123994619 contemporary management

8/13/2019 123994619 Contemporary Management

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Motivation and Performance

McGraw-Hill/IrwinContemporary Management, 5/e

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

chapter thirteen


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Learning Objectives

Explain what motivation is and whymanagers need to be concerned about it.

Describe from the perspectives of

expectancy theory and equity theorywhat managers should do to have ahighly motivated workforce.

Explain how goals and needs motivatepeople and what kinds of goals areespecially likely to result in highperformance.


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Learning Objectives

Identify the motivation lessons that

managers can learn from operant

conditioning theory and social learning

theory.

Explain why and how managers can use

pay as a major motivation tool.


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The Nature of Motivation

Motivation

The psychological forces that determine the

direction of a persons behavior in an

organization, a persons level of effort, anda persons level of persistence

Explains why people behave the way they

do in organizations


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Direction- possible behaviors the

individual could engage in

Effort- how hard the individual will work

Persistence- whether the individual will

keep trying or give up


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Question?

What behavior is performed for its own

sake?

A. Intrinsically Motivated Behavior

B. Extrinsically Motivated Behavior

C. Centrally Motivated Behavior

D. Inherently Motivated Behavior


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Intrinsically Motivated Behavior

Behavior that is performed for its own sake.

The source of the motivation that comes

from actually performing the behavior. The sense of accomplishment and

achievementderived from

doing the workitself


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Extrinsically Motivated Behavior

Behavior that is performed to acquire

material or social rewards or to avoid

punishment.

The source of the motivation is the

consequences of the behavior and not

the behavior itself.


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Outcomes and Inputs

OutcomeAnything a person gets from a job or an

organization

Pay, job security, autonomy,accomplishment

Input

Anything a person contributes to his or herjob or organization

Time, effort, skills, knowledge, work

behaviors


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The Motivation Equation

Figure 13.1


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Expectancy Theory

Motivation will be high when

workers believe:

High levels of effort will

lead to high performance.

High performance

will lead to the

attainment ofdesired outcomes.


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Expectancy Theory

Major Factors of Motivation

Expectancy- the belief that effort (input)will result in a certain level of performance

Instrumentality- the belief thatperformance results in the attainment ofoutcomes

Valence- how desirable each of the

available outcomes from the job is to aperson


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Expectancy, Instrumentality, and Valence

Figure 13.2


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Expectancy Theory

Figure 13.3


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Need Theories

Need

A requirement or

necessity for

survival and well-being.

Need Theories

People are

motivated to

obtain outcomesat work that will

satisfy their needs


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Maslows Hierarchy of Needs

Table 13.1

Self-

actualization

Realize ones

full potential

Use abilities

to the fullest

EsteemFeel good

about oneself

Promotions

and recognition

BelongingnessSocial

interaction, love

Interpersonal

relations, parties

Safety Security, stabilityJob security,

health insurance

PhysiologicalFood, water,

shelter

Basic pay level

to buy items

Needs Description Examples

Lower-level needs must be satisfied

before higher-level needs are addressed.

Highest-level

needs

Lowest-level

needs


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Alderfers ERG Theory

Table 13.2

After lower level needs satisfied, person seeks higher needs. When

unable to satisfy higher needs, lower needs motivation is raised.

GrowthSelf-development,

creative work

Continually

improve skills

RelatednessInterpersonal

relations, feelings

Good relations,

accurate feedback

ExistenceFood, water,

clothing, and shelter

Adequate pay

for necessities

Needs Description Examples

Highest-level

needs

Lowest-level

needs


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Alderfers ERG Theory

As lower level needs become satisfied, a

person seeks to satisfy higher-level

needs

A person can be motivated by needs at

more than one level at the same time

When people experience need

frustration they will focus on satisfying

the needs at the next-lowest level


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Herzbergs Motivation-Hygiene Theory

Focuses on outcomes that lead to highermotivation and job satisfaction, andthose outcomes that can prevent

dissatisfaction. Unsatisfied hygiene needs create

dissatisfaction; satisfaction of hygieneneeds does not lead to motivation or jobsatisfaction.


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Herzbergs Motivation-Hygiene Theory

Motivator needsrelate to the nature of

the work itselfautonomy, responsibility,

interesting work.

Hygiene needsare related to the

physical and psychological context of the

workcomfortable work environment,

pay, job security.


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McClellands Needs for Achievement,

Affiliation, and Power

Need for Achievement

A strong need to perform challenging

tasks well and meet personalstandards for excellence


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McClellands Needs for Achievement,

Affiliation, and Power

Need for Affiliation

Concerned about establishing and

maintaining good interpersonal relations,

being liked, and having the people aroundhim get along with each other

Need for Power

A desire to control or influence others


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Equity Theory

Equity Theory

Focuses on peoples perceptions of thefairness (or lack of fairness) of their work

outcomes inproportion totheir work inputs.


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Equity Theory

A relative outcome to input ratiocomparison to oneself or to anotherperson (referent) perceived as similar to

oneself. Equity exists when a person perceives

that their outcome/input ratio to be equalto the referents ratio.

If the referent receives more outcomes, theyshould also give more inputs to achieveequity.


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Equity Theory

Table 13.3

Condition Person Referent Example

EquityOutcomes = Outcomes

Inputs Inputs

Worker contributes

more inputs but also

gets more outputs

than referent

Underpayment

Equity

Outcomes < Outcomes

Inputs Inputs

Worker contributes

more inputs but also

gets the same outputs

as referent

Overpayment

Equity

Outcomes > Outcomes

Inputs Inputs

Worker contributessame inputs but also

gets more outputs

than referent


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Equity Theory

Inequity exists when workers outcome/input

ratio is not equal to referent.

Underpayment inequity: ratio is less than the

referent. Workers feel they are not getting the outcomes

they should for their inputs.

Overpayment inequity: ratio is higher than the

referent. Workers feel they are getting more outcomes

than they should for their inputs.


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Equity Theory

Restoring Equity: Inequity creates tension in

workers causing them to attempt to restore

equity.

In underpayment, workers may reduce input levelsto correct (rebalance) the ratio or seek a raise.

In overpayment, workers may change the referent

person and readjust their ratio perception.

If inequity persists, workers will often choose toleave the organization.


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Goal Setting Theory

Focuses on motivating workers tocontribute their inputs to their jobs andorganizations

Considers how managers can ensurethat workers focus their inputs in thedirection of high performance and theachievement of organizational goals.


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Goal Setting Theory

Goal

What a person is trying to accomplish

through his efforts and behaviors

Must be specific and difficult

Goals point out what is important to the

firm. Workers should be encouraged to develop

action plans to attain goals.


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Goal Setting Theory

Goals motivate

people to contribute

more inputs to their

jobs

Goals help people

focus their inputs in

the right direction


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Learning Theories

Managers can increase employee

motivation and performance by the ways

they link the outcomes that employees

receive to the performance of desiredbehaviors in an organization and the

attainment of goals


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Learning Theories

Learning

A relatively permanent change in persons

knowledge or behavior that results from

practice or experience.


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Operant Conditioning Theory

Operant Conditioning

People learn to perform behaviors that leadto desired consequences and learn not to

perform behaviors that lead to undesiredconsequences.

Linking specific behaviors to the attainmentof specific outcomes can motivate high

performance and prevent behaviors thatdetract from organizational effectiveness.


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Question?

Which operant conditioning tool

administers an undesired consequence

to immediately stop a dysfunctional

behavior?

A. Positive reinforcement

B. Negative reinforcement

C. Extinction

D. Punishment


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Operant Conditioning Tools

Positive Reinforcement

Gives people outcomes they desire when

they perform organizationally functionally

behaviors Positive reinforcers: Pay, praises, or

promotions


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Negative Reinforcement

Eliminating undesired outcomes once the

functional behavior occurs

Negative reinforcers: criticisms, pay cuts,suspension


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Extinction Curtailing the performance of a dysfunctional

behavior by eliminating whatever is

reinforcing it.

Punishment

Administering an undesired/negative

consequence to immediately stop a

dysfunctional behavior.

Manager administers an undesired consequence

to worker (verbal reprimand, demotion, pay cut).


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Avoiding Side Effects of Punishment

Downplay the emotional element

involved

Try to punish dysfunctional behaviors as

soon as they occur

Try to avoid punishing someone in front

of others


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Organizational Behavior Modification


Managers systematically apply operant

conditioning techniques to promote the

performance of organizationally functionalbehaviors and discourage the performance

of dysfunctional behaviors


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Used to improve productivity, efficiency,

attendance, punctuality, safe work

practices, and customer service

Sometimes questioned because of lack

of relevance to certain work behaviors

To critics it is overly controlling and robs

workers of their dignity, individuality,freedom of choice and creativity


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13-42Figure 13.4

Steps inOrganizational

Behavior

Modification


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Social Learning Theory


Proposes that motivation results not only

from direct experience of rewards and

punishments but also from a personsthoughts and beliefs


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Vicarious Learning (Observational

Learning)

Occurs when a person becomes motivated

to perform a behavior by watching anotherperson perform the behavior and be

positively reinforced for doing so


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Self-Reinforcement

Any desired or attractive outcome or award

that a person can give himself or herself for

good performance.

Self-efficacy

A persons belief about his or her ability to

perform a behavior successfully.


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Pay and Motivation

Pay as a Motivator

Expectancy: Instrumentality, the associationbetween performance and outcomes, must

be high for motivation to be high. Need Theory: pay is used to satisfy manyneeds.

Equity Theory: pay is given in relation to

inputs.


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Pay and Motivation

Pay as a Motivator

Goal Setting Theory: pay is linked to

attainment of goals.

Learning Theory: outcomes (pay), isdistributed upon performance of functional

behaviors.


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Merit Pay and Performance

Merit Pay Plan

A compensation plan that bases pay on

based on individual, group and/or

organization performance. Individual plan: when individual

performance (sales) can accurately

measured.


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Merit Pay and Performance

Merit Pay Plan

Group plan: when group that works closely

together is measured and rewarded as a

group. Organization plan: when group or individual

outcomes not easily measured.


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Salary Increase or Bonus?

Motivational Value of a Bonus Is HigherWhen:

Salary levels are unrelated to current

performance. Changes in other compensation items (cost

of living, seniority) are not having a largeeffect in increasing compensation.

Salaries rarely change and performancedoes.


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Benefits of Using Bonuses

Do not become permanent part of

compensation

Are more directly tied to currentperformance

Provide more flexibility in distributing

rewards


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Employee Stock OptionA financial instrument that entitles the bearer

to buy shares of an organizations stock at a

certain price during a certain period of time orunder certain conditions.


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Discussion Question?

Which merit pay plan is the most effective?

A. Piece rate

B. Commission

C. Scanlon plan

D. Profit sharing


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Examples of Merit Pay Plans

Piece-rate Pay Employees pay is based on the number of units

that the employee produces.

Commission Pay Employees pay is based on a percentage of sales

that the employee makes.

Organization-based Merit Plans Scanlon planfocuses on reduced expenses or

cutting costs Profit sharingemployees receive a share of an

organizations profits


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Movie Example: Mr. Hollands Opus

As a manager, is it

important for

Principal Jacobs

to know themotivations of her

subordinates?

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