Chapter Thirteen

1. Chapter Thirteen Motivation and Performance

2. The Nature of Motivation Motivation The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence Explains why people behave the way they do in organizations Performance is function of ability, effort, situational factors

3. The Nature of Motivation Intrinsically Motivated Behavior Behavior that is performed for its own sake. Extrinsically Motivated Behavior Behavior that is performed to acquire material or social rewards or to avoid punishment. Prosocially motivated behavior behavior performed to benefit or help others

4. Outcomes and Inputs Outcome Anything a person gets from a job or an organization Pay, job security, autonomy, accomplishment Input Anything a person contributes to his or her job or organization Time, effort, skills, knowledge, work behaviors

5. The Motivation Equation Figure 13.1

6. Expectancy, Instrumentality, and Valence Figure 13.2

7. Need Theories Need Theories People are motivated to obtain outcomes at work that will satisfy their needs Need A requirement or necessity for survival and well-being.

8. Maslow’s Hierarchy of Needs Needs Description Examples Self- actualization Realize one’s full potential Use abilities to the fullest Highest-level needs Esteem Feel good about oneself Promotions and recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items Lowest-level needs Lower-level needs must be satisfied before higher-level needs are addressed. Table 13.1

9. Alderfer’s ERG Theory Needs Description Examples Highest-level needs Growth Self-development, creative work Continually improve skills Relatedness Interpersonal relations, feelings Good relations, accurate feedback Existence Food, water, clothing, and shelter Adequate payfor necessities Lowest-level needs After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised. Table 13.2

10. Herzberg’s Motivation-Hygiene Theory Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction. Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.

11. Herzberg’s Motivation-Hygiene Theory Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work. Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security.

12. McClelland’s Needs for Achievement, Affiliation, and Power • Need for Achievement • A strong need to perform challenging tasks well and meet personal standards for excellence

13. McClelland’s Needs for Achievement, Affiliation, and Power • Need for Affiliation • Concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other • Need for Power • A desire to control or influence others

14. Equity Theory Equity Theory Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.

15. Equity Theory Condition Person Referent Example Equity Outcomes = Outcomes Inputs Inputs Worker contributes more inputs but also gets more outputs than referent Underpayment Equity Outcomes < Outcomes Inputs Inputs Worker contributes more inputs but also gets the same outputs as referent Overpayment Equity Outcomes > Outcomes Inputs Inputs Worker contributes same inputs but also gets more outputs than referent Table 13.3

16. Goal Setting Theory • Goal • What a person is trying to accomplish through his efforts and behaviors • Must be specific and difficult • Goals point out what is important to the firm. • Workers should be encouraged to develop action plans to attain goals.

17. Learning Theories Managers can increase employee motivation and performance by the ways they link the outcomes that employees receive to the performance of desired behaviors in an organization and the attainment of goals

18. Operant Conditioning Theory Operant Conditioning People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.

19. Operant Conditioning Tools Positive Reinforcement Gives people outcomes they desire when they perform organizationally functional behaviors Negative Reinforcement Eliminating undesired outcomes once the functional behavior occurs

20. Operant Conditioning Tools Extinction Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it. Punishment Administering an undesired/negative consequence to immediately stop a dysfunctional behavior.

21. Avoiding Side Effects of Punishment Downplay the emotional element involved Try to punish dysfunctional behaviors as soon as they occur Try to avoid punishing someone in front of others

22. Organizational Behavior Modification Organizational Behavior Modification Managers systematically apply operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors

23. Steps in Organizational Behavior Modification Figure 13.4

24. Social Learning Theory Social Learning Theory Proposes that motivation results not only from direct experience of rewards and punishments but also from a person’s thoughts and beliefs

25. Social Learning Theory Vicarious Learning (Observational Learning) Occurs when a person becomes motivated to perform a behavior by watching another person perform the behavior and be positively reinforced for doing so

26. Social Learning Theory Self-reinforcement Any desired or attractive outcome or award that a person can give himself or herself for good performance. Self-efficacy A person’s belief about his or her ability to perform a behavior successfully.

27. Pay and Motivation Pay as a Motivator Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high. Need Theories: pay is used to satisfy many needs. Equity Theory: pay should be given in relation to inputs.

28. Pay and Motivation Pay as a Motivator Goal Setting Theory: pay should be linked to attainment of goals. Learning Theory: outcomes (pay) should be distributed upon performance of functional behaviors.

29. Merit Pay and Performance Merit Pay Plan A compensation plan that bases pay on performance. Clarification: Merit pay typically based on individual performance, as assessed via performance appraisal Typically results in base-pay increase Pay-for-performance plans can be based on individual, group, or organizational performance Can result in base-pay increases or one-time payments One-time payments likely to have more motivational value than base-pay increases Regardless, requires performance measurement to be valid to have motivational value (expectancy theory)

30. Awards and Performance

31. Salary Increase or Bonus? Employee Stock Option A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.