Chapter 9 Motivation

1. Chapter 9 Motivation • Explain what motivation is and why managers need to be concerned about it • Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce. • Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance • Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory • Explain why and how managers can use pay as a major motivation tool.

2. The nature of motivation • Motivation: psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence • 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 • Prosocially motivated behavior: behavior that is performed to benefit or help others • Outcome: anything a person gets from a job or organization • Input anything a person contributes to his or her job or organization

3. Expectancy Theory • ET: the theory that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes • Expectancy: a person’s perception about the extent to which effort results in a certain level of performance • Instrumentality: a person’s perception about the extent to which performance results in the attainment of outcomes • Valence: how desirable each of the outcomes available from a job or organization is to a person.

4. Expectancy Theory – Enterprise Rent a Car!

5. Need Theories • Need: a requirement or necessity for survival • Need Theories: theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs. • Maslow’s Hierarchy of Needs: an arrangement of five basic needs that, according to Maslow, motivate behavior. Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time.

6. Maslow’s Hierarchy of Needs

7. Herzberg’s Motivator-Hygiene Theory • A need theory that distinguishes between motivator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivation and job satisfaction to be high. • Intrinsic motivation: motivator needs • Extrinsic motivation: hygiene needs

8. McClelland’s Needs for Achievement, Affiliation, and Power • Need for achievement: the extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence. • Need for affiliation: the extent to which an individual is concerned about establishing and maintaining good interpersonal standards for excellence • Need for power: the extent to which an individual desires to control or influence others.

9. Equity Theory • ET: a theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs. • Equity: the justice, impartiality, and fairness to which all organizational members are entitled. • Inequity: lack of fairness • Underpayment inequity: the inequity that exists when a person perceives that his or her own outcome-input ration of a referent. • Overpayment inequity: the inequity that exists when a person perceives that his or her own outcome-input ratio is greater that the ratio of a referent

10. Equity Theory

11. Goal Setting Theory • GST: a theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects. • How well can managers can ensure that organizational members focus their inputs in the direction of high performance and the achievement of organizational goals

12. Learning Theories • LT: Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals • Learning: a relatively permanent change in knowledge or behavior that results from practice or experience

13. LT Continued • Operant Conditioning Theory: the theory that people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences • Positive reinforcement: giving people outcomes they desire when they perform organizationally functional behaviors • Negative reinforcement: eliminating or removing undesired outcomes when people perform organizationally functional behaviors • Extinction: curtailing the performance of dysfunctional behaviors by eliminating whatever is reinforcing them. • Punishment: administering an undesired or negative consequence when dysfunctional behavior occurs

14. Social Learning Theory • SLT: a theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior • Vicarious learning: learning that occurs when the learner becomes motivated to perform a behavior by watching another person performing it and being reinforced for doing so; also called observational learning • Self reinforcer: any desired or attractive outcome or reward that a person gives to himself or herself for good performance. • Self efficacy: a person’s belief about his or her ability to perform a behavior successfully.

15. Pay and Motivation • Merit pay: a compensation plan that bases pay on performance. It can be on performance of individual, group, or organizational performance • Piece rate • Commission pay • Profit sharing • Employee stock option: a financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period or under certain conditions.