HAS 3260

1. HAS 3260 Motivation Dr. Burton

2. Chapter 14Motivation and Rewards • Planning Ahead • Why is motivation important? • What are the different types of individual needs? • What are the insights of process theories of motivation? • What role does reinforcement play in motivation? • What are the trends in motivation and compensation? Schermerhorn - Chapter 14

3. Motivational Process Employee searches for ways to satisfy these needs. Employee Receives Either Rewards or Punishments Employee Identifies Need Employee Performs Employee Selects Goal-directed Behaviors Employee Reassess Need Deficiencies

4. Importance of Motivation • Reward • work outcome of positive value to the individual • motivational work settings are rich in rewards for productive workers Schermerhorn - Chapter 14

5. Importance of Motivation • Motivation and Rewards • Extrinsic Rewards • value outcomes given by someone to another • examples include: bonuses promotions special assignments awards Schermerhorn - Chapter 14

6. Importance of Motivation • Motivation and Rewards • Intrinsic Rewards • self-administered • occur as part of the job itself • examples include: feelings of competency personal development self-control Schermerhorn - Chapter 14

7. Importance of Motivation • Rewards and Performance • respect diversity • clearly understand what people want from work • allocate rewards to satisfy the interests of both individuals and organization Schermerhorn - Chapter 14

8. Content Theories of Motivation • Hierarchy of Needs Theory • lower order and higher order needs affect behavior • deficit principle • satisfied need is not a motivator of behavior • progression principle • need at one level does not become activated until the next lower need is satisfied Schermerhorn - Chapter 14

9. Esteem Affiliation Security Physiological Maslow’s Needs Hierarchy Self- Actualization

10. Maslow • Did not believe any given behavior is motivated by a single need. • Described another set of needs, (COGNITIVE) • need to analyze • need to experiment • need to construct a personal theory

11. Content Theories of Motivation • ERG Theory • Alderfer’s three needs • existence - physiological and material well-being • relatedness - satisfying interpersonal relationships • growth - continued psychological growth and development • any/all needs can influence behavior at one time • frustration-regression principle • already satisfied need can influence behavior when a higher need cannot be satisfied Schermerhorn - Chapter 14

12. ERG Model Growth needs Relatedness needs Existence needs

13. Content Theories of Motivation • Two-Factor Theory • Herzberg • satisfier factors (job content) • things related to the nature of the job itself • source of job satisfaction and motivation • hygiene factors (job context) • things related more to the work setting • source of job dissatisfaction Schermerhorn - Chapter 14

14. Factors • That Caused • Job • Dissatisfaction • Company Policy • Supervision • Relationship with supervisor • Working conditions • Salary Results of Herzberg’s Original Study on Job Satisfaction • Factors • That Caused • Job Satisfaction • Achievement • Recognition • The work itself • Responsibility • Advancement

15. Ways to use motivators on the job • Delegate more authority to workers • When you have an important project to complete or are facing difficult problems, call your workers in and get their ideas. • Cross-train your employees so that they become more broadly experienced. • Compliment and recognize employees for good work. • Assign workers to special projects • Ask the more experienced workers to assist in training new employees. • Send employees to training courses for skill upgrading.

16. Content Theories of Motivation • Acquired Needs Theory • McClelland • Need for Achievement (nAch) • desire to do something better, solve problems, master complex tasks • Need for Power (nPower) • desire to control, influence or be responsible for others • Need for Affiliation (nAff) • desire to establish and maintain friendly relations with others Schermerhorn - Chapter 14

17. Content Theories of Motivation • Acquired Needs Theory (con’t) • People develop these needs over time • Each need is associated with a distinct set of work preferences • managers are encouraged to recognize the strength of each need in themselves and others • create work environments responsive to the strength of each need Schermerhorn - Chapter 14

18. Presidents’ needs for Power, Achievement, and Affiliation NEEDS President Power Achievement Affiliation Clinton, B. Moderate High High Bush, G. Moderate Moderate Low Reagan, R. High Moderate Low Kennedy, J. High Low High Roosevelt,F. High Low Moderate Lincoln, A. Moderate Low Moderate Washington, G. Low Low Moderate

19. Content Theories of Motivation • Acquired Needs Theory (con’t) • Workers high in (nAch) prefer • individual responsibility for results • achievable but challenging goals • feedback on performance Schermerhorn - Chapter 14

20. Content Theories of Motivation • Acquired Needs Theory (con’t) • Workers high in (nPower) prefer • control over other people • have an impact on people and events • brings public recognition and attention Schermerhorn - Chapter 14

21. Content Theories of Motivation • Acquired Needs Theory (con’t) • Two types of power • personal • manipulation for personal gratification • social • directed towards group or organizational objectives Schermerhorn - Chapter 14

22. Process Theories of Motivation • Equity Theory • Adams • perceived inequity is a motivating state • people are motivated to restore equity • change • work inputs • rewards received • comparison points • situation Schermerhorn - Chapter 14

23. Process Theories of Motivation • Equity Theory (con’t) • Pay is common source of equity controversy • gender equity • women earn an average of 75% of what men earn • comparable worth • jobs of similar value based on required education, training, skills should receive similar pay Schermerhorn - Chapter 14

24. Equity Model I 1 I2 O 1 O 2 Outcomes Challenging job assignments Fringe benefits Job perquisites (parking space or office location) Job security Monotony Promotion Recognition Responsibility Salary Seniority benefits Status symbols Working conditions Inputs Age Attendance Interpersonal skills Communication skills Job effort (long hours) Past experience Performance Personal appearance Seniority Social status Technical skills Training

25. Process Theories of Motivation • Expectancy Theory • Vroom • expectancy - working hard will result in desired level of performance • instrumentality - successful performance will be followed by rewards • valence - value of rewards and other work related outcomes Schermerhorn - Chapter 14

26. Process Theories of Motivation • Expectancy Theory (con’t) • Motivation (M), expectancy (E), instrumentality (I) and valence (V) are related to another in a multiplicative fashion M = E x I x V • If either E, I or V is low, motivation will be low! Schermerhorn - Chapter 14

27. Expectancy Theory Worker Expectancies A Good Effort Rewards Effective Performance “Basic Premise is that employees are rational people”

28. Five key variables of the expectancy model • First level outcomes • results of doing the job itself, e.g. performance • Second level outcomes • rewards + / - produced by 1st level outcomes • Expectancy: Belief that a level of effort will be followed by a level of performance. • Instrumentality: Relationship between 1st and 2d level outcomes. • Valence: Preference for 2d level outcomes.

29. Process Theories of Motivation • Goal-Setting Theory • Locke • task goals can be motivating if • properly set • well managed • goals clarify role expectations Schermerhorn - Chapter 14

30. Process Theories of Motivation • Goal-Setting Theory (con’t) • Management by Objectives (MBO) • joint goal setting by managers and employees • participation option • how to achieve goals instead of what the goals are Schermerhorn - Chapter 14

31. Matching Content Models Achievement Motivation Model Needs Models Motivator-Hygiene Model Needs Hierarchy ERG Theory Self-Actualization • Motivators • advancement • growth • achievement Growth Need for Achievement Esteem Need for Power Relatedness Affiliation • Hygienes • job security • salary • working conditions Need for Affiliation Security Existence Physiological

32. Reinforcement Theory of Motivation • Reinforcement Strategies • Skinner • Operant Conditioning • applying law of effect to control behavior by manipulating its consequences Schermerhorn - Chapter 14

33. Reinforcement Theory of Motivation • Reinforcement Strategies • positive reinforcement • negative reinforcement • punishment • extinction Schermerhorn - Chapter 14

34. Reinforcement Theory of Motivation • Positive Reinforcement • increase the frequency of desirable behavior by making a pleasant consequence contingent on its occurrence Schermerhorn - Chapter 14

35. Reinforcement Theory of Motivation • Positive Reinforcement (con’t) • Successful implementations is based on • law of contingent reinforcement • reward delivered only if desired behavior is exhibited • law of immediate reinforcement • more immediate the delivery of a reward, the more reinforcement value it has Schermerhorn - Chapter 14

36. Reinforcement Theory of Motivation • Negative Reinforcement • increases the frequency of desirable behavior by making the avoidance of unpleasant consequence • example: nagging until a task is completed Schermerhorn - Chapter 14

37. Reinforcement Theory of Motivation • Punishment • eliminating undesired behavior by administering an unpleasant consequence upon the occurrence of that behavior • example: docking pay for being late Schermerhorn - Chapter 14

38. Reinforcement Theory of Motivation • Extinction • decreases the frequency of an undesirable behavior by making the removal of a pleasant consequence contingent on its occurrence • example: stop giving social approval when someone is disruptive Schermerhorn - Chapter 14

39. Reinforcement Theory of Motivation • Ethical Issues • Criticisms of reinforcement theory • ignores individuality • restricts freedom of choice • ignores the possibility of other types of motivation Schermerhorn - Chapter 14

40. Reinforcement Theory of Motivation • Ethical Issues • Advocates state • improved safety • decreased absenteeism and tardiness • increased productivity • behavior control is necessary part of management Schermerhorn - Chapter 14

41. Motivation and Compensation • Pay for Performance • Merit pay • awards pay increase in proportion to individual performance contributions • consistent with equity, expectancy, reinforcement theories Schermerhorn - Chapter 14

42. Motivation and Compensation • Incentive Compensation Systems • Bonus pay • lump-sum payments based on the accomplishment of specific performance targets • one-time payment based on extraordinary contribution Schermerhorn - Chapter 14

43. Motivation and Compensation • Incentive Compensation Systems • Profit-sharing • employees receive a proportion of net profits earned by the organization during a stated performance period • Gain Sharing • groups of employees to share in any savings realized through their efforts to reduce costs and increase productivity Schermerhorn - Chapter 14

44. Motivation and Compensation • Incentive Compensation Systems • Employee stock ownership • employees own stock in company that employ them • often used as way to save jobs and prevent business closings Schermerhorn - Chapter 14

45. Motivation and Compensation • Incentive Compensation Systems • Stock options • right to buy shares at a future date at a fixed price • when price has risen one can exercise the option to buy the stock at a discount and realize financial gain • most common at senior executive level Schermerhorn - Chapter 14

46. Motivation and Compensation • Incentive Compensation Systems • Pay for knowledge • skills-based pay • pay based on number of job-relevant skills mastered • entrepreneurial pay • workers put part of their compensation at risk in return for opportunity to pursue ideas and participate in any resulting profits Schermerhorn - Chapter 14

47. Case Study 5: Lessons Where you Find Them Page 763

48. Fact 1: As each bird flaps its wings, it creates an uplift draft for the bird following, By flying in a “V” formation, the whole flock adds a greater flying range than if one bird flew alone. • Lesson 1:People who share a common direction and sense of community can get where they’re going quicker and more easily because they are traveling on the strength of one another.

49. Fact 2: Whenever a goose falls out of formation, it suddenly feels the drag and resistance of trying to fly alone and quickly gets back into formation to take advantage of the lifting power of the bird immediately in front. • Lesson 2: If we have as much sense as geese, we will stay in formation and be willing to accept help when we need it and give help when it is needed.

50. Fact 3: When the lead goose gets tired, it rotates back into the formation, and another goose flies in the point position. • Lesson 3: Geese instinctively share the task of leadership and do not resent the leader.