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Chapter 19 Motivation in Organizations

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Page 1: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Chapter 19Motivation in Organizations

Page 2: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Learning Outcomes: Motivation in Organizations Relate motivational programs for

organizations to the relevant motivational theory.

Describe MBO. Explain the significance of recognition

programs. Sight the merits of quality circles. Discuss the various variable pay

programs. Differentiate between profit sharing and

gain sharing.

Page 3: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.3

Motivation in Organizations If you want to motivate

people, first think about their needs.

Knowing this, how would one go about finding out what your people’s needs are?

Page 4: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.4

Motivational Programs for Organizations

Motivational Programs

Management by objectives

Recognition programs

Quality circles Variable pay

programs

Theory Goal-setting theory

Positive reinforcement Participative

management Expectancy theory and

Equity theory

Page 5: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.5

Management by Objectives MBO is a motivational program

based on goal setting. The goal(s) should: be mutually agreed upon. be difficult, but achievable (realistic). have a defined time frame. be measurable (objective and

budgeted). provide means for feedback.

Page 6: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.6

Linking MBO and Goal-Setting Theory Goal-setting theory demonstrates

that: hard goals result in a higher level of

individual performance. specific hard goals, when accepted and

achievable, result in a higher level of performance than do no goals or generalized goals.

feedback, positive or negative, on one’s performance leads to higher productivity.

Page 7: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.7

Management by Objectives In an MBO program, good goals are

SMART goals: Specific Measurable Attainable Results-oriented Time-related

Page 8: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.8

Motivation in Organizations Recognition programs:

recognition is one of the most powerful workplace motivators.

Page 9: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.9

Recognition Programs

Employee recognition programs are consistent with the reinforcement theory, rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition.

Page 10: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.10

Recognition Programs

Employee recognition programs use multiple sources and recognize both individual and team accomplishments.

In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money.

Page 11: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.11

Merits of Quality Circles Quality circles or employee

involvement programs are forms of participative management and are good ways to get people involved.

People are motivated based on their need to belong and socialize with others.

Page 12: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.12

Variable Pay in Organizations Key Point: Variable pay programs

convert fixed costs into variable costs.

Variable pay programs: piece work plans. commission sales. gain-sharing programs. profit-sharing programs.

Page 13: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.13

Variable-Pay Programs Evidence supports the linkage of

variable pay programs with the expectancy theory and the equity theory, especially for operative employees working under piece-rate systems.

Group and organization-wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.

Page 14: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.14

Motivating Contingent Workers There is no simple solution to

motivating contingent workers. The greatest motivating factor is the

opportunity to gain permanent employment.

Motivation is also increased if the employee sees that the job he or she is doing for the organization can develop salable skills.

Some are motivated by the freedom and work variety that temporary employment provides.

Page 15: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.15

Motivating the Professional The evidence shows professionals being

motivated by the work itself. The challenge and problem-solving of the job provide the incentive to perform at a higher level.

Professionals like the autonomy to follow their interests and to structure their own work.

Reward with educational opportunities. Recognize their contributions.

Page 16: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.16

Summary All of these programs start with

the needs of the people that one is trying to motivate.

Learn their needs and then design your motivational programs based on these needs.

Page 17: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.17

Summary Management by objectives

(MBO) is a motivational program based on the goal-setting theory.

A goal that is difficult but achievable, mutually agreed to, specific, and provides feedback will provide stronger motivation than an easy goal such as “do your best.”

Page 18: Chapter 19 Motivation in Organizations. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and Michael Menefee © 2010 Pearson Education, Upper

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.18

Summary Recognition programs provide strong

motivational reinforcement in the workplace.

Quality circles are a form of participative management based on the theory that workers are more motivated if they can participate in the decisions of the organization.

Variable pay programs such as piece work, gain-sharing and profit-sharing offer incentives as a means to motivate workers.