general management- motivating employees

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    Prof. Rushen Chahal

    General Management

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    L E A R N I N G O U T L I N EFollow this Learning Outline as you read and study this chapter.

    What Is Motivation?

    Define motivation.

    Explain motivation as a need-satisfying process.

    Early Theories of Motivation Describe the five levels in Maslows hierarchy and how

    Maslows hierarchy can be used in motivational efforts.

    Discuss how Theory X and Theory Y managers approach

    motivation.

    Describe Herzbergs motivation-hygiene theory.

    Explain Herzbergs views of satisfaction and

    dissatisfaction.

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    L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.

    Contemporary Theories of Motivation

    Describe the three needs McClelland proposed as being

    present in work settings.

    Explain how goal-setting and reinforcement theoriesexplain employee motivation.

    Describe the job characteristics model as a way to design

    motivating jobs.

    Discuss the motivation implications of equity theory.

    Contrast distributive justice and procedural justice.

    Explain the three key linkages in expectancy theory and

    their role in motivation.

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    L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.

    Current Issues in Motivation

    Describe the cross-cultural challenges of motivation.

    Discuss the challenges managers face in motivating

    unique groups of workers. Describe open-book management and employee

    recognition, pay-for-performance, and stock option

    programs.

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    What Is Motivation?

    Motivation

    The processes thataccount foranindividuals

    willingness to exert high levels ofeffortto reach

    organizational goals, conditioned by the efforts

    ability to satisfy some individualneed.

    Effort: ameasure ofintensity ordrive.

    Direction: towardorganizationalgoals

    Need: personalized reasonto exert effort

    Motivation works best whenindividualneeds arecompatible with organizationalgoals.

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    Exhibit 16.1Exhibit 16.1

    The Motivation Process

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    What Is Motivation?

    Need

    Aninternal state thatmakes certainoutcomes appear

    attractive.

    Anunsatisfiedneedcreates tension which is reduced

    by anindividuals efforts to satisfy the need.

    Early Theories ofMotivation

    Maslows Hierarchy ofNeeds

    MacGregors Theories X and Y

    Herzbergs Motivation-Hygiene Theory

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    Early Theories of Motivation

    Maslows Hierarchy ofNeeds Theory

    Needs were categorizedas five levels oflower- to

    higher-orderneeds.

    Individuals must satisfy lower-orderneeds before they

    can satisfy higherorderneeds.

    Satisfiedneeds willnolongermotivate.

    Motivatinga persondepends on knowingat whatlevel

    that personis onthe hierarchy.

    Hierarchy ofneeds Lower-order (external): physiological, safety

    Higher-order (internal): social, esteem, self-actualization

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    Exhibit 16.2Exhibit 16.2

    Maslows Hierarchy of Needs

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    Early Theories of Motivation (contd)

    McGregors Theory X and Theory Y

    Theory X

    Assumes that workers have little ambition, dislike work,

    avoid responsibility, and require close supervision.

    Theory Y

    Assumes that workers can exercise self-direction,

    desire responsibility, andlike to work.

    Motivationis maximized by participative decision

    making, interesting jobs, andgoodgroup relations.

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    Early Theories of Motivation (contd)

    Herzbergs Motivation-Hygiene Theory

    Job satisfactionand job dissatisfactionare created by

    different factors.

    Hygiene factors: extrinsic (environmental) factors that

    create job dissatisfaction.

    Motivators: intrinsic (psychological) factors thatcreate

    job satisfaction.

    Attemptedto explain why job satisfactiondoes not

    resultinincreased performance.The opposite of satisfactionis notdissatisfaction, but

    ratherno satisfaction.

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    Exhibit 16.3Exhibit 16.3

    Herzbergs Motivation-Hygiene Theory

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    Exhibit 16.4Exhibit 16.4

    Contrasting Views of Satisfaction-

    Dissatisfaction

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    Contemporary Theories of Motivation

    Three-Needs Theory

    Goal-Setting Theory

    Reinforcement Theory DesigningMotivatingJobs

    Equity Theory

    Expectancy Theory

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    Motivation and Needs

    Three-Needs Theory

    There are three majoracquiredneeds thatare major

    motives in work.

    Need for achievement (nAch)

    The drive to exceland succeed

    Need for power (nPow)

    The needtoinfluence the behaviorofothers

    Need of affiliation (nAff)

    The desire forinterpersonal relationships

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    Exhibit 16.5Exhibit 16.5

    Examples of Pictures Used for Assessing Levels of

    nAch, nAff, and nPow

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    Motivation and Goals

    Goal-Setting Theory

    Proposes that settinggoals thatare accepted,

    specific, andchallenging yetachievable will resultin

    higher performance than havingnoor easy goals.

    Benefits ofParticipationinGoal-Setting

    Increases the acceptance ofgoals.

    Fosters commitmenttodifficult, publicgoals.

    Provides for self-feedback (internallocus ofcontrol)thatguides behaviorandmotivates performance (self-

    efficacy).

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    Exhibit 16.6Exhibit 16.6

    Goal-Setting Theory

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    Motivation and Behavior

    Reinforcement Theory

    Assumes thatadesired behavioris a functionofits

    consequences, is externally caused, andif reinforced,

    is likely to be repeated.

    Positive reinforcementis preferred forits long-term

    effects on performance

    Ignoringundesired behavioris betterthan punishment

    which may create additionaldysfunctional behaviors.

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    Designing Motivating Jobs

    Job Design

    The way into which tasks can be combinedto form

    complete jobs.

    Factors influencing job design:

    Changingorganizational environment/structure

    The organizations technology

    Employees skill, abilities, and preferences

    Job enlargement

    Increasingthe scope (numberoftasks)ina job.

    Job enrichment

    Increasing responsibility andautonomy (depth)ina job.

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    Designing Motivating Jobs (contd)

    Job Characteristics Model (JCM)

    Aconceptual framework fordesigningmotivating jobs

    thatcreate meaningful work experiences that satisfy

    employeesgrowth needs.

    Five primary job characteristics:

    Skill variety: how many skills andtalents are needed?

    Task identity: does the job produce acomplete work?

    Task significance: how importantis the job?

    Autonomy: how much independence does the jobholder

    have?

    Feedback: do workers know how wellthey are doing?

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    Exhibit 16.7Exhibit 16.7

    Job Characteristics Model

    Source: J.R. HackmanandJ.L. Suttle (eds.). Improving Life at Work

    (Glenview, IL: Scott, Foresman, 1977). With permissionofthe authors.

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    Exhibit 16.8Exhibit 16.8

    Guidelines for Job Redesign

    Source: J.R. HackmanandJ.L. Suttle (eds.). Improving Life at Work

    (Glenview, IL: Scott, Foresman, 1977). With permissionofthe authors.

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    Designing Motivating Jobs (contd)

    Suggestions for Usingthe JCM

    Combine tasks (job enlargement)tocreate more

    meaningful work.

    Create natural work units tomake employees work

    importantand whole.

    Establish externalandinternalclient relationships to

    provide feedback.

    Expand jobs vertically (job enrichment) by giving

    employees more autonomy.

    Open feedback channels tolet employees know how

    wellthey are doing.

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    Motivation and Perception

    Equity Theory

    Proposes that employees perceive whatthey get from

    a job situation (outcomes)in relationto whatthey put

    in (inputs)andthencompare theirinputs-outcomes

    ratio with the inputs-outcomes ratios of relevantothers.

    Ifthe ratios are perceivedas equalthena state of

    equity (fairness) exists.

    Ifthe ratios are perceivedas unequal, inequity existsandthe person feels under- orover-rewarded.

    Wheninequities occur, employees willattempttodo

    somethingto rebalance the ratios (seek justice).

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    Motivation and Perception (contd)

    Equity Theory (contd)

    Employee responses to perceivedinequities:

    Distortownorothers ratios.

    Induce others tochange theirowninputs oroutcomes.

    Change owninputs (increase ordecrease efforts)or

    outcomes (seek greater rewards).

    Choose adifferentcomparison (referent)other (person,

    systems, or self).

    Quittheir job.Employees are concerned with both the absolute and

    relative nature oforganizational rewards.

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    Exhibit 16.9Exhibit 16.9

    Equity Theory

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    Motivation and Perception (contd)

    Equity Theory (contd)

    Distributive justice

    The perceived fairness ofthe amountandallocationof

    rewards amongindividuals (i.e., who received what).

    Influences an employees satisfaction.

    Distributive

    The perceived fairness ofthe process use todetermine

    the distributionof rewards (i.e., how who received

    what). Affects an employees organizationalcommitment.

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    Motivation, Perception, and Behavior

    Expectancy Theory

    States thatanindividualtends toactinacertain way

    basedonthe expectationthatthe act will be followed

    by agivenoutcome andonthe attractiveness ofthat

    outcome tothe individual.

    Key tothe theory is understandingandmanaging

    employee goals andthe linkages amongand

    between effort, performance and rewards.

    Effort: employee abilities andtraining/development

    Performance: validappraisal systems

    Rewards (goals): understanding employee needs

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    Exhibit 16.10Exhibit 16.10

    Simplified Expectancy Model

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    Motivation, Perception, and Behavior

    (contd) Expectancy Relationships

    Expectancy (effort-performance linkage)

    The perceived probability thatanindividuals effort will

    resultinacertainlevelof performance.

    Instrumentality

    The perceptionthata particularlevelof performance

    will resultinthe attainingadesiredoutcome (reward).

    ValenceThe attractiveness/importance ofthe performance

    reward (outcome)tothe individual.

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    Exhibit 16.11Exhibit 16.11

    Integrating

    Contemporary

    Theories ofMotivation

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    Current Issues in Motivation

    Cross-CulturalChallenges

    Motivational programs are mostapplicable incultures

    where individualism andquality of life are cultural

    characteristics

    Uncertainty avoidance of some cultures invertsMaslows needs hierarchy.

    The need forachievement (nAch)is lackinginother

    cultures.

    Collectivistcultures view rewards as entitlements tobe distributed basedonindividualneeds, notindividual

    performance.

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    Current Issues in Motivation (contd)

    Cross-CulturalConsistencies

    Interesting work is widely desired, as is growth,

    achievement, and responsibility.

    Motivating Unique Groups of Workers

    Motivatingadiverse workforce through flexibility:

    Mendesire more autonomy thando women.

    Womendesire learningopportunities, flexible work

    schedules, andgoodinterpersonal relations.

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    Current Issues in Motivation (contd)

    Flexible Work/Job schedules

    Compressed work week

    Longerdaily hours, but fewerdays

    Flexible work hours (flextime)

    Specific weekly hours with varyingarrival, departure,

    lunch and break times aroundcertaincore hours during

    which all employees must be present.

    Job Sharing

    Twoormore people splita full-time job.

    Telecommuting

    Employees work from home usingcomputerlinks.

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    Current Issues in Motivation (contd)

    MotivatingProfessionals

    Characteristics of professionals

    Strongandlong-termcommitmenttotheir fieldof

    expertise.

    Loyalty is totheir profession, nottothe employer.

    Have the needto regularly update their knowledge.

    Dontdefine their workweek as 8:00amto 5:00 pm.

    Motivators for professionals

    Job challenge

    Organizational supportoftheir work

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    Current Issues in Motivation (contd)

    MotivatingContingent Workers

    Opportunity to become a permanent employee

    Opportunity fortraining

    Equity incompensationand benefits

    Motivating Low-Skilled, Minimum-Wage

    Employees

    Employee recognition programs

    Provisionof sincere praise

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    Current Issues in Motivation (contd)

    DesigningAppropriate Rewards Programs

    Open-book management

    Involving employees in workplace decision by opening

    up the financial statements ofthe employer.

    Employee recognition programs

    Giving personalattentionand expressinginterest,

    approval, andappreciation fora job welldone.

    Pay-for-performance

    Variable compensation plans that reward employees onthe basis oftheir performance:

    Piece rates, wage incentives, profit-sharing, andlump-sum

    bonuses

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    Exhibit 16.12bExhibit 16.12b

    Recommendations forDesigning Stock Options

    * Vesting refers tothe time thatmust pass before a personcan exercise the option.

    Source: P. Brandes, R. Dharwadkar, andG.V. Lemesis, Effective Employee Stock

    OptionDesign:Reconciling Stakeholder, Strategic, andMotivational Factors,Academy of Management Executive, February 2003, p. 84.

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    Exhibit 16.12bExhibit 16.12b

    Recommendations forDesigning Stock Options

    Source: P. Brandes, R. Dharwadkar, andG.V. Lemesis, Effective Employee Stock

    OptionDesign:Reconciling Stakeholder, Strategic, andMotivational Factors,Academy of Management Executive, February 2003, p. 84.

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    From Theory to Practice:

    Guidelines for Motivating Employees Recognize individual

    differences

    Match people to jobs Use goals

    Ensure that goals are

    perceived as attainable

    Individualize rewards

    Link rewards to

    performance

    Check the system forequity

    Use recognition

    Dont ignore money