Download - Motivation: Theories and Application
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Motivation: Theories and Application
Chapter 5 & 6
Tuesday June 1st, 2010
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What is Motivation?
• The processes that account for an individual’s intensity, direction and persistence of effort toward attaining a goal. Intensity – how hard a person tries Direction – one that benefits the
organization Persistence – how long the effort is
maintained
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Early Theories of Motivation
• Early motivation theories are important for two reasons: They represent a foundation from which
contemporary theories have grown, Practicing managers still regularly use these
theories and their terminology in explaining employee motivation.
• However, Early theories have not been backed up by empirical research.
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Maslow’s Hierarchy of Needs Theory
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Theory X and Theory Y
Theory X• Inherent dislike for work
and will attempt to avoid it• Must be coerced,
controlled or threatened with punishment
• Will avoid responsibilities and seek formal direction
• Place security above all factors and will display little ambition
Theory Y• View work as being as
natural as rest or play• Will exercise self-direction
and self-control if committed to objectives
• Can learn to accept, even seek, responsibility
• Can make innovative decisions on their own
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Theory X and Y Cont.
• This theory led to the suggestion that programs such as participative decision making, responsibility and challenging jobs, and good group relations could help maximize an employee's job motivation.
• No evidence suggests that Either set of assumptions are valid Accepting the assumptions and modifying managerial
style improves employee motivation
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Two-Factor Theory
HighHigh HighHighJob DissatisfactionJob Dissatisfaction Job SatisfactionJob Satisfaction00
Hygiene factors affectHygiene factors affectjob dissatisfactionjob dissatisfaction
Motivator factors affectMotivator factors affectjob satisfactionjob satisfaction
• Quality of supervisionQuality of supervision• PayPay• Company policiesCompany policies• Physical working Physical working
conditionsconditions• Relations with othersRelations with others• Job securityJob security
• Promotional opportunitiesPromotional opportunities• Opportunities for personal Opportunities for personal
growthgrowth• RecognitionRecognition• ResponsibilityResponsibility• AchievementAchievement
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Herzberg’s Two-Factor Theory
• Managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation.
• If a manager wants to motivate people on their jobs, he should emphasize factors associated with the work itself or to outcomes directly derived from it.
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McClelland's Theory of Needs
• Need for achievement (nAch) - drive to excel
• Need for power (nPow) - the need to make others behave in a way they would not have behaved otherwise
• Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships
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McClelland's Theory of Needs
• High achievers prefer jobs with personal responsibilityresponsibility, feedbackfeedback, and intermediate degree of risk.risk.
• High achievers are not necessarily goodgood managers.
• AffiliationAffiliation and powerpower closely related to managerial success
• Employees can be trained to stimulatestimulate their achievement need.
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Cognitive Evaluation Theory
• Proposes that the introduction of extrinsic rewards for work that was previously intrinsically rewarding tends to decrease overall motivation
• Verbal rewards increase intrinsic motivation, while tangible rewards undermine it
• Implication: Managers need to provide both extrinsic and intrinsic rewards to keep employees motivated.
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Goal-Setting Theory
• Specific goals lead to increased performance.• Difficult goals, when accepted, result in higher
output than easy goals.• Self-generated feedback is a more powerful
motivator than externally generated feedback.• Influences on goal-performance relationship:
Commitment Task characteristics National culture
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Self-Efficacy Theory
• Refers to an individual’s belief that they are capable of performing a task
• Ways self-efficacy can be increased: Enactive mastery – gain experience Vicarious modeling – see someone else do the task Verbal persuasion – someone convinces you that you
have the skills Arousal – get energized
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Equity Theory
• Employees weigh what they put into a job situation (input) against what they get from it (outcome).
• Then they compare their input-outcome ratio with the input-outcome ratio of relevant others.
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Equity Theory
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Equity Cont.
• Type of referents Self inside Self outside Other inside Other outside
• Moderators Gender Length of tenure Level in the organization Amount of education
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Choices when perceived inequity
1. Change their inputs
2. Change their outcomes
3. Distort perceptions of self
4. Distort perceptions of others
5. Choose a different referent
6. Leave the field
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Expectancy Theory
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The Job Characteristics Model
• Proposes that any job can be described in terms of five core job dimensions: Skill variety Task identity Task significance Autonomy Feedback
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The Job Characteristics Model
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How can jobs be Redesigned?
• Job Rotation or Cross-training – the periodic shifting of an employee from one task to another
• Job Enlargement – increasing the number and variety of tasks
• Job Enrichment – increasing the degree to which the worker controls the planning, execution and evaluation of the work
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Alternate Work Arrangements
• Flextime – allows some discretion over when worker starts and leaves
• Job Sharing – two or more individuals split a traditional job
• Telecommuting – work remotely at least two days per week
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Employee Involvement Programs
• A participative process that uses the input of employees to increase their commitment to the organization’s success
• Two types: Participative Management – subordinates share a
significant degree of decision-making power with their immediate superiors
Representative Participation – workers are represented by a small group of employees who participate in decisions affecting personnel
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Rewarding Employees
• Major strategic rewards decisions: What to pay employees How to pay individual employees What benefits to offer How to construct employee
recognition programs
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What to pay
• Need to establish a pay structure
• Balance between: Internal equity – the worth of the job to the
organization External equity – the external competitiveness
of an organization’s pay relative to pay elsewhere in its industry
• A strategic decision with trade-offs
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How to pay: Variable-Pay Programs
• Bases a portion of the pay on some individual and/or organizational measure of performance
• Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed
• Merit-Based Pay – pay is based on individual performance appraisal ratings
• Bonuses – rewards employees for recent performance
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Problems with Merit Pay Plans
• Performance Appraisal is not a perfect process
• Merit pay pool can fluctuate based on economic trends
• Resistance from unions and others
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Variable Pay Programs (cont.)
• Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability
• Gain Sharing – compensation based on sharing of gains from improved productivity
• Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices
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How to pay: Skill-Based Pay Plans
• Pay is based on skills acquired instead of job title or rank
• Advantage: Flexibility • Disadvantages:
Employees top out Skills become obsolete May be no current need for certain skills Doesn’t address the level of performance, only ability
to perform skill
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Flexible Benefits
• Allows each employee to put together a benefit package tailored to their own needs and situation
• Modular plans – predesigned packages to meet the needs of a specific group
• Core-plus plans – core of essential benefits and menu of options to choose from
• Flexible spending plans – full choice from menu of options
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Employee Recognition Programs
• Are in addition to extrinsic compensation systems
• Are intrinsic rewards Can be as simple as a spontaneous comment Can be formalized in a program
• Recognition is the most powerful workplace motivator