Management and Organization Behavior

1. Management and Organization Behavior MGMT 3140 Motivation

2. Opening Case – Zappo’s.com • What factors does Tony Hsieh use in relation to employees?

3. Work Motivation • Definition: The psychological forces that determine the direction of a person’s behavior, a person’s level of effort, and a person’s level of persistence. • Key elements to the definition: • Energy (level) • Direction • Sustainability

4. Links Between Motivation and Performance • Performance -- key • Motivation is only one factor among many that contributes to performance. • Other contributing factors: • Personality and ability • Task difficulty • Resource availability • Working conditions • Chance or luck

5. Intrinsic vs. Extrinsic 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.

6. Advice to Managers • Keep in mind that motivation determines what behaviors workers choose to perform, how hard they work, and how persistent they are in the face of difficulties. • Do not equate motivation with performance. Motivation is only one of several factors that contribute to determining performance. • To better understand the source of your subordinates’ work motivation, determine whether they are intrinsically or extrinsically motivated.

7. Motivation Theory Categories • Goal setting • Needs • Process • Reinforcement • Note: Theories are limited by culture (geographic, national, societal)

8. Goal Setting • Conscious goals motivate people • Good goals: • Meaningful • Acceptable • Challenging but attainable (stretched)

9. More About Goals • Specific • Measurable • Achievable • Results-based • Time specific

10. Operant Conditioning (learning) • Definition- • Everyday examples • Business examples

11. Operant Conditioning Insert Figure 5.1 here

12. Common Punishments in Business • Oral reprimand • Written reprimand • Suspension • Dismissal • Possible legal action

13. The Greatest Management Principle in the World • “The things that get rewarded get done!” - Michael LeBoeuf

14. The Motivation Equation Inputs: Effort Time Education Experience Skills Knowledge Job behaviors Performance: Quantity Quality Level of customer service Outcomes: Pay Job security Benefits Vacation Satisfaction Pleasure

15. Expectancy Theory • A process theory about work motivation that focuses on how workers make choices among alternative behaviors and levels of effort. • Two main questions are addressed: • Do individuals believe that their inputs will result in a given level of performance? • Do individuals believe that performance at this level will lead to obtaining outcomes they desire? • Keys to the theory: • Valence • Instrumentality • Expectancy

16. Valence • Definition: The desirability of an outcome to an individual. • Can be positive or negative: • Outcomes with positive valence are desirable. • Outcomes with negative valence are undesirable. • Can vary in magnitude to indicate how desirable or undesirable an outcome is.

17. Instrumentality • Definition: A perception about the extent to which performance of one or more behaviors will lead to the attainment of a particular outcome. • Can be positive or negative. Range is from -1 to +1. • I = -1 means that the individual perceives that performance will definitely not lead to the outcome. • I = 0 means that the individual perceives no link between performance and outcome. • I = +1 means that the individual perceives that performance is certain to lead to the outcome.

18. Expectancy • Definition: A perception about the extent to which effort will result in a certain level of performance. • Range is from 0 to 1: • 0 means that the individual believes there is no chance that his/her effort will result in performance. • 1 means that the individual is certain that his/her effort will lead to performance.

19. Insert Figure 6.3 here

20. Advice to Managers • Determine what outcomes your subordinates desire. More specifically, identify outcomes that have high positive valence for your subordinates in order to motivate them to perform at a high level. • Once you have identified desired outcomes, make sure that you have control over them and can give them to subordinates or take them away when warranted. • Let subordinates know that obtaining their desired outcomes depends on their performing at a high level (raise instrumentalities). Administer the highly valent outcomes only when subordinates perform at a high level (or engage in desired organizational behaviors). • Do whatever you can to encourage workers to have high expectancies: Express confidence in subordinates’ abilities, let them know that others like themselves have been able to perform at a high level, and give them guidance in terms of how to perform at a high level. • Periodically assess workers’ beliefs concerning expectancies and instrumentalities and their valences for different outcomes by directly asking them or administering a survey. Using these assessments, make different outcomes available to workers, and clarify instrumentalities, or boost expectancies when necessary.

21. Needs Theories • Maslow • Alderfer • McClellan • Herzberg

22. Need Theories of Motivation • A group of theories that focus on workers’ needs as the sources of motivation. These theories attempt to explain what motivates workers. • A need is a requirement for survival and well-being. Individual needs within organizations vary. • Managers should try to: • Determine what needs a worker is trying to satisfy on the job. • Ensure that a worker can satisfy his or her needs by engaging in behaviors that contribute to organizational effectiveness.

24. Intrinsic Motivation – Self Actualization

26. Alderfer’s ERG Theory • Growth Needs: The needs for self-development and creative and productive work. • Relatedness Needs: The needs to have good interpersonal relations, to share thoughts and feelings, and to have open two-way communication. • Existence Needs: Basic needs for human survival such as the need for food, water, clothing, shelter, and a secure and safe environment.

27. Differences from Maslow’s Theory • Reduces the number of universal needs from five to three. • No rigid hierarchy: • A higher-level need can be a motivator even if a lower-level need is not fully satisfied. • Needs at more than one level can be motivators at any time. • When an individual is motivated to satisfy a higher-level need but has difficulty doing so, his/her motivation to satisfy lower-level needs will increase.

28. McClelland’s Acquired Needs Theory • Need for achievement (nAch) • Need for affiliation (nAff) • Need for power (nPower)

29. Equity Theory • Are outcomes perceived as being at an appropriate level in comparison to inputs? • From past experience or observation, employees will have a sense of what level of inputs should result in a certain level of outcomes • Outcomes based upon inputs • Different employees’ outcome/input ratios equal

30. Inputs, Outcomes, and Referents • Types of inputs • Special skills • Education and training • Work effort • Types of outcomes • Pay and benefits • Opportunities for advancement • Recognition • Referents • Coworkers • Self at another job or at another time • Other people in the same job

31. How Equity Theory Works • An individual compares his/her outcome/input ratio to that of the referent to see if they are in balance: SelfReferent Outcomes ? Outcomes Inputs = Inputs • Overpayment inequity exists when a person perceives that his/her outcome/input ratio is greater than the ratio of the referent. • Underpayment inequity exists when a person perceives that his/her outcome/input ratio is less than the ratio of the referent.

32. Conditions of Equity and Inequity Individual Referent Example Equity Outcomes Outcomes ------------ = ------------ Inputs Inputs A financial analyst contributes more inputs (time and effort) to her job and receives proportionally more outcomes (a promotion and a pay raise) than her referent receives. Overpayment Inequity Outcomes Outcomes ------------ > ------------ Inputs Inputs A financial analyst contributes the same level of inputs to her job as her referent but receives more outcomes than the referent receives. Underpayment Inequity Outcomes Outcomes ------------ < ------------ Inputs Inputs A financial analyst contributes more inputs to her job than her referent but receives the same outcomes as her referent.

33. Ways to Restore Equity • Change inputs or outcomes • Change referent inputs or outcomes • Change perceptions of inputs and outcomes • Change the referent • Leave the job • Force referent to leave the job

34. Procedural Justice Theory • A process theory about work motivation that focuses on workers’ perceptions of the fairness of the procedures used to make decisions about the distribution of outcomes. • Causes of procedural justice perceptions: • How workers are treated by distributors of outcomes. • The extent to which managers explain their decisions to workers.

35. Job Satisfaction • Interrelationship of job satisfaction and performance – does one depend on the other? • Which way?

36. Job Satisfaction - Factors • The work itself • Quality of supervision (the boss and the hierarchy) • Relationships with coworkers • Promotion opportunities • Pay

37. Job Satisfaction - Metrics • Difficult • Absenteeism • Turnover • Performance?

38. Quality of Worklife (QWL) • Fair compensation • Safe and health environment • Develops human capacities • Personal growth and security • Good social environment • Personal privacy, dissent & due process • Balances work and personal/family needs • Socially responsible organization

39. Psychological Contracts • Based on perception of what is owed between employers and employees

40. What is Job Design? • Linking specific tasks to specific jobs • Deciding what techniques, equipment, and procedures should be used to perform those tasks • Job design may increase motivation and encourage good performance

41. Job Design: Early Approaches • Scientific Management • Job Enlargement • Job Enrichment

42. Scientific Management • A set of principles and practices stressing job simplification and specialization • There is one best way to perform any job • Management’s responsibility is to determine what that way is • Time and Motion Studies

43. Disadvantages of the Scientific Management Method • Loss of control • Repetitive, boring tasks • Meaningless, monotonous work • High job dissatisfaction • No opportunity to develop and acquire new skills

44. Job Enlargement • Increasing the number of tasks an employee performs but keeping all of the tasks at the same level of difficulty and responsibility • Horizontal job loading • Do more tasks • Equal level of responsibility • Intended to increase intrinsic motivation

45. Job Rotation • Rotating the individual through several equal level jobs so that the person does not become bored. • Labor • Management

46. Job Enrichment • Designing jobs to provide opportunities for employee growth by giving employees more responsibility and control over their work • Vertical job loading • Based on Herzberg’s Motivator-Hygiene Theory

47. The Job Characteristics Model • Skill variety • Task identity • Task significance • Autonomy • Feedback

48. Motivating Potential Score (MPS) • A measure of the overall potential of a job to foster intrinsic motivation. • The score is a computational combination of the measures of skill variety, task identity, task significance, autonomy, and feedback. • Formula MPS = ((SV + TI + TS)/3)*A*F • MPS scores can range from 1 to 343. The average MPS for jobs in the US is around 128.

49. Insert Figure 7.3 here

50. Ways to Redesign Jobs to Increase MPS • Combine tasks so that an employee is responsible for work from start to finish • Group tasks into natural work units • Allow employees to interact with customers or clients • Vertically load jobs to give employees more control and higher levels of responsibility • Open feedback channels