Organizational Behavior Project
© 2013 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
CLO 1
Motivation and Reward Management
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The Field of Organizational Behavior
Organizational Behavior
Interdisciplinary field dedicated to better understanding and managing people at work
Organizational Behavior
Interdisciplinary field dedicated to better understanding and managing people at work
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CLO 1
Compare motivation theories and reward management techniques that influence employee behaviour and job satisfaction at work.
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Learning Objectives
Theories of Motivation – content theories and process theories
Maslow’s Need Hierarchy theory
Alderfer’s ERG theory
McClelland’s Need theory
Herzberg Hygiene theory
Adam’s Equity theory
Locke’s Goal Setting theory
Importance of Rewards
LO.1 Contrast Maslow’s, Alderfer’s, and McClelland’s need theories.
LO.2 Explain the practical significance of Herzberg’s distinction between motivators and
hygiene factors.
LO.3 Discuss the role of perceived inequity in employee motivation.
LO.4 Explain the differences among distributive, procedural, and interactional justice.
LO.5 Describe the practical lessons derived from equity theory.
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Employee Motivation
Motivation
psychological processes cause the arousal, direction, and persistence of voluntary actions that are goal directed
Motivation
psychological processes cause the arousal, direction, and persistence of voluntary actions that are goal directed
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Employee Motivation
Content theories of motivation
focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation.
Process theories of motivation
focus on explaining the process by which internal factors and cognitions influence employee motivation
Content theories of motivation
focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation.
Process theories of motivation
focus on explaining the process by which internal factors and cognitions influence employee motivation
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Overview of Motivation Theories
Table 8–1 provides an overview of the various content and process theories
discussed in this chapter. As you study these seven theories, remember that they
offer different recommendations about how to motivate employees because they
are based on different sets of assumptions regarding the causes of motivation.
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Maslow’s Need Hierarchy Theory
Motivation is a function of five basic needs – physiological, safety, love, esteem, and self-actualization
Human needs emerge in a predictable stair-step fashion
Motivation is a function of five basic needs – physiological, safety, love, esteem, and self-actualization
Human needs emerge in a predictable stair-step fashion
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Maslow’s Need Hierarchy
Maslow proposed that motivation is a function of
five basic needs. These needs are
1. Physiological. Most basic need. Entails having enough food, air, and water to
survive.
2. Safety. Consists of the need to be safe from physical and psychological harm.
3. Love. The desire to be loved and to love. Contains the needs for affection and
belonging.
4. Esteem. Need for reputation, prestige, and recognition from others. Also
contains need for self-confidence and strength.
5. Self-actualization. Desire for self-fulfillment—to become the best one is capable
of becoming.
Maslow said these five needs are arranged in the prepotent hierarchy shown
in Figure 8–1 .
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Alderfer’s ERG Theory
Existence needs (E)
the desire for physiological and materialistic wellbeing;
Relatedness needs (R)
the desire to have meaningful relationships with significant others
Growth needs (G)
the desire to grow as a human being and to use one’s abilities to their fullest potential
Existence needs (E)
the desire for physiological and materialistic wellbeing;
Relatedness needs (R)
the desire to have meaningful relationships with significant others
Growth needs (G)
the desire to grow as a human being and to use one’s abilities to their fullest potential
Managers should keep in mind that employees may be motivated
to pursue lower-level needs because they are frustrated with a higher-order need.
People are motivated
by different needs at different times in their lives
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McClelland’s Need Theory
Need for achievement
Desire to accomplish something difficult.
Need for affiliation
spend more time maintaining social relationships, joining groups, and wanting to be loved
Need for power
Desire to Influence, coach, teach, or encourage others to achieve.
Need for achievement
Desire to accomplish something difficult.
Need for affiliation
spend more time maintaining social relationships, joining groups, and wanting to be loved
Need for power
Desire to Influence, coach, teach, or encourage others to achieve.
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Question?
Rachel has the desire to accomplish something difficult? This relates to McClelland's need for
Affiliation
Achievement
Power
Glory
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The answer is “B” – achievement. See next slide.
AACSB: Group-individual dynamics Bloom's Taxonomy: Application Difficulty: Medium Page: 148
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Herzberg’s Motivator-Hygiene Model
Herzberg hypothesized that motivators
cause a person to move from a state of no satisfaction to satisfaction (see Figure 8–2 ).
Therefore, Herzberg’s theory predicts managers can motivate individuals by incorporating
“motivators” into an individual’s job. At best, according to Herzberg’s interpretation, an
individual will experience no job dissatisfaction when he or she has no grievances
about hygiene factors (refer to Figure 8–2 ).
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Herzberg’s Motivator–Hygiene Theory
Motivators
job characteristics associated with job satisfaction
Hygiene factors
job characteristics associated with job dissatisfaction
Motivators
job characteristics associated with job satisfaction
Hygiene factors
job characteristics associated with job dissatisfaction
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Negative and Positive Inequity
Negative inequity
Comparison in which another person receives greater outcomes for similar inputs.
Positive inequity
Comparison in which another person receives lesser outcomes for similar inputs.
Negative inequity
Comparison in which another person receives greater outcomes for similar inputs.
Positive inequity
Comparison in which another person receives lesser outcomes for similar inputs.
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Adams’s Equity Theory
of Motivation
Equity theory
model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships
Equity theory
model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships
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Question?
At work, if Jamal's outcome to input ratio is greater than that of Tony's (his relevant co-worker), Jamal will experience
Equity.
No satisfaction.
Positive inequity.
High dissatisfaction.
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The correct answer is “C” – positive inequity.
AACSB: Group-individual dynamics Bloom's Taxonomy: Application
Difficulty: Hard Page: 214-5
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Goal Setting theory - How Does Goal Setting Work
Goals direct attention
Goals regulate effort
Goals increase persistence
Goals foster the development and application of task strategies and action plans
Goals direct attention
Goals regulate effort
Goals increase persistence
Goals foster the development and application of task strategies and action plans
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Practical Lessons from Goal-Setting Research
Specific high goals lead to greater performance
Goal specificity – quantifiability of a goal
Feedback enhances the effect of specific, difficult goals
Participative goals, assigned goals, and self-set goals are equally effective.
- Specific high goals lead to greater performance
Goal specificity – quantifiability of a goal
- Feedback enhances the effect of specific, difficult goals
- Participative goals, assigned goals, and self-set goals are equally effective.
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Practical Lessons from Goal-Setting Research
Action planning facilitates goal accomplishment.
Action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal.
Goal commitment and monetary incentives affect goal-setting outcomes
Goal commitment – extent to which an individual is personally committed to achieving a goal
- Action planning facilitates goal accomplishment.
Action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal.
- Goal commitment and monetary incentives affect goal-setting outcomes
Goal commitment – extent to which an individual is personally committed to achieving a goal
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Question?
Julia wants to become a successful heart surgeon. This reflects Julia's
Expectancy
Perception
Goal
Personality
The correct answer is “C” - goal
AACSB: Group-individual dynamics Bloom's Taxonomy: Application
Difficulty: Easy Page: 222
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Motivation
Are people fundamentally different today than in the past? Why do workers need to be “buttered up” more today?
What are some different types of incentives employees are given today to “motivate” them? What have you received in terms of different incentives from your employers?
Why is motivating employees so important - do you think it makes that big of a difference?
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Employees today are knowledge workers and new generations are entering the workforce. This requires employers to provide different and often creative incentives to be motivated. Employers can’t simply tell their employees to do it or else… The labor market will soon be a sellers market favoring the worker - employers have to retain their employees and keep them happy…
Employers are offering their employees everything from food items to barbeque grills to vacation packages as incentive. As illustrated in the video case, a little personal touch by way of a picture of the employee on a chocolate is sure to “sweeten them up”…
Motivation is crucial to the organization’s survival. We are in a global marketplace and organizational efficiency and effectiveness is necessary for its survival in these market conditions. The key to efficiency and effectiveness is the employee - it is the employee who makes the organization run and if they are not motivated, the firm will not be as good as it could be…
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REWARDS; MOTIVATION; PERFORMANCE
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A General Model of Organizational Reward Systems
Despite the fact that reward systems vary widely, it is possible to identify and
interrelate some common components. The model in Figure 9–2 focuses on three
important components: (1) types of rewards, (2) distribution criteria, and (3) desired
outcomes.
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Types of Rewards
Extrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards
Extrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards
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Question?
Angelo derives pleasure from the task of book writing itself. He can be described as __________ motivated.
Extrinsically
Financially
Materially
Intrinsically
The correct answer is “D” - intrinsically
AACSB: Group-individual dynamics
Bloom's Taxonomy: Application Difficulty: Hard Page: 250
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Why Do Extrinsic Rewards Too Often Fail to Motivate?
Too much emphasis on monetary rewards.
Rewards lack an “appreciation effect.”
Extensive benefits become entitlements.
Counterproductive behavior is rewarded.
Too long a delay between performance and rewards.
Too many one-size-fits-all rewards.
1. Too much emphasis on monetary rewards.
2. Rewards lack an “appreciation effect.”
3. Extensive benefits become entitlements.
4. Counterproductive behavior is rewarded. (For example, “a pizza delivery
company focused its rewards on the on-time performance of its drivers, only
to discover that it was inadvertently rewarding reckless driving.”) 68
5. Too long a delay between performance and rewards.
6. Too many one-size-fits-all rewards.
7. Use of one-shot rewards with a short-lived motivational impact.
8. Continued use of demotivating practices such as layoffs, across-the-board
raises and cuts, and excessive executive compensation.
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Pay for Performance
Pay for performance
monetary incentives linking at least some portion of the paycheck directly to results or accomplishments
Pay for performance
monetary incentives linking at least some portion of the paycheck directly to results or accomplishments
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Getting the Most out of Extrinsic Rewards and Pay for Performance
Tie praise, recognition, and noncash awards to specific results.
Make pay for performance an integral part of the organization’s basic strategy
Base incentive determinations on objective performance data.
Have all employees actively participate in the development of the performance-pay formulas
Reward teamwork and cooperation whenever possible
Tie praise, recognition, and noncash awards to specific results.
Make pay for performance an integral part of the organization’s basic strategy
Base incentive determinations on objective performance data.
Have all employees actively participate in the development, implementation, and revision of the performance-pay formulas
Reward teamwork and cooperation whenever possible
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Video Case: Slacking Off
Are workers from today’s generations exhibiting a “slacker” attitude at work?
Do you think more is being expected of workers today than there was in the past?
Are workers today less productive as a result of having “slacker” attitudes?
Is the nature of work different today than it was in the past? Could this be part of the issue?
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This questions is almost impossible to universally answer. The answer will be directly tied to one’s view of work as well as their generation. One has to consider that we have a knowledge based economy today and there is often times no tangible product of our work. People from the days of a manufacturing economy may just not be able to recognize the products of a knowledge worker as being productivity.
One could argue that more is expected of workers today given that technology can serve as an electronic leash for some people. As mentioned in the case, people allow their social life to bleed into their work life and their work life to bleed into their home life. In the past, when the worker left work, they were done for the day.
The question concerning whether or not we are less productive today is also difficult to answer. This may also be the product of one’s vantage point (i.e. what generation they belong to).
Work today is very different than it was in the past. As previously mentioned, we are working in a knowledge based economy that has different products of “labor” than did a manufacturing economy. This could certainly be part of the issue as was previously mentioned.