managing employee motivation and performence
TRANSCRIPT
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Principles of ManagementLecture-7
Managing Employee Motivation and Performance
Nigar Sultana LecturerFaculty of Business Studies
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Learning ObjectivesAfter studying this chapter, you should be able to:
Characterize the nature of motivation, including its importance and basic historical perspectives.
Identify and describe the major content perspectives on motivation.
Identify and describe the major process perspectives on motivation.
Describe reinforcement perspectives on motivation. Identify and describe popular motivational strategies. Describe the role of organizational reward systems in
motivation.
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Chapter Outline The Nature of Motivation
The Importance of Motivation in the Workplace
Historical Perspectives on Motivation
Content Perspectives on Motivation
The Need Hierarchy Approach
The Two-Factor Theory Individual Human Needs
Process Perspectives on Motivation
Expectancy Theory Equity Theory Goal-Setting Theory
Reinforcement Perspectives on Motivation
Kinds of Reinforcement in Organizations
Providing Reinforcement in Organizations
Popular Motivational Strategies
Empowerment and Participation
New Forms of Working Arrangements
Using Reward Systems to Motivate Performance
Effects of Organization Rewards
Designing Effective Reward Systems
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The Nature of Motivation Motivation
The set of forces that cause people to behave in certain ways.
The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Motivation
The Importance of Motivation in the Workplace
Determinants of Individual Performance Motivation—the desire to do the job. Ability—the capability to do the job. Work environment—the resources
needed to do the job.
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The Motivation Framework
Search for waysto satisfy need
Choice ofbehavior to
satisfy need
Determination offuture needs andsearch/choice for
satisfaction
Evaluation ofneed satisfaction
Need ordeficiency
The motivation processes through a series of discreet steps. Content, process, and reinforcement perspectives on motivation address different parts of this process.
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Historical Perspectives on Motivation
The Traditional Approach Frederick Taylor (Scientific Management) Assumptions:
Managers know more than workers.Economic gain (money) is the primary motivation for performance.
Work is inherently unpleasant.
Historical Perspectives on Motivation
The Human Relations Approach Emphasized the role of social processes in the
workplace. Assumptions:
Employees want to feel useful and important.Employees have strong social needs, more
important than money.Maintaining the appearance of employee
participation is important.
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Historical Perspectives on Motivation (cont’d)
The Human Resource Approach Assumptions:
Employee contributions are important and valuable to the employee and the organization.
Employees want to and are able to make genuine contributions.
Management’s job is to encourage participation and create a work environment that motivates employees.
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Content Perspectives on MotivationContent Perspectives
Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?”
Content Perspectives of Motivation Maslow’s Hierarchy of Needs Aldefer’s ERG Theory Herzberg’s Two-Factor Theory McClelland’s Achievement,
Power, and Affiliation Needs
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Content Perspectives on Motivation (cont’d)
Maslow’s Hierarchy of NeedsPeople must, in a hierarchical order, satisfy five groups of needs:Physiological needs for basic survival and biological function.
Security needs for a safe physical and emotional environment.
Belongingness needs for love and affection.Esteem needs for positive self-image/self-respect and recognition and respect from others.
Self-actualization needs for realizing one’s potential for personal growth and development.
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Maslow’s Hierarchy of Needs
Self-actualization
Esteem
Belongingness
Security
PhysiologyFood
Achievement
Status
Friendship
Stability
Job
Friends
Pension
Base
NEEDS
General Examples Organizational Examples
jobChallenging
title
at work
plan
salary
Maslow’s Hierarchy of Needs
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Weakness of Maslow’s theory
1. Five levels of need are not always present.2. Ordering or importance of needs is not always the same.
3. Cultural differences.
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Content Perspectives on Motivation (cont’d)
The ERG Theory (Alderfer) People’s needs are grouped into three overlapping
categories—existence, relatedness, and growth. Maslow’s hierarchy is collapsed into three levels:
Existence needs related to physiological and security needs.
Relatedness needs that are similar to belongingness and esteem by others.
Growth needs encompass needs for self-esteem and self-actualization.
Content Perspectives on Motivation (cont’d)
ERG theory assumes that:Multiple needs can be operative at one time (there is no absolute hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).
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Content Perspectives on Motivation (cont’d) The Two-Factor Theory (Herzberg)
People’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors.
Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums:Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
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The Two-Factor Theory of Motivation
Satisfaction No satisfaction
Motivation Factors• Achievement• Recognition• The work itself• Responsibility• Advancement
and growth
Dissatisfaction No dissatisfaction
Hygiene Factors• Supervisors• Working conditions• Interpersonal relations• Pay and security• Company policies and
administration
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Belongingness Innovative thinking Health & wellness Performance target Job security Training & development Reward and recognition Promotion Work autonomy Co-operation of colleagues Challenging work Participation in decision making Work and personal life balance Leadership of superior Salary package Performance bonus or commission Retirement benefit or Pension Interpersonal relationship with manager
The Two-Factor Theory (Herzberg)
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Motivation is a two-step process: Ensuring that the hygiene factors are not
deficient and not blocking motivation. Giving employees the opportunity to
experience motivational factors through job enrichment.
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Content Perspectives on Motivation (cont’d)
Individual Human Needs (McClelland) The need for achievement
The desire to accomplish a goal or task more effectively than in the past.
The need for affiliationThe desire for human companionship and acceptance.
The need for powerThe desire to be influential in a group and to be in control of one’s environment.
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Process Perspectives on Motivation Process Perspectives
Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.
Process Perspectives of Motivation Expectancy Theory Equity Theory Goal-Setting Theory
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Expectancy Theory Motivation depends on how much we want something and how
likely we are to get it. Assumes that:
Behavior is determined by a combination of personal and environmental forces.
People make decisions about their own behavior in organizations.
Different people have different types of needs, desires, and goals.
People choose among alternatives of behaviors in selecting one that leads to a desired outcome.
Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.
Elements of Expectancy Theory
Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead
to a high level of performance.
Performance-to-Outcome Expectancy The employee’s perception of the probability that performance
will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.
Valence An index of how much an individual values a particular
outcome. It is the attractiveness of the outcome to the individual.
Attractive outcomes have positive valences and unattractive outcomes have negative valences.
Outcomes to which an individual is indifferent have zero valences.
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Process Perspectives on Motivation (cont’d)
For motivated behavior to occur:
Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.
The sum of the valences must be greater than zero.
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The Expectancy Model of Motivation
Environment
Motivation Effort Performance
Ability
Outcome
Outcome
Outcome
Valence
Outcome Valence
Outcome Valence
Valence
Valence
© 2005 Prentice Hall Inc. All rights reserved. 6–30
Equity Theory
Referent Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside
Referent Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside
Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.
© 2005 Prentice Hall Inc. All rights reserved. 6–31
Equity Theory (cont’d)
Choices for dealing with inequity:
1. Change inputs (slack off)
2. Change outcomes (increase output)
3. Distort/change perceptions of self
4. Distort/change perceptions of others
5. Choose a different referent person
6. Leave the field (quit the job)
Choices for dealing with inequity:
1. Change inputs (slack off)
2. Change outcomes (increase output)
3. Distort/change perceptions of self
4. Distort/change perceptions of others
5. Choose a different referent person
6. Leave the field (quit the job)
© 2005 Prentice Hall Inc. All rights reserved. 6–32
Equity Theory (cont’d)
Propositions relating to inequitable pay:
1. Over rewarded hourly employees produce more than equitably rewarded employees.
2. Over rewarded piece-work employees produce less, but do higher quality piece work.
3. Under rewarded hourly employees produce lower quality work.
4. Under rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees
Propositions relating to inequitable pay:
1. Over rewarded hourly employees produce more than equitably rewarded employees.
2. Over rewarded piece-work employees produce less, but do higher quality piece work.
3. Under rewarded hourly employees produce lower quality work.
4. Under rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees
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Goal-Setting Theory
Assumptions Behavior is a result of conscious goals and intentions. Setting goals influence the behavior of people in
organizations.
Characteristics of Goals Goal difficulty
Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals. Goals should be difficult but attainable.
Goal specificity Clarity and precision of the goal. Goals vary in their ability to be
stated specifically.
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Reinforcement Perspectives on Motivation
Kinds of Reinforcement in Organizations Positive reinforcement
Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.
Avoidance Strengthens behavior by avoiding unpleasant consequences
that would result if the behavior is not performed. Punishment
Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.
Extinction Weakens undesired behavior by simply ignoring or not
reinforcing that behavior.
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Popular Motivational StrategiesEmpowerment and Participation
Empowerment The process of enabling workers to set their own work
goals, make decisions, and solve problems within their sphere of influence.
Participation The process of giving employees a voice in making
decisions about their work. Areas of Participation for Employees
Making decisions about their jobs. Decisions about administrative matters (e.g., work
schedules). Participating in decision making about broader issues of
product quality.
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Using Reward Systems to Motivate Performance
Reward System The formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards Effect of Rewards on Attitudes
Satisfaction is influenced by how much is received and how much the person thinks should have been received.
Satisfaction is affected by comparison with others. The rewards of others are often misperceived. Overall job satisfaction is affected by employee
satisfaction with intrinsic and extrinsic rewards.
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Effects of Organizational Rewards (cont’d)
Effect of Rewards on Behaviors Extrinsic rewards affect employee satisfaction and
reduce turnover. Rewards influence patterns of attendance and
absenteeism. Employees tend to work harder for rewards based on
performance.
Effect of Rewards on Motivation Employees will work harder when performance will be
measured. Employees will work harder if
performance is closely followed by rewards.