Managing Employee Motivation and Performance

1. Managing Employee Motivation and Performance

2. At the end of this chapter you will learn: • What is Motivation? • What Motivates Employees? • Why People choose certain behavioral options? • How to reinforce behavior?

3. WHAT is Motivation • An internal force that lead people to behave in certain ways

4. Why motivation is important for organizations?

5. P ERFORMANCE • Ability • Environment • Motivation

6. What Motivates Employees? How to motivate employees? How to reinforce behavior? Managing Employee Motivation and Performance Content Process Reinforcement

7. Traditional Approach Human Relations Approach Human Perspective Approach Taylor Economic Gain Social Process Illusion of involvement and participation People’s contribution are valuable Encourage real participation Historical Perspective on Motivation

8. Content Perspectives of Motivation What Motivates People? • Maslow’s Hierarchy of Needs • Existence-Relatedness Growth (ERG) • Herzber’g Two Factors Theory • Achievement, Affiliation, Power (AAP)

9. Maslow’s Hierarchy of Needs Self- Actualization Esteem Needs (Self + Others) Social Needs Satisfied Safety Needs Physiological Needs

10. Use Maslow’sHierarchy of Needs to categories the following general needs • Sleep, Eat • The need to have a safe environment • Respect and recognition for self • Respect and recognition from others • Relationship and communication with others • The need to continue to grow, develop, and expand our capabilities

11. Use Maslow’sHierarchy of Needs to categories the following general needs • Changing job titles of Batelco’s employees from General Managers to Vice President • UoB is providing partial health insurance for its employees • The Labor Law in Bahrain states that all employees must have a ‘pension’ • Choosing a new employees to be part of a team that is responsible to arrange for the graduation ceremony in UoB • UOB arranged a trip to the ‘Italian Circus’ for all UOB employees and their families • A General Manager who participated in the marathon • The Labor Law in Bahrain states that the minimum wage for Bahrainis’ is BD200

12. Maslow’s Hierarchy of Needs New Challenges Job title, Assignments Team Work, Gathering Satisfied Job Continuity, Pension Salary, Benefits

13. Shortcomings.. • Is it Five Levels? • Do you agree on the ordering? • Is it different by culture?

14. Existence-Relatedness-Growth Self-Actualization Growth Esteem Others Esteem Self Relatedness Social Security Existence Physiological

15. Existence = Relatedness = Growth = Physiological + Security Belongings (Social)+ Esteem from Others Self Esteem + Self Actualization ERG

16. ERG • Hierarchy • Overlap • Frustration-Regression

17. Herzberg’s Two-Factor Theory Job-Related Factors and Job Environment Factors Are they the same?

18. Achievement Recognition Work Itself Growth/Advancement Responsibility Working Conditions Policy/Admin. Supervision Pay and security Herzberg’s Two-Factor Theory Job-Related Job Environment

19. Satisfaction & No dissatisfaction Are they the same? حالة الرضا و حالة عدم الانزعاج Herzberg’s Two-Factor Theory

20. Satisfaction No dissatisfaction Job Related Job Environment Factors Herzberg’s Two-Factor Theory

21. Satisfaction No Satisfaction Job Related - Motivating Factors Achievement Recognition Work Itself Responsibility Advancement ✔ ✔ ✔ ✔ ✔ ✔ ✘ ✘ ✘ ✘ ✘ ✘

22. No Dissatisfaction Dissatisfaction Job Enviro. - Hygiene Factors Working Conditions Work itself Supervision Pay and security ✔ ✔ ✔ ✔ ✔ ✘ ✘ ✘ ✘ ✘

23. Answer the following • Which factors must be present to lead to employee motivation • Job Related factors • Environment related factors • Which factors must be present to lead to a hygienic working environment • Job Related factors • Environment related factors • The existence of environment related factors will lead to employees satisfaction and hence motivation (T/F) • According to Herzberg, if a manager wants to motivate employees, she/he must provide job-related factors (T/F)

24. Shortcoming of Two-Factor Theory • Interview results subject to different interpretation • Sample not representative of general population (Accountants) • Pay – Is it a hygiene or motivating factor?

25. AAP Prioritize the following statements according to their importance to your • I set difficultgoalsfor my self, I get preoccupied with my work and I like to have quick feedback • I like to interact and socialize with others • I have the desire to be influentialin a group and to control one’s environment

26. How to Motivate • Achiever • Affiliater • Power-centred

27. Achievement • What is the % Americans who are classified as Achievers? • What is the % Japanese who are classified as Achievers? • How to motivate a person with high Achievement need? • 10% Americans • 25% Japanese • Goal-accomplishment • How to motivate a person with high Achievement need?

28. Achievement • 10% Americans • 25% Japanese • How to motivate a person with high Achievement need? • Goal-accomplishment

29. Affiliation • How to motivate a person with high Affiliation need? • Acceptance & Companionship • Increase the human interaction and companionship • Customer interaction

30. Power • How to motivate a person with high Power need? • Control and Influence • Supervisory • Team Leader • Committee Leader

31. Content Perspectives of Motivation • Two-Factors Theory - • Job-related factors • Achievement • Responsibility • Work Itself • Advancement • Growth • AAP • Achievement • Affiliation • Power What Motivates People? • Maslow • Physiological Needs • Security Needs • Belongings • Esteem • Self actualization • ERG • Need for Existence • Need for Relatedness • Need for Growth (ERG)

32. Content Motivation theories suggest that motivation process should begin with identification of --------------

33. PROCESS Perspectives on Motivation • Why people choose certain behavioral options to satisfy their needs? • How they evaluate their satisfaction after goal-attainment?

34. PROCESS Perspectives on Motivation • Expectancy Theory • Equity Theory

35. Expectancy Theory Outcome Valence Environment Motivation Effort Performance Outcome Valence Ability Outcome Valence

36. Motivation depends on • How much we want something • Valence • Positive (if we want something) • Negative (if we don’t want something) • Zero (indifference) • How likely we think we will get it • Effort-to Performance Expectancy • Performance-to-outcome Expectancy

37. Expectancy Theory Motivation Effort Performance Outcome Valence Effort-to- Performance Expectancy Performance-to- Outcome Expectancy How Much we want Something?

38. Employee Questions About Expectancy Theory • What is the probability that I can perform at the required level if I try? • What is the likelihood my performance will lead to the desired outcomes? • What value do I place on the outcome?

39. Conditions For Motivational behavior Greater than Zero • Effort-to-performance • Performance -to- Outcome • Valence

40. Equity Theory - Adam Stacey •  Social equity in the rewards they receive for performance. SELF Outcome: Input OTHEROutcome : Input

41. Under rewarded Equitable rewards Over rewarded   Reward  Inputs    Input

42. Good Behavior • Good behavior if rewarded will increase the probability of it being repeated. This type of reinforcement is called positive reinforcement. • Some time good behavior is repeated to avoid punishment. This type of reinforcement is called Avoidance.

43. Bad Behavior • Punishment of bad behavior, will reduce its’ repeation. This type of reinforcement is called -Punishment. • Ignorance of bad behavior might eventually lead extinction. This type of reinforcement is called extinction.

44. Types (Arrangements) of Reinforcement • POSITIVE REINFORCEMENT Good behavior reward to strengthen to be repeated • AVOIDANCE Good Behavior To avoid punishment • PUNISHEMENT Bad behavior punishment to weaken not repeated  • EXTINCTION Bad behavior Ignore eventually ‘extinct’

45. Extinction, Positive Reinforcement, Punishment, Avoidance • -------- strengthen behavior by providing a desirable consequences. • ------- strengthen behavior by allowing escape from an undesirable consequences. • ------------ weakness behavior by providing an undesirable consequence. • ------- weakens behavior by ignoring it.

46. Schedule for Applying Reinforcement Time (Interval) Behavior (Ratio) Fixed-Ratio Reinforcement is applied after a fixed number of behaviors, regardless of time. Variable-Ratio Reinforcements applied after a variable number of behaviors. • Fixed-Internal Reinforcement is applied at fixed intervals, regardless of behavior • Variable-Internal Reinforcements applied at variable time interval.