Foundations of Employee Motivation

1. Chapter 5 Foundations of Employee Motivation

2. Learning Objectives 5.1 Define employee engagement 5.2 Explain the role of human drives and emotions in employee motivation and behaviour 5.3 Summarise Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory and discuss their implications for motivating employees 5.4 Discuss expectancy theory model, including its practical implications

3. Learning Objectives continued 5.5 Outline organisational behaviour modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation 5.6 Describe the characteristics of effective goal setting and feedback 5.7 Summarise equity theory and describe ways to improve procedural justice

4. Standard Chartered Bank • Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths-based feedback, employee development and other practices

5. Motivation Defined • The forces within a person that affect the direction, intensity and persistence of voluntary behaviour • Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction)

6. Employee Engagement • Individual’s emotional and cognitive (logical) motivation, particularly a focused, intense, persistent and purposive effort toward work-related goals • High absorption in the work • High self-efficacy: believe you have the ability, role clarity and resources to get the job done

7. Drives and Needs • Drives (primary needs) • Hardwired brain characteristics (neural states) that energise individuals to maintain balance by correcting deficiencies • Prime movers of behaviour by activating emotions

8. Drives and Needs continued • Needs • Goal-directed forces that people experience. • Drive-generated emotions directed toward goals • Goals formed by self-concept, social norms, and experience

9. Maslow’s Needs Hierarchy Theory

10. Maslow’s Needs Hierarchy Theory continued • Seven categories—five in a hierarchy—capture most needs • Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator • Self-actualisation—a growth need because people desire more rather than less of it when satisfied

11. What’s Wrong with Needs Hierarchy Models? • Maslow’s theory lacks empirical support • People have different hierarchies • Needs change more rapidly than Maslow stated • Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy • Instead, needs hierarchies are shaped by person’s own values and self-concept

12. What Maslow Contributed to Motivation Theory • Holistic perspective • Integrative view of needs • Humanistic perspective • Influence of social dynamics, not just instinct • Positive perspective • Pay attention to strengths (growth needs), not just deficiencies

13. Learned Needs Theory • Needs are amplified or suppressed through self-concept, social norms and past experience • Therefore, needs can be ‘learned’ • Strengthened through reinforcement, learning and social conditions

14. Three Learned Needs • Need for achievement • Need to reach goals, take responsibility • Want reasonably challenging goals • Need for affiliation • Desire to seek approval, conform to others’ wishes, avoid conflict • Effective executives have lower need for social approval • Need for power • Desire to control one’s environment • Personalised versus socialised power

15. Four-Drive Theory Drive to Acquire • Drive to take/keep objects and experiences • Basis of hierarchy and status Drive to Bond • Drive to form relationships and social commitments • Basis of social identity Drive to Comprehend • Drive to satisfy curiosity• To understand environment and self Drive to Defend • Need to protect ourselves • Reactive (not proactive) drive • Basis of fight or flight

16. How Four Drives Affect Motivation • Four drives determine which emotions are automatically tagged to incoming information • Drives generate independent and often competing emotions that demand our attention • Mental skill set relies on social norms, personal values and experience to transform drive-based emotions into goal-directed choice and effort

17. Social norms, personal values and experience transform drive-based emotions into goal-directed choice and effort Four-Drive Theory of Motivation

18. Implications of Four-Drive Theory • Provide a balanced opportunity for employees to fulfil all four drives • Employees continually seek fulfilment of drives • Avoid having conditions support one drive more than others

19. Expectancy Theory of Motivation

20. Increasing E–to–P and P–to–O Expectancies • Increasing E–to–P Expectancies • Develop employee competencies • Match employee competencies to jobs • Provide role clarity and sufficient resources • Provide behavioural modelling • Increasing P–to–O Expectancies • Measure performance accurately • Increase rewards with desired outcomes • Explain how rewards are linked to performance

21. Increasing Outcome Valences • Ensure that rewards are valued • Individualise rewards • Minimise countervalent outcomes

22. A-B-Cs of Behaviour Modification

23. Four OB Mod Consequences • Positive reinforcement: consequence that, when introduced, increases/maintains the target behaviour • Punishment: consequence that decreases the target behaviour • Negative reinforcement: consequence that, when removed, increases/maintains target behaviour • Extinction: when no consequence occurs, resulting in less of the target behaviour

24. Reinforcing the Healthy Walk • The British municipality of Stoke-on-Trent, Staffordshire, issued pedometers to its staff and encouraged them to walk more each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organisations also reinforce walking with financial rewards

25. Behaviour Modification in Practice • Behaviour modification applications: • Every day to influence behaviour of others • Company programs: attendance, safety, etc. • Behaviour modification problems: • Reward inflation • Variable ratio schedule viewed as gambling • Ignores relevance of cognitive processes in motivation and learning

26. Social Cognitive Theory • Learning behaviour outcomes • Observing consequences that others experience • Anticipating consequences in other situations • Behaviour modelling • Observing and modelling behaviour of others • Self-regulation • Intentional, purposive action: develop goals, achievement standards, action plans • Form expectancies (anticipate consequences) from others, not just from own experiences • Reinforce own behaviour (self-reinforcement)

27. Goal Setting • The process of motivating employees and clarifying their role perceptions by establishing performance objectives

28. Effective Goal Setting Characteristics Specific—what, how, where, when and with whom the task needs to be accomplished Measurable—how much, how well, at what cost Achievable—challenging, yet accepted (E–to–P) Relevant—within employee’s control Time-framed—due date and when assessed Exciting—employee commitment, not just compliance Reviewed—feedback and recognition on goal progress and accomplishment S M A R T E R

29. Balanced Scorecard • Organisational-level goal setting and feedback • Attempts to include measurable performance goals related to financial, customer, internal and learning/growth (i.e., human capital) processes • Usually includes several goals within each process

30. Characteristics of Effective Feedback • Specific—connected to goal details • Relevant—relates to person’s behaviour • Timely—to improve link from behaviour to outcomes • Credible—from trustworthy source • Sufficiently frequent • Employee’s knowledge and/or experience • Task cycle

31. Strengths-Based Coaching Feedback Maximising the person’s potential by focusing on their strengths rather than weaknesses Motivational because: • People inherently seek feedback about their strengths, not their flaws • Person’s interests, preferences and competencies stabilise over time

32. Multisource Feedback • Received from a full circle of people around the employee • Provides more complete and accurate information • Several challenges • Expensive and time-consuming • Ambiguous and conflicting feedback • Inflated rather than accurate feedback • Stronger emotional reaction to multiple feedback

33. Organisational Justice Distributive justice • Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others Procedural justice • Perceived fairness of the procedures used to decide the distribution of resources

34. Equity Theory

35. Elements of Equity Theory • Outcome/input ratio • Inputs: what employee contributes (e.g. skill) • Outcomes: what employee receives (e.g. pay) • Comparison other • Person/people against whom we compare our ratio • Not easily identifiable • Equity evaluation • Compare outcome/input ratio with the comparison other

36. Correcting Inequity Tension Actions to correctunder-reward inequity Example

37. Procedural Justice • Perceived fairness of procedures used to decide the distribution of resources • Greater procedural fairness with: • Voice • Unbiased decision maker • Decision based on all information • Apply existing policies consistently • Decision maker listened to all sides • Those who complain are treated respectfully • Those who complain are given full explanation

38. Chapter 5 Foundations of Employee Motivation