Analysis Paper

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Motivation

Chapter 6

Welcome to Chapter 6 of the slides that accompany the 3rd edition of Colquitt-LePine-Wesson. I’m Jason Colquitt, and I’ll use this Notes field to provide hints and background on each slide. These are variations of the slides I myself use to teach both undergraduates, traditional MBA’s, and executive MBA’s. If you have any questions or comments about these slides, please feel free to email me at [email protected].

Note that these slides will sometimes refer to the Instructor’s Manual, which I also write for the book. In particular, the slides will refer to the Try This! feature in the manual. That feature is designed to supply some helpful hints to spice up your lectures. Note that the Instructor’s Manual includes other helpful features as well, including OB on Screen hints, Asset Gallery tie-ins, Bonus Cases from prior editions of the book, and Businessweek Cases.

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Class Agenda

Motivation defined
Theories of motivation
Expectancy theory
Goal setting theory
Equity theory
Psychological empowerment
How important is motivation?
Best practices

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Here’s the integrative model that reminds students of where they are, where they’ve been, and where they’re going.

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Why Are Some Employees
More Motivated than Others?

This slide is intentionally blurry.

Beginning with Chapter 4, each set of slides presents a “question of the day.” The question is a “why” question that the theories, models, and concepts discussed in the chapter will help to answer.

The blurriness of the slide will make sense when we return to it near the conclusion of the file. But the blurriness conveys that students already have some ideas about the question of the day. But those ideas lack the clarity of the answers that scientific research can provide.

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Motivation Defined

A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity, and persistence
What do you do?
How hard do you do it?
How long do you do it?

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Theories of Motivation

Several theories attempt to summarize the key factors that foster high motivation:
Expectancy theory
Goal setting theory
Equity theory
Psychological empowerment

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Expectancy Theory

Motivation is fostered when the employee believes three things:
That effort will result in performance
That performance will result in outcomes
That those outcomes will be valuable

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Expectancy Theory

A good example to use for this theory is students’ motivation in the course. The most motivated students have a confidence that if they try hard, they can do well on assignments (expectancy). They also see a clear linkage between doing well on assignments and earning a good grade (instrumentality). Finally, they see a lot of value in good grades (valence).

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Expectancy

Effort → Performance
Can be hindered by:
Lack of necessary resources
Lack of supportive leadership
Low self-efficacy

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Expectancy

Try This! Ask the students if there are any current or former athletes in the room. Then ask them to think about the things their coaches would say during practices, before games, or during games. Did those things reflect the sources of self-efficacy, such as past accomplishments, verbal persuasion, or emotional cues? Can any students provide some good example quotes?

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Instrumentality

Performance → Outcomes
Can be hindered by:
Poor methods for measuring performance, as Instrumentality could actually be rewritten to be Performance → Evaluation → Outcomes
Inadequate budget to provide outcomes, even when performance is high
Use of policies that reward things besides performance, such as attendance or seniority
Time delays in doling out rewards

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Valence

Anticipated value of outcomes
Extrinsic
Intrinsic

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Valence

It’s helpful to return to the example of motivation in the course for this slide. Motivation will be increased if the outcome that students attach to doing well is not just a good grade, but also a sense of accomplishment, knowledge gain, skill development, and so forth.

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Valence

Why does pay have such a high valence?
The meaning of money
Achievement
Respect
Freedom

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Achieve

Respect

Freedom

The average scores for the three dimensions in this index are shown in blue on the slide (13, 15, and 20, in this case). Recognize that this is an admittedly arbitrary way of classifying “high” vs. “low”. I use a show of hands to see how many students fall above and below the average, and I then see if students will volunteer any extremely high or low scores.

OB Assessments: Meaning of Money. This questionnaire gives students a sense of the meaning they attach to money. Prior to asking students to take this assessment, ask them if they have ever left a job because they wanted to make more money. If they have, why did they need the money at the time? What did it give them? If they haven’t, what factors kept them on the job? Were other jobs that paid more not available, or were they getting something from the job that was more important than money?

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Expectancy Theory

Motivation = (E→P) x Σ[(P→O) x V]
Key aspect: multiplicative effects
Motivation is zero if either expectancy, instrumentality, or valence is zero

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Expectancy Theory

Taken together, the instrumentality and valence components resemble a concept from a famous movie franchise
OB on Screen: Wall Street: Money Never Sleeps

OB on Screen: Wall Street: Money Never Sleeps. The clip referenced in the book begins around the 49:20 mark of the film, continuing until about the 54:18 mark. If you obtain the DVD of the film from either Netflix, Best Buy, or Amazon, it is Chapter 11 of that DVD (note that the film can typically be obtained through iTunes as well). The clip depicts Jake Moore meeting with Bretton James, some time after Moore started a rumor that hurt James’s company. Focus the discussion on what money seems to mean to James, and of the meaning of his one word answer to Moore’s “what’s your number question”? In what ways might James’s greed aid him in his working life? In what ways might it hurt him? Are there ways in which “greed is good?”, in terms of the original Wall Street? What are the limits on that goodness? Please email me ([email protected]) if you have any questions about using OB on Screen in your teaching.

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Expectancy Theory

Motivation = (E→P) x Σ[(P→O) x V]
Motivation = (E→P) x Greed?
Is greed indeed “good”?
How could greed be “channeled”?

I find that an interesting discussion develops around the distinction between “instrumentality x valence” and “greed.” The former represents getting what someone values, while the latter represents an insatiable version of that. I often divide the class into two sides to debate the classic Wall Street sentiment that “greed is good.” On the one hand, greed motivates and triggers innovation. On the other hand, greed is selfish, discourages altruism, and breeds counterproductive behavior.

The takeaway is often that greed is present in organizations, and can be a motivator, if properly channeled. That channeling provides a good segue to Goal Setting Theory. If incentives are tied to goal achievement, goals can be used channel greed.

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Goal Setting Theory

Motivation is fostered when employees are given specific and difficult goals
Rather than no goals, easy goals, or “do your best” goals

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Goal Setting Theory

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Goal Setting Theory

Task strategies is an important element of the theory that students may not fully appreciate. It’s the “working smarter”, to the “working harder” represented in the two effort components. Sometimes working harder isn’t enough to meet a specific and difficult goal--employees realize they must also change how they work.

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Equity Theory

Motivation is maximized when an employee’s ratio of “outcomes” to “inputs” matches those of some “comparison other”
Thus motivation also depends on the outcomes received by other employees

Try This! Before going over the specifics of equity theory, focus the class on a professional athlete who is particularly highly paid, such as Alex Rodriguez, third baseman for the New York Yankees, who makes around $25 million a year. Ask the students whether Rodriguez feels guilty that he makes more than a typical employee in the Yankees organization. They’ll likely answer “no,” but the key question is “why?” Guide the discussion toward the issue of the value of Rodriguez’s inputs (being among the best in the world at what he does) and the likely comparison other that Rodriguez’s focuses on (other professional athletes).

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Equity Theory

Are these really equal?

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Equity Theory

What emotion do you feel in this case?
What methods can be used to restore equity?

Here you feel anger. You can restore equity by shrinking your inputs by reducing motivation, or by increasing your outcomes by increasing counterproductive behavior.

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Equity Theory

What emotion do you feel in this case?
What methods can be used to restore equity?

Here you feel guilt. You can restore equity by increasing your inputs through increased motivation. In reality though, people often just readjust the way they conceptualize their inputs to seem bigger.

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Psychological Empowerment

An intrinsic form of motivation derived from the belief that one’s work tasks are contributing to some larger purpose
Fostered by four beliefs:
Meaningfulness
Self-Determination
Competence
Impact

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Why Are Some Employees
More Motivated than Others?

This is a repeat of the same intentionally blurry slide. It is repeated to illustrate the transition to the next slide.

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Why Are Some Employees
More Motivated than Others?

Instrumentality

Expectancy

Valence

Specific & Difficult Goals

Empowerment

Equity

Expectancy

Instrumentality

Valence

Empowerment

Specific & Difficult Goals

Equity

Beginning with Chapter 4, each set of slides will answer the “question of the day” in this fashion. It is often a bit unclear why some employees are more motivated than others. Fortunately, the topics discussed in this chapter provide some answers to that question. Some employees are more motivated than others because they have more expectancy, instrumentality, and valence, because they are given specific and difficult goals, or because they feel a sense of equity and empowerment. Note that these concepts don’t fully and completely answer the question. In scientific terms, they don’t explain 100% of the variation in motivation. Thus the blurriness that remains. After all, employee attitudes and behaviors are a function of a great many things!

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Beginning with Chapter 4, the previous slide will always be followed up with the concluding and integrating figure of the chapter. It essentially provides an answer to the very same question.

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How Important is Motivation?

Beginning with Chapter 4, each set of slides will also include this diagram that summarizes the importance of that chapter’s topic, relative to Job Performance and Organizational Commitment. Over time, students will get a feel for which topics have a stronger or weaker relationships with Job Performance and Organizational Commitment. They also get a feel for when things are more related to one than the other, and vice versa.

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Application

Try This! Ask students who are currently working or have worked recently to describe the compensation elements that they’ve experienced. How many have experienced piece-rate, merit pay, lump-sum bonuses or recognition awards? How many have experienced gainsharing or profit sharing? Which elements do the students find most effective and motivational?

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Best Practices: Enterprise

Beginning with Chapter 4, each set of slides will end with a Best Practices slide spotlighting a company who leverages that chapter’s subject to improve Job Performance and Organizational Commitment. Rather than spotlighting the company that is the focus of the current edition’s wraparound case, I spotlight the company that is the subject of the Bonus Case in the Instructor’s Manual (taken from the previous edition of the textbook). That gives the instructor a chance to end on a note that “goes beyond the book.”

In this case that company is Enterprise Rent-a-Car.

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Best Practices: Enterprise

Hires more college grads than any other company

Clear promotion ladder: 100% of top managers started as trainees

Emphasizes energy, enthusiasm, and positivity in hiring

Promotions depend on branch performance on customer service

Bonuses paid based on supplemental insurance

Salary supplemented with branch-based profit sharing

All of these bullets about Enterprise are described in the Bonus Case in the Instructor’s manual.

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INDIVIDUAL OUTCOMES

MECHANISMS INDIVIDUAL

INDIVIDUAL CHARACTERISTICS

GROUP MECHANISMS

ORGANIZATIONAL MECHANISMS

Organizational Culture

Organizational Structure

Teams: Processes &

Communication

Motivation

Trust, Justice, & Ethics

Teams: Characteristics &

Diversity Learning & Decision Making

Ability

Personality & Cultural Values

Stress

Leadership: Power &

Negotiation

Job Satisfaction

Leadership: Styles & Behaviors

Organizational Commitment

Job Performance

Motivation

chapter Motivation 6

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166 C H A P T E R 6 Motivation

Figure 6-1. However, some of them are uniquely suited to explaining the direction of effort, whereas others do a better job of explaining the intensity and persistence of effort.

E X P E C TA N C Y T H E O RY What makes you decide to direct your effort to work assignments rather than taking a break or wasting time? Or what makes you decide to be a “good citizen” by helping out a colleague or attending some optional company function? Expectancy theory describes the cognitive process that employees go through to make choices among different voluntary responses. 14 Drawing on earlier models from psychology, expectancy theory argues that employee behavior is directed toward pleasure and away from pain or, more generally, toward certain outcomes and away from others. 15 How do employees make the choices that take them in the “right direction”? The theory suggests that our choices depend on three specific beliefs that are based in our past learning and experience: expectancy, instrumentality, and valence. These three beliefs are summarized in Figure 6-2 , and we review each of them in turn.

EXPECTANCY. Expectancy represents the belief that exerting a high level of effort will result in the successful performance of some task. More technically, expectancy is a subjective prob- ability, ranging from 0 (no chance!) to 1 (a mortal lock!) that a specific amount of effort will result in a specific level of performance (abbreviated E P). Think of a task at which you’re not particularly good, such as writing romantic poetry. You may not be very motivated to write romantic poetry because you don’t believe that your effort, no matter how hard you try, will result in a poem that “moves” your significant other. As another example, you’ll be more moti- vated to work on the assignment described in Figure 6-1 if you’re confident that trying hard will allow you to complete it successfully.

FIGURE 6-2 Expectancy Theory

? ? Effort Performance

Outcomes

1 or 2 ?

Instrumentality: If I perform well, will I receive outcomes?

Valence: Will the outcomes be

satisfying?

Expectancy: If I exert a lot of effort, will I

perform well?

1 or 2 ?

Source: Adapted from V.H. Vroom, Work and Motivation (New York: Wiley, 1964).

6.2 What three beliefs help determine work effort, according to expectancy theory?

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167C H A P T E R 6 Motivation

What factors shape our expectancy for a particular task? One of the most critical factors is self-efficacy, defined as the belief that a person has the capabilities needed to execute the behav- iors required for task success. 16 Think of self-efficacy as a kind of self-confidence or a task- specific version of self-esteem. 17 Employees who feel more “efficacious” (that is, self-confident) for a particular task will tend to perceive higher levels of expectancy—and therefore be more likely to choose to exert high levels of effort. Why do some employees have higher self-efficacy for a given task than other employees? Figure 6-3 can help explain such differences.

When employees consider efficacy levels for a given task, they first consider their past accomplishments —the degree to which they have succeeded or failed in similar sorts of tasks in the past. 18 They also consider vicarious experiences by taking into account their observations and discussions with others who have performed such tasks. 19 Self-efficacy is also dictated by verbal persuasion, because friends, coworkers, and leaders can persuade employees that they can “get the job done.” Finally, efficacy is dictated by emotional cues, in that feelings of fear or anxiety can create doubts about task accomplishment, whereas pride and enthusiasm can bolster confidence levels. 20 Taken together, these efficacy sources shape analyses of how difficult the task requirements are and how adequate an employee’s personal and situational resources will prove to be. 21 They also explain the content of most pregame speeches offered by coaches before the big game; such speeches commonly include references to past victories (past accomplish- ments), pep talks about how good the team can be (verbal persuasion), and cheers to rally the troops (emotional cues).

INSTRUMENTALITY. Instrumentality represents the belief that successful performance will result in some outcome(s). 22 More technically, instrumentality is a set of subjective probabilities, each ranging from 0 (no chance!) to 1 (a mortal lock!) that successful performance will bring a set of outcomes (abbreviated P O). The term “instrumentality” makes sense when you consider the meaning of the adjective “instrumental.” We say something is “instrumental” when it helps attain something else—for example, reading this chapter is instrumental for getting a good grade in an OB class (at least, we hope so!). 23 Unfortunately, evidence indicates that many employees don’t perceive high levels of instrumentality in their workplace. One survey of more

FIGURE 6-3 Sources of Self-Efficacy

Analysis of Task

Requirements

Assessment of Personal and Situational Resources

Source: Adapted from A. Bandura, “Self-Efficacy: Toward a Unifying Theory of Behavioral Change,” Psychological Review 84 (1977), pp. 191–215; and M.E. Gist and T.R. Mitchell, “Self-Efficacy: A Theoretical Analysis of its Determi- nants and Malleability,” Academy of Management Review 17 (1992), pp. 183–211.

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170 C H A P T E R 6 Motivation

MOTIVATIONAL FORCE. According to expectancy theory, the direction of effort is dictated by three beliefs: expectancy (E P), instrumentality (P O), and valence (V). More specifi- cally, the theory suggests that the total “motivational force” to perform a given action can be described using the following formula: 46

The ∑ symbol in the equation signifies that instrumentalities and valences are judged with var- ious outcomes in mind, and motivation increases as successful performance is linked to more and more attractive outcomes. Note the significance of the multiplication signs in the formula: Moti- vational force equals zero if any one of the three beliefs is zero. In other words, it doesn’t matter how confident you are if performance doesn’t result in any outcomes. Similarly, it doesn’t matter how well performance is evaluated and rewarded if you don’t believe you can perform well.

G O A L S E T T I N G T H E O RY So, returning to the choice shown in Figure 6-1 , let’s say that you feel confident you can perform well on the assignment your boss gave you and that you also believe successful performance will bring valued outcomes. Now that you’ve chosen to direct your effort to that assignment, two critical questions remain: How hard will you work, and for how long? To shed some more light on these questions, you stop by your boss’s office and ask her, “So, when exactly do you need this done?” After thinking about it for a while, she concludes, “Just do your best.” After returning

TABLE 6-2 Extrinsic and Intrinsic Outcomes

Sources: Adapted from E.E. Lawler III and J.L. Suttle, “Expectancy Theory and Job Behavior,” Organizational Behavior and Human Performance 9 (1973), pp. 482–503; J. Galbraith and L.L. Cummings, “An Empirical Investigation of the Motivational Determinants of Task Performance: Interactive Effects between Instrumentality–Valence and Motivation– Ability,” Organizational Behavior and Human Performance 2 (1967), pp. 237–57; E. McAuley, S. Wraith, and T.E. Dun- can, “Self-Efficacy, Perceptions of Success, and Intrinsic Motivation for Exercise,” Journal of Applied Social Psychology 21 (1991), pp. 139–55; and A.S. Waterman, S.J. Schwartz, E. Goldbacher, H. Green, C. Miller, and S. Philip, “Predicting the Subjective Experience of Intrinsic Motivation: The Roles of Self-Determination, the Balance of Challenges and Skills, and Self-Realization Values,” Personality and Social Psychology Bulletin 29 (2003), pp. 1447–58.

EXTRINSIC OUTCOMES INTRINSIC OUTCOMES

Pay Enjoyment

Bonuses Interestingness

Promotions Accomplishment

Benefits and perks Knowledge gain

Spot awards Skill development

Praise Personal expression

Job security (Lack of) Boredom

Support (Lack of) Anxiety

Free time (Lack of) Frustration

(Lack of) Disciplinary actions

(Lack of) Demotions

(Lack of) Terminations

Motivational Force = E P × ! [(P O) × V ]

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171C H A P T E R 6 Motivation

to your desk, you realize that you’re still not sure how much to focus on the assignment, or how long you should work on it before turning to something else.

Goal setting theory views goals as the primary drivers of the intensity and persistence of effort. 47 Goals are defined as the objective or aim of an action and typically refer to attaining a specific standard of proficiency, often within a specified time limit. 48 More specifically, the

O B A S S E S S M E N T S

THE MEANING OF MONEY How do you view money—what meaning do you attach to it? This assessment will tell you where you stand on the three facets of the meaning of money—money as achievement, money as respect, and money as freedom. Answer each question using the response scale provided. Then follow the instructions below to score yourself. (For more assessments relevant to this chapter, please visit http://connect.mcgraw-hill.com.)

1 STRONGLY DISAGREE

2 DISAGREE

3 SLIGHTLY DISAGREE

4 NEUTRAL

5 SLIGHTLY AGREE

6 AGREE

7 STRONGLY

AGREE

1. Money represents one’s achievement.

2. Money is a symbol of success.

3. Money is the most important goal in my life.

4. Money can buy everything.

5. Money makes people respect you in the community.

6. Money will help you express your competence and abilities.

7. Money can bring you many friends.

8. Money is honorable.

9. Money gives you autonomy and freedom.

10. Money can give you the opportunity to be what you want to be.

11. Money in the bank is a sign of security.

12. Money means power.

SCORING AND INTERPRETATION Money as Achievement: Sum up items 1–4. Money as Respect: Sum up items 5–8. Money as Freedom: Sum up items 9–12.

Money as Achievement: High = 13 or above. Low = 12 or below. Money as Respect: High = 15 or above. Low = 14 or below. Money as Freedom: High = 20 or above. Low = 19 or below.

If you scored high on all three dimensions, then you view money as having multiple, non- economic meanings. This result means that money is likely to be a powerful motivator for you.

Source: Adapted from T.L. Tang, “The Meaning of Money Revisited,” Journal of Organizational Behavior 13 (1992), pp. 197–202.

6.3 What two qualities make goals strong predictors of task performance, accord- ing to goal setting theory?

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172 C H A P T E R 6 Motivation

theory argues that assigning employees specific and difficult goals will result in higher levels of performance than assigning no goals, easy goals, or “do-your-best” goals. 49 Why are specific and difficult goals more effective than do-your-best ones? After all, doesn’t “your best” imply the highest possible levels of effort? The reason is that few people know what their “best” is (and even fewer managers can tell whether employees are truly doing their “best”). Assigning specific and difficult goals gives people a number to shoot for—a “measuring stick” that can be used to tell them how hard they need to work and for how long. So if your boss had said, “Have the assignment on my desk by 10:30 a.m. on Tuesday, with no more than two mistakes,” you would have known exactly how hard to work and for how long.

Of course, a key question then becomes, “What’s a difficult goal?” Figure 6-4 illustrates the predicted relationship between goal difficulty and task performance. When goals are easy, there’s no reason to work your hardest or your longest, so task effort is lower. As goals move from moderate to difficult, the intensity and persistence of effort become maximized. At some point, however, the limits of a person’s ability get reached, and self-efficacy begins to diminish. Also at that point, goals move from difficult to impossible, and employees feel somewhat helpless when attempting to achieve them. In turn, effort and performance inevitably decline. So a difficult goal is one that stretches employees to perform at their maximum level while still staying within the boundaries of their ability.

The effects of specific and difficult goals on task performance have been tested in several hundred studies using many kinds of settings and tasks. A sampling of those settings and tasks is shown in Table 6-3 . 50 Overall, around 90 percent of the goal setting studies support the beneficial effects of specific and difficult goals on task performance. 51 Although some of the settings and tasks shown in the table are unlikely to be major parts of your career (archery, handball, LEGO construction), others should be very relevant to the readers (and authors!) of this book (managing and supervision, studying, faculty research). Then again, who wouldn’t want a career in LEGO construction?

Why exactly do specific and difficult goals have such positive effects? Figure 6-5 presents goal setting theory in more detail to understand that question better. 52 First, the assignment of a specific and difficult goal shapes people’s own self-set goals —the internalized goals that peo- ple use to monitor their own task progress. 53 In the absence of an assigned goal, employees may not even consider what their own goals are, or they may self-set relatively easy goals that

FIGURE 6-4 Goal Difficulty and Task Performance

Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990).

Goal Difficulty

T as

k P

e rf

o rm

an ce

Easy Moderate Difficult Impossible

Intensity and Persistence Maximized

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173C H A P T E R 6 Motivation

TABLE 6-3 Settings and Tasks Used in Goal Setting Research

SETTINGS AND TASKS

Air traffic control Management training

Archery Marine recruit performance

Arithmetic Maze learning

Beverage consumption Mining

Chess Proofreading

Computer games Production and manufacturing

Course work Puzzles

Energy conservation Safety behaviors

Exercise Sales

Faculty research Scientific and R&D work

Juggling Sit-ups

LEGO construction Studying

Logging Weight lifting

Managing and supervision Weight loss

Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990).

FIGURE 6-5 Goal Setting Theory

Sources: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990); E.A. Locke and G.P. Latham, “Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,” American Psychologist 57 (2002), pp. 705–17; and G.P. Latham, “Motivate Employee Performance through Goal-Setting,” in Blackwell Handbook of Principles of Organizational Behavior, ed. E.A. Locke (Malden, MA: Blackwell, 2000), pp. 107–19.

Specific and Difficult

Assigned Goal

Task Performance

Self-Set Goal

Goal Commitment

Task ComplexityFeedback

Intensity of Effort

Persistence of Effort

Task Strategies

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177C H A P T E R 6 Motivation

Chapter 7 on Trust, Justice, and Ethics for more on such issues). 74 More relevant to this chapter, another means of restoring balance is to shrink your inputs by lowering the intensity and persis- tence of effort. Remember, it’s not the total outcomes or inputs that matter in equity theory—it’s only the ratio.

The third possibility is that your ratio of outcomes to inputs is greater than your comparison other’s ratio. Equity distress again gets experienced, and the tension likely creates negative emo- tions such as guilt or anxiety. Balance could be restored by shrinking your outcomes (taking less money, giving something back to the comparison other), but the theory acknowledges that such actions are unlikely in most cases. 75 Instead, the more likely solution is to increase your inputs in some way. You could increase the intensity and persistence of your task effort or decide to engage in more “extra mile” citizenship behaviors. At some point though, there may not be enough hours in the day to increase your inputs any further. An alternative (and less labor-intensive) means of increasing your inputs is to simply rethink them—to reexamine your mental ledger to see if you may have “undersold” your true contributions. On second thought, maybe your education or seniority is more critical than you realized, or maybe your skills and abilities are more vital to the organization. This cognitive distortion allows you to restore balance mentally, without altering your behavior in any way.

There is one other way of restoring balance, regardless of underreward or overreward circum- stances, that’s not depicted in Figure 6-6 : Change your comparison other. After all, we compare our “lots in life” to a variety of other individuals. Table 6-6 summarizes the different kinds of comparison others that can be used. 76 Some of those comparisons are internal comparisons, meaning that they refer to someone in the same company. 77 Others are external comparisons,

FIGURE 6-6 Three Possible Outcomes of Equity Theory Comparisons

COMPARISON RESULT: WAYS TO RESTORE BALANCE:

Shrink your inputs by lowering the intensity or persistence of effort.

Grow your outcomes by talking to your boss or by stealing from the company.

Grow your inputs through more high quality work or through some "cognitive distortion."

Shrink your outcomes (yeah, right!... let's see what we can do about those inputs...).

No actions needed.

Equity

Underreward Inequity

Overreward Inequity

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Sources: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99.

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177C H A P T E R 6 Motivation

FIGURE 6-6 Three Possible Outcomes of Equity Theory Comparisons

COMPARISON RESULT: WAYS TO RESTORE BALANCE:

Shrink your inputs by lowering the intensity or persistence of effort.

Grow your outcomes by talking to your boss or by stealing from the company.

Grow your inputs through more high quality work or through some "cognitive distortion."

Shrink your outcomes (yeah, right!... let's see what we can do about those inputs...).

No actions needed.

Equity

Underreward Inequity

Overreward Inequity

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Sources: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99.

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177C H A P T E R 6 Motivation

FIGURE 6-6 Three Possible Outcomes of Equity Theory Comparisons

COMPARISON RESULT: WAYS TO RESTORE BALANCE:

Shrink your inputs by lowering the intensity or persistence of effort.

Grow your outcomes by talking to your boss or by stealing from the company.

Grow your inputs through more high quality work or through some "cognitive distortion."

Shrink your outcomes (yeah, right!... let's see what we can do about those inputs...).

No actions needed.

Equity

Underreward Inequity

Overreward Inequity

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Other's Outcomes

Other's Inputs

Your Outcomes

Your Inputs

Sources: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99.

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184 C H A P T E R 6 Motivation

FIGURE 6-7 Why Are Some Employees More Motivated Than Others?

Meaningfulness

Self- Determination

Competence

Impact

Specific and Difficult

Assigned Goal

Direction of Effort

Intensity of Effort

Persistence of Effort

Self-Set Goal

PE O

Psychological Empowerment

Other's Outcomes

Your Outcomes

MOTIVATING FORCES

Expectancy Instrumentality

Valence

Other's Inputs

Your Inputs

EFFORT

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185C H A P T E R 6 Motivation

those actions themselves require extra effort. The best evidence in support of that claim comes from research on equity. Specifically, employees who feel a sense of equity on the job are more likely to engage in citizenship behaviors, particularly when those behaviors aid the organiza- tion. 107 The same employees are less likely to engage in counterproductive behaviors, because such behaviors often serve as a retaliation against perceived inequities. 108

As with citizenship behaviors, the relationship between motivation and organizational com- mitment seems straightforward. After all, the psychological and physical forms of withdrawal that characterize less committed employees are themselves evidence of low levels of motivation. Clearly employees who are daydreaming, coming in late, and taking longer breaks are struggling to put forth consistently high levels of work effort. Research on equity and organizational com- mitment offers the clearest insights into the motivation–commitment relationship. Specifically, employees who feel a sense of equity are more emotionally attached to their firms and feel a stronger sense of obligation to remain. 109

FIGURE 6-8 Effects of Motivation on Performance and Commitment

Motivation has a strong positive effect on Job Performance. People who experience higher levels of motivation tend to have higher levels of Task Performance. Those effects are strongest for self-efficacy/competence, followed by goal difficulty, the valence-instrumentality-expectancy combination, and equity. Less is known about the effects of motivation on Citizenship and Counterproductive Behavior, though equity has a moderate positive effect on the former and a moderate negative effect on the latter.

Less is known about the effects of Motivation on Organizational Commitment. However, equity has a moderate positive effect. People who experience higher levels of equity tend to feel higher levels of Affective Commitment and higher levels of Normative Commitment. Effects on Continuance Commitment are weaker.

Motivation JobPerformance

Motivation Organizational Commitment

Represents a strong correlation (around .50 in magnitude).

Represents a moderate correlation (around .30 in magnitude).

Represents a weak correlation (around .10 in magnitude).

Sources: Y. Cohen-Charash and P.E. Spector, “The Role of Justice in Organizations: A Meta-Analysis,” Organizational Behavior and Human Decision Processes 86 (2001), pp. 287–321; J.A. Colquitt, D.E. Conlon, M.J. Wesson, C.O.L.H. Porter, and K.Y. Ng, “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research,” Journal of Applied Psychology 86 (2001), pp. 425–45; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52; A.D. Stajkovic and F. Luthans, “Self-Efficacy and Work-Related Performance: A Meta-Analysis,” Psychological Bulletin 124 (1998), pp. 240–61; W. Van Eerde and H. Thierry, “Vroom’s Expectancy Models and Work-Related Criteria: A Meta-Analysis,” Journal of Applied Psychology 81 (1996), pp. 575–86; and R.E. Wood, A.J. Mento, and E.A. Locke, “Task Complexity as a Moderator of Goal Effects: A Meta-Analysis,” Journal of Applied Psychology 72 (1987), pp. 416–25.

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186 C H A P T E R 6 Motivation

A P P L I C AT I O N : C O M P E N S AT I O N S Y S T E M S

The most important area in which motivation concepts are applied in organizations is in the design of compensation systems. Table 6-7 provides an overview of many of the elements used in typical compensation systems. We use the term “element” in the table to acknowledge that most organizations use a combination of multiple elements to compensate their employees. Two points must be noted about Table 6-7 . First, the descriptions of the elements are simplistic; the reality is that each of the elements can be implemented and executed in a variety of ways. 110

Second, the elements are designed to do more than just motivate. For example, plans that put pay “at risk” rather than creating increases in base salary are geared toward control of labor costs. As another example, elements that stress individual achievement are believed to alter the composi- tion of a workforce over time, with high achievers drawn to the organization while less moti- vated employees are selected out. Finally, plans that reward unit or organizational performance are designed to reinforce collaboration, information sharing, and monitoring among employees, regardless of their impact on motivation levels.

One way of judging the motivational impact of compensation plan elements is to consider whether the elements provide difficult and specific goals for channeling work effort. Merit pay and profit sharing offer little in the way of difficult and specific goals, because both essentially challenge employees to make next year as good (or better) than this year. In contrast, lump-sum

TABLE 6-7 Compensation Plan Elements

ELEMENT DESCRIPTION

Individual-Focused

Piece-Rate

Merit Pay

Lump-Sum Bonuses

Recognition Awards

A specified rate is paid for each unit produced, each unit sold, or each service provided.

An increase to base salary is made in accordance with perfor- mance evaluation ratings.

A bonus is received for meeting individual goals but no change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.

Tangible awards (gift cards, merchandise, trips, special events, time off, plaques) or intangible awards (praise) are given on an impromptu basis to recognize achievement.

Unit-Focused

Gainsharing A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality). No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.

Organization-Focused

Profit Sharing A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits. No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.

6.7 What steps can organiza- tions take to increase employee motivation?

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