Motivating Performance

2. 9 Motivating Performance

3. 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

4. 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

5. 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

6. Key Motivation Theories Content Motivation Theories Process Motivation Theories Reinforcement Theory

7. Content Motivation Theories • Focus on identifying people’s needs in order to understand what motivates them Key Theories • Needs Hierarchy • ERG Theory • Two-Factor Theory • Manifest Needs Theory

8. Maslow’s Needs Hierarchy Theory(1 of 2) Theory is based on three major assumptions: • People’s needs are arranged in order of importance (hierarchy), going from basic needs to more complex needs • People will not be motivated to satisfy a higher-level need unless the lower-level need(s) has been satisfied • People have five classifications of needs

9. Maslow’s Needs Hierarchy Theory(2 of 2) The needs in order of importance to a person: • Physiological Needs: primary or basic needs • Safety Needs: safety and security needs • Social Needs: love, friendship, acceptance, affection • Esteem Needs: ego, status, self-respect, recognition • Self-Actualization: highest level of need is to develop one’s full potential

10. Alderfer’s ERG Theory • Reorganizes Maslow’s needs hierarchy into three levels of needs: • Existence (physiological and safety needs) • Relatedness (social needs) • Growth (esteem and self-actualization needs) • Maintains the higher- and lower-order needs • Also maintains that unsatisfied needs motivate individuals

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

12. 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

13. 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?

14. Herzberg’s Two-Factor Theory (1 of 2) • Needs are classified into factors: • Hygienes • lower-level needs • extrinsic factors (environmental factors) • Motivators • higher-level needs • intrinsic factors (the job itself) • Providing maintenance factors keeps people from being dissatisfied, but does not motivate

15. Herzberg’s Two-Factor Theory (2 of 2) Hygiene Factors (Needs) (physiological, safety, and social needs) Extrinsic Factors Dissatisfaction (Environment) No Dissatisfaction Pay / Status / Job Security Benefits / Human Relations / Policies and Administrative Practices Motivator Factors (Needs) (esteem and self-actualization needs) Intrinsic Factors No Job Satisfaction (The Job Itself) Job Satisfaction Meaningful and challenging work Recognition for accomplishments Feeling of achievement Increased responsibility Opportunity for growth Opportunity for advancement Exhibit 9.2

16. 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

17. 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

18. 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

19. Classification of Needs by Four Theories of Motivation Motivators Growth Hygienes Existence Exhibit 9.3

20. 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

21. Process Motivation Theories • Attempt to understand how and why people are motivated • Focus is more on behavior than needs Key Theories • Expectancy Theory • Equity Theory

22. 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

23. Expectancy Theory: Assumptions • Both internal (needs) and external (environment) factors affect behavior • Behavior is the individual’s decision • People have different needs, desires, and goals • People make different decisions based on their perception of the outcome

24. Motivating with Expectancy Theory • Clearly define objectives and the necessary performance needed to achieve them • Tie performance to rewards. High performance should be rewarded • Be sure rewards are of value to the employee • Make sure your employees believe you will do as you promise

25. 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

26. Equity Theory • Adam’s motivation theory, based on the comparison of perceived inputs to outputs • People compare their inputs and outputs to that of relevant others • Employees must perceive that they are being treated fairly, relative to others A comparison with relevant others leads to three conclusions: • Equitably Rewarded • Under Rewarded • Over Rewarded

27. Motivating with Equity Theory • The supervisor should be aware that equity is based on perception, which may not be correct • Rewards should be equitable • High performance should be rewarded • Employees must understand the inputs needed to attain certain outputs

28. 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)

29. Avoidance Reinforcement Positive Reinforcement Punishment Extinction Types of Reinforcement

30. 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

31. 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

32. 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

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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. Motivation Theories Exhibit 9.7

41. The Motivation Process 1. Need 2. Motive Process Motivation Theories Expectancy Theory Equity Theory Content Motivation Theories Needs Hierarchy ERG Theory Two-Factor Theory Manifest Needs Theory 3. Behavior Rewards Reinforcement Theory 4. Satisfaction or Dissatisfaction Exhibit 9.8

42. 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

43. 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

44. 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

45. 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.

46. 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

47. Deming’s View of North American Motivation Methods • According to Dr. W. Edwards Deming North America must change from an individualistic society to a collective society if it is to survive in the global economy • He was pessimistic that U.S. business will make the changes he thinks necessary to compete effectively