Knowledge Objectives

1. Knowledge Objectives • Identify need-based theories and explain their practical management applications. • Describe expectancy theory and management implications • Describe how goal setting motivates performance. • Explain how job enrichment increases the motivating potential of jobs. • Distinguish extrinsic and intrinsic rewards

2. Motivation is a concept invented by people to help explain behavior The concept is based on our personal understanding that behavior is the result of internal intentions and external factors

3. Motivation Theories • Theories of Motivation • Need Based • Maslow (Need Hierarchy) • Herzberg (Motivators & Hygiene Factors) • McClelland (Power, Affiliation, Achievement) • Expectancy theory • Goal-setting theory

4. Motivation Theories (cont’d) • Maslow’s Needs Hierarchy Theory • People have needs, and when one need is relatively fulfilled, other emerge in predictable sequence to take its place. • Maslow’s hierarchy of needs • Physiological needs: food, water, sleep, and sex. • Safety needs: safety from the elements and enemies. • Love needs: desire for love, affection, and belonging. • Esteem needs: self-perception as a worthwhile person. • Self-actualization: becoming all that one can become.

5. Motivation Theories (cont’d) • Relevance of Maslow’s Theory for Managers • Beyond physical and safety needs, which higher order need will emerge cannot be predicted. • Fulfilled needs do not motivate . • Effective managers anticipate individuals’ needs and provide opportunities for fulfillment. • Satisfying esteem needs provides managers with greatest opportunity to motivate performance.

6. Motivation Theories (cont’d) • Herzberg’s Two-Factor Theory • A theory of motivation based on job satisfaction. • Dissatisfiers - factors associated with the context of the job or work environment . • Satisfiers: factors associated with the nature of the task itself (job content).

7. Motivation Theories (cont’d) • Implications of Herzberg’s Theory • Satisfaction is not the opposite of dissatisfaction. • Must think carefully about what motivates employees. • Meaningful, interesting, and challenging (enriched) work • Problems with theory • Satisfaction- job performance link is at best weakly supported. • One person’s dissatisfier is another person’s satisfier (needs are not person-specific).

8. Motivation Theories (cont’d) • McClelland’s Need Theories • High NAch individuals avoid high and low risk situations (e.g., achievement by chance and achievement without challenge) • High NAff individuals prefer high contact social environments • High NPow individuals prefer organizing the efforts of others

9. Useful Concept • Locus of Control (internal vs. external) • belief that positive/negative outcomes are contingent upon his/her behavior • result of prior learning

10. Motivation Theories (cont’d) • Expectancy Theory (Vroom) • Models the strength of motivation by perceived probabilities of success. • Expectancy: one’s subjective belief or expectation that one thing will lead to another. • A basic expectancy model • Motivational strength increases with probabilities of success for effort-performance and performance-reward links, and the value attached to the reward. [M = E * I * V]

11. Motivation Theories (cont’d) • Relevance of Expectancy Theory to Managers • Expectations are influenced by managerial actions (e.g., reward systems and organizational support). • Training increases employee confidence in their effort-performance linkage. • Listen for employees’ own perceived performance-reward probabilities.

12. Motivation Theories (cont’d) • Goal-Setting Theory • Goal setting: the process of improving performance with measurable outputs, objectives, deadlines, quality standards, etc.. • A General Goal-Setting Model • Properly conceived goals trigger a motivational process that improves performance.

13. Motivation Theories (cont’d) • Characteristics of effective goals: • Specificity makes goals measurable. • Difficulty makes goals challenging. • Participation gives personal ownership of the goal. • How Do Goals Actually Motivate? • Goals are exercises in selective perception. • Goals encourage effort to achieve something specific. • Goals encourage persistent effort. • Goals foster creation of strategies and action plans.

14. Motivation Theories (cont’d) • Practical Implications of Goal-Setting Theory • The ability to set goals can be transferred readily to any performance-based environment.

15. Motivation Through Job Design • Job Design • The tasks required by organizational strategy, technology, and structure. • Strategy One: Do not change task • If task cannot be changed - improve motivation through • Realistic job previews. • Job rotation. • Limited exposure: Using incentive such as contingent time off (CTO) to motivate performance.

16. Motivation Through Job Design (cont’d) • Strategy Two: Change Task • Job enlargement: combining two or more specialized tasks (horizontal loading) to increase motivation. • Job enrichment: redesigning a job to increase its motivating potential by introducing planning and decision-making responsibility (vertical loading) “Re-Skilling”.

17. Motivation Through Job Design (cont’d) • Core Dimensions of Work • Skill variety: the variety of activities required in carrying out the work. • Task identity: the completion of a “whole” and identifiable piece of work. • Task significance: how substantial an impact the job has on the lives of other people. • Autonomy: the freedom, independence, and discretion that one has to do the job. • Job feedback: how much performance feedback the job provides to the worker.

18. Motivation Through Rewards • Extrinsic Rewards • Payoffs granted to the individual by other rewards. • Money, employee benefits, promotions, recognition, status symbols, and praise. • Intrinsic Rewards • Self-granted and internally experienced payoffs. • Sense of accomplishment, self-esteem, and self-actualization.

19. Motivation Through Rewards (cont’d) • Improving Performance with Extrinsic Rewards • Rewards must satisfy individual needs. • Cafeteria compensation: a plan that allows employees to select their own mix of benefits. • Employees must believe effort will lead to reward. • Rewards must be equitable. • Rewards must be linked to performance.