Chapter Eleven

Motivating People

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Motivating People

Motivation Forces that energize, direct, and sustain a

person’s efforts.• Energize effort is concerned with the choices that

people make about how much effort to put forth in their jobs.

• Direction of effort is concerned with the choices that people make in deciding where to put forth effort in their jobs.

• Sustain effort is concerned with the choices that people make about how long they will put forth effort.

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Motivating People

Managers must motivate people to: Join the organization, Remain in the organization Come to work regularly Perform Exhibit good citizenship

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Effort and Performance

PerformancePerformancePerformancePerformance

EffortEffortEffortEffort

• InitiationInitiation• DirectionDirection• PersistencePersistence

1.11.1

When most people think of work motivation, they think that working hard (effort) should lead to doing a good job (performance). However, motivation is just one of three determinates of job performance.

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Effort and Performance

Job performance how well someone performs the job Motivation

• effort put forth on the job

Ability• capability to do the job(knowledge, skills, talent0

Situational Constraints• external factors affecting performance(tools, policies, resources)

Since job performance is a multiplicative function of motivation times ability times situational constraints, job performance will suffer if any one of these components is weak.

Job Performance = Motivation x Ability x Situational Constraints

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Need Theory

Needs physical or psychological requirements that must be met

to ensure survival and well beingUnmet needs motivate people

unmet need creates an uncomfortable, internal state of tension that must be resolved

When a need is met, it no longer motivates.Three approaches:

Maslow’s Hierarchy of Needs Alderfer’s ERG Theory McClelland’s Learned Needs Theory

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Maslow’s Need Hierarchy

Maslow’s need hierarchy A conception of

human needs organizing needs into a hierarchy of five major types.

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Maslow Arranged Needsin a Hierarchy

1. Physiological - food, water, sex, and shelter.2. Safety or security - protection against threat and

deprivation.3. Social - friendship, affection, belonging, and love.4. Ego - independence, achievement, freedom, status,

recognition, and self esteem.5. Self-actualization - realizing one’s full potential,

becoming everything one is capable of being.

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Alderfer’s ERG Theory

Alderfer’s ERG theory A human needs theory postulating that people

have three basic sets of needs that can operate simultaneously.

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Alderfer’s ERG Theory

Existence needs all material and physiological desires.

Relatedness needs involve relationships with other people and are

satisfied through the process of mutually sharing thoughts and feelings.

Growth needs motivate people to productively or creatively

change themselves or their environment.

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McClelland Said Managers SeekAchievement, Affiliation, and Power

Need for achievement a strong orientation toward accomplishment and

an obsession with success and goal attainment.

Need for affiliation reflects a strong desire to be liked by other

people

Need for power a desire to influence or control other people

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Needs Classification

McClelland’sMcClelland’sLearned NeedsLearned Needs

Alderfer’sAlderfer’sERGERG

Maslow’sMaslow’sHierarchyHierarchy

Higher-Order Needs

Lower-Order Needs

Self-ActualizationEsteemBelongingness

SafetyPhysiological

GrowthRelatedness

Existence

PowerAchievementAffiliation

1.21.2

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Adding Needs Satisfaction to the Model

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Designing Jobs that Motivate

Extrinsic rewards Rewards given to a

person by the boss, the company, or some other person.

Intrinsic reward Reward a worker

derives directly from performing the job itself.

What leads to effort? In part, needs do, but rewards are important too.

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The Most Important Rewards

• Good benefits

• Health insurance

• Job security

• Vacation time

• Interesting work

• Learning new skills

• Independent work situations

Extrinsic

Intrinsic

1.31.3

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Adding Rewards to the Model

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Achieving Fairness

Equity theory A theory stating that people assess how fairly

they have been treated according to two key factors: outcomes and inputs.

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Achieving Fairness

Outcomes refer to the various

things the person receives on the job: recognition, pay, benefits, satisfaction, security, job assignments, and punishments

Inputs refer to the

contributions the person makes to the organization: effort, time, talent, performance, extra commitment, and good citizenship

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Inequity

When a person’s O/I ratio differs from their referent’s O/I ratio

• Kinds of inequity– Underreward

• your O/I ratio is worse than yours referent’s O/I ratio• experience anger or frustration

– Overreward• your O/I ratio is better than yours referent’s I/O ratio• experience guilt

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How People React to Perceived Inequity

• Reduce inputs• Increase outcomes• Rationalize inputs or outcomes• Change the referent• Leave

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Adding Equity Theoryto Model

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Performance-Related Beliefs

Expectancy theory A theory proposing that people will behave based

on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome.

People will be motivated to the extent to which they believe that their effort will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards.

People make conscious choices about their motivation.

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If You Try Hard, Will YouSucceed?

Expectancy Employees’ perception of the likelihood that their

efforts will enable them to attain their performance goals.

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Components of Expectancy Theory

ValenceValence

ExpectancyExpectancy

InstrumentalityInstrumentality

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Expectancy Theory

Valence The attractiveness or desirability of various

rewards or outcomes.

Expectancy The perceived relationship between effort and

performance.

Instrumentality The perceived relationship between

performance and rewards.

Motivation=Valence x Expectancy x Instrumentality

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Basic Concepts of Expectancy Theory

Exhibit 11.3

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Motivating with Expectancy Theory

• Systematically gather information to find out what employees want from their jobs

• Clearly link rewards to individual performance

• Empower employees to make decisions which enhance expectancy perceptions

3.23.2

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Adding Expectancy Theory to Model

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Reinforcing Performance

Law of effect A law formulated by Edward Thorndike in 1911 stating

that behavior that is followed by positive consequences will likely be repeated.

Reinforcers Positive consequences that motivate behavior.

Organizational behavior modification (OB Mod) is the application of reinforcement theory in organizational settings.

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Reinforcing Performance

Four key consequences of behavior either encourage or discourage people’s behavior: Positive reinforcement Negative reinforcement Punishment Extinction

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Reinforcing Performance

Positive reinforcement applying a

consequence that increases the likelihood of a person repeating the behavior that led to it

Examples:• Compliments, letters of

commendation, favorable performance evaluations, pay raises

Negative reinforcement Removing or

withholding an undesirable consequence.

Example:• taking an employee off

probation because of improved performance

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Reinforcing Performance

Punishment Administering an

aversive consequence. Example:

• Criticizing an employee, assigning an unappealing task, sending a worker home without pay.

Extinction Withdrawing or failing

to provide a reinforcing consequence.

Examples:• Not giving a compliment,

forgetting to say thanks, setting impossible performance goals

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The Consequences of BehaviorExhibit 11.2

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Reinforcing Performance

Be careful what you reinforce • Identify which kinds of behaviors to reinforce, and

those to discourage• Reward system has to support firm’s strategy• Be creative in use of reinforcers

– Consider prizes (e.g. palm pilots) not money– Use non-monetary rewards

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Reinforcing Performance

Should you punish mistakes? • Managers who overuse punishment or use it inappropriately

create a climate of fear in the workplace.– Causes people to focus on short term– Causes people to focus on themselves, not others

• To manage mistakes effectively– Recognize that everyone makes mistakes– Praise people who deliver bad news to their bosses– Punish inaction, not good-faith efforts– Talk about your failures with your people, and show how you

learned from them– Give people second, and maybe third chances– Encourage people to try new things, and don’t punish them if

they don’t work out. 11-38

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Reinforcing Performance

Feedback is essential reinforcement • Managers should:

– consider all potential causes of poor performance– pay full attention when employees ask for feedback– give feedback according to guidelines in Chapter 10

• Possible sources of feedback– customers– work statistics– performance reviews

• Managers should actively seek feedback and avoid negative emotions when receiving it.

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Adding Reinforcement Theory to Model

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Setting Goals

Goal-setting theory A motivation theory stating that people have

conscious goals that energize them and direct their thoughts and behaviors toward a particular end.

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Four Characteristics of Motivational goals

Exhibit 11.1

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Setting Goals

Stretch goals Targets that are particularly demanding,

sometimes even thought to be impossible. Two types of stretch goals

• Vertical - aligned with current activities• Horizontal - involve people’s professional development

Reward for performance - don’t punish for not meeting stretch goals

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Setting Goals

Goal setting must be paired with other management tools

• It is important that a single productivity goal not be established if there are other important dimensions of performance.

• The manager who wants to motivate creativity should establish creativity goals along with productivity goals.

Set your own goals, too • Personal statement of purpose comprised of:

– distant, inspiring vision– a mid-distant goal along the way– near-term objectives to start working on immediately

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The Greatest ManagementPrinciple in the World

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Adding Reinforcement Theory to Model

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Managers Can Make WorkMore Varied and Interesting

Managers can make work more varied and interesting

• Job rotation is changing from one routine task to another to alleviate boredom.

• Job enlargement is similar to job rotation in that people are given different tasks to do.

• Job enrichment means that jobs are restructured or redesigned by adding higher levels of responsibility.

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Herzberg Proposed Two ImportantJob-Related Factors

Hygiene factors Characteristics of the

workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied.

Motivators Factors that make a

job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement

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Herzberg Proposed Two ImportantJob-Related Factors

Contributions of Herzberg’s theory highlights distinction between extrinsic rewards

(hygiene factors) and intrinsic rewards (motivators)

reminds managers to use motivators as well as extrinsic rewards

sets the stage for theories that explain how manager’s can enrich people’s jobs.

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Hackman and Oldham

Psychological states occur when people are working on enriched jobs, that is, jobs that offer the following five core job dimensions: Skill variety – different job activities involving several skills

and talents. Task identity – the completion of a whole, identifiable

piece of work. Task significance – an important, positive impact on the

lives of others. Autonomy – independence and discretion in making

decisions. Feedback – information about job performance.

Growth need strength is the degree to which individuals want personal and psychological development. 11-50

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The Hackman and Oldham Model of Job Design

Exhibit 11.5

11-52© 2007 Thomson/South-Western. All rights reserved. 4–52

Job Characteristics Model

1. Skill variety: The degree to which a job entails a variety of different activities, which demand the use of a number of different skills and talents by the jobholder

2. Task identity: The degree to which the job requires completion of a whole and identifiable piece of work, that is, doing a job from beginning to end with a visible outcome

3. Task significance: The degree to which the job has a substantial impact on the lives or work of other people, whether in the immediate organization or in the external environment

4. Autonomy: The degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out

5. Feedback: The degree to which carrying out the work activities required by the job results in the individual being given direct and clear information about the effectiveness of his or her performance

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The Hackman and Oldham Model of Job Enrichment

Growth need strength The degree to which

individuals want personal and psychological development.

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Empowerment

Empowerment The process of sharing power with employees,

thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization.

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Empowerment Must be Done Right

One disadvantage is that managers undermine it by sending mixed messages.

Empowerment encourages the following beliefs among employees:• They perceive meaning in their work, meaning that their job

fits their values and attitudes.• They feel competent, or capable of performing their jobs

with skill.• They have a sense of self-determination, of having some

choice over the tasks, methods, and pace of their work.• They have an impact; they have some influence over

important strategic, administrative, or operating decisions or outcomes on the job. 11-55

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Procedural Justice

Procedural justice Using fair process in decision making and making

sure others know that the process was as fair as possible.

To increase likelihood that process will be seen as fair:

– make it open and visible,– state decision criteria in advance rather than after the fact– make sure that the most appropriate people make the

decisions– give people a chance to participate in the decision-making

process– provide an appeal process that allows people to question

decisions safely and receive complete answers

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Job Dissatisfaction

Job dissatisfaction creates a workforce that is more likely to exhibit:• Higher turnover• Higher absenteeism• Less good citizenship among employees• More grievances and lawsuits• Strikes• Stealing, sabotage, and vandalism• Poorer mental & physical health• Fewer injuries• Poor customer service• Lower productivity and profits

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Quality of Work Life

Companies are improving the quality of work life Quality of work life (QWL) programs

• Programs designed to create a workplace that enhances employee well-being.

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QWL Programs

1. Adequate and fair compensation2. A safe and healthy environment3. Jobs that develop human capacities4. A chance for personal growth and security5. A social environment that fosters personal identity, freedom

from prejudice, a sense of community, and upward mobility6. Constitutionalism, or the rights of personal privacy, dissent,

and due process7. A work role that minimized infringement on personal leisure

and family needs8. Socially responsible organizational actions

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http://bevideos.mhhe.com/business/video_library/0077424611/swf/Clip_12.html

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Psychological Contracts

Psychological contract A set of perceptions of

what employees owe their employers, and what their employers owe them.

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Video: SAS

What impact does the multitude of benefits available at SAS have on employee motivation?

What are the advantages of the SAS model?