preoccupied with the task at hand, and are more likely than others to become entrepreneurs. They are more likely to succeed in circumstances where they can direct activities and are personally responsible for outcomes. As managers, they may be less helpful to employees, concentrating instead on their own projects. These individuals are also prone to stress-related problems.

McClelland proposed one additional noted relationship. High needs for achievement were associated with entrepreneurial tendencies (McClelland, 1965). The logic involved was that a successful business is a tangible indicator of achievement, an outcome that would be valued and important to someone with such a need.

Those with low needs for achievement are inclined to create self-ful�illing prophecies of failure. They may lack con�idence and avoid challenges. Some evidence suggests that the need for achievement can be taught or enhanced through training that incrementally creates successes. Each time a person successfully completes a task, assignment, or training exercise, his or her con�idence grows, even if just marginally. These successes, in turn, inspire the willingness to tackle more dif�icult challenges (McClelland, May 1965).

The need for power is the drive to make others behave in ways they would not otherwise choose. When properly channeled, the need for power can be related to managerial success. To use power effectively, an individual should not create or wield power in pursuit of personal goals and should not place in�luence ahead of effective performance (Kipnis, 1974).

McClelland (1976) argued that empirical research indicates that good managers are motivated by a need for power, and tempered by maturity and self-control. He believed that workshops could be developed to help managers discover whether they have the correct motivational pro�ile to become a better manager. Note that this relationship would only hold when the manager seeks to in�luence others to help them achieve higher levels of performance and not when the goal is simply to "boss people around" as a demonstration of personal power.

The need for af�iliation, which is like the social needs identi�ied by Maslow and relationship needs in Alderfer's approach, reveals a need for close interpersonal relationships, including joining groups and seeking love or friendship. High needs for af�iliation can be a detriment to becoming a successful manager, as these individuals worry too much about the opinions and perceptions of others (Winter, 2001). Individuals with low needs for af�iliation who are not in managerial roles will be more comfortable in more isolated positions. Individuals with high needs for af�iliation should be placed into jobs with greater degrees of interaction with the public or with peers.

Motivational needs theory has value in two areas. First, the approach can help predict the types of jobs best suited to various individual personalities as well as chances for success in managerial positions. A person with a high need for af�iliation will be better suited to a job in which interactions with coworkers and the public take place, such as sales or customer service. A person with high need for achievement �its best in jobs in which tangible evidence of success is routinely provided. Second, the theory explains circumstances in which an employee may become dissatis�ied because the job does not match his or her need pro�ile.

The primary criticism of McClelland's approach was about the research method. The Thematic Apperception Test was used to discover the various types of needs individuals would express. Unfortunately, the test is prone to the social-desirability response bias problem, in which a subject shields or hides his or her true feelings or needs to appear to be socially acceptable. Consequently, the test may or may not reveal a person's real set of needs or the degree to which a person feels any given need.

Further, this approach is not a complete theory but rather only identi�ies various needs. No method is described to explain how various levels of needs, high or low, would become manifest as behaviors. Consequently, it cannot be viewed as an encompassing explanation of motivation.

Herzberg's Two-Factor Theory

Frederick Herzberg's two-factor theory proposes that a certain set of factors is responsible for workplace dissatisfaction, while another set is responsible for workplace satisfaction. Herzberg based the theory on analysis of interviews with more than 200 accountants and engineers (Herzberg, Mausner, & Snyderman, 1959). The theory has also been described as motivation-hygiene theory, because Herzberg calls the factors that affect satisfaction "motivators" and the factors that cause dissatisfaction "hygiene factors" (see Table 4.3).

Table 4.3: Hygiene factors and motivators

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Herzberg's Two-Factor Theory

A discussion of Herzberg's two-factor theory with a focus on the importance of employee participation.

Critical Thinking Questions

1. What constitutes a hygiene factor for you? Why? 2. What constitutes a motivational factor for you? Why?

Hygiene factors Motivators

Wages Achievements

Hours Recognition

Working conditions Actual work or job

Relationships with supervisors Responsibility

Relationships with peers Chance for advancement/growth

Range: Dissatisfaction → No Satisfaction Range: No Satisfaction → Satisfaction Sources: Adapted from Whitsett, D. A., & Winslow, E. K. (1967). An analysis of studies critical of the motivation-hygiene theory. Personnel Psychology, Winter, 391–414; Ivancevich, J. M., Lorenzi, P., Skinner, S. J., & Crosby, P. B. (1997). Management: Quality and competitiveness. New York, NY: McGraw-Hill/Irwin.

Hygiene factors are maintenance factors: They are characteristics of a job that do not increase satisfaction or motivation, but their absence creates job dissatisfaction. Examples of hygiene factors might include the wages a worker is paid or the hours a person is asked to work. The most that can be achieved with hygiene factors is to keep them neutral. The term hygiene re�lects conditions in a hospital. A dirty hospital will make you sick (dissatisfaction). A sparkling clean hospital will not make you well (no new satisfaction).

The second set of factors, motivators, is derived from personal effort and performance. The corresponding recognition, increased responsibility, and opportunity for personal growth as well as promotion to a higher rank provide incentives to try harder. When these factors are missing, no motivation occurs. When they are present or are added, motivation increases. Consequently, they should be built into the job through programs such as job enrichment, which enhances the known motivators in each individual job or occupation.

The Edward Jones example demonstrates how two-factor theory works in a business organization. The company's pay and bene�it program removes any problems associated with hygiene factors and dissatisfaction. The use of group bonus incentives as well as individual incentives for performance builds achievement and recognition into the job, which includes friendly interactions with customers and coworkers plus the challenge of creating �inancial portfolios that serve individual needs. The opportunity to become a limited partner in the �irm adds the chance for growth into the mix. It should not be surprising, then, that the company enjoys a satis�ied and motivated workforce.

A series of challenges have been raised about two-factor theory. First, the terms "motivation" and "satisfaction" are being used interchangeably, when they are not, in fact, exactly the same. A person can state he or she is "satis�ied" because "I don't have to do anything—just collect a check." In other words, "I'm satis�ied because I don't have to be motivated." Another individual might report extreme dissatisfaction and motivation as its result, as in, "I hate working third shift (working conditions), so I'm going to try extra hard to get promoted so I can work days." The bottom line is that even though other combinations are possible, two-factor theory only accounts for circumstances in which individuals are satis�ied and motivated or dissatis�ied and unmotivated as a consequence.

Second, many note that accountants and engineers are not necessarily representative of every type of occupation. Interviews of construction workers might result in different answers regarding workplace satisfaction and motivation, as would answers given by employees from other countries and cultures.

Despite these criticisms, many managers believe the two-factor theory helps explain workplace dissatisfaction. One of the strengths of two-factor theory, when compared to other needbased theories, is that the research was conducted in an employment setting and focused on motives that would be present in the workplace, rather than more general motives that might apply in other situations, such as at home when dealing with family members or a spouse, in a place of worship, or when supporting a candidate for political of�ice. Further, the concept of making jobs more interesting and challenging resonates with managers, employees, and the academic community. Thus, two-factor theory continues to be a popular method for examining the workplace environment.

In summary, the need-based theories, or content theories, focus on relationships between needs and workplace behaviors. Maslow's hierarchy of needs, a satisfaction–progression model, traces the progression of needs through physiological, safety, social, esteem, and selfactualization stages. Alderfer's ERG theory suggests needs evolve from existence to relatedness to growth, or physical to social to psychological. Alderfer accounts for frustration– regression, in which an individual who cannot meet a higher-level need becomes frustrated and feels the lower-level need more strongly. McClelland's need theory examines the impact of the needs for achievement, power, and af�iliation on an individual's motives, which can be translated to workplace settings. Herzberg's two-factor theory suggests that a series of contextual job features cannot satisfy employees, but can lead to dissatisfaction or satisfaction.

Herzberg's Two-Factor Theory From Title: Motivation Theories and Employee Participation

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Managers must be able to identify those behaviors that have an impact on performance, otherwise they risk investing time in unproductive tactics.

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4.3 Contemporary Approaches: Organizational Behavior Modi�ication Many theories in psychology can be linked to more than one topic in organizational behavior. Reinforcement theory, based on Skinner's operant process model, presents an example. Reinforcement affects how and what people learn, as was described in the chapter on learning (Chapter 3). Reinforcements also can be used to change behaviors—what cognitive theorists would label "motivating" employees. Reinforcement theory also has applications to theories of personality development.

We have already examined the essential ingredients in reinforcement theory—positive and negative reinforcement, punishment, and extinction—and programs to deliver reinforcements with continuous and intermittent schedules. This chapter will examine another operant process theory, organizational behavior modi�ication (OB Mod), which demonstrates how the principles of reinforcement theory can be systematically built into a company's operations.

OB Mod is a business-based program developed by Fred Luthans that offers simple, easy- tofollow steps that will enhance performance (Luthans & Kreitner, 1975)—essentially a business "cookbook" of sorts. The system has been successfully applied in several business organizations. The steps of an OB Mod program are as follows:

1. Identify critical, performance-related behaviors. 2. Find ways to observe and count the behaviors. 3. Conduct a functional analysis associated with the behaviors. 4. Design a program to change or modify the behaviors. 5. Run the program. 6. Follow up.

Identify Critical Behaviors

Perhaps the most important step in the plan is the �irst one. If managers fail to identify the critical behaviors and instead identify only unimportant behaviors, then everything that follows will be geared to the wrong activities. Also, if managers focus on employee attitudes rather than behaviors, no effective way to make the system work will surface (Luthans, 1988). Table 4.4 suggests a series of critical behaviors in three industries.

As an example, consider what might take place in an upscale retail chain store in a downtown location of a major city. The retailer's top management has identi�ied two key performance indicators for the store: sales and "inventory shrinkage" (stolen merchandise). Based on discussions with supervisors, it becomes evident that those two performance indicators are most impacted by three critical behaviors performed by staff: (1) staying on station in the part of the store to which they have been assigned, (2) greeting customers within 30 seconds of arrival in their areas, and (3) maintaining and arranging merchandise. Staying on station reduces inventory shrinkage (shoplifting) through observation of people in the area. Greeting customers personalizes the shopping experience: people intending to shoplift are no longer

stealing from a store; instead, they are stealing from that nice person who just said "hello" (which is why stores such as Walmart place greeters at the front of the store). Arranging merchandise makes shopping easier and increases sales. Table 4.4 provides a summary of critical behaviors.

Table 4.4: Critical behaviors by industry Manufacturing Service Retail

Number of units produced Calls returned on time Staying "on station"

Number of defects Polite treatment of customer Greeting customers

Attendance Paperwork completed correctly Arranging/maintaining merchandise

Punctuality Problems resolved Politely giving directions to other departments

Machine maintenance Proper handling of returns and exchanges

Following safety rules

Observe and Count Critical Behaviors

Numerous methods may be used to monitor employee and customer behaviors. Managers can directly view employees on the job, employ video surveillance, or observe activities through various other means. These behaviors can then be recorded or counted in some way, manually or in a database.

Conduct a Functional Analysis

A functional analysis serves the purpose of discovering which antecedents or stimuli are connected to desired behaviors and which lead to undesired behaviors. In his writings, Luthans (1988) has utilized two forms of functional analysis: Antecedent-Behavior-Consequence (ABC) and Stimulus-Organism-Behavior- Consequence (SOBC). Note that an antecedent and a stimulus are the same thing.

Antecedents and stimuli that lead to desired behaviors include the presence of a supervisor, reminders through signs posted in the workplace, and even the company of a well-respected colleague or peer. Antecedents and stimuli that precede undesired behavior can take a variety of forms. The consequence becomes unproductive time instead of working on job-related tasks. A clock in plain view can cause employees to anticipate breaks, lunchtime, and the end of the day rather than the work at hand. A visible water cooler with a nonchalant employee lingering beside it invites others to come and visit rather than stay on task. Even an attractive member of the opposite sex may distract a worker from a job assignment. In each instance the antecedent or stimulus directly connects to non-desired behaviors and unfavorable consequences (lost sales; increase shoplifting).

In the retail store, the water cooler might entice workers to wander off station and away from arranging merchandise or greeting customers on time. Also, social clusters tend to form in areas that are not as observable from management of�ices, such as a lunch room or break room. The presence of a supervisor as an

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antecedent or stimulus would lead to more attentive work behaviors and more desirable consequences (well-organized merchandise, increased sales, lower shrinkage).

Design a Program

Next, the focus of OB Mod shifts to designing a program that increases desirable behaviors and discourages unwanted behaviors. In keeping with the spirit of Skinner's work, the OB Mod program does not recommend the use of punishment alone to achieve these changes. Although it can be incorporated into the program, Luthans suggests ways to alter behaviors using other means. Three resulting alternatives are listed here.

1. Positive reinforcement only: Desired behaviors are identi�ied and rewarded. 2. Positive reinforcement and punishment: Desired behaviors receive rewards and undesired behaviors are punished. 3. Positive reinforcement and extinction: Desired behaviors are rewarded and either (a) the stimuli that lead to pleasant consequences associated with

undesired behaviors (such as the water cooler) are removed, or (b) the consequences themselves are somehow diminished.

In the retail store, the programs could use elements of positive reinforcement and extinction. Desired behaviors could be rewarded, �irst with on-the-spot cash rewards and later with contest prizes. Extinction could involve not removing the water cooler but rather simply blocking the view from the retail �loor, which would mean no one could see if another employee was getting a drink. In an interesting twist, an element of negative reinforcement could be added: After the store closes each night, clerks cannot leave until merchandise is fully back in its place.

Run the Program

When conducting the program, adequate instruction should be given to all parties involved. Supervisors will know what to observe and how to respond (reward, punish, extinction). Employees are noti�ied that certain behaviors are important and will be recognized.

To implement such a program, the retail store supervisors could be given bundles of dollar bills and told to distribute them when they observed salespeople on station with merchandise arranged and those that greeted customers in a timely fashion, over a period of two weeks. Approaches such as these have been successful in other retail stores, with sales increasing and shrinkage reduced. To establish the behaviors more permanently, a contest could be held and employees could receive prizes for maintaining the desired behaviors over longer periods of time. The contest would last six months.

Follow Up

The follow-up step ensures that the desired behaviors were identi�ied, that the ABC or SOBC analysis correctly identi�ied pathways to desired and undesired behaviors, and that the program achieved the desired results. Programs that succeed may be institutionalized or re�ined for future use. Programs that do not lead to positive results are evaluated, beginning with the �irst step. Were the correct behaviors identi�ied? If so, then other elements of the program deserve attention. It may have been, for example, that employees did not truly desire the rewards that were offered.

In the case of the retail store, programs like the one described in this section have yielded both short-term and long-term success. The principles gained from the key performancerelated behaviors were then incorporated into new employee training and manager training programs.

In summary, organizational behavior modi�ication employs the principles of reinforcement theory and Skinner's operant process model. The program focuses on speci�ic, performancerelated behaviors that managers can observe and count. A functional analysis identi�ies pathways to desired and undesired behaviors. Programs consisting of positive reinforcement, and sometimes punishment or extinction are designed and implemented. Results can then be analyzed to see if the appropriate behaviors have been modi�ied and if performance measures improve.

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Equity differs from equality in that equitable treatment must be proportional, whereas equal treatment need only be uniform.

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4.4 Contemporary Approaches: Adams's Equity Theory As the twentieth century unfolded, an increasing emphasis on understanding worker psychology emerged. The trend in�luenced studies of numerous organizational phenomena, including motivation. While it was clear that applications of operant process theories could demonstrate tangible results, other employee reactions continued to require attention and study. Thus, in a manner like what occurred in the study of learning, in which internally generated and externally generated explanations were offered, research in motivation was subdivided into studies of operant and cognitive process models. The two most noteworthy cognitive process models are (1) Adams's equity theory, which will be discussed in this section, and (2) Vroom's expectancy theory, which will be described in Section 4.5.

The essence of equity theory, presented by J. Stacy Adams in 1963, can be described as follows: When people perceive their situation at work as being fair or equitable, they are more likely to remain motivated at the level they have always been. When they perceive their situation as unfair or inequitable, they are prone to dissatisfaction and there will be a negative impact on their levels of motivation.

Key Principles

Many people have worked in jobs where things just do not seem fair. Equity theory and concepts regarding organizational justice explain how they often react. The theories account for feelings that arise when perceptions of inequality or inequity take place. The feelings result from observations of what happens to an individual and to others around that person.

Inputs and Outcomes At work, people exchange inputs for outcomes. Inputs include everything an employee trades with an organization, expecting something in return. Examples of inputs include education, experience, special skills, levels of effort and productivity, helpfulness to others, creativity or suggestions, and even personal appearance.

Outcomes are the things the organization provides in exchange for inputs. Outcomes include pay, praise, chances to be promoted, status symbols (corner of�ice; reserved parking space), company bene�its, job assignments, recognition, job security, and inclusion in organization planning and decision making.

Presence of a Referent Other A referent other is a person an employee chooses for purposes of making social comparisons. In other words, an employee is likely to single out someone at work or in some other organization for the purpose of examining inputs and outcomes. Most of the time, a referent other will be an individual who was hired at about the same time and performs the same or a comparable job. In other circumstances, different forms of referents are selected, as displayed in Table 4.5.

Table 4.5: Potential referent other comparisons Self inside the company The employee compares a new position or job to a previous position or job in the same company.

Self outside the company The employee compares a current position or job to a previous position in a different company.

Other inside the company The employee compares a current job or position with another person or group within the same company.

Other outside the company The employee compares a current job or position with another person or group in a different company.

The Comparison No matter which type of referent emerges, the employee makes a comparison of inputoutcome ratios. These are "give-get" relationships, or, "what I give and get versus what my referent other gives and gets," as shown next.

Personal outcomes versus

Referent other outcomes

Personal inputs Referent other inputs

Perceptions of Equity Equity occurs when the ratio comparison is perceived as being in balance, or as fair. For instance, Joe works at a local Dairy Queen restaurant, where he was hired by his friend Susan. Joe's outcomes include pay of $7.25 per hour and �lexible scheduling in which he can switch shifts with other employees if he desires a particular night free. His inputs involve serving customers, cleaning the store, counting the cash drawer at night, and restocking the preparation area.

Susan is the night manager. Her outcomes include pay of $9.75 per hour and food purchase discounts. Her inputs include hiring, training, and �iring employees, completing daily report sheets, working on a �ixed schedule with no shift switching, plus serving customers, cleaning, and helping stock the prep area.

Although Susan earns $2.50 per hour more, Joe believes the differential is equitable. Susan gives more to get more. Joe gives less and receives less. When such a sense of equity or equilibrium exists, behavior is maintained. Recalling that the de�inition of motivation includes "what maintains behavior," a sense that things are equitable or fair means an employee will encourage an employee to keep working at the same pace and with the same level of intensity.

Perceptions of Inequity Many times, a review of personal and referent other inputs and outcomes leads to the perception that the formula is not in balance. This circumstance, inequity, or disequilibrium results in a strong motivational force (a cognitive process) to restore equilibrium. In other words, the individual feels compelled to somehow adjust the components in the input-outcome ratio. Table 4.6 represents the types of reactions that are possible.

Table 4.6: Reactions to perceptions of inequity Activity Example

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Consider the functions of distributive and procedural justice. Have these principles been at play in your current or previous workplaces? If so, in what form were they implemented?

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Change personal outcomes Ask for a pay raise

Change personal inputs Try harder; reduce effort

In�luence referent other outcome Encourage referent other to ask for a raise

In�luence referent other inputs Encourage referent other to try harder or reduce effort

Change referent other Look at outcomes and inputs of someone different

Rationalize Add elements to the formula, such as time horizon

Leave the �ield Quit the job

The �irst set of adjustments involves a perception described as "positive inequity."

Personal outcomes >

Referent other outcomes

Personal inputs Referent other inputs

This formula suggests that the person involved has reached the conclusion that he or she is overpaid. Using the potential responses noted in Table 4.6, a person who felt overpaid could (1) try harder and produce more to justify the difference, (2) change comparisons to a referent other who earns more, or (3) rationalize that the pay difference was based on seniority or some other factor not previously considered.

The other form of disequilibrium, sometimes called "negative inequity," would be as follows:

Personal outcomes <

Referent other outcomes

Personal inputs Referent other inputs

This situation re�lects feeling underpaid. A person who believes he or she is underpaid could (1) ask for a pay raise; (2) reduce inputs; (3) conclude that although he or she is currently experiencing a raw deal, management will eventually make things right through a promotion or some other future adjustment to outcomes; or (4) make plans to leave and quit.

Equity Theory and Organizational Justice

The basic premise that inequity exists when input-outcome ratios differ is founded in the principles established by the theory of distributive justice, which posits that people should receive in proportion to what they give in society (Greenberg, 1996), and which applies to the allocation and amount of outcomes. Further, perceptions of equity are in�luenced by conclusions regarding the presence of procedural justice, a term used to describe the fairness of a process, such as a performance appraisal program or pay raise system.

Research indicates that perceptions of distributive justice relate to degrees of job satisfaction (Dailey & Kirk, 1992). In other words, the conclusion that one's inputs in terms of time, effort, and the willingness to cooperate are matched by appropriate levels of outputs in terms of pay, promotion, positive performance appraisals, and supervisor recognition lead to job satisfaction.

Further, perceptions of procedural justice in�luence trust levels with a supervisor, commitment to the organization, and intentions to quit a job. This �inding suggests that when employees conclude that organizational systems are fair and are carried out reasonably by management, then they trust those in charge and exhibit stronger commitment to the �irm. Fairness principles such as these would apply to reward systems (pay, praise, promotions) as well as discipline systems (rules enforcement).

Distributive justice and procedural justice contribute to perceptions of overall organizational justice, which also includes interactional justice and interpersonal justice, or the way a person is treated by people of higher rank in the organization (Greenberg, 1987). Interactional justice and interpersonal justice are terms used to describe perceptions of how a person feels he or she is treated by those at higher levels, such as with a reasonable attitude and respect or disdain and distance. These feelings are less likely to in�luence perceptions of equity and inequity regarding inputs and outputs, focusing instead on reactions to the speci�ic individual involved. One exception would be when a manager's demeanor and treatment of subordinates re�lects a clear bias in which some are treated more favorably than others.

Support for Equity Theory

Equity theory enjoys signi�icant theoretical support. First, the concept of exchanging inputs for outcomes has a basis in the concept of a psychological contract (Schein, 1980). Psychological contracts are socially and mentally constructed sets of exchanges, such as the division of housework between two spouses or partners, or the level of work in exchange for the level of pay on the job. When psychological contracts are violated, negative reactions occur. The psychological contract concept has been well received for many years. Second, the idea that people compare themselves to one another is based on the strongly established social comparison theory (Festinger, 1954). Third, the tendency to act on disequilibrium has its basis in concepts of cognitive dissonance (Festinger, 1957). Cognitive dissonance, or mental disharmony, creates a mental force seeking to resolve the discord or dissonance. Cognitive dissonance leads to the reactions displayed in Table 4.6.

Complications With Equity Theory

Initial organizational research supports the basic predictions of reactions by individuals to perceptions of inequity (Scheer, Kumar, & Steenkamp, 2003). At the same time, a series of complications have been associated with the work. For example, people apparently respond differently to inequitable circumstances. Equity "sensitives" believe �irmly in reciprocity and become quickly motivated to resolve feelings of being over- or underpaid. Equity "benevolents" are more

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altruistic and less bothered by being underpaid or by negative equity relationships. Equity "entitleds" respond most vigorously to negative equity or underpaid circumstances and may remain frustrated until positive equity or an overpaid comparison appears (Sauley & Bedeian, 2000). The extent to which an individual reacts to perceptions of inequity has been labeled equity sensitivity (Bing & Burroughs, 2001).

Also, and not surprisingly, perceptions of being overpaid do not seem to change a person's behaviors at work, possibly because individuals so quickly rationalize differences in outcomes (Steers, 1996). The theory does not account for the power of the rationalization process in overpaid, as opposed to underpaid, situations.

On a more practical level, the potential number of social comparisons that could be made within an organization is unmanageable. A company with just 10 rank- and-�ile employees would still present many potential comparisons in the category of "other inside the company" alone. Managers do not choose who someone singles out for a social comparison, and the choice could be completely inappropriate. For instance, if a new, fresh-out-of-college supervisor compares himself to a supervisor with eight years of experience, it might result in inaccurate perceptions of deserved outputs as well as inputs.

Finally, equity theory may represent thought processes in the United States, but not in other cultures. Many national cultures do not contain strong opinions regarding distributive justice. In other, formerly communist countries, feelings of entitlement can supersede perceptions of equity and distributive justice. Therefore, the theory should be considered as culture bound (Giacobbe-Miller, Miller, & Victorov, 1998).

Managerial Implications

The principles found in equity theory offer value to managers. First, a supervisor can make certain that the equity comparisons made by top performers receive the most attention. Doing so can go beyond pay and bene�its. Top performers can receive preferential treatment in terms of scheduling breaks during the work day, vacations, and other non�inancial signals related to their worth. At the same time, each employee should believe that the reward system is fair and not simply based on personal preferences of the manager. Through on-thejob feedback and the performance appraisal system, workers can understand who the top, middle, and low performers are in a department.

Second, managers can employ equity theory to understand why workers become dissatis�ied and seek to leave a company. It provides a framework for understanding how employees react. Equity theory can be applied to individual workers as well as to sets of employees. A group of workers who believe they are underpaid on an hourly basis will likely reduce production per hour. An individual who believes he or she truly is overpaid may respond by increasing the quality of work to match the quantity of output. The bottom line is that equity theory provides a quality prism for viewing employee responses on the job. The feature box OB in Action: High-Tech Discrimination Lawsuits notes some of the implications of equity theory.

OB in Action: High-Tech Discrimination Lawsuits

In late 2015, Microsoft experienced a lawsuit alleging gender discrimination and bias in salaries and promotion decisions by a former employee. The individual, Katie Moussouris, had moved on to a leadership position in another tech company. "What happened to me is not unique," Moussouris said in a statement. "This case will illuminate the broad patterns of decision-making against women. Fundamentally, this is about fairness and equality" (Rao, 2015, para. 8).

Earlier in the year, Twitter and Facebook also had been sued. In the case of Facebook, the charges went beyond gender discrimination to include racial discrimination and sexual harassment. At Twitter the charges focused on favoring women over men in promotion decisions.

As is the case when allegations are made, a top executive may be the main target of criticism. When Microsoft executive Satya Nadella said that women in technology should not ask for raises but trust that the system would reward them, his remarks elicited intense criticism.

The technology industry does not stand alone. The Institute for Women's Policy research noted that in 2015 the pay gap between men and women continued to stand at 20%, wherein a woman performing the same job could expect to receive a rate of pay at 80% of what a man would be paid (Hegewisch & DuMonthier, 2016).

In high-tech �irms, such inequity in pay structure might create even greater damage. The number of highly quali�ied and talented individuals is limited. Further, creating a level of dissatisfaction great enough to cause a person to leave and subsequently �ile a lawsuit can injure company's long-term reputation and standing.

Re�lection and Application Questions

1. How would women who experience pay and promotion discrimination be described in the terms present in equity theory? 2. How do the concepts of distributive justice and procedural justice apply to discrimination and harassment in these circumstances? 3. Explain the potential impact of a pattern of discrimination in terms of recruiting, selection, and retention of quality employees in a high-tech

company.

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Vroom's expectancy theory implies that performance is determined by an individual's beliefs or expectations in a given situation.

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4.5 Contemporary Approaches: Vroom's Expectancy Theory A second cognitive process theory designed to explain the relationships between organizational circumstances and employee motivation is expectancy theory (Vroom, 1964). Several variations of the theory's concepts are available in the literature. Each version contains three primary elements: expectancy, instrumentality, and valence.

Expectancy represents an individual's belief that a given level of effort will result in the successful performance of a task. A student who believes that studying for at least 10 hours will lead to a grade of "A" on a test expresses a high expectancy. A second student who has never made a grade of "A" on a test might conclude that no level of effort will result in the desired outcome. Expectancy can be summarized as follows:

Effort → Performance

Instrumentality re�lects an individual's belief that successful performance of a task will result in a speci�ic outcome or reward. A salesperson who knows that reaching a speci�ic sales target will result in a bonus holds a high instrumentality score. A student who believes a professor does not like him and will not award a grade of "A," even for an extremely well- written term paper, expresses an instrumentality score that is low or even zero. Instrumentality may be expressed as this linkage:

Performance → Reward

Valence is an evaluation of the value or attractiveness of a reward and consists of two components. The �irst is the worth of the reward to the person. If the prize in a production contest is a new big-screen television, and all the contestants really want a new TV, then the valence of the prize will be high. On the other hand, if the prize is two tickets to the county fair, and no one cares about going to the event, the valence of the outcome will be low or zero. The second component of valence is the value associated with achieving a goal or successfully completing a task. Winning the contest provides valence associated with doing the best job during a speci�ic time period on a given task.

Calculating a Motivational Force

As mentioned, several versions of the combinations of these variables have been presented. A simple approach would be a multiplicative model, as follows:

Motivational Force (Intention to Give Effort) = Expectancy × Instrumentality × Valence

Values can then be assigned to each variable. Expectancy may be rated from 0 to 1 or 0% to 100%. A score of zero means the individual believes no linkage between effort and performance exists, or "No matter how hard I try, I can't do it." A score of 0.5 or 50% indicates the person believes he or she has a 50–50 chance of success, given a speci�ic level of effort. A rating of 1 or 100% indicates the person has complete con�idence that, given a certain level of personal effort, the individual can complete the task or achieve the goal.

The same formulation applies to instrumentality. A score of zero means the person does not believe a reward will be delivered for successful performance. A score of 50% suggests the individual is uncertain about whether the reward will be delivered. A value of 100% means the person expresses complete con�idence that achieving a goal or successful performance will be rewarded.

Assigning values to valence will be more problematic. Scales can be used to indicate the value of a reward from 1 = no value to 7 = great value, or sets can be used to indicate low, medium, and high degrees of valence. This means that some valences are more powerful than others.

Using this approach, it will be possible to see differences in the degree of motivational force and make predictions about the level of effort that will be given. Expectancy theory then explains the following: The highest level of effort would be expected when the individual believes he or she can successfully complete a task (high expectancy); that successful completion of the task will result in a reward (high instrumentality); and that the reward itself has value (high valence). Under any other circumstance, the degree of motivation diminishes (see Table 4.7). Notice also that if a score of zero is assigned to any of the three variables, the resulting level of motivation will also be zero.

Table 4.7: Degrees of motivational force

Motivational force = Valence × Instrumentality × Expectancy

High = High × High × High

Moderate = High × Moderate × High or moderate

Low = Low or moderate × Low or moderate × Low or moderate Source: Szilagyi, A. D., & Wallace, M. J. (1980). Organizational behavior and performance (2nd ed.). Santa Monica, CA: Goodyear, 118.

As an example, a company's management team decides to hold its annual sales contest. Winners and prizes are determined using three criteria: (1) new clients, (2) increase over previous year's sales as a percentage, (3) number of sales calls made that resulted in new prospects, even though no �inal sale was made. Three prizes are awarded each year: (1) an all-expense paid trip to Hawaii during the winter season, (2) a $2,000 gift certi�icate to any store of the salesperson's choosing, and (3) a $500 cash award.

One salesperson has been the winner of the top prize for the past three years. The individual has a territory ripe with prospective new buyers that have not yet been contacted. The person knows she has the ability to turn prospects into customers while increasing sales orders from existing clients. She loves Hawaii.

A second salesperson has �inished fourth for the past two years. One of the previous top three winners has retired. The salesperson has no problem making contacts but has been disappointed a few times when a sale looked good but then fell through and also thinks her territory is less favorable than those serviced by others. The person would be thrilled to win any of the three prizes but worries about competition from new hires, especially those in more favorable territories.

The third salesperson has �inished last, or next-to-last, for the past �ive years. Although he would love winning, he has concluded that his territory is not suited to gaining new prospects or clients. He is exceptional at increasing sales from existing clients and makes a solid level of earnings from his commissions.

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The company has a solid history of fairly granting the prizes to winners. In this situation, the �irst salesperson's motivation would remain quite high, because valence, instrumentality, and expectancy all are high. The second salesperson would have had some doubts regarding instrumentality, even though valence and expectancy are high and may exhibit diminished effort as a result. The third salesperson would probably not change his behavior. While valence and expectancy are high, instrumentality is quite low.

Advantages of Expectancy Theory

Expectancy theory has been well respected as an approach to understanding motivation in the workplace for several decades. There are several reasons for its popularity. First, the theory concentrates on workplace motivation rather than motives in other circumstances. It applies to speci�ic employment activities, goals, and rewards.

Second, using the formulation shown in the previous section or a similar version, expectancy theory explains circumstances in which employees will be motivated as well as situations in which they will not be motivated. A company that has not given pay raises or any other incentives for performance over the past three years should not be surprised by the low levels of effort exhibited by employees. When no link between effort and performance can be identi�ied, motivational levels will decline. Also, managers who fail to recognize the things employees value may offer rewards that have no meaning.

Third, the concept that value exists in successfully completing a task or achieving a goal suggests the role that intrinsic valences play in motivation. An intrinsic valence is the reward you give yourself for achieving a goal, such as a feeling of pride, accomplishment, or self-ef�icacy. Intrinsic valences often are accompanied by extrinsic valences, or rewards given by others (Porter & Lawler, 1968). For example, a musician composes a song he or she really likes. One self-reward comes from simply �inishing the song. Then, if a local radio station hears the song and plays it, a greater sense of accomplishment results. The valences are intrinsic in nature. Should the song be picked up by a recording studio and make money, an extrinsic valence has been awarded and the intrinsic reward of knowing other people like the song has been strengthened. Managers should never underestimate the importance of intrinsic valences in the workplace.

Fourth, expectancy theory enjoys consistent research support (Donovan, 2001; Van Eerde & Thierry, 1996). Although some criticism of the research methods exists (Mitchell & Daniels, 2003), many managers believe that the theory offers down-to-earth, concrete methods for seeking to improve employee effort and levels of motivation. Applying expectancy theory requires managers to do three things: (1) work to make sure employees can complete assigned tasks, (2) link performance to the reward system, and (3) make sure employees are rewarded with the things they value.

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Summary and Resources

Chapter Summary

Motivation is what starts, maintains, and stops behaviors. Content theories examine factors within individuals, notably needs, that lead to behaviors. Operant process theories of motivation explore external factors that increase and decrease behaviors using Skinner's behaviorism principles. Cognitive process theories examine the thought processes or mental reasoning processes that lead to behaviors.

Early motivation theories begin with Maslow's hierarchy of needs, which notes a progression of needs as follows: physiological, safety, social, esteem, self- actualization. Maslow's work applies humanism, the concept that people are essentially good and that they seek to improve throughout life. Alderfer's ERG theory simpli�ies the hierarchy of needs by breaking it down into existence, relatedness, and growth needs (or physical, social, and psychological needs). Alderfer builds on the concept of satisfaction–progress by noting frustration–regression, in which the movement to a higher-order need cannot be achieved and results in frustration and regression to the previous need as a result.

McClelland's need theory examines the roles that achievement, power, and af�iliation play in a person's behaviors. Herzberg's two-factor theory notes that hygiene factors, including wages, hours, working conditions, supervision, and relationships with peers, increase dissatisfaction if inadequate, but cannot motivate, even if adequate. Motivators, including achievements, recognition, the actual work, responsibility, and the chance to be promoted, should be built into the job. Motivators range from no satisfaction to satisfaction in terms of their impact.

Operant process theories include Skinner's concepts and an applied program called organizational behavior modi�ication. OB Mod consists of six steps, including identifying critical, performance-related behaviors; �inding ways to count and observe those behaviors; conducting a functional analysis associated with those behaviors; designing a program; running the program; and following up. The program primarily relies on positive reinforcement and extinction to modify behaviors. Punishment is reserved for extreme circumstances.

Content process theories include equity theory and expectancy theory. Equity theory notes that workers create psychological contracts with employers regarding inputs and outcomes. Employees also make social comparisons with other referents, considering personal inputoutcome ratios to those generated by others. When the comparisons yield perceptions of fairness, distributive justice, or equity, behavior is maintained. When the comparisons result in perceptions of inequity, a strong motivation force driven by cognitive dissonance emerges, seeking to rectify the injustice. An employee can adjust personal inputs and outcomes, try to in�luence the inputs and outcomes obtained by referent others, change to a new referent other, rationalize or re-analyze the comparison, or leave the �ield. Equity theory explains employee dissatisfaction with the organization's justice system as well as different levels of effort and intentions to quit.

Expectancy theory primary components include expectancy, instrumentality, and valence. Expectancy is the individual's belief that a task can be completed given a speci�ic level of effort. Instrumentality is the individual's belief that a linkage exists between performance and rewards or outcomes. Valence speci�ies the value associated with the reward itself (extrinsic valence) as well as the feelings of accomplishment associated with successfully completing the task (intrinsic valence). The strongest motivational force results from high levels of all three variables. Under any other circumstances the level of motivation declines. As a result, the theory explains both worker motivation and the lack of worker motivation.

CASE STUDY: Accounting for Success

Michelle Jefferson was about to open a tax preparation of�ice to serve customers in the greater Detroit area. Michelle's goal was to serve individual clients on personal income taxes along with small business owners in the area. She employed two accountants and two clerical workers in her of�ice.

Michelle had spoken with employees from the major accounting �irm H&R Block. She also visited with an entrepreneur in the same type of operation in Lansing, Michigan. She wanted to be fully prepared for any challenges that might arise.

The interviews revealed key information. She learned that the primary problem such �irms encountered were labeled "service failures," where clients believed the accounting �irm had not delivered performance as expected. Three basic causes of service failures were (a) time pressures, (b) human error, and (c) relationship problems.

The nature of the taxation calendar explains time pressures. At key points during the year, forms must be �iled and mailed, including W-2 forms, statements of interest earned, statements of dividends paid, and other �inancial information that would be needed to submit an individual or company tax report. These documents were to be mailed by the end of January each year. Then, the April 15 tax deadline looms.

The bulk of Michelle's clients would be found in two groups. First, one set of individuals wants to �ile taxes as early as possible following receipt of all documents. Many are expecting refunds and want the cash quickly. Second, another set of clients simply waits until the last possible minute to seek out tax service providers. Then, they want taxes prepared rapidly to meet the deadline. Both groups create time pressures for tax preparers, and the customers become easily upset if they are not served �irst and fast.

Human errors result from improperly recorded numbers, such as transposed �igures on tax forms. Forms can be mailed to the wrong address or mishandled in some other way. The number of actual miscalculations of taxes had diminished due to tax preparation software; however, it was still possible to miss a deduction or expense and cost the client money.

Relationship problems emerge from the nature of the service. Tensions result from having to send money to the government, and often that resentment transfers to the person who prepared the tax form. Also, someone who misses a deadline tends to blame the company, even when the person has created the problem.

Michelle knew that members of her staff would need to be technically pro�icient in accounting procedures and knowledgeable about tax law. They would need to be gifted at scheduling, could expect to work long hours during certain parts of the year, must understand that they would run into more than a few unhappy people during peak seasons, and still should be willing to maintain pleasant and professional relationships with all clients. Finding the right people and motivating them properly would be the keys to success in her �ledgling organization.

Case Questions

1. Explain the situation in Michelle's company using concepts from Herzberg's two-factor theory. 2. Would Luthans's organizational behavior modi�ication program be appropriate for this company? Explain your answer. 3. What types of equity comparisons would Michelle's employees likely make? What would happen if they felt underpaid? 4. Using the components present in expectancy theory, explain the motivational process that might take place in Michelle's company.

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Review Questions

Click on each question to see the answer.

De�ine motivation and explain the three categories of motivation theories. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

What are the four content theories of motivation? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Maslow's hierarchy of needs, Alderfer's ERG theory, McClelland's need theory, and Herzberg's two-factor theory

What needs are noted in Maslow's hierarchy and in Alderfer's ERG model? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Maslow notes physiological, safety, social, esteem, and self-actualization needs. Alderfer proposes existence, relatedness, and growth needs.

What three needs receive the most attention in McClelland's need theory? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The needs for achievement, power, and af�iliation.

What hygiene factors and motivators are identi�ied in Herzberg's two-factor theory? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Hygiene factors include wages, hours, working conditions, relationships with supervisors, and relationships with peers. Motivators are achievements, recognition, the actual work or job, responsibility, and the chance for advancement and growth.

What are the steps of an organizational behavior modi�ication program? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

OB Mod consists of �ive steps, including identifying critical, performance-related behaviors; �inding ways to count and observe those behaviors; conducting a functional analysis associated with those behaviors; designing a program; and following up. The program primarily relies on positive reinforcement and extinction to modify behaviors. Punishment is reserved for extreme circumstances.

Describe ABC and SOBC in an organizational behavior modi�ication program. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

ABC is antecedent, behavior, and consequence. SOBC is stimulus, organism, behavior, and consequence. Both describe paths to repeated behaviors, both desired ones and those not wanted by managers.

Explain the nature of a comparison of a person with a referent other in Adams's equity theory. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

These comparisons show "give-get" relationships, or, "what I give and get versus what my referent other gives and gets," or

Personal outcomes versus

Referent other outcomes

Personal inputs Referent other inputs

When an individual perceives inequity, what types of reactions can take place? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Reactions to perceptions of inequity include

Activity Example

Change personal outcomes Ask for a pay raise.

Change personal inputs Try harder; reduce effort.

In�luence referent other outcome Encourage referent other to ask for a raise.

In�luence referent other inputs Encourage referent other to try harder; reduce effort.

Change referent other Look at outcomes and inputs of someone different.

Rationalize Add elements to the formula, such as time horizon.

Leave the �ield Quit the job.

What are the three main elements of Vroom's expectancy theory? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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Analytical Exercises

1. Compare the needs listed in Maslow's hierarchy, Alderfer's ERG theory, and McClelland's need theory and those implied by Herzberg's two-factor theory. What common elements do they contain? What are the primary differences?

2. In Herzberg's two-factor theory, the terms "motivation" and "satisfaction" are used interchangeably, which may not always be the case. Provide speci�ic examples of the following circumstances in each of three workplace settings: (1) a manufacturing operation, (2) an insurance company, and (3) a fast-food restaurant chain.

Employees are satis�ied and motivated. Employees are satis�ied but not motivated. Employees are dissatis�ied and motivated. Employees are dissatis�ied and unmotivated.

3. In this chapter, Luthans's OB Mod model demonstrated a method that could be used to improve sales and reduce inventory shrinkage in an upscale retail store, �irst using cash prizes and later by holding a contest. If six months after the contest was over, employees were still maintaining the three basic performance-related behaviors (staying on station, greeting customers, arranging merchandise) at very high levels, without the presence of extrinsic rewards, what would explain this outcome?

4. Using the variables outlined in Adams's equity theory, describe how you believe feelings of inequity would evolve in the following circumstances:

non-union workers in a manufacturing company comparing themselves to union workers in another manufacturing plant in the same town a Hispanic worker passed over for promotion three times in favor of a Caucasian worker with less experience the glass ceiling in any company

5. In Vroom's expectancy theory model, both intrinsic and extrinsic valences are related to higher levels of motivation. Explain the relationships of these motives to the following:

ful�illing a need Herzberg's list of hygiene factors and motivators positive reinforcement organizational justice

Key Terms

Click on each key term to see the de�inition.

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cognitive process theories (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

Motivation theories that examine the thought processes or mental reasoning processes that lead to behaviors.

content theories (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

Motivation theories that examine factors within individuals, notably needs, that lead to behaviors.

distributive justice (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

Concept that people should receive in proportion to what they give in society.

equity sensitivity (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The extent to which someone reacts to perceptions of inequity

expectancy (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The belief that a given level of effort will result in the successful performance of a task.

extrinsic valence (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

A reward given by others.

hygiene factors (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

A series of factors associated with the work context that are related to job dissatisfaction.

instrumentality (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The belief that successful performance of a task will result in a speci�ic outcome or reward.

intrinsic valence (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The reward a person gives himself or herself for achieving a goal, such as a feeling of pride, accomplishment, or self- ef�icacy.

motivation (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

What starts, maintains, and stops behaviors.

motivators (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

A set of factors that is derived from personal effort and performance and affects job satisfaction.

need for achievement (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The degree to which an individual exhibits the drive to excel and generate accomplishments.

need for af�iliation (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The need for close interpersonal relationships, including joining groups and seeking love or friendship.

need for power (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The drive to make others behave in ways they would not otherwise choose.

operant process theories (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

Motivation theories that explore external factors that increase and decrease behaviors.

procedural justice (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The fairness of processes, such as a performance appraisal or pay raise system.

process theories (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

Motivation theories that examine the progression of events that lead to motivated behavior.

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referent other (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The person an employee chooses for purposes of making social comparisons on the job.

valence (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/co

The value of a reward, based on the value of the reward to the person and the value associated with achieving a goal.

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