mgt4201#10
TRANSCRIPT
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Principles of Management
Managing Employee Motivation and Performance
Lecture 10Lecture 10
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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.
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 to do the job.
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Figure 16.1: TheMotivation Framework
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Content Perspectives on Motivation Content 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) The Need Hierarchy Approach
– Maslow’s Hierarchy of Needs• Physiological—basic survival and biological function.• Security—a safe physical and emotional environment.• Belongingness—love and affection.• Esteem—positive self-image/self-respect and recognition and
respect from others.• Self-actualization—realizing one’s potential for personal
growth and development.
– Weakness of Maslow’s theory• Five levels of need are not always present.• Ordering or importance of needs is not always the same.• Cultural differences.
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Figure 16.2: Maslow’s Hierarchy of Needs
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Content Perspectives on Motivation (cont’d) The ERG Theory
– Needs are grouped into three overlapping categories:• Existence needs—physiological and security needs.
• Relatedness needs—belongingness and esteem by others.
• Growth needs—self-esteem and self-actualization.
– 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)
– Satisfaction and dissatisfaction are influenced by two independent sets of 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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Content Perspectives on Motivation (cont’d) The Two-Factor Theory (cont’d)
– Theory posits that 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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Figure 16.3: The Two-Factor Theory of Motivation
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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 affiliation• The desire for human companionship and acceptance.
– The need for power• The desire to be influential in a group and to be in control of
one’s environment.
Implications of the Content Perspectives– Content (what causes motivation) → Process (how motivation occurs)
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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• How they evaluate their satisfaction after they have attained
their goals.
Process Perspectives of Motivation– Expectancy Theory– Porter-Lawler Extension of Expectancy Theory– Equity Theory– Goal-Setting Theory
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Process Perspectives on Motivation (cont’d) Expectancy Theory
– Motivation depends on how much we want something and how likely we are to get it.
– Assumes that:
• Behavior is determined by personal and environmental forces.
• People make decisions about their behavior in organizations.
• People have different types of needs, desires, and goals.
• People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.
• Motivation leads to effort that, when combined with ability and environmental factors, results in performance which leads to various outcomes that have value (valence) to employees.
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Process Perspectives on Motivation (cont’d)
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.
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Process Perspectives on Motivation (cont’d) Elements of Expectancy Theory (cont’d)
– 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.
– 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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Figure 16.4: The Expectancy Model of Motivation
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Process Perspectives on Motivation (cont’d) The Porter-Lawler Extension of Expectancy
Theory– Assumptions:
• If performance results in equitable and fair rewards, people will be more satisfied.
• High performance can lead to rewards and high satisfaction.
– Types of rewards:• Extrinsic rewards are outcomes set and awarded by external
parties (e.g., pay and promotions).• Intrinsic rewards are outcomes internal to the individual (e.g.,
self-esteem and feelings of accomplishment).
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Figure 16.5: The Porter-Lawler Extension of Expectancy Theory
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Process Perspectives on Motivation (cont’d) Equity Theory
– People are motivated to seek social equity in the rewards they receive for performance.
• Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others.
– Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.
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outcomes (self)inputs (self)
=outcomes (other)
inputs (other)
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Process Perspectives on Motivation (cont’d) Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:• Feeling equitably rewarded.
– Maintain performance and accept comparison as fair estimate.
• Feeling under-rewarded—try to reduce inequity.– Change inputs by trying harder or slacking off.– Change outcomes by demanding a raise.– Distort the ratios by altering perceptions of self or of others.– Leave situation by quitting the job.– Change comparisons by choosing another object person.
• Feeling over-rewarded.– Increase or decrease inputs.– Distort ratios by rationalizing.– Help the object person gain more outcomes.
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Process Perspectives on Motivation (cont’d) 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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Process Perspectives on Motivation (cont’d)
Characteristics of Goals (cont’d)– Goal acceptance
• The extent to which persons accept a goal as their own.
– Goal commitment• The extent to which an individual is
personally interested in reaching a goal.
Implications of the Process Perspectives– If rewards are to motivate employees,
they must be perceived as being valued, attainable, fair and equitable.
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Figure 16.6: The Expanded Goal-setting Theory of Motivation
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Reinforcement Perspectives on Motivation Reinforcement Theory
– The role of rewards as they cause behavior to change or remain the same over time.
– Assumes that:• Behavior that results in rewarding consequences is
likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.
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Reinforcement Perspectives on Motivation (cont’d) 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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Reinforcement Perspectives on Motivation (cont’d) Providing Reinforcement in Organizations
– Reinforcement schedules
• Fixed interval schedule—reinforcement applied at fixed time intervals, regardless of behavior.
• Variable interval—reinforcement applied at variable time intervals.
• Fixed ratio—reinforcement applied after a fixed number of behaviors, regardless of time.
• Variable Ratio—reinforcement applied after a variable number of behaviors, regardless of time.
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Table 16.1: Elements of Reinforcement Theory
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Reinforcement Perspectives on Motivation (cont’d) Providing Reinforcement in Organizations
(cont’d)– Behavior modification (OB mod)
• A method for applying the basic elements of reinforcement theory in an organizational setting.
• Specific behaviors are tied to specific forms of reinforcement.
Implications of the Reinforcement Perspectives– Consistently applied reinforcement helps maintain
employee motivation by:• encouraging (rewarding) positive behaviors• discouraging (punishing) dysfunctional behaviors in an
organization.
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Popular Motivational Strategies Empowerment and Participation
– Empowerment• Enabling workers to set their own work goals, make decisions,
and solve problems within their sphere of influence.
– Participation• 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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Popular Motivational Strategies (cont’d) Techniques and Issues in Empowerment
– Using work teams• Collections of employees empowered to plan, organize, direct,
and control their work.
– Decentralization• Changing the overall method of organizing the firm
– Conditions necessary for empowerment:• Power spread to lower organizational levels• Commitment to empowering workers• Systematic and patient efforts to empower workers.• Increased commitment to training.
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Using Reward Systems to Motivate Performance (cont’d) Reward System
– The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards– Higher-level performance-based rewards motivate
employees to work harder.– Rewards help align employee self-interest with
organizational goals.– Rewards foster increased retention and citizenship
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Using Reward Systems to Motivate Performance (cont’d) Merit Reward Systems
– Base a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization.
• Employees who make greater contributions are given higher pay than those who make lesser contributions.
Incentive Reward Systems– Concept: employee pay is based on employee output.– Assume that:
• Performance is under the control of the individual worker.• The employee work at a single task continuously.• Pay is tightly tied to performance (i.e., pay varies with output).
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Using Reward Systems to Motivate Performance (cont’d) Incentive Reward Systems (cont’d)
– Incentive pay plans• Piece-rate systems• Sales commissions
– Other forms of incentives• Non-monetary incentives (perks)
Team and Group Incentive Reward Systems– Gainsharing programs– Scanlon Plan– Employee stock ownership plans (ESOPs)
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Using Reward Systems to Motivate Performance (cont’d) Executive Compensation
– Standard forms of executive compensation• Base salary• Incentive pay (bonuses)
– Special forms of executive compensation• Stock option plans• Executive perks
– Criticism of executive compensation• Excessively large compensation amounts• Compensation not tied to overall performance of the
organization• Earnings gap between executive pay and typical employee pay
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Using Reward Systems to Motivate Performance (cont’d) New Approaches to Performance-Based Rewards
– Leveraging the value of incentives• Allowing individuals and groups in the organization to have a
say in how rewards are distributed.
– Getting increasingly innovative in incentive programs:• Offering stock options to all employees
• Individualizing the rewards available to individuals in reward systems
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Key Terms motivation content perspectives Maslow’s hierarchy of
needs ERG theory of motivation two-factor theory of
motivation need for affiliation need for achievement need for power process perspectives expectancy theory
effort-to-performance expectancy
outcomes valence equity theory avoidance positive reinforcement extinction variable-ratio schedule variable-interval schedule participation
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Key Terms behavior modification
(OB Mod) compressed work
schedule job sharing telecommuting merit pay plan reward system piece-rate incentive plan gainsharing programs Scanlon plan
stock option plan
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