Motivating Performance

Motivating Performance Chapter 4

Motivation Motivation – the internal process leading to behavior to satisfy needs The primary reason people do what they do is to meet their needs or wants Behavior Motive Need Satisfaction or Dissatisfaction

How Motivation Affects Behavior, Human Relations, and Performance (1 of 2) All behavior is motivated by some need Generally, an employee who is motivated will try harder to do a good job than one who is not motivated The level of performance is determined by three interdependent factors: ability motivation resources

How Motivation Affects Behavior, Human Relations, and Performance (2 of 2) Performance formula: Performance = Ability x Motivation x Resources Ability and motivation are driving forces of behavior to create the level of performance For performance levels to be high, all three factors must be high

Needs Hierarchy and ERG Theory Higher-level needs ERG Theory Needs Hierarchy Lower-level needs Exhibit 9.1

Motivating with Maslow’s Needs Hierarchy Managers must meet employees’ lower-level needs so that they will not dominate the employees’ motivational process Managers should get to know and understand people’s needs and meet them as a means of increasing performance

Motivating with Alderfer’s ERG Theory To use ERG theory, answer six questions: 1. What need does the person have? 2. What needs have been satisfied? 3. Which unsatisfied need is the lowest in the hierarchy? 4. Have some higher-order needs been frustrated? How? 5. Has the person refocused on a lower-level need? 6. How can the unsatisfied needs be satisfied?

Motivating with Herzberg’sTwo-Factor Theory Once employees are satisfied with their environment, they can be motivated through their jobs Build challenge and opportunity for achievement into the job itself Job enrichment

McClelland’s Manifest Needs Theory (1 of 2) Classifies needs as: Need for Achievement (n Ach) Need for Power (n Pow) Need for Affiliation (n Aff) Needs are based on personality and are developed as people interact with the environment

McClelland’s Manifest Needs Theory (2 of 2) Motivating Employees with a High n Ach: Give them non-routine, challenging tasks in which there are clear attainable goals Motivating Employees with a High n Pow: Let them plan and control their jobs as much as possible Motivating Employees with a High n Aff: Let them work as part of a team

How Organizations Meet Employee Needs Need: Method: Challenge Autonomy Leadership positions Authority Responsibility Pay and Prestige Growth (esteem / self-actualization / motivators / achievement / power) Coffee breaks Sports teams Social events Work teams Relatedness (social / hygiene / affiliation) Working conditions (safe/clean/attractive) Job security – seniority Employee benefits Base Pay Existence (physiological / safety / hygiene) Exhibit 9.4

Expectancy Theory Vroom’s formula states that: Motivation = Expectancy x Valence Expectancy: person’s perception of his or her ability (probability) to accomplish an objective The higher one’s expectancy, the better the motivation Valence: the value a person places on the outcome or reward The higher the value (importance) of the outcome or reward, the better the motivation

Expectancy Theory: Applicability Works best with employees who have an internal locus of control Does not work well with employees who have an external locus of control

Reinforcement Theory Skinner’s motivation theory Behavior can be controlled through the use of rewards Behavior is learned through experiences of positive and negative consequences Consequences Responsive Stimulus (Reinforcement / Positive or Negative) (Behavior / Performance)

Types of Reinforcement Avoidance Reinforcement Positive Reinforcement Punishment Extinction

Schedule of Reinforcement Continuous Reinforcement Each and every desired behavior is reinforced e.g., real-time feedback to employees e.g., piece rate productivity reward for each unit produced Intermittent Reinforcement The reward is given based on the passage of time or output 1. Fixed interval schedule 2. Variable interval schedule 3. Fixed ratio schedule 4. Variable ratio schedule

Motivating with Reinforcement (1 of 2) Make sure employees know exactly what is expected of them Set clear objectives Select appropriate rewards Know your employees’ needs Select the appropriate reinforcement schedule Do not reward mediocre or poor performance

Motivating with Reinforcement (2 of 2) Look for the positive and give praise, rather than focus on the negative and criticize Make people feel good about themselves (Pygmalion effect) Never go a day without praise Do things for your employees, instead of to them

Motivation Techniques Management by Objectives (MBO) Giving Praise Job Design Job Enrichment

Model for Giving Praise Step 1. Tell the person exactly what was done correctly Step 2. Tell the person why the behavior is important Step 3. Stop for a moment of silence Step 4. Encourage repeat performance Exhibit 9.5

Objectives and MBO Objectives state what is to be accomplished within a given period of time Objectives are end results they do not state how the objective will be accomplished. How to achieve the objective is the plan

Criteria for Objectives To motivate people to high levels of performance, objectives should be: Difficult but achievable Observable and measurable Specific, with a target date Participatively set when possible Accepted

Management by Objectives (MBO) Process in which managers and their employees: jointly set objectives for the employees periodically evaluate the performance reward according to the results MBO Steps Step 1. Set individual objectives and plans Step 2. Give feedback and evaluate performance Step 3. Reward according to performance

Job Enrichment Process of building motivators into the job itself by making it more interesting and challenging Differs from job rotation Differs from job enlargement Job Enrichment Techniques Delegate more variety and responsibility Form natural work groups Make employees responsible for their own identifiable work Give employees more autonomy

Job Design Job design – the employee’s system for transforming inputs into outputs Job simplification – to increase performance, it is the process of: eliminating work tasks combining work tasks changing the work sequence

Cross-Cultural Differences in Motivation (1 of 5) Hierarchy of Needs, ERG, and Two-Factor Theory Cultural differences suggest that the order of hierarchy may vary across cultures Intrinsic motivation of higher-level needs can be more relevant to wealthy societies than to developing countries

Cross-Cultural Differences in Motivation (2 of 5) Manifest Needs Theory Concern for high performance is more common in quantity-of-life countries Concern for high performance is almost absent in high quality-of-life countries Individualistic societies tend to value self-accomplishment Collective societies tend to value group accomplishment and loyalty

Cross-Cultural Differences in Motivation (3 of 5) Equity Theory Equity theory as it relates to fairness tends to be a value upheld in most cultures In collective cultures, people tend to prefer equality where all are paid the same regardless of output Expectancy Theory Holds up cross-culturally because it is flexible It allows for the possibility that there may be differences in expectations and variances across cultures

Cross-Cultural Differences in Motivation (4 of 5) Reinforcement Theory Holds up well cross-culturally People everywhere tend to use behavior that is reinforced Goal Setting Goal setting is less motivational to cultures in which achievement is not important and quality-of-life is important Motivation in E-Organizations A major motivational problem in all organizations is distractions that lower productivity.

Cross-Cultural Differences in Motivation (5 of 5) Motivation in E-Organizations A major motivational problem in all organizations is distractions that lower productivity E-org employees want to be higher on the needs hierarchy than traditional employees Have a higher need for achievement, set and meet challenging goals, and want motivational rewards Have higher expectations and don’t want equity with traditional employees. Retaining this workforce requires change in their treatment

Motivating Performance