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Chapter 13

Motivation

Motivation

  • The psychological forces acting on an individual that determine:
  • Direction—possible behaviors the individual could engage in
  • Effort—how hard the individual will work
  • Persistence—whether the individual will keep trying or give up
  • Explains why people behave the way they do in organizations

Motivation

  • Intrinsically Motivated Behavior
  • Motivation that comes from actually engaging in the behavior
  • The sense of accomplishment and achievement derived from doing the work itself
  • Extrinsically Motivated Behavior
  • Behavior that is performed to acquire material or social rewards or to avoid punishment.
  • The source of the motivation is the consequences of the behavior

Inputs & Outcomes

  • Input
  • Anything a person contributes to his or her job or organization
  • Time, effort, skills, knowledge, work behaviors
  • Outcome
  • Anything a person gets from a job or an organization
  • Pay, job security, autonomy, accomplishment

Motivation Equation

Expectancy Theory

  • Expectancy—the belief that effort (input) will result in a certain level of performance
  • Instrumentality—the belief that performance results in the attainment of outcomes
  • Valence—the desirability of an outcome

Expectancy Theory

  • Motivation = Expectancy x Instrumentality x Valence
  • If one of the values is low, motivation will be low.
  • Workers do not believe they can perform well.
  • Workers do not believe that performance and rewards are closely linked.
  • Workers do not value the rewards offered for performance.

Need Theories

  • Need
  • A requirement for survival and well-being
  • Need Theories
  • Focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs
  • Determine what needs a worker wants satisfied
  • Ensure that a person receives the outcomes when performing well

Maslow’s Needs Hierarchy

Self-

Actualization

Esteem

Affiliation

Security

Physiological

Maslow’s Hierarchy of Needs

Self-

actualization

Realize one’s

full potential

Use abilities

to the fullest

Esteem

Feel good

about oneself

Promotions

and recognition

Belongingness

Social

interaction, love

Interpersonal

relations, parties

Safety

Security, stability

Job security,

health insurance

Physiological

Food, water,

shelter

Basic pay level

to buy items

Needs

Description

Examples

Lower-level needs must be satisfied before higher-level needs are addressed.

Highest-level needs

Lowest-level needs

Alderfer’s ERG Theory

After lower level needs satisfied, person seeks higher needs. When

unable to satisfy higher needs, lower needs motivation is raised.

Growth

Self-development,

creative work

Continually

improve skills

Relatedness

Interpersonal

relations, feelings

Good relations,

accurate feedback

Existence

Food, water,

clothing, and shelter

Adequate pay
for necessities

Needs

Description

Examples

Highest-level needs

Lowest-level needs

Herzberg’s Motivator - Hygeine

  • Motivators
  • Factors that can lead to job satisfaction & motivation
  • Intrinsic Factors
  • Enjoying the work, challenges, autonomy, accomplishment, developmental opportunities
  • Hygeine Factors
  • Factors that cause dissatisfaction
  • Extrinsic Factors
  • Working conditions, pay, job security, benefits

McClelland’s Need for Power, Affiliation, & Achievement

  • Achievement
  • Need to perform challenging tasks well
  • Power
  • Desire to control or influence others
  • Affiliation
  • Concern for good interpersonal relations & being liked

McClelland’s Need for Power, Affiliation, & Achievement

  • Achievement & Power
  • Assets for managers
  • Power is especially common in upper managers
  • Affiliation
  • Could be a handicap for managers
  • Try to hard to be liked

Equity Theory

  • Perceived fairness of work outcomes relative to work inputs
  • People compare their input/output ratio with a referent other

Equity Theory

  • Equity occurs when your input/output ratio equals the referent other’s ratio
  • People are motivated to keep Equity
  • Keep inputs consistent when outputs are consistent
  • Increase inputs if you want outputs increased

Equity Theory

  • Inequity exists when worker’s outcome/input ratio is not equal to referent.
  • Underpayment inequity: ratio is less than the referent.
  • Overpayment inequity: ratio is higher than the referent.

Equity Theory

Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity

  • Underpayment inequity
  • Decrease inputs, Increase outputs
  • Overpayment inequity
  • Increase inputs, Decrease outputs

Goal-Setting Theory

  • Goals motivate behavior when they are:
  • Specific – help people focus their attention in the right direction
  • Difficult – challenges the individual to work hard; not too difficult.
  • Give Feedback – allows the individual to know how effective their behaviors are

Learning Theories

  • Learning – relatively permanent change in knowledge or behavior that results from practice or experience
  • In organizations: When people learn to repeat behaviors because of rewards
  • Operant Conditioning
  • Social Learning Theory

Operant Conditioning

  • People learn to perform behaviors that lead to desired consequences
  • People learn to avoid behaviors that result in negative consequences

Four Types of Reinforcement

  • Positive Reinforcement
  • Positive outcomes follows a desirable behavior
  • Negative Reinforcement
  • Unpleasant event is removed when desired behavior occurs
  • Extinction
  • Remove all reinforcement
  • Punishment
  • Negative consequence follows an undesirable behavior

Four Types of Reinforcement

  • Positive & Negative reinforcement Increase the frequency of Desirable behaviors.
  • Extinction & Punishment Decrease the frequency of Undesirable behaviors.

Social Learning Theory

  • People learn through regular social interactions
  • Vicarious Learning
  • Watch someone perform a behavior and receive positive reinforcement
  • Self-Reinforcement
  • Reward yourself when you have met a goal
  • Self-Efficacy
  • Prohibits motivation even when positive reinforcement is present

Bandura’s Bobo Experiment

Bandura’s Bobo Experiment

Pay as a Motivator

  • Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high.
  • Need Theory: pay is used to satisfy many needs.
  • Equity Theory: pay is given in relation to inputs.
  • Goal Setting Theory: pay is linked to attainment of goals.
  • Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.

Bonus vs. Salary Increase

  • Bonuses
  • Do not become permanent part of compensation
  • Are more directly tied to current performance
  • Salary Increase
  • Gets continued next time period
  • May include cost-of-living (not performance related)

Employee Stock Options

  • Option to buy shares of stock at a certain price at a certain point in time.
  • Uses
  • To attract high-level managers
  • To motivate employee performance through ownership in the firm

Examples of Merit Pay

  • Piece-rate Pay
  • Pay is based on the number of units that the employee produces.
  • Commission Pay
  • Pay is based on a percentage of sales that the employee makes.
  • Organization-based Merit Plans
  • Scanlon plan — reduced expenses or cutting costs
  • Profit sharing — employees receive a share of an organization’s profits