Human resource exam

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Motivating Employees • Compensation programs must motivate

individual employees to work; however, they rarely succeed when they base motivation solely on monetary rewards.

• Motivation theories fall into two principal types: – Content theories

• Inherent traits of humans

– Process theories • How environments can be built to motivate others

Content Theories

• Content theories propose that all people are motivated by certain common needs; the most common are the following: – Economic Man Theory – Maslow’s Hierarchy of Needs Theory – Alderfer’s ERG Theory – Herzberg’s Two-Factor Theory – McClellands’s N-Achievement Theory

Economic Man and Maslow’s Hierarchy of Needs

• The Economic Man Theory holds the idea that money is the only important goal for which people work

• Maslow’s Hierarchy of Needs

Economic Man and Maslow’s Hierarchy of Needs

• The Economic Man Theory holds the idea that money is the only important goal for which people work

• Maslow’s Hierarchy of Needs

Alderfer’s ERG Theory

• Alderfer’s ERG Theory agrees with Maslow –individuals have basic needs that could be

arranged in order of priority –there are basic distinctions among those

needs –those needs need to be classified –Alderfer divides them into three

categories • Existence Relatedness Growth

Alderfer’s ERG Theory

• Alderfer’s ERG Theory agrees with Maslow –individuals have basic needs that could be

arranged in order of priority –there are basic distinctions among those

needs –those needs need to be classified –Alderfer divides them into three

categories • Existence Relatedness Growth

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Herzberg’s Two-Factor Theory

• Employees have two needs –Hygiene factors

• factors that are expected by employees, and therefore cannot lead to satisfaction

• Extrinsic rewards –Motivating factors

• factors that lead to satisfaction and can drive performance

• Intrinsic rewards

Herzberg’s Two-Factor Theory

• Employees have two needs –Hygiene factors

• factors that are expected by employees, and therefore cannot lead to satisfaction

• Extrinsic rewards –Motivating factors

• factors that lead to satisfaction and can drive performance

• Intrinsic rewards

McClelland’s N- Achievement Theory

• Contends people have three needs – Need for achievement

• Usually good managers

– Need for power • Usually good leaders

– Need for affiliation • Usually do well in jobs with high levels of social

interaction or where interpersonal skills are valued

McClelland’s N- Achievement Theory

• Contends people have three needs – Need for achievement

• Usually good managers

– Need for power • Usually good leaders

– Need for affiliation • Usually do well in jobs with high levels of social

interaction or where interpersonal skills are valued

Process Theories

• Used to explain how employees can be motivated to work – Exectancy theory – Equity theory – Goal setting theory – Reinforcement theory

Expectancy Theory • Contends that motivation is related to an

individual’s perception of three factors – Expectancy

• The probability that effort will lead to performance

– Instrumentality • The probability that performance will lead to certain

outcomes

– Valence • The value attached to each outcome

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Expectancy Theory • Contends that motivation is related to an

individual’s perception of three factors – Expectancy

• The probability that effort will lead to performance

– Instrumentality • The probability that performance will lead to certain

outcomes

– Valence • The value attached to each outcome

Equity Theory

• Does employee believe he/she is being fairly treated in comparison to another person perceived as being in the same position

• Assumes all employees ask: – What do I receive in return for what I give – What do others receive in return for what they give

Equity Theory

• Does employee believe he/she is being fairly treated in comparison to another person perceived as being in the same position

• Assumes all employees ask: – What do I receive in return for what I give – What do others receive in return for what they give

Goal Setting Theory

• States setting specific goals motivates better performance

• The following factors are needed to bring higher levels of performance from specific and challenging goals – Ability – Goal Commitment – Feedback

Goal Setting Theory

• States setting specific goals motivates better performance

• The following factors are needed to bring higher levels of performance from specific and challenging goals – Ability – Goal Commitment – Feedback

Reinforcement Theory • Assumes people are conditioned to respond to

stimuli • Leads to four possible managerial actions in

response to employee behavior – Positive reinforcement – Negative reinforcement – Extinction – Punishment

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Reinforcement Theory • Assumes people are conditioned to respond to

stimuli • Leads to four possible managerial actions in

response to employee behavior – Positive reinforcement – Negative reinforcement – Extinction – Punishment