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Motivation

Motivation. CHAPTER SIXTEEN. Management 3rd Edition Chuck Williams. Prepared by Deborah Baker Texas Christian University. What Would You Do?. You are in charge of CDW… CDW was one of the first companies to sell computers directly to customers

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Motivation

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  1. Motivation CHAPTER SIXTEEN Management 3rd Edition Chuck Williams Prepared byDeborah BakerTexas Christian University

  2. What Would You Do? You are in charge of CDW… • CDW was one of the first companies to sell computers directly to customers • Employee turnover coulddestroy CDW’s competitive advantage What should you offer to motivate your employees to stay? How can you motivate them to perform better?

  3. What Is Motivation? After reading the next section, you should be able to: • explain the basics of motivation.

  4. Motivation Direction Persistence Initiation Motivation

  5. Basics of Motivation EffortandPerformance Need Satisfaction Extrinsicand Intrinsic Rewards MotivatingPeople 1

  6. Effort Performance • Initiation • Direction • Persistence Effort and Performance 1.1

  7. Effort and Performance Job Performance = Motivation x Ability x Situational Constraints • Job performance • how well someone performs the job • Motivation • effort put forth on the job • Ability • capability to do the job • Situational Constraints • external factors affecting performance 1.1

  8. Need Satisfaction • Needs • physical or psychological requirements • must be met to ensure survival and well being • Unmet needs motivate people • Three approaches: • Maslow’s Hierarchy of Needs • Alderfer’s ERG Theory • McClelland’s Learned Needs Theory 1.2

  9. Self-Actualization Esteem Belongingness Safety Physiological Maslow’s Hierarchy of Needs 1.2

  10. Growth Relatedness Existence Aldefer’s ERG Theory 1.2

  11. Power Achievement Affiliation McClelland’s Learned Needs Theory 1.2

  12. Maslow’s Hierarchy Alderfer’s ERG McClelland’s Learned Needs Higher-Order Needs Self-Actualization Esteem Belongingness Safety Physiological Growth Relatedness Existence Power Achievement Affiliation Lower-Order Needs Needs Classification 1.2 Adapted From Exhibit 16.4

  13. Tension Energized to take action Unsatisfied need Effort • Initiation • Direction • Persistence Satisfaction Performance Adding Need Satisfaction to the Model 1.2 Adapted from Exhibit 16.3

  14. Extrinsic and Intrinsic Rewards • Extrinsic Rewards • tangible and visible to others • given contingent on performance • Intrinsic Rewards • natural rewards • associated with performing the task for its own sake 1.3

  15. Tension Energized to take action Unsatisfied need Effort • Initiation • Direction • Persistence Extrinsic Rewards Satisfaction Performance Intrinsic Rewards Adding Rewards to the Model 1.3 Adapted from Exhibit 16.5

  16. Motivating with the Basics • Ask people what their needs are • Satisfy lower-order needs first • Expect people’s needs to change • Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards 1.4

  17. use equity theory to explain how employees’perceptions of fairness affect motivation. • use expectancy theory to describe how workers’ expectations about rewards, effort, and the linkbetween rewards and performance influence motivation. How Perceptions and ExpectationsAffect Motivation After reading the next two sections, you should be able to:

  18. Equity Theory ComponentsofEquity Theory Reaction toPerceivedInequity MotivatingPeople UsingEquity Theory 2

  19. Equity Theory • Inputs • employee contributions to the organization • Outcomes • rewards employees receive from the organization • Referents • comparison others • Outcome/input (O/I) ratio • a comparison between self and others 2.1

  20. Outcomesother Inputsother Outcomesself Inputsself = Output/Input Ratio

  21. < > Outcomesself Inputsself Outcomesself Inputsself Outcomesother Inputsother Outcomesother Inputsother Inequity • When a person’s O/I ratio differs from their referent’s O/I ratio • Underreward • referent’s O/I ratio is greater than yours • experience anger or frustration • Overreward • referent’s O/I ratio is less than yours • experience guilt 2.1

  22. Been There Done That Dr. Balaji Krisnamurthy, CEO of Planar, discusses motivation… • The shareholder stands first, followed by rank-and-file employees, middle management, and last, executive management and the CEO • Bonus plans are linked to hitting targets

  23. How People React to Perceived Inequity • Reduce inputs • Increase outcomes • Rationalize inputs or outcomes • Change the referent • Leave 2.2

  24. Unsatisfied need Tension Energized to take action Effort • Initiation • Direction • Persistence Extrinsic Rewards Intrinsic Rewards Satisfaction Adding Equity Theory to the Model • Restoring Equity • Decrease inputs • Increase outcomes • Rationalize inputs or outcomes • Change the referent • Leave Perceived Equity/Inequity Performance Perceived Equity/Inequity 2.3

  25. Motivating with Equity Theory • Look for and correct major inequities • Reduce employees’ inputs • Make sure decision-making processes are fair • distributive justice • procedural justice 2.3

  26. Components ofExpectancy Theory Motivating withExpectancyTheory Expectancy Theory 3

  27. Components of Expectancy Theory Motivation = Valence X Expectancy X Instrumentality

  28. Unsatisfied need Tension Energized to take action • Restoring Equity • Decrease inputs • Increase outcomes • Rationalize inputs or outcomes • Change the referent • Leave Instrumentality Effort Valence • Initiation • Direction • Persistence Extrinsic Rewards Intrinsic Rewards Perceived Equity/Inequity Satisfaction Performance Expectancy Perceived Equity/Inequity Adding Expectancy Theory to the Model 3.1

  29. Motivating with Expectancy Theory • Systematically gather information to find out what employees want from their jobs • Clearly link rewards to individual performance • Empower employees to make decisions which enhance expectancy perceptions 3.2

  30. After reading the next three sections, you should be able to: • explain how reinforcement theory works and how it can be used to motivate. • describe the components of goal-setting theory and how managers can use them to motivate workers. • discuss how the entire motivation model can be used to motivate workers. How Rewards and Goals Affect Motivation

  31. ComponentsofReinforcementTheory Schedules for DeliveringReinforcement Motivating withReinforcementTheory Reinforcement Theory 4

  32. Components of Reinforcement Theory • Positive reinforcement • desirable consequence strengthens behavior • Negative reinforcement • withholding unpleasant consequence strengthens behavior • Punishment • unpleasant consequence weakens behavior • Extinction • no consequence weakens behavior 4.1

  33. Unsatisfied need Tension Energized to take action • Restoring Equity • Decrease inputs • Increase outcomes • Rationalize inputs or outcomes • Change the referent • Leave Instrumentality Valence Reinforcement Contingencies Effort • Initiation • Direction • Persistence Schedules of Reinforcement Intrinsic Rewards Extrinsic Rewards Perceived Equity/Inequity Satisfaction Performance Expectancy Perceived Equity/Inequity Adding Reinforcement Theory to the Model 4.1 Adapted from Exhibit 16.12

  34. Blast From The PastSend In The Reinforcement • 1972, Michigan Bell • standards and timely feedback • 1971, Emery Air Freight • baselines and goals • 1911, Frederick W. Taylor • work redesign and incentives 4.1

  35. Schedules for Delivering Reinforcement Continuous Intermittent 4.2

  36. Continuous Reinforcement Schedules • Continuous reinforcement schedules • consequence follows every instance of a behavior 4.2

  37. Intermittent Reinforcement Schedules • Interval Schedules • consequence delivered after time passes • two types • fixed • variable • Ratio Schedules • consequence delivered after behavior occurs • two types • fixed • variable 4.2

  38. Motivating with Reinforcement Theory • Identify, measure, analyze, intervene, and evaluate • Don’t reinforce the wrong behavior • Correctly administer punishment at the appropriate time • Choose the simplest and most effective schedule of reinforcement 4.3

  39. Financial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success Overall 68% manufacturing 84% service 61% What Really WorksFinancial, Nonfinancial, and Social Awards 4

  40. Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success Overall 58% manufacturing 87% service 54% What Really WorksFinancial, Nonfinancial, and Social Awards 4

  41. Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 63% Financial and Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 62% What Really WorksFinancial, Nonfinancial, and Social Awards 4

  42. Financial and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 52% Nonfinancial and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 61% Financial, Nonfinancial, and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 90% What Really WorksFinancial, Nonfinancial, and Social Awards 4

  43. Components ofGoal-Setting Theory Motivating withGoal-SettingTheory Goal-Setting Theory 5

  44. Goal-Setting Theory • Goal Specificity • the clarity of goals • Goal Difficulty • how challenging goals are • Goal Acceptance • how well goals are agreed to or understood • Performance Feedback • information on goal progress 5.1

  45. Unsatisfied need Tension Energized to take action • Restoring Equity • Decrease inputs • Increase outcomes • Rationalize inputs or outcomes • Change the referent • Leave Instrumentality Valence Effort Reinforcement Contingencies • Initiation • Direction • Persistence Schedules of Reinforcement Goals Intrinsic Rewards Extrinsic Rewards Perceived Equity/Inequity Satisfaction Performance Expectancy Perceived Equity/Inequity Adding Goal-Setting Theory to the Model 5.1 Adapted from Exhibit 16.15

  46. Motivating with Goal-Setting Theory • Assign specific, challenging goals • Make sure workers truly accept organizational goals • Provide frequent, specific performance-related feedback 5.2

  47. Motivating with Expectancy Theory Motivating with Equity Theory Motivating with Goal-Setting Theory Motivating with Reinforcement Theory Motivating with the Integrated Model Motivating with the Basics 5.2

  48. What Would You Do—II? As head of Sun Microsystems’ compensation committee, you are facing a dilemma: • Should Sun reward its management for losing a smaller amount of money? • The company is running more efficiently, but not reaching its performance goals. How can you blend motivational models into something that will work? How can you motivate the employees?

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