Management Course: Discussion Topic 3

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Foundations of Employee Motivation

McGraw-Hill/Irwin

McShane/Von Glinow OB 5e

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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Employee Motivation and Engagement at Rackspace

Rackspace hosting has a highly motivated and engaged workforce by rewarding performance, fulfilling personal needs, and providing strengths-based feedback.

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Motivation Defined

  • The forces within a person that affect the direction, intensity, and persistence of voluntary behavior
  • Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction).

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Employee Engagement

Emotional and cognitive motivation, self-efficacy to perform the job, a clear understanding of one’s role in the organization’s vision and a belief that one has the resources to perform the job

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Drives and Needs

  • Drives (aka-primary needs, fundamental needs, innate motives)
  • Neural states that energize individuals to correct deficiencies or maintain an internal equilibrium
  • Prime movers of behavior by activating emotions

Self-concept, social norms,
and past experience

Drives

(primary needs)

Needs

Decisions and Behavior

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Drives and Needs

  • Needs
  • Goal-directed forces that people experience.
  • Drive-generated emotions directed toward goals
  • Goals formed by self-concept, social norms, and experience

Self-concept, social norms,
and past experience

Drives

(primary needs)

Needs

Decisions and Behavior

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Self-actual-ization

Physiological

Safety

Belongingness

Esteem

Seven categories capture most needs

Five categories placed in a hierarchy

Need to

know

Need for beauty

Maslow’s Needs Hierarchy Theory

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Maslow’s Needs Hierarchy Theory

  • Lowest unmet need has strongest effect
  • When lower need is satisfied, next higher need becomes the primary motivator
  • Self-actualization -- a growth need because people desire more rather than less of it when satisfied

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Evaluating Maslow’s Theory

  • Lack of support for theory
  • People have different hierarchies – don’t progress through needs in the same order
  • Needs change more rapidly than Maslow stated

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What Maslow Contributed to Motivation Theory

  • More holistic
  • Integrative view of needs
  • More humanistic
  • Influence of social dynamics, not just instinct
  • More positivistic
  • Pay attention to strengths, not just deficiencies

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What’s Wrong with Needs Hierarchy Models?

  • Wrongly assume that everyone has the same needs hierarchy (i.e. universal)
  • Instead, likely that each person has a unique needs hierarchy
  • Shaped by our self-concept -- values and social identity

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Learned Needs Theory

  • Needs are amplified or suppressed through self-concept, social norms, and past experience
  • Therefore, needs can be “learned” (i.e. strengthened or weakened through training)

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Three Learned Needs

Need for achievement

  • Need to reach goals, take responsibility
  • Want reasonably challenging goals

Need for affiliation

  • Desire to seek approval, conform to others wishes, avoid conflict
  • Effective executives have lower need for social approval

Need for power

  • Desire to control one’s environment
  • Personalized versus socialized power

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Four-Drive Theory

Drive to Bond

Drive to Learn

• Drive to form relationships and

social commitments

• Basis of social identity

• Drive to satisfy curiosity and

resolve conflicting information

Drive to Defend

• Need to protect ourselves

• Reactive (not proactive) drive

• Basis of fight or flight

Drive to Acquire

• Drive to take/keep objects and

experiences

• Basis of hierarchy and status

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Features of Four Drives

Innate and hardwired

  • everyone has them

Independent of each other

  • no hierarchy of drives

Complete set

  • no drives are excluded from the model

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How Four Drives Affect Motivation

Four drives determine which emotions are automatically tagged to incoming information

Drives generate independent and often competing emotions that demand our attention

Mental skill set relies on social norms, personal values, and experience to transform drive-based emotions into goal-directed choice and effort

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Four Drive Theory of Motivation

Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort

Drive to Acquire

Social norms

Drive to Bond

Drive to Learn

Drive to Defend

Personal values

Past experience

Mental skill set resolves competing drive demands

Goal-directed
choice and effort

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Implications of Four Drive Theory

Provide a balanced opportunity for employees to fulfil all four drives

  • employees continually seek fulfilment of drives
  • avoid having conditions support one drive more than others

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Outcome 1

+ or -

Effort

Performance

Outcome 3

+ or -

Outcome 2

+ or -

Expectancy Theory of Motivation

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Increasing E-to-P and P-to-O Expectancies

  • Increasing E-to-P Expectancies
  • Assuring employees they have competencies
  • Person-job matching
  • Provide role clarification and sufficient resources
  • Behavioral modeling
  • Increasing P-to-O Expectancies
  • Measure performance accurately
  • More rewards for good performance
  • Explain how rewards are linked to performance

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Increasing Outcome Valences

  • Ensure that rewards are valued
  • Individualize rewards
  • Minimize countervalent outcomes

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Making Every Day Count in NYC

New York City mayor Michael Bloomberg has challenging goals to accomplish, and he doesn’t want any of his remaining tenure wasted. Bloomberg had special clocks installed in a dozen city government offices that count down how many days remain in his mayoral term.

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Goal Setting

The process of motivating employees and clarifying their role perceptions by establishing performance objectives

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Effective Goal Setting Characteristics

Specific -- measureable change within a time frame

Relevant – within employee’s control and responsibilities

Challenging – raise level of effort

Accepted (commitment) – motivated to accomplish the goal

Participative (sometimes) – improves acceptance and goal quality

Feedback – information available about progress toward goal

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Characteristics of Effective Feedback

Specific – connected to goal details

Relevant – Relates to person’s behavior

Timely – to improve link from behavior to outcomes

Sufficiently frequent

  • Employee’s knowledge/experience
  • task cycle

Credible – trustworthy source

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Feedback Through Strengths-Based Coaching

  • Maximizing the person’s potential by focusing on their strengths rather than weaknesses
  • Motivational because:
  • people inherently seek feedback about their strengths, not their flaws
  • person’s interests, preferences, and competencies stabilize over time

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Multisource Feedback

  • Received from a full circle of people around the employee
  • Provides more complete and accurate information
  • Several challenges

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Evaluating Goal Setting and Feedback

  • Goal setting has high validity and usefulness
  • Goal setting/feedback limitations:
  • Focuses employees on measurable performance
  • Motivates employees to set easy goals (when tied to pay)
  • Goal setting interferes with learning process in new, complex jobs

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Keeping Pay Equitable at Costco

Costco Wholesale CEO Jim Sinegal (shown in this photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong,” says Sinegal, whose salary and bonus are a much smaller multiple of what his staff earn.

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Organizational Justice

Distributive justice

  • Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others

Procedural justice

  • Perceived fairness of the procedures used to decide the distribution of resources

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Distribution

Principles

Structural

Rules

Social

Rules

Organizational Justice Components

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Elements of Equity Theory

Outcome/input ratio

  • inputs -- what employee contributes (e.g., skill)
  • outcomes -- what employee receives (e.g., pay)

Comparison other

  • person/people against whom we compare our ratio
  • not easily identifiable

Equity evaluation

  • compare outcome/input ratio with the comparison other

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Correcting Inequity Feelings

Actions to correct inequity

Example

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Reduce our inputs Less organizational citizenship
Increase our outcomes Ask for pay increase
Increase other’s inputs Ask coworker to work harder
Reduce other’s outputs Ask boss to stop giving other preferred treatment
Change our perceptions Start thinking that other’s perks aren’t really so valuable
Change comparison other Compare self to someone closer to your situation
Leave the field Quit job

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Equity Sensitivity

  • Outcome/input preferences and reaction to various outcome/input ratios
  • Benevolents
  • tolerant of being underrewarded
  • Equity Sensitives
  • want ratio to be equal to the comparison other
  • Entitleds
  • prefer proportionately more than others

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Evaluating Equity Theory

  • Good at predicting situations unfair distribution of pay/rewards
  • Difficult to put into practice
  • doesn’t identify comparison other
  • doesn’t indicate relevant inputs or outcomes
  • Equity theory explains only some feelings of fairness
  • procedural justice is as important as distributive justice

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Procedural Justice

  • Perceived fairness of procedures used to decide the distribution of resources
  • Higher procedural fairness with:
  • Voice
  • Unbiased decision maker
  • Decision based on all information
  • Existing policies consistently
  • Decision maker listened to all sides
  • Those who complain are treated respectfully
  • Those who complain are given full explanation

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Foundations of Employee Motivation

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McGraw-Hill/Irwin

McShane/Von Glinow OB 5e

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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