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Organizational Behavior: An Introduction to Your Life in Organizations. Chapter 4 Fundamentals of Motivation. Preview. What makes people work harder, smarter, and more positively? How can managers tap an employee’s intrinsic motivation?
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Organizational Behavior:An Introduction to Your Life in Organizations Chapter 4 Fundamentals of Motivation ©2007 Prentice Hall
Preview • What makes people work harder, smarter, and more positively? • How can managers tap an employee’s intrinsic motivation? • How do managers motivate using rewards and punishments? • How do managers use behavior modification to design performance appraisals and reward systems? • What organizational systems do companies use to motivate their employees? • When motivating yourself and others, also … ©2007 Prentice Hall
Motivation • An individual’s direction, intensity and persistence of effort in attaining a goal • Intrinsic motivators are inner influences that cause a person to act • Extrinsic motivators are external influences that cause a person to act, including both rewards and punishments ©2007 Prentice Hall
Money--the universal reinforcer • Called the universal reinforcer because you can exchange it for so many things • Can help satisfy lower order and higher order needs ©2007 Prentice Hall
How can manages tap an employee’s intrinsic motivation? • Main intrinsic factors that motivate us are: • our personality • emotions • needs and motives • goals • beliefs ©2007 Prentice Hall
Personality • Internal-external locus of control affects motivation depending on the job requirements • Self-efficacy is a person’s generalized belief in their ability to execute a course of action in any given situation • Independent and interdependent self-concepts affect focus on helping themselves or the group ©2007 Prentice Hall
Needs and motives • Needs are unconscious patterns, some developed early in life and some perhaps instinctive, that lead to emotional and behavioral preferences • McClelland’s needs theory: • need for achievement • need for power • need for affiliation ©2007 Prentice Hall
Needs and motives • Humanistic needs: managers should pay attention to meeting individual needs like personal growth and purpose in life • Sociobiology suggests that the most fundamental, instinctual, human needs are to reproduce and preserve life (untested) • Explicit motives: the reasons people give for their actions ©2007 Prentice Hall
Goals • Set specific goals • Set tough but achievable goals • Establish feedback for goal achievement • Keep in mind that learning goals motivate differently than performance goals • Account for the limitations of goal setting ©2007 Prentice Hall
Beliefs and expectations • Expectancy theory: an individual’s effort is determined primarily by his or her beliefs in three key areas: • Expectancy: that one’s effort will lead to an acceptable level of performance • Instrumentality: the belief that the performance level one achieves will result in specific positive and/or negative outcomes • Valence: the belief that the outcome attained will be personally valued ©2007 Prentice Hall
Beliefs and expectations • Equity theory predicts that you will weigh the ratio of your effort (and other job inputs such as your experience and ability) to your rewards against that of others • Distributive justice: the perceived fairness of outcomes in terms of how rewards and resources are allocated in an organization ©2007 Prentice Hall
The 5-Step OB mod Approach Step 1. Identify the target behavior Step 2. Establish a baseline for the target behavior Step 3. Analyze the antecedents and the consequences of the behavior Step 4. Intervene with a program that emphasizes reinforcement Step 5: Evaluate the intervention to see if it changed the desired behavior ©2007 Prentice Hall
The design of performance appraisals • Judgment-based evaluation: a manager rates employees on traits that management has deemed to be important • Results-based evaluation: rating employees on their performance over time • Behaviorally-based evaluation: observable behaviors are rated on a quantifiable measure such as their frequency, and the frequency of the behaviors is summarized in a behaviorally anchored rating scheme (BARS) ©2007 Prentice Hall
Limitations of behavior modification • Most successful when applied to simple tasks • For the more complex tasks in professional and managerial work, feedback typically has the strongest effect on work performance, followed by social recognition and then money ©2007 Prentice Hall
Systems that emphasize pay • Mixed results for pay based on general performance • Pay as a reinforcement for targeted behaviors is effective • Variable-pay programs blend a set salary, sometimes a relatively modest one, with pay contingent on some output measure ©2007 Prentice Hall
Systems that emphasize goals • Management by Objectives (MBO): supervisors and their subordinates jointly decide the individual employee’s goals for the year • The employees’ rewards for the year depend on how well they meet their goals ©2007 Prentice Hall
Systems that emphasize participation • Quality circles are teams of employees who meet to discuss quality improvements • Self-managed teams are autonomous groups that take on some of the tasks typically done by supervisors ©2007 Prentice Hall
Systems that maximize intrinsic and extrinsic motivation • Employee stock ownership plans (ESOPs) are particular plans that allow employees to buy stock • Must show cause-and-effect relationship between work and success • Employees are vulnerable if the stock value plunges ©2007 Prentice Hall
Recent trends • As jobs become more information-based and complex, it is harder to use standards for productivity • Since long term relationships between employees and their companies are declining, the motivating value of such relationships is being lost • Some theorists believe that monetary reward alone will never be a sufficient motivator because it does not reduce conflicts of interest and make people pursue common goals ©2007 Prentice Hall
Take national culture into account • Learned behaviors are culture bound • Cultures differ on how they value work itself • Cultures also differ in terms of the motivation systems they will accept ©2007 Prentice Hall
Apply what you have learned • World Class Company: Hiscox plc • Advice from the Pro’s • Gain Experience • Can you solve this manager’s problem? ©2007 Prentice Hall
Summary – What makes people work harder, smarter, and more positively? • Managers attempt to use both intrinsic and extrinsic motivators • Managers must be realistic about their ability to control others’ behavior • The universal reinforcer is money ©2007 Prentice Hall
Summary – How can managers tap an employee’s person’s intrinsic motivation? • Managers should select appropriate individuals if a job requires a certain type of personality or emotion • Managers might reasonably attempt to influence an individual’s goals, beliefs or expectations ©2007 Prentice Hall
Summary – How do managers motivate using rewards and punishments? • OB Mod is the theory that behavior can be controlled by extrinsic factors, namely reinforcements and punishments • The goal of an OB Mod program is to change observable and quantifiable behaviors • OB Mod has sparked many business applications ©2007 Prentice Hall
Summary – How do managers use behavior modification to design performance appraisals and reward systems? • Managers can choose either judgment-based, results-based, or behaviorally-based performance appraisals • Managers should be careful to reward the right behaviors, and to chose appropriate schedules of reinforcement ©2007 Prentice Hall
Summary – What organizational systems do companies use to motivate their employees? • Some emphasize pay • Others emphasize feedback and recognition • Some create an Employee Stock Ownership Plan, or ESOP ©2007 Prentice Hall
Summary – When motivating yourself and others, also… • Weigh recent trends • Take national culture into account • Motivate yourself to motivate others. ©2007 Prentice Hall