Foundations of employee motivation

1. Foundations of employee motivation

2. Chapter learning objectives • Distinguish between content and process theories. • Compare the four content theories of motivation. • Discuss the practical implications of content motivation theories. • Explain how each component of expectancy theory influences work effort. • Discuss the implications of expectancy theory. • Explain how employees react to inequity. • Describe the six characteristics of effective goal setting.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

3. Challenges of motivating employees • Changing workforce • younger generation employees have different needs and expectations to baby boomers • people have more diverse values – results in more variety in what motivates employees • Cultural values • globalisation has added to diversity  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

4. Content versus process theories • Content theories • explain why people have different needs at different times • Process theories • describe the processes through which needs are translated into behaviour  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

5. Needs hierarchy theory • Maslow arranged five needs in a hierarchy • Satisfaction-progression process • People who experience self-actualisation desire more rather than less of this need Needs hierarchytheory Self- actualisation Esteem Belongingness Safety Physiological  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

6. ERG theory • Alderfer’s model has three sets of needs • Adds frustration-regression process to Maslow’s model Needs hierarchytheory ERGtheory Self- actualisation Growth Esteem Belongingness Relatedness Safety Existence Physiological  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

7. Content theories of motivation Needs hierarchytheory ERGtheory Motivatorhygiene theory McClelland’s learned needs Self- actualisation Growth Motivators Need for achievement Esteem Need for power Hygienes Belongingness Relatedness Need for affiliation Safety Existence Physiological  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

8. Creating a company of entrepreneurs • Companies support entrepreneurship by • clarifying the firm’s purpose and shared values • supporting and reinforcing entrepreneurial behaviour • creating small businesses within the larger organisation  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

9. Implications of content theories • Match rewards with employee needs • Offer employees a choice of rewards • people have different needs at different times • Limit use of financial rewards as a source of motivation  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

10. Outcomesand valences P-to-O expectancy E-to-P expectancy Effort Performance Expectancy theory of motivation Outcome 1 + or - Outcome 2 + or - Outcome 3 + or -  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

11. Expectancy theory in practice • Increasing E-to-P expectancy • training, selection, resources, clarify roles, provide coaching and feedback • Increasing P-to-O expectancy • measure performance accurately, explain how rewards are based on past performance • Increasing outcome valences • use valued rewards, individualise rewards, minimise countervalent outcomes  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

12. Elements of equity theory • Outcome/input ratio • inputs  what employee contributes (eg skill) • outcomes  what employees receive (eg pay) • Comparison other • person/people with whom we compare ratio • not easily identifiable • Equity evaluation • compare outcome/input ratio with the comparison other  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

13. Outcomes Overreward inequity Outcomes Inputs Inputs Outcomes Underreward inequity Outcomes Inputs Inputs Overreward vs underreward inequity Comparison other You  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

14. Consequences of inequity • Change inputs • Change outcomes • Change perceptions • Leave the field • Act on the comparison other • Change the comparison other  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

15. Equity sensitivity • Benevolents • tolerant of being underrewarded • Equity sensitives • want ratio to be equal to the comparison other • Entitleds • prefer receiving proportionately more than others  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

16. Goal setting at ICICI ICICI embraces goal setting through its management-by-objectives process. The Indian financial services company sets tough corporate-wide objectives at the beginning of the year and cascades them down to each work unit and employee. Courtesy of Jennifer Speirs  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

17. Specific Relevant Challenging Task effort Task performance Commitment Participation Challenging Effective goal setting  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

18. Effect of goal difficulty on performance High Area of optimal goal difficulty Task performance Low Moderate Challenging Impossible Goal difficulty  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

19. Overview of the next chapter • The meaning of money in the workplace • Advantages and disadvantages of the four types of rewards • Five ways to improve reward effectiveness • Advantages and disadvantages of job specialisation • Job characteristics model of job design • Three strategies to enrich jobs • Five elements of self-leadership  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

20. Foundations of employee motivation