© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 8 8

Foundations of Motivation

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 8 Learning Objectives1. Contrast Maslow’s, Alderfer’s, and McClelland’s

need theories.2. Explain the practical significance of Herzberg’s

distinction between motivators and hygiene factors.

3. Discuss the role of perceived inequity in employee motivation.

4. Explain the differences among distributive, procedural, and interactional justice.

5. Describe the practical lessons derived from equity theory.

8-2

Ch. 8 Learning Objectives

6. Explain Vroom’s expectancy theory and review its practical implications., racial and ethnic, and disability stereotypes.

7. Explain how goal setting motivates an individual and review the four practical lessons from goal-setting research.

8. Review the mechanistic, motivational, biological, and perceptual-motor approaches to job design.

8-3

Motivation

Motivation

psychological processes that arouse and direct goal-directed behaviorDoes high motivation mean better job performance?•A=Yes, B=No

Is money the only motivator? 8-4

Theories of Motivation

Content Theories• Identify internal

factors influencing motivation

Maslow’s Need HierarchyAlderfer’s ERGMcClelland’s NeedHerzberg’s Motivator-Hygiene

Process Theories• Identify the process

by which internal factors and cognitions influence motivation

Adam’s EquityVroom’s ExpectancyGoal Setting Theory

8-5

Motivation Theories

8-6

Maslow’s Need Hierarchy Theory

How does the theory work?What research support does this theory have?What are the managerial implications of this theory?

8-7

Employee’s Varying Needs

8-8

Alderfer’s ERG Theory

Existence: Desire for physiological and materialistic well-beingRelatedness: Desire to have meaningful relationships with significant othersGrowth: Desire to grow and use one’s abilities to their fullest potential

How does this theory work?

What is the research support?

What are the managerial implications?

8-9

McClelland’s Need TheoryThe Need for Achievement • Desire to accomplish

something difficult

The Need for Affiliation • Desire to spend time

in social relationships and activities

The Need for Power • Desire to influence,

coach, teach, or encourage others to achieve

8-10

McClelland’s Needs Theory in Practice

1. Is high need for power good or bad?A= Good, B=Bad, C= It depends

2. What is the most important need for leaders?a. Achievementb. Affiliationc. Power

3. What is the least important?a. Achievementb. Affiliationc. Power

8-11

Test Your Knowledge

A manager made the following work assignments based on her perception of her employee’s needs. Sam – responsible for orienting new employees to the team; Rex – responsible for operations of an entire division; Jose – researcher in R & D. Which of the following set of pairs below is probably true?

a. Sam- power; Rex- achievement; Jose- affiliation; b. Sam – affiliation; Rex- power; Jose – achievementc. Sam – achievement, Rex – affiliation, Jose – powerd. Sam – achievement; Rex – power; Jose - affiliation

8-12

Herzberg’s Motivator-Hygiene Model

Hygiene Factors job characteristics associated with job dissatisfaction• Salary• Supervisory relations• Working conditions

Motivators job characteristics associated with job satisfaction• Achievement• Recognition• Responsibility

8-13

Herzberg’s Motivator-Hygiene Model

Basic premise: Job satisfaction is not a continuum from satisfied to dissatisfiedRather, there are two continuums•No Satisfaction …… Satisfaction•Dissatisfaction ……No dissatisfaction

8-14

Herzberg’s Motivator-Hygiene Model

8-15

Comparison of Content Theories of Motivation

Self-Actualization

EsteemEsteem

BelongingnessBelongingness

SafetySafety

PhysiologicalPhysiological

Growth

RelatednessRelatedness

ExistenceExistence

Motivator--HygieneTheory

Motivators

HygienesHygienes

Need forAchievement

Need forNeed forPowerPower

Need forNeed forAffiliationAffiliation

McClelland’sLearned Needs

ERGTheory

Needs HierarchyTheory

8-16

Equity Theory

Equity theory – people strive for fairness and justice in social exchangesPeople will be motivated to the extent their perceived inputs to outcomes is in balance

A. Compare personal outcomes to inputs.B. Compare your outcomes to relevant others:

1. Comparisons to teammates or coworkers2. Comparisons to another group (e.g.

department/unit)3. Comparisons to others in your field or

occupational.8-17

A. An Equitable Situation

SelfSelf OtheOtherr

$2

1 hour

= $2 per hour$4

2 hours

= $2 per hour

Equity Theory

8-18

$2

1 hour

= $2 per hour$3

1 hour

= $3 per hour

B. Negative Inequity

Self Other

Equity Theory

8-19

$2

1 hours

= $1 per hour

C. Positive Inequity

$3

1 hour

= $3 per hour

SelfSelf OtheOtherr

Equity Theory

8-20

Test Your Knowledge

Deena works 60 hours per week and does not feel that she is being adequately recognized or rewarded. According to equity theory, Deena is least likely to:

a. Ask for a raise or bonusb. Reduce her efforts by decreasing her hoursc. Increase her efforts by working longer hoursd. Frame the situation as a learning experience

and beneficial for her future career.

8-21

For Discussion: Assess Yourself – Equity Sensitivity

Which of the following best describes you? In most situations, I…

a. put in more than I get out, which is fine with me

b. typically strive for equity and fairness in terms of my inputs and outcomes (even if I feel positive inequity)

c. try to put in as little effort as possible to attain desired rewards

8-22

Equity Sensitivity

Equity Sensitivity an individual’s tolerance for negative and positive equity •Benevolents have a higher tolerance for

negative inequity

•Sensitives adhere to strict norm of reciprocity

•Entitleds have no tolerance for negative inequity

8-23

Organizational JusticeDistributive Justice the perceived fairness of how resources and rewards are distributed

Procedural Justice the perceived fairness of the process and procedure used to make allocation decisions

Interactional Justice extent to which people feel fairly treated when procedures are implemented

8-24

Lessons From Equity Theory & Justice

8-25

E-to-PExpectancy

P-to-OInstrumentality

Outcomes& Valences

Outcome 1+ or -

Effort Performance

Outcome 3+ or -

Outcome 2+ or -

Expectancy Theory of Motivation

8-26

Test Your Knowledge

For each of the following actions, indicate which part of the expectancy model, specifically, would be improved for an unmotivated employee?

A. Effort to Performance (Expectancy)B. Performance to Outcome (Instrumentality)C. Value of rewards (Valence)

1. Show direct link between performance and raises.

2. Set clear goals, establish positive expectations3. Base rewards on what the employee values.4. Establish a pay for performance plan.5. Provide adequate resources and training.

8-27

Implications of Expectancy Theory

8-28

Goal-Setting Theory

Goal what an individual is trying to accomplish

8-29

Locke’s Model of Goal Setting

Encouraging thedevelopment of goal-attainment strategies

or action plans

Increasingone’s persistence

Regulatingone’s effort

Directingone’s attention

Goalsmotivate the

individualby...

Taskperformance

8-30

Guidelines for SMART Goals

SSpecific

MMeasurable

AAttainable

RResults oriented

TTime bound

Give feedback regularly!

8-31

Test Your Knowledge

True (A) or False (B)?1) “Do your best” goals maximize performance2) Feedback enhances the effect of specific,

difficult goals3) Participative goals, assigned goals, and self-

set goals are equally effective4) Goal commitment affects goal-setting

outcomes5) Monetary incentives for goals always improve

goal-setting outcomes8-32

Job Design Approaches to Motivation

Job Design: Changing the content or process of a specific job to increase job satisfaction and performance

Motivational strategies:Job Rotation moving employees from one specialized job to another

Job Enlargement putting more variety into a jobJob Enrichment building achievement, recognition, responsibility, and advancement into the work

8-33

The Job Characteristics Model

High work effectiveness

High growth satisfaction High general job satisfaction

High intrinsic work motivation

Outcomes

Knowledge of the actual results of the work activities

Experienced responsibility for outcomes of the work

Experienced meaningfulness of work

Criticalpsychological

state

Feedback from job

Autonomy

Skill variety Task identity Task significance

Core job

characteristics

Moderators1. Knowledge and skill2. Growth need

strength3. Context satisfaction

8-34

Applying Job Characteristics Model

Steps for applying the job characteristics model

8-35

© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 8 8

Foundations of Motivation

Supplemental Slides

Action Planning in Practice

Fortune, 9/29/08, pg. 108 8-37

Shareholders Ideas to Reduce Pay Inequity

Tuna, C. Shareholders to Focus on Executive Compensation, Wall Street Journal, 1/12/2009

8-38

Pay Equity and Motivation

Binkley, C. Wall Street Journal, Summer/Fall 2008 8-39

Employee Engagement and Motivation

Source: Bos, J. Building Engagement in an Economic Crisis, Workforce Management, April 20, 2009 8-40

Drives that Underlie Motivation

Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business Review. 8-41

Organizational Levers

Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business Review. 8-42

Organizational Levers in Practice

Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business Review.

8-43

Questions to Ask BeforeSetting Goals (con’t)

Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16

8-44

Questions to Ask Before Setting Goals (con’t)

Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16 8-45

Questions to Ask Before Setting Goals (con’t)

Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16 8-46

Job Characteristic Mismatches

Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol. 22, pg. 24-40. 8-47

Mismatches and Motivation

Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol. 22, pg. 24-40. 8-48

Video Cases

Hot TopicMotivation Convention

8-49

Management in the MoviesAmerican Pie

In this scene, Heather (Mena Suvari) is talking to Oz (Chris Klein) about plans after graduation.Questions• How do direction, effort, and persistence play into

Heather’s college choice?• Why does Oz work?

8-50

Management in the MoviesThe Terminal – “The Carts”

In this scene, Viktor discovers a way to earn money in the terminal.What was Viktor’s motivation to find a way to earn money?Why was this opportunity available?

8-51

Rewarding Exempt Employees

The revised FLSA allows companies to pay exempt employees for extra time workedOrganizations are successful at motivating the right behaviors when they reward them appropriatelyThink outside the box:• Meals to take home to families after working long

hours• Movie/sporting event tickets• Gift cards• Extra time offSource: Rewarding Exempt Employees, September 2006, HR Magazine, Susan

Ladika 8-52

The Snowfly Slots

Companies are using games to motivate employee’s behaviorFor taking actions that are aligned with the organization’s objectives employees receive tokensTokens are used on an on-line slot machine called “Snowfly”Employees can win between 2 cents and $50 per gameThis strategy has boosted productivity in a variety of organizations including banks and beverage distributors

Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06

8-53

Getting Rewards Right

Set specific goals and reward achievement quickly; don’t wait until the end of the year.Give employees reward choices, to reflect different tastesRemind employees about goals and possible rewardsKeep the program fresh; update prices to generate enthusiasmEnsure that front-line managers are committed to the program

Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06

8-54

Office Space Movie Clip

Which type of organizational justice (or injustice) is being displayed in this clip?Do you agree with the advice of the consultants? Why or why not?In the real world, what effect might this approach have on employees and the organization as a whole?

8-55

Office Space Movie Clip #2

Does Peter believe his effort will lead to better performance?Does Peter believe his performance will lead to an outcome?Does Peter value the outcomes he’s been receiving?What impact does the management structure have on Peter?

8-56

Factors that Drive Engagement

Sr. Management’s interest in employees’ well-beingChallenging workDecision-making authority.Evidence that the company is focused on customers.Career advancement opportunitiesCompany’s reputation as a good employerCollaborative work environmentResources to get the job done Input on decision making 8-57

Factors that Drive Employee Commitment

The company’s care and concern for employeesFairness at workFeelings of accomplishmentDay-to-day satisfactionAppreciation of ideas

8-58

Underlying Propositions of ERG Theory

Satisfied Needs

Desires for

Need Frustration

ExistenceExistence1

Relatedness

24

Growth

5

Relatedness

Existence3

Growth

Relatedness6

Growth7

8-59

Employee Engagement

Engaged

ActivelyDisengaged

Not Engaged

Employee Engagement at Companies That Did Respond to September 11

8-60

Employee Engagement

Engaged

ActivelyDisengaged

Not Engaged

Employee Engagement at Companies That Did Not Respond to September 11

8-61

Employee Engagement

0% 20% 40% 60% 80%

Poor

Fair

Good

Excellent

ActivelyDisengaged

Not Engaged

Engaged

Overall Rating of Company’s Response

8-62

Time Spent with Company

Employee Engagement: An Inverse Relationship

0%

10%

20%

30%

40%

Lessthan 6mos.

6 mos.to lessthan 3

yrs.

3 to lessthan 10

yrs.

10 yrs.or more

Percentage ofEngaged Workers

8-63

0%

10%

20%

30%

40%

Working withoutdealing withworkplacebureacracy

Knowing job has alarger purpose

Having clear,work-related goals

Seeing results ofeffort

Boosting Productivity

8-64

Sense of Purpose

0%

10%

20%

30%

40%

50%

60%

70%

80%

Work I do isvery

important orimportant

Half isimportant,

half isbusywork

Work ismostly orentirely

busywork

72%

23%

5%

8-65

Employee Theft on the Rise

Employee theft at retail stores: $14.9 billion in 2000Employee theft responsible for 46% retail shrinkage—more than shoplifters30 major retail chains caught 73,300 employees stealingEmployee theft costs companies $20 billion to $40 billion a year

8-66

Flexible Pay Growing in Popularity

0%10%20%30%

40%50%60%70%

80%90%

100%

'96 '98 '00 Est.

Some form ofvariable pay*

Stock options**

8-67

21st Century Psychological Contracts

A psychological contract refers to the beliefs held by an individual employee regarding the terms of the exchange agreement between that employee and his/her organization.

8-68

21st Century Psychological Contracts Cont.

Survey participants reported• Which psychological obligations were most

important,• The extent to which their organization had

fulfilled its obligations,• Their job satisfaction,• Their intent to leave the organization,• Their perceived performance on the job,• Organizational citizenship behaviors.

8-69

21st Century Psychological Contracts Cont.

The most important psychological contract items include:• opportunities for promotion & advancement,• trust & respect,• open & honest communication,• fair treatment,• challenging & interesting work.

8-70

21st Century Psychological Contracts Cont.

Psychological contract items with the greatest discrepancy include:• competent management,• open & honest communication,• pay & bonuses tied to performance,• meaningful work,• clear goals & direction.

8-71

21st Century Psychological Contracts Cont.

Relationship between psychological contract discrepancy scores and dependent measures:• 21 of 32 contract discrepancy scores were

positively correlated to intentions to leave the organization,

• 23 of 32 discrepancy scores were negatively related to job satisfaction,

• 4 of 32 discrepancy scores were negatively correlated to employee performance,

• 2 of 32 discrepancy scores were negatively correlated to organizational citizenship behaviors.

8-72

21st Century Psychological Contracts Cont.

Managerial implications:• Organizations may focus on fulfilling the

most important psychological contract items (based on the survey information).

• When it has been necessary to make changes in the psychological contract, employers should attempt to “renegotiate” the contract to foster more accurate employee perceptions.

8-73

21st Century Psychological Contracts Cont.

Managerial implications Cont.:• Fulfillment of psychological contract

obligations is a key way to retain top employees.

• Managers should ensure that employees are aware of organizational attempts to meet employee needs and keep organizational promises.

8-74

A General Model of Expectancy Theory

High Effort

Low Effort

Performance Goal

Performance Goal

DecisionTo Exert

Effort

Outcome 1

Outcome 2

Outcome 3

Outcome 1

Outcome 2

Outcome 3

Expectancy: “What are my chances of reaching my goal if I work hard?”

Expectancy: “What are my chances of reaching my goal if I slack off?”

Instrumentality: “What are my chances of getting various outcomes if I achieve my goal?

Valence: “How much do I value these outcomes?”

8-75

Attractiveness of Achieving a Performance Goal

Vj = the attractiveness of

achieving a performance goal,

Ijk = the instrumentality

of outcome j for the attainment of outcome k,

Vk = the valence of

outcome k,

n = number of outcomes

Vj

= n

K = 1(VkIjk)

Where:

8-76

Force to Exert a Level of Effort

Fj = the force to exert a

certain level of effort

Eij = the expectancy of

attaining a performance goal if one exerts a certain level of effort

Vj = the attractiveness of

reaching the performance goal

Fj

= (EijVj)

Where:

8-77

Expectancy Theory Application

STEP 1. Valence represents the value placed on outcomes. Calculate the valence for all levels of performance. The equation is:

Performance Valence = [(Instrumentality1 x Valence1) + (I2 x V2) + (I3 x V3) + … (In x Vn)]

STEP 2. Calculate the force on an individual to exert different levels of effort. Force represents the strength of an individual’s intention to respond in a particular manner. The equation is:

Force = the sum of [Expectancy x Performance Valence] for all levels of performance associated with one level of effort.

STEP 3. Compare force values for each performance level.

8-78

HIGH EFFORTWork hard for 10 hours a day

LOW EFFORTWork hard for 3 hours a day

PERFORMANCESubmit 3

manuscripts / year

PERFORMANCESubmit 1

manuscript / year

OUTCOME 1Publish 2

articles / year

OUTCOME 2Gain respect

& recognition

OUTCOME 3Spend more time

with spouse

OUTCOME 1Publish 1

article / 3 years

OUTCOME 3Get fired

OUTCOME 2Lose respect

& recognition

.90

.80

EXPECTANCY INSTRUMENTALITY VALENCE

.75

.70

-.9

.65

.80

.95

+5

+2

+3

+.5

-2

-6

8-79

Conclusion

Questions for discussion

8-80