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Employee Motivation

Employee Motivation. Definition of Motivation : Factors which energize, direct and sustain employee behavior. Motivation is goal directed behavior. Motivation is NOT the same as Performance. Performance = Motivation X Ability Dimensions of Motivation

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Employee Motivation

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  1. Employee Motivation Definition of Motivation: Factors which energize,direct and sustain employee behavior. • Motivation is goal directed behavior. • Motivation is NOT the same as Performance. • Performance = Motivation X Ability • Dimensions of Motivation • Form - Duration • Direction - Intensity Management 4030 - Employee Motivation

  2. Theories of Motivation • Cognitive Theories; POV = The Employee • Expectancy Theory • Equity Theory • Behavior Theory; POV = The Manager • Reinforcement theory • Financial Theory; POV = The Business Owner • Agency Theory Management 4030 - Employee Motivation

  3. Expectancy Theory (Vroom, 1964) • People’s Behavior results from conscious choices among alternatives. • Valence - A person’s preference among various outcomes or rewards. Ex. Do I prefer to achieve a higher performance goal or more leisure time? • Instrumentality - A person’s belief that a certain level of performance will lead to certain desirable consequences. Ex. If I study 2 hours every day for my finance class, will I earn an A grade? Management 4030 - Employee Motivation

  4. Expectancy Theory (Cont’d) • Expectancy - A person’s belief about whether a certain performance outcome is possible. Ex. Can I sell 12 houses this year? Will my team achieve “excellence” in the customer satisfaction survey? • Assumption - People select to pursue the level of performance they believe will maximize their utility (happiness). • Motivation = f (V, I, E) where V, I, E > 0 Management 4030 - Employee Motivation

  5. Expectancy Theory Applications forManagers • Managing Valence • Rewards must be attractive to each employee • Managing Instrumentality • High performance levels must result in attractive rewards (do I want to become a partner in the accounting firm?) • Performance levels must be set at a reasonable level of difficulty (ex. Sales incentives) • Managing Expectancy • Coaching and frequent feedback increase expectancies. • Train employees for skill gaps so abilities are good. Management 4030 - Employee Motivation

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