chapter 19 - mn421.files. file · web viewchapter 18. motivation. learning objectives....

Chapter 18: Motivation

CHAPTER 18

MOTIVATION

Learning Objectives

After reading this chapter, the student should be able to:

Differentiate between intrinsic and extrinsic rewards and describe how they influence

motivation.

Outline the five primary content theories of motivation and describe how they are

similar or different.

Describe the primary process theories of motivation and what each one attempts to

measure.

Explain the different ways in which desired behavior is reinforced within an organization

and the role that job design plays in channeling motivation.

Chapter Outline

Introduction

Content Theories of Motivation

o Hierarchy of Needs Theory

o ERG Theory

o Two-Factor Theory

o Acquired Needs Theory

o Four-Drive Theory

© 2014 Cengage Learning. All Rights Reserved.1


Process Theories of Motivation

o Goal-Setting Theory

o Expectancy Theory

o Equity Theory

Reinforcing Motivation

o Work Design

o Reinforcing Strengths

Summary

Self-Reflection: What Motivates You?

This self-reflection is designed to assess students’ understanding of what motivates them.

Students who understand what motivates them can use this knowledge for goal setting, career

planning, and performance management.

This assessment has ten true and false statements.

Self-Reflection

Question

Motivating Factor

Q1 Financial Rewards

Q2 Fear of Punishment

Q3 Recognition

Q4 Challenge

Q5 Goals

Q6 Achievements



Q7 Developmental Opportunities

Q8 Helping Others

Q9 Affiliation or a Sense of Belonging

Q10 The need to learn or Master a task

After completing the assessment, students can reflect upon how they think their motivating

factors will influence their career choices.

Comprehensive Lecture Outline

Discussion Starter: Ask students to describe jobs or projects where they were motivated and

examples of when they were demotivated. A wide range of responses will reinforce the point of

how people need many different motivators.

I. Introduction. The real test of leadership is the ability to stimulate individuals’ action to

pursue an organization’s vision or direction. Motivation is the desire, stimulus, or

incentive to pursue a particular course of action. Extrinsic rewards are rewards used to

facilitate or motivate task performance that include pay, promotions, fringe benefits,

and job security. Intrinsic rewards are rewards associated with “doing the job,” that

include interesting and challenging work, self-direction and responsibility, variety,

opportunities to use one’s skills and abilities, and sufficient feedback regarding one’s

efforts. The degree to which each factor (intrinsic or extrinsic) is important is generally

unique to a specific individual. Successful companies and their leaders understand and

utilize the various motivational levers at their disposal to generate employee

engagement and excitement throughout the organization.

Class Activity: Use the case below as an opportunity to allow students to apply concepts from

the chapter. Suggestion: You could ask them to do this case as individuals or in teams as a class

activity. Have the students read the case presented in the text and answer the included



questions.

Case In Point: Vineet Nayar and HCL Technologies

1. Why did Vineet Nayar want to change the culture at HCL Technologies?

Nayer wanted to change the culture of HCL Technologies because of its performance

problems. In the 1980s, HCL prospered selling hardware. But by the 1990s, HCL lagged

behind as the industry shifted its focus to software and services. HCL was forced to

reorganize because of financial performance and a 30% turnover rate. Nayer believed many

of HCL problems were a result of a culture that lacked unity and encouraged employees to

work in silos.

2. How do you think the objectives of the Employee First Campaign changed the culture at

HCL Technologies

The objectives were to 1) provide a unique employment environment; 2) to drive an

inverted organizational structure; 3) to create transparency and accountability in the

organization; and 4) to encourage a value-driven culture. The “Employee First” campaign

changed the culture by signaling how HCL was investing in its people to produce bottom-

line results.

3. How did Vineet Nayar motivate employees to collaborate?

Nayer motivated employees to collaborate by improving the intranet system so employees

were more connected. He mandated 360-degree feedback to transform managerial

behavior. Finally, he implemented trust pay, providing full pay up front before employees

hit their performance targets.

4. Why was investment in employee development an important motivator?

For this question, students may discuss how investments in employee development



signaled to employees that HCL’s management was committed to their well being, and this

commitment motivated the performance of employees.

5. Why do you think motivating the employees improved HCL Technologies’ performance?

For this question, students may discuss how Nayer created a motivation system that is

aligned with Maslow’s Need Hierarchy (refer to Figue 19.1). Students can discuss how the

work not only provided a salary and job security, but also a culture of inclusion,

recognitions, rewards, and job autonomy.

II. Content Theories of Motivation. What incentives and needs energize, direct,

sustain, or stop an individual’s behavior?

A. Hierarchy of Needs Theory. Maslow states that individuals have multiple needs

that must be fulfilled in a specific hierarchical order to ensure the

greatest level of satisfaction. According to Maslow, lower-order needs are the

most pressing and must be satisfied before higher-order needs can be

addressed. According to Maslow, most people continually work to fulfill

their needs for belongingness and esteem while never truly arriving at the

level of self-actualization.

B. ERG Theory. Alderfer collapsed Maslow’s five levels into three, which he

called existence, relatedness, and growth.

1. Existence. These are basic primary needs that enable a person to live and

function productively. Maslow’s physiological and safety needs are

encompassed within Alderfer’s existence needs.

2. Relatedness. Similar to Maslow’s need for belongingness, these are

desires to interact with others and to be part of a whole.

Individuals seek opportunities to relate to others, share feelings, and

openly express and debate thoughts and ideas.



3. Growth. These needs refer to an individual’s desire to reach his or her full

potential, which results in higher esteem and a heightened sense of

self-actualization. Although Alderfer shared Maslow’s belief in a

hierarchical order of needs, he disagreed with Maslow on

the process of achieving satisfaction. Alderfer believed that individuals

could pursue multiple needs at once and often pursue them in a

recurring loop pattern.

C. Two-Factor Theory. Herzberg surveyed employees about their job attitudes and

levels of job satisfaction. His results supported the theory about higher-

order and lower-order needs, but Herzberg disagreed that every need is a

motivator. Herzberg believed that lower-order needs were potential

dissatisfiers while higher-order needs were the true motivators. Herzberg

called these two dimensions hygiene factors and motivators.

According to Herzberg, improving these aspects of the job environment does

not create satisfaction, nor does it motivate people to perform better in their

work. In essence, these are baseline conditions that employees expect.

D. Acquired Needs Theory. Unlike Maslow and Herzberg who asserted that

individuals are born with underlying needs, David McClelland believed that

certain types of needs are acquired over time and are shaped through life

experiences. Individuals are driven or motivated by the following three needs.



1. Need for achievement. The need to set, meet, and exceed goals.

2. Need for affiliation. The need to interact, socialize, and develop

friendships.

3. Need for power. The need to seek opportunities for personal

aggrandizement (personalized power) or the need to make an

impact on and influence others (socialized power).

Although individuals often prioritize one of the acquired needs more than the

others, in general, individuals are not driven by only one of these needs

because the drive to fulfill each need generally ranges from “high” to

“low.” To be satisfied, a person needs to fulfill all three needs at some

level.

E. Four-Drive Theory. Lawrence and Nohria agreed with other motivation theorists

on three specific levels. They believed that underlying needs are innate, that

fulfilling them creates satisfaction, and that leaving them unfulfilled

creates dissatisfaction. But they also believed that there was no requisite

hierarchical order in which the needs must be satisfied and that the

satisfaction of one need is not dependent on the satisfaction of another

need. The four drives include the following.

1. The drive to acquire. To acquire scarce goods and social status.

2. The drive to bond. To connect with individuals and groups inside and

outside the workplace.

3. The drive to comprehend. To satisfy curiosity through understanding, to

learn, and to master challenges.

4. The drive to defend. To protect oneself and others against external

threats and to promote justice.



To motivate employees, therefore, all four drives must be addressed at some

level.

A Different View: Drive

For this chapter’s A Different View, we recommend that the professor facilitate a discussion on

how motivating factors for employees have changed. As a conversation starter, the professor

can present Daniel Pink’s perspective from his book, Drive. Daniel Pink contends that today’s

independent thinkers are no longer motivated by external rewards such as financial incentives.

Rather, they are motivated by the internal gratification of a job well done. After discussing this

concept, students should discuss the following.

1. Rewards that motivate your students. Discuss whether those rewards are external or

internal.

2. Rewards offered to your students when they worked on a job; students should evaluate the

effectiveness of these rewards.

Discussion Starter: Consider A Different View: Drive. Ask the students the following questions

about themselves.

1. What rewards motivate you? Are they external or internal rewards?

2. In your business experience, what types of rewards were offered to you or your colleagues?

How effective were those rewards?

III. Process Theories of Motivation. Process theories of motivation see the individual as an

active decision maker.

Discussion Starter: Ask the class, "How many of you set goals?" For the students who raise their

hands, ask why they are goal setters. Also ask students who don't set goals why they don't (if



anyone will disclose).

A. Goal-Setting Theory. The theory that setting goals that are difficult, but

achievable, is a significant motivator of performance. Locke and Latham

found that setting high goals and directing employees toward meeting them is a

key driver of motivation.

1. Goals direct attention and effort toward goal-relevant activities and

away from goal-irrelevant activities.

2. Difficult goals make employees want to work harder, regardless of

whether the goals are set by management or the employee.

3. Tight deadlines for goal completion lead to a more rapid work pace.

4. People use the knowledge and skills they have attained from other

activities and apply them to meet new goals. Organizations that

set specific, challenging goals that are acceptable to employees and

then help employees track their progress toward goal achievement by

providing timely feedback can realize more benefits from

enhanced motivation.

B. Expectancy Theory. Vroom suggests that employees expect that high effort

should lead to good performance and that good performance, in turn,

should lead to reward. In essence, a relationship between effort, performance,

and reward (or outcomes) is assumed. The following three variables enter

into the thought processes of employees when trying to decide how much

effort to expend.

1. Effort to performance expectancy. The evaluation of whether putting in

effort will lead to high performance.



2. Performance to outcome expectancy. The evaluation of whether

successful performance will lead to a desired reward.

3. Valance. The evaluation of whether the available outcomes are

attractive.

Discussion Starter: Students are often confused by the introduction of expectancy theory and

don't always see how it relates to their own lives. Giving them examples from every day

decision making is a good way to help them make sense of it. One example would be how they

determine how much to study for each class in which they are enrolled. Another would be how

we make decisions in the workplace that affect our lives, such as whether to work overtime

when the boss gives you the option.

The relationship between these three variables is considered multiplicative,

which means that if any of these variables is absent, motivation also is

absent.

4. To increase the desired impact of expectancy theory, managers should

attempt to do the following:

a. Determine what rewards each employee values.

b. Be clear about what behavior the organization expects,

c. Ensure that desired levels of performance are challenging yet

achievable.

d. Link desired outcomes to desired performances.

e. Analyze situations for potential conflicts.

C. Equity Theory. Individuals do not expect just to be rewarded for their efforts;

they also expect that those rewards will be fair and equitable. Adams



proposes that people will compare their circumstances with those of similar

others and that this behavior motivates them to seek fairness in the way they

are rewarded for performance.

1. Equity process. Employees evaluate equity (fairness of effort-reward

tradeoffs) as their perception of the ratio of their outcomes to

their referent other’s outcomes.

2. If employee’s outcomes are less, the employee will be motivated to seek

to adjust the ratio.

IV. Reinforcing Motivation. The process of using rewards or punishments to induce

behaviors or actions is central to reinforcement theory. B. F. Skinner, one of the most

prominent reinforcement theorists, proposed that positive and negative

reinforcements can increase certain behaviors while extinction and punishment can

decrease them.

• Positive reinforcement is rewarding a desired behavior.

• Negative reinforcement is removing an aversive condition in response to a desired

behavior.

• Punishment is presenting an aversive stimulus in response to an undesired

behavior.

• Extinction is the idea that a behavior stops because it has ceased to be rewarded

or punished.

• Skinner believed that behavior is learned and that rewards are important for

encouraging employees to repeat desired behaviors and discontinue undesirable

ones. This notion is called the theory of operant conditioning.

A. Work Design. The design of the work also can be an important driver of

performance.



1. Organizations that are successful in creating a highly motivated

workforce provide opportunities for employees to engage in tasks

that are meaningful and tied to overall organizational goals.

2. When employees believe that what they are doing is valued and

appreciated by the organization, they will be more satisfied with

their work and therefore less likely to seek alternative employment.

3. Employees should also feel a sense of responsibility for the outcome of

their work and be able to continually monitor their progress. See

Figure 18.6 • Work Design as Motivation

4. Employment engagement. In his study of the relationship between

managers and subordinates, Douglas McGregor identified two

fundamentality different approaches to managing what he

called Theory X and Theory Y.

a. Managers who conform to Theory X believe that employees

inherently dislike work and need to be constantly

monitored and evaluated to ensure that they do what is

expected.

b. Theory Y managers believe that employees are not slackers, but

are motivated to do their best and to work to their

potential.

c. Follow-up research indicated that the attitudes and beliefs of

Theory X and Y managers created self-fulfilling prophecies.

d. The characteristics of organizations with high employee

engagement include a climate with the following.

o Participative decision making.



o Information sharing (open communication up and down

the organization).

o Training and development.

o Performance-based outcomes or rewards.

e. This feeling of engagement creates a sense of self-efficacy, the

belief that one has the capability to accomplish

organizational goals.

B. Reinforcing Strengths. Understanding what motivates one individual versus

another is key to being an effective leader. To be successful in tailoring

opportunities and rewards to employees, managers should ask

the following three questions.

1. What are the individual’s strengths?

2. What are the triggers that activate those strengths?

3. What is the individual’s learning style?

The Leadership Development Journey

For this assignment, students are asked to consider how leaders motivate their employees by

creating a culture that engages employees. Employee engagement is a positive emotional

connection that employees have with their organization.

In this section, students were provided with the following list of practices that demonstrate

how a leader can engage employees.

Create a climate of trust.

Behave with integrity.

Design jobs that are intellectually stimulating.

Provide career growth opportunities.



Invest in employee development.

Emphasize the importance of high-quality relationships.

Instill organizational pride.

Create a line of sight between an individual’s performance and the organization’s goals.

Using this list, students should consider a time when they were engaged by a leader and

elaborate on what engagement strategy the leader used. Ask students to discuss how the

leader’s ability to engage motivated his or her performance.

Discussion Topics

1. In what ways can a company align organizational and employee goals? How can a company

ensure that employees are focused on the right goals?

2. Compare and contrast the five content theories of motivation. In what ways are they similar

and different? As you think about your own motivational drives, which content theory

resonates with you?

3. What are the implications of the two-factor theory of motivation? How can a company

effectively respond to both sides of the equation?

4. How do goals act as motivational drivers? In Chapter13, we discussed the locus of control.

How does the locus of control impact an individual's approach to the setting and

achievement of goals?

5. In what ways are the goal-setting theory and the expectancy theory similar?

6. In what ways does an individual's conception of equity influence his or her level of

motivation?

7. How does the design of a job impact an employee's motivational levels? What levers could

an employer use to increase the level of motivation of its employees?

8. In what ways do cultural factors influence motivation? How should managers of global



operations think about motivation?

9. Consider the Theory X and Theory Y approaches to leadership. Which one resonates with

you? Think of an example of a highly successful Theory X and Theory Y leader. What did

they do to achieve success?

10. Think about a time when you were at your best at work or in school. What motivated you to

perform at your best? Were you motivated by extrinsic or intrinsic rewards? How does

focusing on one's strengths improve his or her performance? What are the potential

downsides of this approach to motivation?

Assignments

Management Research

1. For this question, students are required to research a company that was recently listed on

Fortune Magazine’s “Great Places to Work” list. Students should create a press release for

this company that describes how it motivates its employees. Topics for the press release

may include the following.

How the company creates an affiliate-work climate.

How the company rewards its employees.

How the company uses training to develop its employees.

How the company creates a line of sight between the contributions of employees

and organizational goals.

Students can share their press release with their classmates and discuss what they learned

about the importance of motivation.



2. For this question, students should consider a goal they would like to accomplish this year.

Students should describe the goal and evaluate the feasibility of this goal using the

following SMART criteria.

Is the goal specific?

Can the goal be measured?

Is the goal attainable?

How relevant is the goal?

Have you established a time line for achieving the goal?

In the Field

For this assignment, students should interview both a Baby Boomer and a Gen Y. Students

should ask each interviewee to map out how their life experience and goals influence their

motivations. Students should compare and contrast the life maps of the Baby Boomer and Gen

Y and answer the following questions.

What are the similarities in their motivations?

What are the differences in their motivations?

Why do you think there are differences?

What are the managerial implications of these differences?



This page intentionally left blank.


chapter 19 - mn421.files. file · web viewchapter 18. motivation. learning objectives....

Documents