Chapter 14

1. Chapter 14 Motivation

2. What Would You Do?Motivation at Diamond International Corporation • What motivates employees? • How can you get them excited about their work? • How can you improve morale?

3. Learning ObjectivesWhat is Motivation? • explain the basics of motivation. After discussing this section, you should be able to:

4. Components of Motivation Direction Persistence Initiation Motivation

5. Basics of Motivation Effort and Performance Need Satisfaction Extrinsic and Intrinsic Rewards Motivating With the Basics

6. Effort • Initiation • Direction • Persistence Performance A Basic Model of Work Motivation and Performance Adapted From Figure 14.2

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

8. Need Satisfaction • Needs: • physical or psychological requirements • must be met to ensure survival and well being • Unmet needs motivate people • Three approaches • Maslow • Alderfer • McClelland

9. Needs Classification of Different Theories Maslow’s Hierarchy Self-Actualization Esteem Belongingness Safety Physiological Alderfer’s ERG Growth Relatedness Existence McClelland’s Learned Needs Power Achievement Affiliation Higher Order Needs Lower Order Needs Adapted From Table 14.1

10. Effort • Initiation • Direction • Persistence Energized to Take Action Tension Satisfaction Performance Adding Need Satisfaction to the Model Unsatisfied Need Adapted From Figure 14.3

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

12. Effort • Initiation • Direction • Persistence Energized to Take Action Unsatisfied Need Tension Intrinsic Rewards Satisfaction Performance Extrinsic Rewards Adding Rewards to the Model Adapted From Figure 14.4

13. 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

14. Learning ObjectivesHow Perceptions and Expectations Affect Motivation • 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 link between rewards and performance influence motivation. After discussing this section, you should be able to:

15. Equity Theory How People React to Perceived Inequity Components of Equity Theory Motivating with Equity Theory

16. Outcomesother Inputsother Outcomesself Inputsself = Components of Equity Theory • Inputs • employee contributions to the organization • Outcomes • rewards employees receive from the organization • Referents • comparison others • Outcome/input (O/I) ratio

17. 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, in theory

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

19. Restoring Equity • decrease inputs • increase outcomes • rationalize inputs/outcomes • change referent • leave Perceived Equity/Inequity Intrinsic Rewards • Effort • Initiation • Direction • Persistence Energized to Take Action Unsatisfied Need Tension Performance Satisfaction Extrinsic Rewards Perceived Equity/Inequity Adding Equity Theory to the Model Adapted From Figure 14.5

20. Motivating with Equity Theory • Look for and correct major inequities • Reduce employees’ inputs • Make sure decision-making process is fair • distributive justice • procedural justice

21. Expectancy Theory Components of Expectancy Theory Motivating with Expectancy Theory

22. Components of Expectancy Theory • Valence • attractiveness or desirability of reward or outcome • Expectancy • perceived relationship between effort and performance • Instrumentality • perceived relationship between performance and rewards Motivation = Valence X Instrumentality X Expectancy

23. Restoring Equity • decrease inputs • increase outcomes • rationalize inputs/outcomes • change referent • leave Perceived Equity/Inequity Intrinsic Rewards • Effort • Initiation • Direction • Persistence Energized to Take Action Unsatisfied Need Tension Performance Satisfaction Valence Instrumentality Expectancy Extrinsic Rewards Perceived Equity/Inequity Adding Equity Theory to the Model Adapted From Figure 14.6

24. Motivating with Expectancy Theory • Systematically gather information to find out what employees what from their jobs • Clearly link rewards to individual performance • Empower employees to enhance expectancy perceptions

25. Learning ObjectivesHow Rewards and Goals Affect Motivation • 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 it to motivate workers • discuss how the entire motivation model can be used to motivate workers After discussing this section, you should be able to:

26. Reinforcement Theory Components of Reinforcement Theory Motivating with Reinforcement Theory

27. 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

28. Restoring Equity • decrease inputs • increase outcomes • rationalize inputs/outcomes • change referent • leave Perceived Equity/Inequity Intrinsic Rewards • Effort • Initiation • Direction • Persistence Energized to Take Action Unsatisfied Need Tension Performance Satisfaction Valence Instrumentality Expectancy Extrinsic Rewards Reinforcement Contingencies Perceived Equity/Inequity Schedules of Reinforcement Adding Reinforcement Theory to the Model Adapted From Figure 14.7

29. Schedules for Delivering Reinforcement Continuous Intermittent

30. 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

31. 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

32. What Really Works? Financial, Nonfinancial, and Social Rewards Overall Performance and Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 63%

33. What Really Works? (cont’d) Performance in Manufacturing Organizations Financial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 84% Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 87% Financial, Nonfinancial, and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 96%

34. What Really Works? (cont’d) Performance in Service Organizations Financial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 61% Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 54% Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 61%

35. What Really Works? (cont’d) Performance in Service Organizations Financial and Nonfinancial Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 72% Nonfinancial and Social Rewards 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 73%

36. Goal-Setting Theory Components of Goal-Setting Motivating with Goal-Setting

37. Components of 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

38. Restoring Equity • decrease inputs • increase outcomes • rationalize inputs/outcomes • change referent • leave Perceived Equity/Inequity Goals Intrinsic Rewards • Effort • Initiation • Direction • Persistence Energized to Take Action Unsatisfied Need Tension Performance Satisfaction Valence Instrumentality Expectancy Extrinsic Rewards Reinforcement Contingencies Perceived Equity/Inequity Schedules of Reinforcement Adding Goal-Setting Theory to the Model Adapted From Figure 14.8

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

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

41. What Really Happened?Motivation at Diamond International Corporation • 100 Club • earn points for positive behavior • reduced absenteeism & costs • The recognition program restored equity • Feedback helped reinforce goals