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BX3171 Organisational Behaviour Chapter 7 - Motivation: from concept to application

Lecturer: Jaime Wong

This deck is available in Subject hompage -> Learning Activities -> Slides -> Lecture 4: Motivation

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Topic 7

Motivation: from concept to application

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Organisations spend billions of dollars each year trying to motivate employees. Some theories of motivation have been transformed to adapt to contemporary issues. Organisations continue to embrace theories of motivation and rely on them to improve productivity, build exciting work environments and accomplish organisational goals. Interest in motivation is an ongoing process as managers try to understand, influence and improve the motivation of their employees.

The study of human motivation has often focused on factors associated with the individual. Organisations should consider three primary factors when motivating employee’s factors internal to the individual, factors related to the social interaction among employees, and factors related to the organisation and the job itself. While motivation is one of the most frequently researched topics in OB, there are many ideas and theories about how employee motivation works. Some argue that motivation is an exclusively individual trait. Money, fear, job satisfaction, incentives and perks, flexible timing, training and learning and other tools are used at random by organisations in the belief that a combination of these tools will motivate their employees.

Learning Objectives

Compare and contrast the early theories of motivation with the major elements of the contemporary motivational theories

Assess the main ways jobs can be redesigned

Validate how the different types of variable-pay, flexible benefits and intrinsic rewards can increase employee motivation

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Introduction

There are many different ways to keep employees motivated in the workplace.

While pay is a central means of motivation, working conditions and benefits matter too.

The process of motivating employees is complex, and employees now expect greater flexibility and other work benefits to suit their lifestyles and family obligations.

What motivate you at work/studies?

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The study of motivation is concerned, basically, with why people behave in a certain way. The basic underlying question is ‘why do people do what they do? ’In general terms, motivation can be described as the direction and persistence of action. It is concerned with why people choose a particular course of action in preference to others, and why they continue with a chosen action, often over a long period, and in the face of difficulties and problems.

From a review of motivation theory, Mitchell identifies four common characteristics which underlie the definition of motivation.

■ Motivation is typified as an individual phenomenon. Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or another.

■ Motivation is described, usually, as intentional. Motivation is assumed to be under the worker’s control, and behaviours that are influenced by motivation, such as effort expended, are seen as choices of action.

■ Motivation is multifaceted. The two factors of greatest importance are: (i) what gets people activated (arousal); and (ii) the force of an individual to engage in desired behaviour (direction or choice of behaviour).

■ The purpose of motivational theories is to predict behaviour. Motivation is not the behaviour itself, and it is not performance. Motivation concerns action, and the internal and external forces which influence a person’s choice of action.

On the basis of these characteristics, Mitchell defines motivation as ‘the degree to which an individual wants and chooses to engage in certain specified behaviours’.

Defining motivation

Motivation is the processes that account for an individual’s intensity, direction and persistence of effort towards attaining a goal

Intensity: high effort channelled in a direction that benefits the organisation.

Direction: directed towards, and consistent with, the organisation’s goals.

Persistence: Motivated individuals stay with a task long enough to achieve their goal.

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While motivation is one of the most frequently researched topics in OB, there are many theories and ideas about how employee motivation works. Some argue that motivation is an exclusively individual trait, which the old saying, ‘You can bring a horse to water, but you can’t make it drink’ illustrates. Others explain that it’s the environment that will empower employees to motivate themselves. Another approach argues that different people are motivated by different things and a ‘one size fits all’ approach won’t work. So which one is correct?

Money, fear, job satisfaction, incentives and perks, flexible timing, training and learning, and various other tools are used at random by organisations in the belief that a combination of these tools will motivate their employees. These tools in isolation indeed motivate people for a short while or even slightly longer. It’s probable that one or two in combination will definitely work for an individual as long as all areas are covered. There’s nothing wrong with this formula, but none of these tools works in isolation within the environment and culture of an organisation. So, as we explore and document the concept of motivation, we need to keep in mind that the level of motivation varies both between individuals and within individuals at different times.

We define motivation as the processes that account for an individual’s intensity, direction and persistence of effort towards attaining a goal. While general motivation is concerned with effort towards any goal, we’ll narrow the focus to organisational goals in order to reflect our singular interest in work-related behaviour.

Motivation - the processes that account for an individual’s intensity, direction and persistence of effort towards attaining a goal.

The three key elements in our definition are intensity, direction and persistence. Intensity describes how hard a person tries. This is the element that most of us focus on when we talk about motivation. However, high intensity is unlikely to lead to favourable job-performance outcomes unless the effort is channelled in a direction that benefits the organisation. Therefore, we consider the quality of effort as well as its intensity. Effort directed towards, and consistent with, the organisation’s goals is the kind of effort managers are seeking. Finally, motivation has a persistence dimension. This measures how long a person can maintain effort. Motivated individuals stay with a task long enough to achieve their goal.

Importance of Motivation

1. Motivation helps change negative attitude to positive attitude:

Motivated employees make best use of the resources and perform to their maximum level.

2. Motivation improves performance level of employees:

Motivation bridges the gap between the ability to work and willingness to work and willingness always improves efficiency.

3. Helps in Achieving the Organisational Goal:

The motivated employees always try to achieve the organisational goal and contribute their best efforts for the realisation of organisational goal and know that that can achieve help their personal goal.

4. Motivation creates Supportive Work Environment:

There is more cooperation and co-ordination in the organisation and all the employees work with the team spirit.

5. Motivation helps the managers to introduce changes:

The motivated employees show less resistance in accepting the changes according to changes in the business environment.

6. Reduction in Employees’ Turnover:

With motivation the turnovers are less because the satisfied employees do not leave the job.

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http://www.yourarticlelibrary.com/employee-management/importance-of-motivation-for-employees-employee-management/8681

Importance of Motivation:

1. Motivation helps change negative attitude to positive attitude:

Without motivation the employees try to perform minimum activities in the organisation. But the motivation fills in the desire to perform to their maximum level. All the resources of the organisation are of no use unless and until the employees use these resources. The motivated employees make best use of the resources.

2. Motivation improves performance level of employees:

The motivation improves the efficiency level of employees which means the employees start performing the job to the best of their ability with minimum wastage of time and resources because motivated employees always go for best utilisation of resources. The motivation bridges the gap between the ability to work and willingness to work and willingness always improves efficiency.

3. Helps in Achieving the Organisational Goal:

The motivated employees always try to achieve the organisational goal and contribute their best efforts for the realisation of organisational goal as they know with the achievement of organisational goal only they can achieve their personal goal. All the employees contribute their efforts in one direction of accomplishment of goal.

4. Motivation creates Supportive Work Environment:

In motivation the relations between superior and subordinates are always improved. When the employees get their need satisfied or get the recognition and respect in the organisation then they always offer a supportive hand to superiors. There is more cooperation and co-ordination in the organisation and all the employees work with the team spirit.

5. Motivation helps the managers to introduce changes:

The motivated employees show less resistance in accepting the changes according to changes in the business environment because they know if the changes are not implemented in the organisation, not only the organisation will lose by this but the employees also will find it difficult to get their needs fulfilled. Motivated employees are always supportive and co-operative in accepting changes in the organisation.

6. Reduction in Employees’ Turnover:

The motivation creates confidence in the employees to get their needs satisfied in the organisation itself. They always select the alternative to remain in the organisation and increase their earning rather than leaving the organisation and increasing their earnings. With motivation the turnovers are less because the satisfied employees never leave the job.

Early theories of motivation

Hierarchy of needs theory: As each need becomes substantially satisfied, the next need becomes dominant.

Five original needs

Physiological: hunger, thirst, shelter, etc

Safety/security: protection from physical and emotional harm

Social-belongingness: affection, belongingness, acceptance and friendship

Esteem: self-respect, autonomy, achievement, status, recognition, attention

Self-actualisation: growth, achieving our potential, self fulfillment.

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A major impetus for the neo-human relations approach was the work of Maslow who, in 1943, put forward a theoretical framework of individual personality development and motivation based on a hierarchy of human needs. The hierarchy ranges through five levels from, at the lowest level, physiological needs, through safety needs, love needs, esteem needs, to the need for self-actualisation at the highest level. Individuals only advance up the hierarchy as each lower-level need is satisfied. Although Maslow did not originally intend this need hierarchy to be applied necessarily to the work situation it has, nevertheless, had a significant impact on management approaches to motivation and the design of work organisation to meet individual needs. The work of Maslow provides a link with the earlier human relations approach.

Exhibit 7.1

Maslow’s hierarchy of needs

Source: Based on H. Skelsey, ‘Maslow’s hierarchy of needs—the sixth level’, Psychologist 27, December 2014, pp. 982–3.

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For Maslow, needs are described as progressive or a hierarchy of needs, where each lower level need has to be fulfilled before a higher need can be achieved. The 1950’s were a fruitful period in the development of motivation concepts. Maslow hypothesized that within every human being their exists a hierarchy of five needs. Maslow separated the five needs into higher and lower order needs. Psychological and safety needs are lower order needs and social, esteem and self-actualisation are high order needs. The difference is that higher order needs are satisfied internally (within the person); whereas lower order needs are predominately satisfied externally (by such things as pay and tenure).

Early theories of motivation

Frederick Herzberg’s Two-factor theory

Relates intrinsic factors to job satisfaction and associates extrinsic factors with dissatisfaction

Hygiene factors – placate workers, prevent dissatisfaction but will not satisfy. eg quality of supervision, company policies, physical work conditions, relationships with others, job security.

To motivate, emphasise factors that are intrinsically rewarding, eg promotional opportunities, personal growth, recognition, responsibility, achievement

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Herzberg’s original study consisted of interviews with 203 accountants and engineers, chosen because of their growing importance in the business world, from different industries in the Pittsburgh area of America.33 He used the critical incident method. Subjects were asked to relate times when they felt exceptionally good or exceptionally bad about their present job or any previous job. They were asked to give reasons and a description of the sequence of events giving rise to that feeling. Responses to the inter- views were generally consistent, and revealed that there were two different sets of factors affecting motivation and work. This led to the two-factor theory of motivation and job satisfaction.

One set of factors are those which, if absent, cause dissatisfaction. These factors are related to job context, they are concerned with job environment and extrinsic to the job itself. These factors are the ‘hygiene’ or ‘maintenance’ factors (’hygiene’ being used as analogous to the medical term meaning preventive and environmental). They serve to prevent dissatisfaction. The other set of factors are those which, if present, serve to motivate the individual to superior effort and performance. These factors are related to job content of the work itself. They are the ‘motivators’ or growth factors. The strength of these factors will affect feelings of satisfaction or no satisfaction, but not dissatisfaction.

Exhibit 7.2

Comparison of satisfiers and dissatisfiers

Source: Based on ‘Comparison of satisfiers and dissatisfiers’, Harvard Business Review, an exhibit from One More Time: How Do You Motivate Employees? By Frederick Herzberg, January 2003. Copyright © 2003 by the Harvard Business School Publishing Corporation. All rights reserved.

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Are you a high achiever?

You have one beanbag and five targets set up in front of you; the targets (A to E) are lined up one behind the other, at an equal distance from each other.

Which target would you try?

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E. Pays $32, almost impossible to achieve

D. Pays $16, few can hit it.

C. Pays $8, about 50% who try can hit it

B. Pays $4, 80% who try can hit it

A. Pays $2, almost within arm’s reach

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Early theories of motivation

McClelland’s theory of needs

Three important needs

Need for achievement (nAch): drive to excel

Need for power (nPow): the ability to induce or influence others’ behaviour

Need for affiliation (nAff): the desire for friendly and close interpersonal relationships.

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McClelland characterized motivation as a process of fulfilling individual needs. He believed needs were a factor of individual psychological states and that each individual displayed a dominant psychological need. McClelland’s Needs Theory was proposed by David McClelland, McClelland believed that the specific needs of the individual are acquired over time and gets molded with one’s experience. Based on three internal factors affiliation, achievement and power. The theory indicates that the person’s level of effectiveness and motivation is greatly influenced by three basic needs: power – the ability to induce or influence the behaviour of others; need for affiliation – people with a high need for affiliation derive pleasure from being loved by all and tend to avoid the pain of being rejected. Some people have an intense desire to achieve – high achievers – seek feedback, take moderate risks, are focused on delivery and satisfaction in completion.

Human resource systems can be powerful tools that have the capacity to motivate organizational members. These systems include compensation, benefits, performance management, formal and informal recognition programs, nonfinancial rewards programs, and training and career development systems. Talent management programs seek to integrate various human resource and motivation efforts that exist across an organization into a comprehensive organizational strategy. Study after study has shown absolutely NO correlation between money and happiness; other factors in your life are the true drivers of happiness. Primary issues like family satisfaction, friendships, relationships and self-esteem determine happiness. Life goals (or aspirations) organize and direct behaviour over extended periods of time. Some people place strong importance on intrinsic aspirations for personal growth, community contribution, close relationships and physical health. Other people place strong importance on extrinsic aspirations for money, fame and an appealing image.

Contemporary theories of motivation

Self-determination theory

People prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel like an obligation will undermine motivation.

Self-concordance – the degree to which people’s reasons for pursuing a goal are consistent with their interests and core values.

Goal-setting theory

Specific and difficult goals, with feedback, lead to higher performance.

Goals are powerful in shaping behavior – give direction .

Kylie worked in RSPCA a a volunteer, was later hired as full-time staff.

“I’m doing the same work I did before, but it’s not so much fun now.”

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https://www.verywellmind.com/what-is-self-determination-theory-2795387

Self-determination theory suggests that people are motivated to grow and change by three innate and universal psychological needs.

This theory suggests that people are able to become self-determined when their needs for competence, connection, and autonomy are fulfilled.

The concept of intrinsic motivation, or engaging in activities for the inherent rewards of the behavior itself, plays an important role in self-determination theory.

Self-determination theory grew out of the work of psychologists Edward Deci and Richard Ryan, who first introduced their ideas in their 1985 book Self-Determination and Intrinsic Motivation in Human Behavior. They developed a theory of motivation which suggested that people tend to be driven by a need to grow and gain fulfillment.

Two key assumptions of the theory:

The need for growth drives behavior. The first assumption of self-determination theory is that people are actively directed toward growth. Gaining mastery over challenges and taking in new experiences are essential for developing a cohesive sense of self.

Autonomous motivation is important. While people are often motivated to act by external rewards such as money, prizes, and acclaim (known as extrinsic motivation), self-determination theory focuses primarily on internal sources of motivation such as a need to gain knowledge or independence (known as intrinsic motivation).

According to self-determination theory, people need to feel the following in order to achieve psychological growth:

Competence: People need to gain mastery of tasks and learn different skills. When people feel that they have the skills needed for success, they are more likely to take actions that will help them achieve their goals.

Connection or Relatedness: People need to experience a sense of belonging and attachment to other people.

Autonomy: People need to feel in control of their own behaviors and goals. This sense of being able to take direct action that will result in real change plays a major part in helping people feel self-determined.

Imagine a person who fails to complete an important project at work. If this person is high in self-determination, they will admit their fault, believe that they can do something to fix the problem and take action to correct the mistake.

If that same person was low in self-determination, they might instead look for other things that they can blame. They might make excuses, assign blame, or refuse to admit that their own role. Most importantly, perhaps, is that this person won't feel motivated to fix the mistake. Instead, they might feel helpless to control the situation and believe that nothing that they do will have any real effect.

https://www.managementstudyguide.com/goal-setting-theory-motivation.htm

In the 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in.

The important features of goal-setting theory are as follows:

The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals. Specific and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding. Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it. Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. Feedback is a means of gaining reputation, making clarifications and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction. Employees’ participation in goal is not always desirable. Participation of setting goal, however, makes goal more acceptable and leads to more involvement. Goal setting theory has certain eventualities such as: Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the individual when they face challenging tasks. While, lower the level of self-efficiency, less will be the efforts put in by the individual or he might even quit while meeting challenges.

Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors:

Goals are made open, known and broadcasted.

Goals should be set-self by individual rather than designated.

Individual’s set goals should be consistent with the organizational goals and vision.

Contemporary theories of motivation

Self-efficacy theory

An individual’s belief that they can perform a task

Four ways of increasing self-efficacy:

Enactive mastery: gaining relevant experience with the task/job. “I’ve done it before; I am confident I can do it in the future”

Vicarious modelling: becoming more confident because I have seen someone else (similar) doing the task.

Verbal persuasion: becoming more confident because someone convinces you that you have the skills to be successful.

Arousal: An energized state (psyched-up) that drives a person to complete a task.

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https://positivepsychology.com/self-efficacy/

What Is the Meaning of Self-Efficacy? A Definition

Self-efficacy is the belief we have in our own abilities, specifically our ability to meet the challenges ahead of us and complete a task successfully (Akhtar, 2008). General self-efficacy refers to our overall belief in our ability to succeed, but there are many more specific forms of self-efficacy as well (e.g., academic, parenting, sports).

Although self-efficacy is related to our sense of self-worth or value as a human being, there is at least one important distinction.

Self-Efficacy vs. Self-Esteem

Self-esteem is conceptualized as a sort of general or overall feeling of one’s worth or value (Neill, 2005). While self-esteem is focused more on “being” (e.g., feeling that you are perfectly acceptable as you are), self-efficacy is more focused on “doing” (e.g., feeling that you are up to a challenge).

High self-worth can definitely improve one’s sense of self-efficacy, just as high self-efficacy can contribute to one’s sense of overall value or worth, but the two stand as separate constructs.

Self-Efficacy and Self-Regulation

Since self-efficacy is related to the concept of self-control and the ability to modulate your behavior to reach your goals, it can sometimes be confused with self-regulation. They are related, but still separate concepts.

Self-regulation refers to an individual’s “self-generated thoughts, feelings, and actions that are systematically designed to affect one’s learning” (Schunk & Zimmerman, 2007), while self-efficacy is a concept more closely related to an individual’s perceived abilities.

In other words, self-regulation is more of a strategy for achieving one’s goals, especially in relation to learning, while self-efficacy is the belief that he or she can succeed.

The two can be simultaneously developed—particularly through modeling—but they remain distinct constructs (Schunk & Zimmerman, 2007).

Self-Efficacy and Motivation

Similarly, although self-efficacy and motivation are deeply entwined, they are also two separate constructs. Self-efficacy is based on an individual’s belief in their own capacity to achieve, while motivation is based on the individual’s desire to achieve. Those with high self-efficacy often have high motivation and vice versa, but it is not a foregone conclusion.

Still, it is true that when an individual gains or maintains self-efficacy through the experience of success—however small—they generally get a boost in motivation to continue learning and making progress (Mayer, 2010). The relationship can also work in the other direction to create a sort of success cycle; when an individual is highly motivated to learn and succeed, they are more likely to achieve their goals, giving them an experience that contributes to their overall self-efficacy.

Self-Efficacy and Resilience

While experiences of success certainly make up a large portion of self-efficacy development, there is also room for failure. Those with a high level of self-efficacy are not only more likely to succeed, but they are also more likely to bounce back and recover from failure.

This is the ability at the heart of resilience, and it is greatly impacted by self-efficacy.

Self-Efficacy Theory in Psychology

The term “self-efficacy” is not used nearly as often in pop culture as self-esteem, confidence, self-worth, etc., but it is a well-known concept in psychology.

Albert Bandura and His Model

The psychological theory of self-efficacy grew out of the research of Albert Bandura. He noticed that there was a mechanism that played a huge role in people’s lives that, up to that point, hadn’t really been defined or systematically observed. This mechanism was the belief that people have in their ability to influence the events of their own lives.

Bandura proposed that perceived self-efficacy influences what coping behavior is initiated when an individual is met with stress and challenges, along with determining how much effort will be expended to reach one’s goals and for how long those goals will be pursued (1999).He posited that self-efficacy is a self-sustaining trait; when a person is driven to work through their problems on their own terms, they gain positive experiences that in turn boost their self-efficacy even more.

Bandura also identified four sources of self-efficacy, but we’ll get to those later.

To learn more about Bandura’s original self-efficacy theory, check out this PDF of his chapter in Ramachaudran’s Encyclopedia of Human Behavior (1994).

Contemporary theories of motivation

Reinforcement theory

Behaviour is a function of its consequences

Operant conditioning theory: a type of conditioning where desired voluntary behaviour leads to a reward or prevents a punishment.

Behaviourism: behaviour caused by environment (external stimuli) in a relatively unthinking manner.

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https://www.managementstudyguide.com/reinforcement-theory-motivation.htm

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e. individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must be designed effectively and positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s behaviour. However, it does not focus on the causes of individual’s behaviour.

The managers use the following methods for controlling the behaviour of the employees:

Positive Reinforcement- This implies giving a positive response when an individual shows positive and required behaviour. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behaviour occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward can said to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has. Negative Reinforcement- This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative reinforcement can be used for increasing desirable / required behaviour. Punishment- It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in future. In other words, punishment means applying undesirable consequence for showing undesirable behaviour. For instance - Suspending an employee for breaking the organizational rules. Punishment can be equalized by positive reinforcement from alternative source. Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer receives praise and admiration for his good work, he may feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally lower desirable behaviour. Implications of Reinforcement Theory

Reinforcement theory explains in detail how an individual learns behaviour. Managers who are making attempt to motivate the employees must ensure that they do not reward all employees simultaneously. They must tell the employees what they are not doing correct. They must tell the employees how they can achieve positive reinforcement.

Contemporary theories of motivation

Social-learning theory – an extension of operant conditioning (assumes behaviour is a function of consequences)

View that people can learn through observation and direct experience. Models are central to social learning.

Attentional processes – learn when we recognise and pay attention to critical features. Most influenced by models that are attractive, repeatedly available, important to us or similar to us.

Retention processes – how well one remembers the model’s action.

Motor reproduction processes – individual can perform the modelled activities by observing the model.

Reinforcement processes – exhibit the modelled behaviour if rewards are provided.

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Contemporary theories of motivation

Equity theory/organisational justice

Employees compare their outcome–input ratio with that of relevant others and then respond to eliminate any inequities

Four referent comparisons

Self-inside – an employee’s experiences in a different position inside their current organisation.

Self-outside – an employee’s experiences in a situation/position outside their current organisation.

Other-inside – another individual/groups inside the employee’s organisation

Other-outside – another individual/groups outside the employee’s organisation

Different types of organisational justice

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Equity Theory - Describes a psychological process where people compare the efforts put into a task and the rewards they receive with others. Employees perceive what they get from a job situation (salary, pay increases, recognition) in relationship to what they out into it (effort, experience, competence) and then compare their outcome – input ratio with that of relevant others. Employees might compare themselves with friends, neighbours’ or colleagues in other organisations to compare their present job with past jobs they themselves have had.

Equity theory A theory of motivation which focuses on people’s feelings of how fairly they have been treated in comparison with the treatment received by others.

https://www.mindtools.com/pages/article/newLDR_96.htm

Understanding the Theory

Adams' Equity Theory is named for John Stacey Adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963. Much like many of the more prevalent theories of motivation (such as Maslow's Hierarchy of Needs

and Herzberg's Two-Factor Theory), Adams' Equity Theory acknowledges that subtle and variable factors affect an employee's assessment and perception of their relationship with their work and their employer.

The theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs. Employees can be expected to respond to this is different ways, including de-motivation (generally to the extent the employee perceives the disparity between the inputs and the outputs exist), reduced effort, becoming disgruntled, or, in more extreme cases, perhaps even disruptive.

How to Apply the Adams' Equity Theory

It is important to also consider the Adams' Equity Theory factors when striving to improve an employee's job satisfaction, motivation level, etc., and what can be done to promote higher levels of each.

To do this, consider the balance or imbalance that currently exists between your employee's inputs and outputs, as follows:

Inputs typically include:

Effort.

Loyalty.

Hard work.

Commitment.

Skill.

Ability.

Adaptability.

Flexibility.

Acceptance of others.

Determination.

Enthusiasm.

Trust in superiors.

Support of colleagues.

Personal sacrifice.

Types of Organisational justice

Perception of fairness in organisations

Distributive justice – how fair is what I received for my work?

Procedural justice – how fair is the process that leaders use to make decisions? Eg, are ther favoritism or unwillingness to listen to others’ views

Interactional justice – to what degree do leaders treat people with dignity, respect and emotional support? Eg during pay-cuts or lay-offs

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Exhibit 7.5

Model of organisational justice

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Perceived Justice - Justice describes where employees perceived that the organisation is fair or not to them. There are four important types of justice relevant to motivation theory. Distributive justice describes fairness in how rewards and resources are distributed across an organization. Procedural justice describes fairness in how decisions are reached and how outcomes are determined. Interpersonal justice describes fairness in how people interact and are treated. Informational justice describes fairness in what information is used and communicated within the organisation. Managers can help foster employee’s perception of fairness. First, they should realise that employees are especially sensitive to unfairness in procedures when bad news has to be communicated (i.e. distributive justice is low). It is especially important to openly share information about how allocation decisions are made, follow consistent and unbiased procedures, and engage in similar practices to increase the perception of procedural justice. When addressing perceived injustices, managers need to focus their actions on the source of the problem.

Recent research has expanded the meaning of equity, or fairness. Historically, equity theory focused on distributive justice, the employee’s perceived fairness of the amount and allocation of rewards among individuals. But increasingly we think of equity from the standpoint of organisational justice, a larger perception of what’s fair in the workplace. Employees perceive their organisations as fair when they believe that the outcomes they’ve received and the way they’ve received them are fair. One key element of organisational justice is an individual’s perception of justice. In other words, fairness or equity can be subjective, residing in our perception. What one person sees as unfair another may see as perfectly appropriate. In general, people have an egocentric, or self-serving, bias. They see allocations or procedures favouring them as fair. In one poll, 61% of respondents said they were paying their fair share of taxes, but an almost equal number (54%) felt the system as a whole was unfair, saying that some people skirt it.

Beyond its focus on perceptions of fairness, the other key element of organisational justice is the view that justice is multidimensional. How much we are paid relative to what we think we should be paid (distributive justice) is obviously important. But, according to researchers, how we get paid is just as important. Thus, the model of organisational justice in Exhibit 7.5 includes procedural justice—the perceived fairness of the process used to determine the distribution of rewards. Two key elements of procedural justice are process control and explanations. Process control is the opportunity to present your point of view about desired outcomes to decision makers. Explanations are clear reasons management gives for the outcome. Therefore, for employees to see a process as fair, they need to feel that they have some control over the outcome and that they were given an adequate explanation about why the outcome occurred. It’s also important that a manager is consistent (across people and over time), is unbiased, makes decisions based on accurate information and is open to appeals.62

Contemporary theories of motivation

Expectancy theory

The strength of a tendency to act in a certain way depends on the strength of our expectation of a given outcome and the attractiveness of that outcome.

Three relationships

Effort–performance relationship: exerting a given amount of effort will lead to performance.

Performance–reward relationship: believes that performing at a particular level will lead to attainment of a desired outcome.

Rewards–personal goals relationship: organisational rewards that can satisfy one’s goals/needs and the attractiveness of those potential rewards.

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Expectancy Theory - Employees will exert effort at a task to the degree that they believe that effort will result in improved performance, which in turn will result in something of value. One of the most widely accepts explanations of motivation is Victor Vroom’s expectancy theory. Although the theory has its critics, most of the evidence supports it. Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of our expectation of a given outcome. Employees will be motivated to exert a high level of effort when they believe that doing so will lead to a good performance appraisal which could lead to a promotion or bonus, and the rewards will satisfy the employees personal goals.

https://www.managementstudyguide.com/expectancy-theory-motivation.htm

The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.

The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.

Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships:

Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal?

Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards.

Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.

Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality.

Exhibit 7.6

Expectancy theory

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Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of our expectation of a given outcome and the attractiveness of that outcome. In more practical terms, employees will be motivated to exert a high level of effort when they believe that doing so will lead to a good performance appraisal; that a good appraisal will lead to organisational rewards such as bonuses, salary increases or promotions; and that the rewards will satisfy the employees’ personal goals. The theory, therefore, focuses on three relationships (see Exhibit 7.6):

effort–performance relationship—the probability perceived by the individual that exerting a given amount of effort will lead to performance

performance–reward relationship—the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome

rewards–personal goals relationship—the degree to which organisational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards to the individual.

Expectancy theory helps explain why a lot of workers aren’t motivated in their jobs and do only the minimum necessary to get by. Let’s frame the theory’s three relationships as questions that employees need to answer in the affirmative if their motivation is to be maximised.

Applied motivation: job design

The job characteristics model (J C M): any job can be described in terms of five core dimensions

Skill variety: job requires a variety of different skills and talents

Task identity: a job requires completion of a whole and identifiable piece of work.

Task significance: job has an impact on the lives or work of other people

Autonomy: worker’s freedom, independence and discretion with scheduling and planning their work

Feedback: work generates direct and clear information about the worker’s performance

Motivating potential score (M P S)

MPS =

x Autonomy x Feedback

Skill variety + Task identity + Task significance

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Job characteristics that motivate work behaviors fall into five dimensions. Skill variety allows members to engage multiple skills and abilities in a challenging environment. Task identity occurs when a member works on the job from start to finish and takes personal ownership of the process. Task significance is when work performed by a member of the organization makes a positive impact on the organisation, society, or group. Autonomy occurs when organizational members can complete the task without significant oversight or interruption from their boss, other workers, or regulators. Feedback is when organisational members receive regular input and evaluation on their performance. The job characteristics model – skill variety, task identity and task significance combine to create meaningful work that the employee will view as important, valuable and worthwhile. Jobs high in autonomy give employees a sense of personal responsibility for the results if the job provides feedback, employees know how they are performing. From a motivational viewpoint, the job characteristics model says that individuals obtain internal rewards when they learn (knowledge of results); that they personally experienced responsibility and performed well on a task that they care about (meaningfulness).

https://www.toolshero.com/human-resources-hr/job-characteristics-model/

According to the definitive version of the Job Characteristics Model, five core job characteristics were to invoke three psychological states in employees. These five characteristics lead to a lot of favourable personal and work results. The moderators must moderate the connections between the job characteristics and psychological states, and between the psychological states and the outcomes. Hackman and Oldham define the five job characteristics as follows:

Skill Variety

Skill variety refers to the degree to which a job demands different activities in the execution of the tasks, where various skills and talents of the working person are used. A monotonous job with repetitive tasks doesn’t help the employee to develop a variety of talents. A worker who does alternating work is probably more satisfied with his job than a person who routinely produces the same work each and every day. Having different tasks, more responsibility and more independence will be beneficial to a person’s intrinsic motivation.

Task Identity

This is the degree to which the work demands a complete process or product. This means that a certain job within the package of tasks has a clear beginning and ending, allowing a person to work on a complete process rather than small parts. Employees often value carrying out a complete process. Such a work cycle ensures that they are more involved in their work and will most likely feel more responsible than their colleagues who only take on a small part of the process.

Task Significance

Task significance is the degree to which the job has a substantial impact on the lives of other people within the organisation, but also on society as a whole. Feeling the meaningfulness of work is important for the employee’s motivation. This can be encouraged when they help others to improve in a physical, financial, psychological or any other field.

Autonomy

Autonomy within a job refers to the degree to which an employee can work independently. The freedom to plan the workday and set up new procedures that must be followed increases one’s sense of responsibility, which in turn benefits motivation. Within managerial positions, supervisory and ministerial positions, employees often enjoy a higher level of autonomy, but this isn’t just the case for managerial or high positions. Other employees can also have a strong sense of responsibility and autonomy when they’re given the freedom to carry out their tasks independently by means of personal initiatives.

Feedback

For the performance of the employees, it’s important that they are informed of the effectiveness of their recent performances. Feedback can also have a positive effect on their motivation. When managers tell employees they’re doing a good job, this will motivate them to continue in the same way. When they hear that their actions didn’t meet the requirements, they will respond accordingly and try to improve their performance.

Indexing Scores

Scores can be given to all five indicators, which are subsequently combined. This number functions as an indicator for the general motivating potential of a task or job that is examined. The number, the index, will represent how the job positively or negatively impacts the employee’s attitude and behaviour.

The number is called the MPS, the Motivating Potential Score. The formula for calculating the MPS is as follows:

MPS = (skill variety + task identity + task significance) / 3 * autonomy * feedback

According to Hackman and Oldham, a low MPS score means that employees don’t experience high intrinsic motivation and that the job or task must be redesigned. From the equation, the conclusion can be drawn that feedback and autonomy have more impact on motivation than the other indicators. Furthermore, Hackman and Oldham indicate that an employee can only experience the three psychological states if they have a high score on all five indicators.

Exhibit 7.7

The job characteristics model

Source: Based on J. L. Pierce, I. Jussila and A. Cummings, ‘Psychological ownership within the job design context: revision of the job characteristics model’, Journal of Organizational Behavior 30, no. 4, 2009 pp. 477–96.

jcu.edu.au

Exhibit 7.7 presents the job characteristics model. Note how the first three dimensions—skill variety, task identity and task significance—combine to create meaningful work that the employee will view as important, valuable and worthwhile. Note, too, that jobs with high autonomy give employees a feeling of personal responsibility for the results and that, if a job provides feedback, employees will know how effectively they’re performing. From a motivational viewpoint, the job characteristics model says that individuals obtain internal rewards when they learn (knowledge of results) that they personally (experienced responsibility) have performed well on a task they care about (experienced meaningfulness). The more these three psychological states are present, the greater will be the employees’ motivation, performance and satisfaction, and the lower their absenteeism and likelihood of leaving. As Exhibit 7.7 shows, individuals with a high growth need are more likely to experience the critical psychological states when their jobs are enriched—and respond to them more positively—than are their counterparts with a low growth need.

Much evidence supports the job characteristics model. That is, there’s a set of job characteristics—variety, identity, significance, autonomy and feedback—and the presence of these characteristics does generate higher and more satisfying job performance. But apparently we can better calculate motivating potential by simply adding the characteristics rather than using the formula.Take some time to think about your job. Do you have the opportunity to work on different tasks or is your day very routine? Are you able to work independently or do you constantly have a supervisor or colleague monitoring your work? Your answers indicate your job’s motivating potential.

How useful a tool is the job characteristics model in designing jobs? Recent research indicates that the model needs to be modified to include psychological aspects of job design. This research suggests there’s a strong correlation between successful job design, the motives that facilitate psychological ownership, the way this ownership emerges and individual-level outcomes for the employee. In other words, the degree to which an individual employee feels psychological ownership of their job is a powerful mediator in the job design–employee response relationship.

How can jobs be redesigned?

Job rotation

Periodic shifting of an employee from one task to another

Job enrichment

Adding high-level responsibilities to a job to increase intrinsic motivation

Can you think of other ideas to redesign jobs?

Can you provide some examples?

Type your answer in:

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https://ergo-plus.com/job-rotation/

Job rotation is the structured interchange of workers between different jobs, requiring workers to rotate between different workstations or jobs at certain time intervals.

Job rotation increases the variety of tasks required as the worker takes on more duties, enlarging the physical demands and adding variety to the job.

The objective is to provide a consistent and systematic method of developing formal job rotations that are based on the requirements of the jobs being rotated.

It’s important to remember that job rotation doesn’t eliminate ergonomic risk factors. While job rotation is an effective control measure for jobs that have been identified as “problem” or “high-risk” jobs, it is not desirable that ergonomic risk factors are “hidden” by administrative controls.

Obviously, ergonomic problems should be addressed and fixed whenever possible. With the above “caution” being stated, it’s equally important to recognize the many great benefits to implementing job rotation in the workplace.

Benefits of Job Rotation

Many studies have identified a variety of benefits from implementing job rotation including:

Reduced exposure to focused physical demands of one job.

Reduced physiological stress, strain, and fatigue to muscle group used for one job.

Reduces employee exposure to high-risk job demands.

Reduced MSD incidents and severity.

Increased innovation and improved work process efficiency.

Improves employee skill base and increases job assignment flexibility over time.

Reduced boredom and complacency.

Increased productivity & quality.

Reduced absenteeism & turnover.

Potential Barriers to Job Rotation

There are several potential barriers and difficulties with implementing job rotation, the following are some of them:

Not all jobs and departments are a good fit for job rotation.

Short-term productivity losses and product quality issues.

Workers not wanting to rotate because they have an “easier job”.

Workers not wanting to change jobs or learn new work tasks for a variety of reasons.

Workers not wanting to give up “their job” to others.

Workers not qualified for some jobs due to restrictions or ability.

Union or other workplace policies related to job bidding and compensation.

Supervisors are not convinced that the benefits are worth the perceived costs.

Supervisors perceive that implementation and management of job rotation is very difficult.

Group leaders and trainers tend to focus on the short term costs rather than the long-term benefits, and perceive that the costs are too high for them verses the benefits.

Supervisors and group leaders not wanting to “fight” employees who don’t want to rotate.

Job rotation is the most basic form of individual job redesign. Job rotation involves moving a person from one job or task to another. It attempts to add some variety and to help remove boredom, at least in the short term. However, if the tasks involved are all very similar and routine, then once the person is familiar with the new task the work may quickly prove boring again. Job rotation may lead to the acquisition of additional skills but does not necessarily develop the level of skills. Strictly, job rotation is not really job design because neither the nature of the task nor the method of working is restructured. However, job rotation may help the person identify more with the completed product or service. It can also be used as a form of training and a means of establishing connections.

Job enrichment is an extension of the more basic job rotation and job enlargement methods of job design. Job enrichment arose out of Herzberg’s two-factor theory. It attempts to enrich the job by incorporating motivating or growth factors such as increased responsibility and involvement, opportunities for advancement and the sense of achievement. Job enrichment involves vertical job enlargement. It aims to give the person greater autonomy and authority over the planning, execution and control of their own work. It focuses attention on intrinsic satisfaction. Job enrichment increases the complexity of the work and should provide the person with a more meaningful and challenging job. It provides greater opportunities for psychological growth.

Alternative work arrangements

Flexitime: flexible work hours

Job sharing: allows two or more individuals to split a traditional 40-hour-a-week job

Telecommuting: working at home at least two days per week on a computer linked to the employee’s office

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Demands for greater flexibility may afford opportunities for employers to have more freedom and control over their working arrangements. Flexible working arrangements are a range of options designed to help employees balance work and home lif

Atkinson’s idea of the flexible organisation suggests that firms are really looking for three kinds of flexibility:

functional flexibility in order to permit the rapid redeployment of employees among different activities and tasks (perhaps involving the practice of multi-skilling);

numerical flexibility in order to restructure so as to adjust the number of employees to match the level of demand for labour;

financial flexibility in order that pay and other employment costs reflect the supply and demand of labour and in order to shift to new pay and remuneration systems.

As a result, Atkinson suggests that flexible firms have attempted to develop an organisation structure based on a central, stable ‘core’ group of full-time permanent career employees who undertake the organisation’s key, firm-specific activities and with emphasis on functional flexibility; supported by peripheral and numerically flexible groups of workers including agency temporaries, subcontracting, self-employed and part-time staff, whose numbers, in theory, can expand or contract according to market conditions.

https://www.thebalancecareers.com/job-share-good-and-bad-1918169

A job share occurs when two employees cooperatively share the same job. There are advantages, disadvantages, challenges, and opportunities when employees job share. As an employer, a job share can benefit both the employee and you.

You have the advantage of keeping your best and brightest employees when life events make full time work a challenge. The employee benefits from the increased flexibility—a must-have for your Gen Y and Gen Z employees.

Here are the advantages and disadvantages of a job share.

https://www.thebalancecareers.com/what-is-telecommuting-2062113

Telecommuting (also known as working from home, or e-commuting) is a work arrangement in which the employee works outside the office, often working from home or a location close to home (including coffee shops, libraries, and various other venues).

Rather than traveling to the office, the employee “travels” via telecommunication links, keeping in touch with coworkers and employers via telephone and email.

The worker may occasionally enter the office to attend meetings and touch base with the employer. However, with many options for distance conferencing, there may be no need to visit the office.

Applied motivation: employee involvement

Examples of employee involvement programs

Participative management: subordinates share in decision making with their immediate superiors.

Representative participation: workers participate in organisational decision making through a small group of representative employees.

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Employee involvement is a participative process that uses employees’ input to increase their commitment to the success of an organisation. The logic is that if we engage employees in decisions that affect them and increase their autonomy and control over their work lives, they will become more motivated, more committed to the organisation, more productive and more satisfied with their jobs.

The distinct characteristic common to all participative management programs is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors. Participative management has, at times, been promoted as the ultimate cure for poor morale and low productivity. But for it to work, the issues employees become engaged with must be relevant to their interests, employees must have the competence and knowledge to make a useful contribution, and there must be trust and confidence among all parties. Participative management - process in which subordinates share a significant degree of decision-making power with their immediate superiors.

Dozens of studies have been conducted on the participation–performance relationship. The findings, however, are mixed. Organisations that institute participative management do have higher share returns, lower turnover rates and higher estimated labour productivity, although these effects are typically not large.103 A careful review of the research at the individual level shows that participation typically has only a modest influence on variables such as employee productivity, motivation and job satisfaction. Of course, this doesn’t mean that participative management can’t be beneficial under the right conditions. What it says is that it’s not a sure means for improving employee performance.

Representative participation

Almost every country in Western Europe requires companies to practise representative participation, called ‘the most widely legislated form of employee involvement around the world’. Its goal is to redistribute power within an organisation, putting labour on a more equal footing with the interests of management and shareholders by letting workers be represented by a small group of employees who actually participate.

Linking employee involvement programs and motivation theories

Employee involvement draws on a number of the motivation theories discussed previously. In terms of two-factor theory, employee involvement programs could provide intrinsic motivation by increasing opportunities for growth, responsibility and involvement in the work itself. The opportunity to make and implement decisions—and then see them work out—can help satisfy an employee’s need for responsibility, achievement, recognition, growth and enhanced self-esteem. And extensive employee involvement programs clearly have the potential to increase employee intrinsic motivation in work tasks.

Linking employee involvement programs and motivation theories

Employee involvement draws on motivational theories.

Employee involvement program provides intrinsic motivation by increasing opportunities for growth, responsibility & involvement in the work (two-factor theory).

Opportunity to make and implement decisions satisfy employee’s need for responsibility, achievement, recognition, growth, enhanced self-esteem.

An extensive employee involvement programs have the potential to increase employee intrinsic motivation in work tasks.

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Representative participation

Linking employee involvement programs and motivation theories

Applied motivation: rewarding employees

What to pay: establishing a pay structure

How to pay: rewarding individual employees through variable-pay programs

Piece-rate pay

Merit-based pay

Bonuses

Profit-sharing plans

Evaluation of variable pay

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Applied motivation: rewarding employees

Flexible benefits: developing a benefits package individually tailored to one’s needs and situation.

Intrinsic rewards: employee recognition programs

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Flexible benefits: developing a benefits package

Todd and Emily both work for Coca-Cola Amatil (CCA), but they have very different needs in terms of employee benefits. Todd is married, with three young children and a wife who is at home full-time. Emily, too, is married, but her husband has a high-paying job with the federal government and they have no children. Todd has heart disease and he is concerned about having access to paid sick leave and enough life insurance to support his family if he wasn’t around. In contrast, Emily and her husband are both in excellent health, and sick leave and life insurance are low priorities for them. Emily is more interested in extra holiday time and long-term financial benefits such as a tax-deferred savings plan.

A standardised benefit package for all employees at CCA would be unlikely to meet the optimal needs of both Todd and Emily. They could, however, optimise their needs if CCA offered flexible benefits.

Consistent with expectancy theory’s thesis that organisational rewards should be linked to each individual employee’s goals, flexible benefits individualise rewards by allowing each employee to choose the compensation package that best satisfies their current needs and situation. These plans replace the ‘one-benefit-plan-fits-all’ programs designed for a male with a wife and two children at home that dominated organisations for more than 50 years.120 Fewer than 10% of employees now fit this image: about one-quarter are single and one-third are part of two-income families with no children. Flexible benefits can accommodate differences in employee needs based on age, health, marital status, spouse’s benefit status, number and age of dependants and the like.

Flexible benefits - benefits plan that allows each employee to put together a benefits package individually tailored to their own needs and situation.

Intrinsic rewards: employee recognition programs

Laura makes only $17.50 an hour working at her fast-food job in Brisbane and the job isn’t very challenging or interesting. Yet Laura talks enthusiastically about her job, her boss and the company that employs her. ‘What I like is the fact that Guy [her supervisor] appreciates the effort I make. He compliments me regularly in front of the other people on my shift, and I’ve been chosen ‘Employee of the Month’ twice in the past six months. Did you see my picture on that plaque on the wall?’

Organisations are increasingly recognising what Laura knows: important work rewards can be both intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems.

Employee recognition programs range from a spontaneous and private ‘thank you’ to widely publicised formal programs in which specific types of behaviour are encouraged and the procedures for attaining recognition are clearly identified. Non-cash recognition can benefit levels of employee engagement and may be used effectively as a performance management tool. Recent research indicates that non-cash recognition for employees is very common among for-profit and public sector organisations, both in Australia and overseas. In multinational corporations, centralised programs across multiple offices in different countries can help ensure that all employees, regardless of where they work, can be recognised for their contribution to the work environment.

Research suggests that financial incentives may be more motivating in the short term, but in the long run nonfinancial incentives work best.122 Surprisingly, there’s not a lot of research on the motivational outcomes or global use of employee recognition programs. However, recent studies indicate that

Summary

Many early theories of motivation focused on the needs that employees have along with the consequences of need satisfaction.

Most contemporary theories focus on intrinsic and extrinsic motivation; setting goals in organisations; self-efficacy; reinforcement; and our expectations regarding effort, performance, reward, and outcome relationships.

Motivation is the key to understanding employees’ contributions to their work, including job engagement.

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Motivation describes the processes (e.g. intensity, direction and persistence) underlying how employees and other individuals in the workplace direct their efforts towards a goal. Although not well supported, many early foundational theories of motivation focused on the needs that employees have along with the consequences of need satisfaction. More contemporary theories focus on topics such as intrinsic and extrinsic motivation; setting goals in organisations; self-efficacy; reinforcement; and our expectations regarding effort, performance, reward and outcome relationships. Beyond these theories, various forms of organisational justice (e.g. distributive, procedural and interactional), all deriving from equity theory, are important in motivating employees. Motivation is key to understanding employees’ contributions to their work, including their job engagement. Overall, motivation underlies how and why employees exert effort to engage in performance activities, which in turn meet personal or organisational goals.

Understanding what motivates individuals is ultimately key to organisational performance. Employees whose differences are recognised, who feel valued, and who can work in jobs tailored to their strengths and interests will be motivated to perform at the highest levels. Employee participation can also increase employee productivity, commitment to work goals, motivation and job satisfaction. However, we can’t overlook the powerful role of organisational rewards in influencing motivation. Pay, benefits and intrinsic rewards must be designed carefully and thoughtfully to enhance employee motivation towards positive organisational outcomes.

Implications for managers

Make sure extrinsic rewards for employees are not viewed as coercive but instead provide information about competence and relatedness.

Either set or inspire your employees to set specific, difficult goals and provide quality, developmental feedback on their progress towards those goals.

Try to align or tie employee goals to the goals of your organisation.

Model the types of behaviours you’d like to see performed by your employees.

Expectancy theory offers a powerful explanation of performance variables such as employee productivity, absenteeism and turnover.

When making decisions regarding resources in your organisation, make sure to consider how the resources are being distributed (and who is affected), the fairness of the decision and whether your actions demonstrate that you respect those involved.

Recognise individual differences. Spend the time necessary to understand what’s important to each employee. Design jobs to align with individual needs and maximise their motivation potential.

Use goals and feedback. You should give employees firm, specific goals and they should get feedback on how well they’re faring in pursuit of those goals.

Allow employees to participate in decisions that affect them. Employees can contribute to setting work goals, choosing their own benefits packages and solving productivity and quality problems.

Link rewards to performance. Rewards should be contingent on performance, and employees must perceive the link between the two.

Check the system for equity. Employees should perceive that individual effort and outcomes explain differences in pay and other rewards.

Workshop Activity – organisational justice

Using the learning from today’s lecture, answer the following questions:

Recall an instance when you were (a) treated especially fairly and (b) treated especially unfairly. Work-related instances are preferable, but non-work examples are fine too.

Was the instance more distributive, procedural or interactional in nature. What was the source of the fair/unfair treatment? How did you feel, and how did you respond?

Develop some recommendations to handle unfair situations in a positive manner for distributive, procedural and interactional organisational justice.

Post your answer to LearnJCU, subject homepage, Workshop discussions,

Workshop 4: Organisational justice

You need to post first before you can see others’ postings. This board is opened till 7 December 12:00 noon

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