Motivation Employees

1. Motivation Employees Introduction to Business

2. The Hawthorne Effect The “Hawthorne effect” describes the occurrence when subjects being studied change their behavior because they are being observed and treated differently.

3. Applications of the Hawthorne Effect Researchers concluded that the employees worked harder because they thought they were being monitored individually. Researchers hypothesized that choosing one’s own coworkers, working as a group, being treated as special, and having a sympathetic supervisor were the real reasons for the productivity increase. The Hawthorne studies showed that people’s work performance is dependent on social issues and job satisfaction.

4. Need-based Theories The first theories used to explain human motivation were need based. These theories proposed that people are mainly motivated by trying to meet certain needs and that if you can understand their needs, you can better motivate them. Examples of need-based theories • Maslow’s hierarchy of needs • ERG theory • Herzberg’s two-factor theory • McClelland’s acquired-needs theory

5. Maslow’s Hierarchy of Needs

6. Implications of Maslow’s Hierarchy of Needs • Some people work primarily for money and fulfill their other needs elsewhere. • Others want to meet higher order needs at work. • If someone works hard for a promotion and doesn’t get it, they may lose motivation and put in less effort. • If employees lack job security, they will be far more concerned about their financial well-being and meeting lower needs than about gaining esteem at work. • Keeping one’s employees motivated can seem like something of a moving target.

7. ERG Theory Alderfer proposed three groups of core needs:  • Existence needs concern our basic material requirements for living. • Relatedness needs have to do with the importance of maintaining interpersonal relationships. • Growth needs describe our intrinsic desire for personal development. Alderfer proposed that when a certain category of needs isn’t being met, people will redouble their efforts to fulfill needs in a lower category.

8. Herzberg’s Two Factor Theory

9. Acquired-needs Theory Acquired-needs theory splits the needs of employees into three categories: • Employees who are strongly achievement-motivated are driven by the desire for mastery. • Employees who are strongly affiliation-motivated are driven by the desire to create and maintain social relationships. • Employees who are strongly power-motivated are driven by the desire to influence, teach, or encourage others.

10. Tailored Motivation The acquired-needs theory claims that all people are motivated by all of these needs in varying degrees and proportions. An individual’s balance of these needs forms a kind of profile that can be useful in creating a tailored motivational paradigm for the employee.

11. Process-based Theories Process-based theories view motivation as a rational process. Individuals analyze their environment, develop reactions and feelings, and respond in certain predictable ways. The three best-known process-based theories are • Equity • Expectancy • Reinforcement theories

12. Employee Inputs and Outputs Inputs are the employee’s contribution to the workplace and can be tangible and intangible. Examples: time spent working, level of effort, loyalty, commitment, and enthusiasm. Outputs/outcomes are what the employee receives from the employer and can be tangible or intangible. Examples: salary, job security, recognition, praise, and a sense of achievement.

13. Equity Theory Proposes that people value fair treatment, which motivates them to maintain a similar standard of fairness with their coworkers and the organization. Is based on the ratio of inputs (employees contributions) to outcomes (salary, job security, promotion, praise etc).

14. Insights of Equity Theory • Individuals will try to maximize their outcomes. • Individuals can maximize collective rewards by evolving systems for equitably apportioning resources among members. As a result, groups will evolve such systems and will attempt to induce members to adhere to these systems. In addition, groups reward members who treat others equitably and punish members who do not. • When individuals find themselves participating in inequitable relationships, they will become distressed. • Individuals who discover they are in inequitable relationships will attempt to eliminate their distress by restoring equity.

15. Applications of Equity Theory to Management • Employees measure the totals of their inputs/outcomes. • Different employees ascribe different personal values to inputs and outcomes. • Employees are able to adjust for purchasing power and local market conditions. • While it is accepted for senior staff to receive higher salary, there are limits to the balance of the scales of equity. Employees can find excessive executive pay demotivating. • Staff perceptions of inputs and outcomes of themselves and others may be incorrect, and perceptions need to be managed effectively.

16. Expectancy Theory Suggests individuals make choices based on estimates of how well the expected results of a given behavior are going to match up or lead to the desired results. Expectancy is the belief that effort will lead to the intended performance goals. Instrumentality is the belief that a person will receive a desired outcome if the performance expectation is met. Valence is the value placed on a particular outcome.

17. Reinforcement Theory The basic premise of the theory of reinforcement is both simple and intuitive: An individual’s behavior is a function of the consequences of that behavior. 

18. Operant Conditioning

19. Factors Affecting Reinforcement • Satiation: the degree of need. • Immediacy: the time elapsed between the desired behavior and the reinforcement. The shorter the time between the two, the better. • Size: the magnitude of a reward or punishment can have a big effect on the degree of response.

20. Punishment In business organizations, punishment and deterrence theory play a vital role in shaping the work culture. If employees know exactly what they are not supposed to do, and understand the repercussions of violating those expectations, they will generally try to avoid crossing the line. Prevention is a cheaper and easier approach than waiting for something bad to happen, so preemptive education regarding rules—and the penalties for violations—is common practice.

21. Theory X, Theory Y, and Theory Z Douglas McGregor theorized that worker motivation is closely linked to the way managers view and treat their workers and that all managers fall into one of two types—Theory X and Theory Y.   Later, William Ouchi combined Eastern and Western management practices to develop Theory Z.

22. Theory X • Work is distasteful and people will attempt to avoid it. • Most people are not ambitious, have little desire for responsibility, and prefer to be directed. • Most people have little aptitude for creativity in solving organizational problems. • Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs. • Most people are self-centered. They must be closely controlled to achieve organizational objectives. • Most people resist change. • Most people are gullible and unintelligent.

23. Theory Y • Employees are motivated by higher-level needs of esteem and self-actualization. • Work can be as natural as play. • People will be self-directed and creative to meet work objectives if they are committed to them. • People will be committed to their work objectives if rewards address higher needs such as self-fulfillment. • Most people can handle responsibility because creativity and ingenuity are common in the population. • Under these conditions, people will seek responsibility.

24. Implications of Theory Y If Theory Y holds true, an organization can apply the following principles of scientific management to improve employee motivation: • Decentralization and delegation • Job enlargement • Participative management • Performance appraisals

25. Theory Z If a company wants to reduce employee turnover, increase commitment, improve morale and job satisfaction, and increase productivity it needs: • A strong company philosophy and culture • Long-term staff development and employment • Consensus in decisions • Generalist employees • Concern for the happiness and well-being of workers • Informal control with formalized measures • Individual responsibility recognized within the context of the team as a whole

26. Strategies for Motivating Employees Two methods of applying motivation theory in the workplace are  • Job models • Goal setting

27. Characteristics of a Well-designed Job • Skill variety • Task identity • Task significance • Autonomy • Feedback

28. Psychological States Psychological states that help employees feel motivated and satisfied with their work include • Experienced meaningfulness • Experienced responsibility • Knowledge of results

29. Work Outcomes The combination of core job characteristics with psychological states influences work outcomes such as the following • Job satisfaction • Motivation • Absenteeism Overall, the manager’s goal is to design the job in such a way that the core characteristics complement the psychological states of the worker and lead to positive outcomes.

30. Job Design Techniques Methods for designing jobs that lead to empowered, motivated, and satisfied employees: • Job rotation • Job enlargement • Intrinsic and extrinsic rewards • Job enrichment

31. Goal Setting Goal setting affects outcomes in the following ways: • Choice: goals narrow effort to goal-relevant activities • Effort: goals can lead to more effort • Persistence: people are more likely to work through setbacks if pursuing a goal • Cognition: goals can lead individuals to develop and change behavior

32. Feedback When giving feedback, managers should do the following: • Create a positive context with constructive and positive language • Focus on behaviors and strategies • Tailor feedback to the needs of the individual worker • Make feedback a two-way communication process

33. Practice Question If you were a manager, what strategy would you choose to motivate employees? Would it be a single strategy from the module, a combination, or something else? Would it depend on where you worked or what challenges the organization was facing?

34. Quick Review • What is the Hawthorne effect, and how is it significant in management? • What are the need-based theories of worker motivation? • What are the process-based theories of motivation? • What is the difference between Theory X, Theory Y, and Theory Z managers? • How can managers use job characteristic and goal-setting theory to motivate employees?