Motivation

1. Michael Johnson, PhD Motivation

2. Midterm Exam 50 multiple choice questions worth 2 points each 2 essay questions, of which you will choose one to answer, worth 25 points We will provide Scantrons and paper for the essay question (you provide a #2 pencil) Review session tonight at 6:30 in this room

3. Word Creation Exercise Carefully read the instructions on the cover page. DO NOT TURN THE PAGE UNTIL INSTRUCTED TO DO SO!

5. Motivation Person’s level of performance is a function (f) of ability, motivation, and opportunity: Performance = f (Ability x Motivation x Opportunity)

6. What is Motivation? Motivation is defined as a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence.

7. Expectancy Theory Expectancy theory describes the cognitive process that employees go through to make choices among different voluntary responses. Employee behavior is directed toward pleasure and away from pain or, more generally, toward certain outcomes and away from others.

8. Expectancy Theory

9. Cognitive Evaluation Theory

10. Goal Setting Theory Goal setting theory views goals as the primary drivers of the intensity and persistence of effort. Assigning employees specific and difficult goals will result in higher levels of performance. What is a difficult goal?

11. Goal Difficulty and Task Performance

12. Goal Setting Theory, Cont’d Moderators on Task Performance Feedback consists of updates on employee progress toward goal attainment. Task complexity reflects how complicated the information and actions involved in a task are, as well as how much the task changes. Goal commitment is defined as the degree to which a person accepts a goal and is determined to try to reach it.

13. Strategies for Fostering Goal Commitment

14. What Is MBO?

15. Self-Efficacy

16. Increasing Self-efficacy

17. Enactive Mastery Financial simulation with MBA students Four conditions of false feedback: Bad at first, but steadily increasing Bad and stayed bad Good at first, but steadily decreasing Good and stayed good Which condition performed best overall? Why?

18. Equity Theory Equity theory acknowledges that motivation doesn’t just depend on your own beliefs and circumstances but also on what happens to other people. Employees create a “mental ledger” of the outcomes (or rewards) they get from their job duties. You compare your ratio of outcomes and inputs to the ratio of some comparison other — some person who seems to provide an intuitive frame of reference for judging equity. “Cognitive calculus” Ratio of outcomes to inputs is balanced between you and your comparison other.

19. Some Outcomes and Inputs Considered by Equity Theory

20. Equity Theory Employees may: Increase or decrease inputs Change their outcomes Distort their perceptions of inputs and/or outcomes Distort perceptions of other’s inputs and/or outcomes Change the referent others Leave the organization

21. How Important is Motivation? Strongest performance effect is self-efficacy / competence; people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities. Difficult goals are the second most powerful motivating force. The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance. Perceptions of equity have a somewhat weaker effect on task performance.

22. The Emperor’s Club What motivation theory explains Mr. Hundert’s decision to leave the school?

23. Designing Compensation Systems Do the elements provide difficult and specific goals for channeling work effort? Lump sum bonuses and gainsharing have been credited with improvements in employee productivity. Consider the correspondence between individual performance levels and individual monetary outcomes. Merit pay represents the most common element of organizational compensation plans.

24. Compensation Plan Elements

25. Compensation Plan Elements, Cont’d

26. In-class Case Competition Scenario: You are a management consulting team that has been hired by Ron Bent to develop a solution for Engstrom Auto Mirror. Rules: Write answers in a Word document and upload to the digital dropbox by the end of the class period (be sure to include your team name and the names of team members present) You must integrate at least one motivation theory in your answers You may access outside material as well

27. In-class Case Competition Questions (these are also now posted on Blackboard): Begin by identifying the key problems/issues for Engstrom, and then identify the key contributions that a Scanlon plan should bring to a company. Is Scanlon a good solution for Engstrom’s challenges? What organizational factors at Engstrom impacted how well Scanlon performed at the plant? How does pay, and employees’ perception that pay is seldom fairly linked to performance, hinder collaboration in an organization? Develop a recommendation that Bent could use to solve the problem facing Engstrom.