Organizational Behavior: Motivation Essence of Life

1. Organizational Behavior: Motivation Essence of Life Gholipour A. 2006. Organizational Behavior. University of Tehran.

2. Motivation Defined Motivation:Psychological processes that cause the arousaldirection, and persistence of voluntary actions that are goal directed. Implications Associated with This Definition • Behavior is purposive rather than random- People exhibit both positive (work done on time) and negative (arrive late for work) behavior for a reason • Motivation arouses people to do something- People are unlikely to change a behavior or do something different unless they are motivated to do so • Motivation causes people to focus on a desired end-result or goal • Motivation fuels the persistence needed to exhibit sustained effort on a task Gholipour A. 2006. Organizational Behavior. University of Tehran.

3. Types of Motives 1- Primary Motives Physiological, Unlearned 2- General Motives Not Physiological, Unlearned 3- Secondary Motives Learned, Psychological Gholipour A. 2006. Organizational Behavior. University of Tehran.

4. Content vs. Process Motivation Theories • Content theories • explain why people have different needs at different times. • Implications of Content Theories: • Match rewards with employee needs • Offer employees a choice of rewards • people have different needs at different times • Limit use of financial rewards as a source of motivation • Process theories • describe the processes through which needs are translated into behavior Gholipour A. 2006. Organizational Behavior. University of Tehran.

5. The Motivation Process Unsatisfied Need Tension Drives Search Behavior Satisfied Need Reduction of Tension Gholipour A. 2006. Organizational Behavior. University of Tehran.

6. Maslow’s Hierarchy of Needs Self- actualization Esteem Social Safety Physiological Gholipour A. 2006. Organizational Behavior. University of Tehran.

7. Needs Hierarchy Theory Needs HierarchyTheory • Maslow arranged five needs in a hierarchy • Satisfaction-progression process • People who experience self-actualization desire more rather than less of this need Self- Actualization Esteem Belongingness Safety Physiological Gholipour A. 2006. Organizational Behavior. University of Tehran.

8. ERG Theory Needs HierarchyTheory ERGTheory • Alderfer’s model has three sets of needs • Adds frustration-regression process to Maslow’s model Self- Actualization Growth Esteem Belongingness Relatedness Safety Existence Physiological Gholipour A. 2006. Organizational Behavior. University of Tehran.

9. Content Theories of Motivation Needs HierarchyTheory ERGTheory Motivator--Hygiene Theory McClelland’s Learned Needs Self- Actualization Growth Motivators Need for Achievement Esteem Need for Power Hygienes Belongingness Relatedness Need for Affiliation Safety Existence Physiological Gholipour A. 2006. Organizational Behavior. University of Tehran.

10. Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors • Quality of supervision • Rate of pay • Company policies • Working conditions • Relations with others • Job security • Career Advancement • Personal growth • Recognition • Responsibility • Achievement 0 Job Satisfaction High Job Dissatisfaction High Gholipour A. 2006. Organizational Behavior. University of Tehran.

11. Herzberg’s Motivator-Hygiene Model No Satisfaction SatisfactionJobs that do not Jobs offeringoffer achievement achievement,recognition, recognition, stimulating work, stimulating work,responsibility, responsibility,and advancement. and advancement. Motivators Hygiene Factors Dissatisfaction No DissatisfactionJobs with poor Jobs with goodcompany policies, company policies,and administration, and administration, technical supervision technical supervision,salary, interpersonal salary, interpersonalrelationships with relationships withsupervisors, and supervisors, andworking conditions. working conditions. Gholipour A. 2006. Organizational Behavior. University of Tehran.

12. David C. McClelland and Achievement Needs Characteristics of High Achievers • Moderate Risk Taking • Need for Immediate Feedback • Satisfaction with Accomplishments • Preoccupation with the Task Gholipour A. 2006. Organizational Behavior. University of Tehran.

13. Little Ambition Theory X Workers Dislike Work Avoid Responsibility Self-Directed Theory Y Workers Enjoy Work Accept Responsibility Gholipour A. 2006. Organizational Behavior. University of Tehran.

14. Specific Goals Goal-Setting Theory Challenging Goals Goals and Participation Gholipour A. 2006. Organizational Behavior. University of Tehran.

15. Specific Relevant Challenging Task Effort Task Performance Commitment Participation Challenging Effective Goal Setting Gholipour A. 2006. Organizational Behavior. University of Tehran.

16. Rewards Consequences Behavior No Rewards Punishment Reinforcement Theory Gholipour A. 2006. Organizational Behavior. University of Tehran.

17. Equity Theory Perceived Ratio Comparisona Employee’s Assessment Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < Inequity (Under-Rewarded) = Equity > Inequity (Over-Rewarded) aPerson A is the employee, and person B is a relevant other or referent. Gholipour A. 2006. Organizational Behavior. University of Tehran.

18. Elements of Equity Theory • Outcome/input ratio • inputs -- what employee contributes (e.g. skill) • outcomes -- what employees receive (e.g. pay) • Comparison other • person/people we compare ratio with • not easily identifiable • Equity evaluation • compare outcome/input ratio withthe comparison other Gholipour A. 2006. Organizational Behavior. University of Tehran.

19. Negative and Positive Inequity $2 1 hour $4 2 hours = $2 per hour = $2 per hour A. An Equitable Situation Other Self Gholipour A. 2006. Organizational Behavior. University of Tehran.

20. B. Negative Inequity Self Other $2 1 hour $3 1 hour = $2 per hour = $3 per hour Negative and Positive Inequity (cont) Gholipour A. 2006. Organizational Behavior. University of Tehran.

21. $2 1 hours $3 1 hour = $1 per hour = $3 per hour Negative and Positive Inequity (cont) C. Positive Inequity Other Self Gholipour A. 2006. Organizational Behavior. University of Tehran.

22. Consequences of Inequity • Change inputs • Change outcomes • Change perceptions • Leave the field • Act on the comparison other • Change the comparison other Equity Sensitivity • Benevolents • Tolerant of being underrewarded • Equity Sensitives • Want ratio to be equal to the comparison other • Entitleds • Prefer receiving proportionately more than others Gholipour A. 2006. Organizational Behavior. University of Tehran.

23. Organizational Justice Distributive Justice: The perceived fairness of how resources and rewards are distributed. Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice: The perceived fairness of the decision maker’s behavior in the process of decision making. Gholipour A. 2006. Organizational Behavior. University of Tehran.

24. Outcomes& Valences P-to-O Expectancy E-to-P Expectancy Individual Effort Individual Performance 1. Effort-performance relationship 2. Performance-rewards relationship 3. Rewards-personal goals relationship Expectancy Theory of Motivation 3 2 1 Organizational Rewards Outcome 1 + or - Outcome 2 + or - Personal Goals Outcome 3 + or - Gholipour A. 2006. Organizational Behavior. University of Tehran.

25. Vroom’s Expectancy Theory Concepts Expectancy:Belief that effort leads to a specific level of performance Instrumentality:A performance  outcome perception. Valence:The Value of a reward or outcome Gholipour A. 2006. Organizational Behavior. University of Tehran.

26. Managerial Implications of Expectancy Theory • Determine the outcomes. • Identify good performance so appropriate behaviors can be rewarded. • Make sure employees can achieve targeted performance levels. • Link desired outcomes to targeted levels of performance. • Make sure changes in outcomes are large enough to motivate high effort. • Monitor the reward system for inequities. Expectancy Theory in Practice: • Increasing the E-to-P expectancy • training, selection, resources, clarify roles, provide coaching and feedback • Increasing the P-to-O expectancy • Measure performance accurately, explain how rewards are based on past performance • Increasing outcome valences • Use valued rewards, individualize rewards, minimize countervalent outcomes Gholipour A. 2006. Organizational Behavior. University of Tehran.

27. Organizational Implications of Expectancy Theory • Reward people for desired performance, and do not keep pay decisions secret. • Design challenging jobs. • Tie some rewards to group accomplishments to build teamwork and encourage cooperation. • Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment. • Monitor employee motivation through interviews or anonymous questionnaires. • Accommodate individual differences by building flexibility into the motivation program. Gholipour A. 2006. Organizational Behavior. University of Tehran.

28. Goals Goal:What an individual is trying to accomplish. Directing one’s attention Regulating one’s effort Task performance Goals motivate the individual by... Increasing one’s persistence Encouraging the development of goal- attainment strategies or action plans Gholipour A. 2006. Organizational Behavior. University of Tehran.

29. Insights from Goal-Setting Research • Difficult Goals Lead to Higher Performance.- Easy goals produce low effort because the goal is too easy to achieve.- Impossible goals ultimately lead to lower performance because people begin to experience failure. • Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks.- Goal specificity pertains to the quantifiability of a goal.- Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. • Feedback Enhances The Effect of Specific, Difficult Goals.- Goals and feedback should be used together. • Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective.- Managers should set goals by using a contingency approach. Different methods work in different situations. • Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes.- Difficult goals lead to higher performance when employees are committed to their goals.- Difficult goals lead to lower performance when employees are not committed to their goals.- Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation.* Employees may not help each other. * Quality may suffer as employees pursue quantity goals. * Commitment to difficult goals may suffer. Gholipour A. 2006. Organizational Behavior. University of Tehran.

30. Guidelines for Writing “SMART” Goals Specific Measurable Attainable Results oriented Time bound Gholipour A. 2006. Organizational Behavior. University of Tehran.

31. Effect of Goal Difficulty on Performance High Area of Optimal Goal Difficulty Task Performance Low Moderate Challenging Impossible Goal Difficulty Gholipour A. 2006. Organizational Behavior. University of Tehran.

32. Approaches to Job Design 1. The Mechanistic Approachfocuses on identifying the most efficient way to perform a job. Employees are trained and rewarded to perform their jobs accordingly. 2. Motivational Approachesthese techniques (job enlargement, job rotation, job enrichment, and job characteristics) attempt to improve employees’ affective and attitudinal reactions and behavioral outcomes. 3. Biological and Perceptual- Motor ApproachesBiological techniques focus on reducing employees’ physical strain, effort, fatigue, and health complaints. The Perceptual-Motor Approach emphasizes the reliability of work outcomes by examining error rates, accidents, and workers’ feedback about facilities and equipment. Gholipour A. 2006. Organizational Behavior. University of Tehran.

33. Core job characteristics Critical psychological states Outcomes *Skill variety*Task identity*Task significance*Autonomy*Feedback from job *Experienced meaningfulness of the work*Experienced responsibility for outcomes of the work*Knowledge of the actual results of the work activities *High internal work motivation*High growth satisfaction*High general job satisfaction*High work effectiveness Moderators 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions The Job Characteristics Model Gholipour A. 2006. Organizational Behavior. University of Tehran.

34. Skills and Best Practices: Applying the Job Characteristics Model • Diagnose the level of employee motivation and job. satisfaction and consider redesigning jobs when motivation ranges from low to moderate. • Determine whether job redesign is appropriate in a given context. • Redesign jobs by including employees’ input. Gholipour A. 2006. Organizational Behavior. University of Tehran.

35. How Satisfied are You with Your Job? Job satisfaction is an effective or emotional response toward various facets of one’s job. • What is your level of job satisfaction with recognition, compensation, and supervision? • Is satisfaction across various aspects of your job equally important? Explain. Gholipour A. 2006. Organizational Behavior. University of Tehran.

36. Causes of Job Satisfaction • Need Fulfillment:Satisfaction is based on the extent to which a job satisfies a person’s needs. • Discrepancies:Satisfaction is determined by the extent to which an individual receives what he or she expects from a job. • Value Attainment:Satisfaction results from the extent to which a job allows fulfillment of one’s work values. • Equity:Satisfaction is a function of how “fairly” an individual is treated at work. • Trait/Genetic Components:Satisfaction is partly a function of personal traits and genetic factors. Gholipour A. 2006. Organizational Behavior. University of Tehran.

37. Correlates of Job Satisfaction Motivation Positive Moderate Job Involvement Positive Moderate Variables RelatedDirection ofStrength of with SatisfactionRelationship Relationship Organizational Citizenship behavior Positive Moderate Organizational Commitment Positive Strong Absenteeism Negative Weak Tardiness Negative Weak Turnover Negative Moderate Heart Disease Negative Moderate Perceived Stress Negative Strong Pro-Union Voting Negative Moderate Job Performance Positive Weak Life Satisfaction Positive Moderate Mental Health Positive Moderate Gholipour A. 2006. Organizational Behavior. University of Tehran.

38. What Is Management by Objectives? Organizational Objectives Divisional Objectives Departmental Objectives Individual Objectives Gholipour A. 2006. Organizational Behavior. University of Tehran.

39. Key Elements of MBO Goal Specificity Participation in Decision Making Explicit Time Period Performance Feedback Gholipour A. 2006. Organizational Behavior. University of Tehran.

40. Difficulty of Goals Specificity of Goals Feedback on Performance Participation in Goal Setting Linking MBO and Goal-Setting Theory Gholipour A. 2006. Organizational Behavior. University of Tehran.

41. Employee RecognitionPrograms Defining Recognition Recognition and Reinforcement Recognition Plans in Practice Gholipour A. 2006. Organizational Behavior. University of Tehran.

42. Employee InvolvementPrograms Participative Management Representative Participation Quality Circles Employee Stock Ownership Gholipour A. 2006. Organizational Behavior. University of Tehran.

43. Variable Pay Plans Piece Rate Profit Sharing Gainsharing Bonus Plans Gholipour A. 2006. Organizational Behavior. University of Tehran.

44. Skill-Based Pay Plans • Promotes Flexibility • Facilitates Communication • Satisfies Ambitious Workers Advantages • “Topping Out” • Obsolescence of Skills • Performance versus Skills Disadvantages Gholipour A. 2006. Organizational Behavior. University of Tehran.

45. Skill-Based Plans and Motivation Theories Hierarchy of Needs Need for Achievement Reinforcement Theory Equity Theory Gholipour A. 2006. Organizational Behavior. University of Tehran.

46. The Meaning of Money • Money and employee needs • affects several needs, not just existence needs • Money and attitudes • Money ethic -- not evil, represents success, should be budgeted carefully • Money and self-identity • Influences our self-perceptions • Evidence that men more than women identify with money .. Gholipour A. 2006. Organizational Behavior. University of Tehran.

47. Types of Rewards in the Workplace • Membership and seniority • Job status • Competencies • Performance .. Gholipour A. 2006. Organizational Behavior. University of Tehran.

48. Membership/Seniority Based Rewards • Fixed wages, seniority increases • Advantages • guaranteed wages may attract job applicants • seniority-based rewards reduce turnover • Disadvantages • doesn’t motivate job performance • discourages poor performers from leaving • may act as golden handcuffs Gholipour A. 2006. Organizational Behavior. University of Tehran.

49. Job Status-Based Rewards • Includes job evaluation and status perks • Advantages: • job evaluation tries to maintain pay equity • motivates competition for promotions • Disadvantages: • employees exaggerate duties, hoard resources • creates psychological distance across hierarchy • Inconsistent with flatter organizations Gholipour A. 2006. Organizational Behavior. University of Tehran.

50. Competency-Based Rewards • Pay increases with competencies acquired or demonstrated • Skill-based pay • Pay increases with skill modules learned • Advantages • More flexible work force, better quality, consistent with employability • Disadvantages • Potentially subjective, higher training costs Gholipour A. 2006. Organizational Behavior. University of Tehran.