Chapter

1. Chapter Six MOTIVATION IN ORGANIZATIONS 1

2. Motivation Equilibrium Energizes Behavior Drives Compulsions Deprivation/ Disequilibrium Satisfaction Need Directs Behavior Goals Organization of Effort Reaching Equilibrium Drive Sustains Behavior Maintaining motivation Persistance Ability to change course Importance of Feedback

3. Motivation: Its Basic Components Arousal Direction Maintenance Goal Good impression made Compliment work Persist Desire to make a good impression Work extra hard Persist Do special favors Persist 3

4. Need Theories: A Comparison Growth needs 5. Self-actualization needs • Growth needs 4. Esteem needs Deficiency Needs 3. Social needs • Relatedness needs 2. Safety needs • Existence needs 1. Physiological needs Maslow’s need hierarchy theory Alderfer’s ERG theory 4

5. ERG Theory(Aldefer) Relatedness Needs Existence Needs Growth Needs Satisfaction/Progression Frustration/Regression Satisfaction/Strengthening

6. What types of incentives would motivate employees How can employers satisfy employees’ needs Would the same type of incentives or rewards satisfy all employees? Discussion: Considering these theories, how might companies motive their employees

7. Goal SettingPeople’s Behavior is Guided by Intentions • Goals provide direction Specific goals are more effective • Goals mobilize behavior Difficult goals generate more effort • Feedback about goal attainment sustains behavior.

8. 100 94 90 Performance at the goal level was sustained seven years after the goal was first set 80 Percentage of Maximum Weight Carried on Each Trip 70 There was a dramatic improvement in per- formance after a goal was set 60 50 1 2 3 4 5 6 7 8 9 10 11 12 Seven Years Later After Goal Before goal Four-Week Periods GOAL SETTING: SOME IMPRESSIVE EFFECTS 11

9. Goal Commitment Publically stated goals + High nAch + Internal Locus of Control Commitment to Goals

10. Goal Setting Applications • Management by Objectives (MBO) • Performance review procedure by which employees and managers jointly make goals for next review period. They also work out the details for reaching those goals. Performance is regularly monitored. • Organizational Behavioral Management (OBM) (remember learning theory?) • Application of goal setting (or other behavioral science technology) to change the behavior of large units within the organization • Logging example

11. Distributive Justice: Perceptions of how fairly rewards are distributed Theory 1: Exchange Theory If Inputs = Outputs Satisfaction O I Effort, Motivation, Performance, Skills, Expertise Rewards Bonus Promotions Pay Raise Recognition = 1

12. Theory 2: Equity Theory -- Compare I/O ratios to others Self Outcome Input Other Outcome Input Satisfaction =

13. Examples of Equity 1. 2. Self 4 4 Other 4 4 Self 4 4 Other 8 8 3. 4. 5. Self 4 2 Other 4 2 Self 4 2 Other 8 4 Self 2 4 Other 4 8

14. Examples of Inequity 1. Underpayment = Self O/I < Other O/I Example Self Other 4 8 4 4 2. Overpayment = Self O/I < Other O/I Example Self Other 4 2 4 4

15. POSSIBLE REACTIONS TO INEQUITY:A SUMMARY TYPE OF REACTION Behavioral (what you can do is...) Psychological (what you can think is...) Type of Inequity Overpayment Raise your inputs (e.g., work Convince yourself that your inequity harder), or lower your outcomes outcomes are deserved (e.g. work through a paid based on your inputs (e.g., vacation) rationalize that you work harder than others and so you deserve more pay) Underpayment Lower your inputs (e.g., reduce Convince yourself that oth- inequity effort), or raise your outcomes ers’ inputs are really higher e.g., get a raise in pay) than your own (e.g., ration- alize that the comparison worker is really more quali- fied and so deserves higher outcomes) 14

16. Employees of the factories in which there was a pay cut Employees of the factories in which there was no pay cut 9 Employee theft was greatest in factories whose employees experienced a cut in their pay. 8 7 6 Theft rates were identical before pay was cut in one of them. Theft rates were identical after pay was restored to normal levels. Theft Rate percentage of unaccounted for loss of property 5 4 3 2 1 0 Before Pay Cut During Pay Cut After Pay Cut Employee Theft: A Reaction to Underpayment 15

17. Procedural Justice • Perceived fairness of the processes by which organizational decisions are made • Voice: giving employees a say in how decisions are made • Error correction: allow opportunity for errors to be corrected • Consistently apply rules and policies • Bias suppression

18. Interactional Justice • Quality of interpersonal treatment (by supervisor) when decisions are made and communicated • Information justification: thoroughness of information received about at decision • Social sensitivity: amount of dignity and respect demonstrated in the course of presenting an undesirable decision.

19. Applications of Justice Theories • Employee Selection • Pay systems • Two-tier wage structures • Pay secrecy • Participative Decision Making • Downsizing

20. Expectancy Theory People will be motivated to engage in a behavior (make a choice) to the degree that they believe that the behavior will lead to a valued outcome

21. Expectancy Theory: An Overview Effort Skills and abilities Expectancy Performance X Job Performance Instru- mentality Motivation Rewards X Valence of Rewards Role perceptions and opportunities 16

22. Expectancy Model:Components Expectancy:The degree to which you expect that hard work (effort) will lead to good performance or high accomplishments Instrumentality:The perception that if you perform well you will be rewarded Valence:How much do you value the rewards you may receive

23. Expectancy Theory, con’t • Force: the motivation to choose a particular course of action. Where: E= Expectancy (probability that effort leads to performance) V=Valence (rating of how satisfying various rewards will be) I=Instrumentality (relationship between taking this option and gaining this reward)

24. Example: Choose between Job A vs. Job B • 1. What are the possible outcomes I would get from getting a job, and how much do I value each of these outcome (Valence) • Good salary 7 • Good Pension 6 • Interesting work 8 • Travel opportunities 4 Valences are measured on a scale from 1 (not at all satisfiying) to 10 (extremely satisfying)

25. Expectancy example, cont • Instrumentality: What is the relationship (subjective correlation) between choosing job A or job B and obtaining this outcome? Instrumentality Instrumentality for Job A for Job B High salary .75 .50 Good Pension . .25 .75 Interesting work .50 .75 Travel .75 .25

26. Expectancy example, con’t • Expectancy: What is the probability that if I work hard, I will be successful: • In Job A: .40 • In Job B: .70

27. Force: Which job should I choose Job A: Valence Instrum. V*I High salary 7 .75 5.25 Good Pension 6 .25 1.50 Interesting work 8 .50 4.00 Travel 4 .75 3.00 Sum 13.75 Expectancy .40 Force=.40(13.75) = 5.5 Job B. Valence Instrum. V*I High salary 7 .50 3.50 Good Pension 6 .75 4.50 Interesting work 8 .75 6.00 Travel 4 .25 1.00 Sum 15.00 Expectancy .70 Force=.70(15.00) = 10.5

28. Application of Expectancy Theory • Clarify expectancies between effort and performance and follow through with rewards. • Pay for performance • Stock option plans and other incentive programs • Provide valued rewards • Cafeteria-style benefits

29. Motivating Jobs Through Job Redesign • Scientifically managed jobs: boring, repetitive, few skills utilized • Job Enlargement: add more tasks of similar skill level to the job • Job Enrichment: add more responsibility and autonomy to the job Horizontal Loading Vertical Loading

30. Job Enlargement and Job Enrichment: A Comparison (high) Enlarged Job Job enlargement adds more tasks at the same level of responsibility. Level of Responsibility (vertical job loading) Task 4 Task 2 Task 3 Task 1 (high) Standard Job (low) (low) (high) Number of Tasks (horizontal job loading) Level of Responsibility (vertical job loading) (high) Task 1 Task 2 Enhanced Job Job enrichment adds more responsibility to the same number of tasks. Task 1 Task 2 (low) Level of Responsibility (vertical job loading) (low) (high) Number of Tasks (horizontal job loading) (low) (high) Number of Tasks (horizontal job loading) (low) 18

31. Job Characteristics model Job Outcomes Job Characteristics Critical Psyc. States } Internal work motivation Job satisfaction Growth Satisfaction Low absenteeism High quality performance Skill Variety Task Identity Task Significance Autonomy Feedback Experienced Meaningfulness of Work Responsibility for work outcomes Knowledge of Results Growth Need Strength

32. Principles of Job Description Core Job Dimensions Incorporated 1. Combines jobs enabling worker to perform Skill variety the entire job Task identity 2. Establishes client relationships allowing providers Skill variety of a service to meet the recipients Autonomy Feedback 3. Load jobs vertically allowing greater responsibility Autonomy an control over work 4. Open feedback channels giving workers knowledge Feedback of the results of their work Enriching Jobs: Some Suggestions Fromthe Job Characteristics Model 20