Chapter 5

Section 1 MOTIVATING EMPLOYEES

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Section 1Focus on
Motivation Early and current theories of motivation

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Learning Objectives
You should learn to: What Is Motivation?
Define motivation. Explain motivation as a need-satisfying process.

Early Theories of Motivation

Describe the five levels in Maslows hierarchy and how Maslows hierarchy can be used in motivational efforts. Discuss how Theory X and Theory Y managers approach motivation. Describe Herzbergs motivation-hygiene theory. Explain Herzbergs views of satisfaction and dissatisfaction.
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Learning Objectives (cont.)

Contemporary Theories of Motivation
Describe the three needs McClelland proposed as being present in work settings. Explain how goal-setting and reinforcement theories explain employee motivation. Describe the job characteristics model as a way to design motivating jobs. Discuss the motivation implications of equity theory. Explain the three key linkages in expectancy theory and their role in motivation.

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Lecture Outline
Introduction What Is Motivation? Early Theories of Motivation Maslows Hierarchy of Needs Theory McGregors Theory X and Theory Y Herzbergs Motivation-Hygiene Theory Contemporary Theories of Motivation Three-Needs Theory Goal-Setting Theory Reinforcement Theory Designing Motivating Jobs Job Enlargement Job Enrichment Job Characteristics Model Equity Theory Expectancy Theory Integrating Contemporary Theories of Motivation X Y

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What Is Motivation?
Motivation
The processes that account for an individuals willingness to exert high levels of effort to reach organizational goals, conditioned by the efforts ability to satisfy some individual need. Effort: a measure of intensity or drive. Direction: toward organizational goals Need: personalized reason to exert effort Motivation works best when individual needs are compatible with organizational goals.

Need
An internal state that makes certain outcomes appear attractive. An unsatisfied need creates tension which is reduced by an individuals efforts to satisfy the need.
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The Motivation Process

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Early Theories of Motivation

Maslows Hierarchy of Needs McGregors Theories X and Y Herzbergs Motivation-Hygiene Theory

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Early Theories of Motivation

Maslows Hierarchy of Needs Theory
Needs were categorized as five levels of lower- to higher-order needs. lower-order needs - largely satisfied externally physiological - food, drink, shelter, sexual satisfaction safety - security and protection from physical and emotional harm assurance that physiological needs will be satisfied Higher-order needs - largely satisfied internally social - affection, belongingness, acceptance esteem - internal factors like self-respect, autonomy, and achievement external factors like status, recognition, attention self-actualization - achieving ones potential

as each need is substantially satisfied, the next need becomes dominant Jing Yu

Maslows Hierarchy of Needs

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Early Theories of Motivation (cont.)

Maslows Hierarchy of Needs Theory (cont.)
Individuals must satisfy lower-order needs before they can satisfy higher order needs. Satisfied needs will no longer motivate. Motivating a person depends on knowing at what level that person is on the hierarchy.

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Early Theories of Motivation (cont.)

McGregors Theory X and Theory Y
Theory X - Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision assumed that lower-order needs dominated Theory Y - Assumes that workers can exercise selfdirection, desire responsibility, and like to work assumed that higher-order needs dominated no evidence that either set of assumptions is valid no evidence that managing on the basis of Theory Y makes employees more motivated
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Little Ambition

Theory X Workers

Dislike Work Avoid Responsibility Self-Directed

Theory Y Workers

Enjoy Work Accept Responsibility

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Early Theories of Motivation (cont.)

Herzbergs Motivation-Hygiene Theory
Job satisfaction and job dissatisfaction are created by different factors. Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction. Motivators: intrinsic (psychological) factors that create job satisfaction. Attempted to explain why job satisfaction does not result in increased performance. The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.
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Herzbergs Motivation-Hygiene Theory

Contrasting Views of SatisfactionDissatisfaction

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Contemporary Theories of Motivation

Three-Needs Theory Goal-Setting Theory Reinforcement Theory Designing Motivating Jobs Equity Theory Expectancy Theory

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Need for Achievement

( nAch) (nAch)

The Theory of Needs

Need for Power

( nPow) (nPow)

Need for Affiliation

( nAff) (nAff)

David McClelland
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Contemporary Theories of Motivation

Three-Needs Theory - McClelland
Need for achievement (nAch)
The drive to excel and succeed

drive to excel, to achieve in relation to a set of standards, and to strive to succeed high achievers: prefer jobs that offer personal responsibility want rapid and unambiguous feedback set moderately challenging goals avoid very easy or very difficult tasks -high achievers dont necessarily make good managers focus on their own accomplishments good managers emphasize helping others to accomplish their goals
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Contemporary Theories of Motivation (cont.)

Three-Needs Theory (cont.)
Need for power (nPow) The need to influence the behavior of others Need of affiliation (nAff) The desire for interpersonal relationships best managers tend to be high in the need for power and low in the need for affiliation

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Contemporary Theories of Motivation (cont.)

Three-Needs Theory (cont.) conclusion
high achievers prefer and are strongly motivated in job situations with personal responsibility, feedback, and an intermediate degree of risk high achievers do not necessarily make a good manager, especially in large organizations a low need for affiliation and a high need for power are closely related to managerial success employees can be trained to stimulate their achievement need
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Contemporary Theories of Motivation (cont.)

Goal-Setting Theory
Proposes that setting goals that are accepted, specific, and challenging yet achievable will result in higher performance than having no or easy goals.

Benefits of Participation in Goal-Setting

Increases the acceptance of goals. Fosters commitment to difficult, public goals. Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (selfefficacy).
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Contemporary Theories of Motivation (cont.)

Goal-Setting Theory (cont.)
specific goals increase performance difficult goal, when accepted, results in higher performance than does an easy goal specific hard goals produce a higher level of output than does the generalized goal of do your best feedback is useful helps identify discrepancies between what has been accomplished and what needs to be done self-generated feedback is a powerful motivator
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Contemporary Theories of Motivation (cont.)

Goal-Setting Theory (cont.)
contingencies in goal-setting theory feedback - influences the goal-performance relationship goal commitment - theory presupposes that individual is determined to accomplish the goal most likely to occur when: goals are made public individual has an internal locus of control goals are self-set rather than assigned

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Contemporary Theories of Motivation (cont.)

Goal-Setting Theory (cont.)
contingencies (cont.) self-efficacy - an individuals belief that s/he is capable of performing a task higher self-efficacy, greater motivation to attain goals national culture - theory is culture bound main ideas align with North American cultures goal setting may not lead to higher performance in other cultures
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Guidelines for Job Redesign

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Contemporary Theories of Motivation (cont.)

Reinforcement Theory
Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. Positive reinforcement is preferred for its long-term effects on performance Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors. emphasis in on positive reinforcement, not punishment
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Contemporary Theories of Motivation (cont.)

Designing Motivating Jobs
Job Design
The way into which tasks can be combined to form complete jobs. Factors influencing job design: Changing organizational environment/structure The organizations technology Employees skill, abilities, and preferences Job enlargement Increasing the scope (number of tasks) in a job. Job enrichment Increasing responsibility and autonomy (depth) in a job.
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Contemporary Theories of Motivation (cont.)

Designing Motivating Jobs (cont.)
Job Characteristics Model (JCM) - A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees growth needs. Five primary job characteristics: Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the jobholder have? Feedback: do workers know how well they are doing?
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Job Characteristics Model

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Guidelines For Job Redesign

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Contemporary Theories of Motivation (cont.) Equity Theory

Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. If the ratios are perceived as equal then a state of equity (fairness) exists. If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded. When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).
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Contemporary Theories of Motivation (cont.) Equity Theory

referent (relevant other) may be: other - individuals with similar jobs a system - includes organizational pay policies and administrative systems self - past personal experiences and contacts

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Equity Theory
Ratio Comparison*
Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A
*Where

Employees Perception
Outcomes B Inputs B Inequity (Under-Rewarded)

<

Outcomes B Inputs B

Equity

>

Outcomes B Inputs B

Inequity (Over-Rewarded)

A is the employee, and B is a relevant other or referent.

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Contemporary Theories of Motivation (cont.)

Equity Theory (cont.)
when inequities are perceived, employees act to correct the situation Employee responses to perceived inequities: Distort own or others ratios. Induce others to change their own inputs or outcomes. Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards). Choose a different comparison (referent) other (person, systems, or self). Quit their job. Employees are concerned with both the absolute and relative nature of organizational rewards.
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Contemporary Theories of Motivation (cont.)

Expectancy Theory
theory states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards. Effort: employee abilities and training/development Performance: valid appraisal systems Rewards (goals): understanding employee needs

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Simplified Expectancy Model

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Contemporary Theories of Motivation (cont.)

Expectancy Theory (cont.)
theory emphasizes rewards organizational rewards must align with the individuals wants no universal principle for explaining what motivates individuals managers must understand why employees view certain outcomes as attractive or unattractive most comprehensive and widely accepted explanation of employee motivation

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Integrating Contemporary Theories of Motivation

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Case 5
Is This Any Way to Motivate Employees?

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Answers to Case Questions

1. Explain the advantages and disadvantages of Ferros motivational approach using Maslows hierarchy of needs theory, reinforcement theory, and expectancy theory. Maslows Hierarchy of Needs Advantages Gives programmers a chance to experience achievement through a different avenue (esteem needs). May lead to the self-actualization of ones full potential by seeing how their programming is sold to customers and how to meet their customers needs. Disadvantages Programmers may see that their status has been reduced. The acceptance that the programmers felt doing their previous job may vanish.
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Reinforcement Theory Advantages Shows that the programmers behavior and cockiness results in consequencesa stint in the sales department. The consequence happens after the behavior occurs, so the programmers associate that with acting negatively. Disadvantages Programmers who are burned out have the same punishment as programmers with attitude problems. The sales department employees may feel that their job is not important if it is being used as punishment for other departments.

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Expectancy Theory Advantage Individuals may act the way that the CEO wants if the consequence is ending up in the sales department. Disadvantage Good programmers may end up liking sales and not wanting to go back to programming.

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2. If you were a Click programmer, what would you think about being assigned to the penalty box? I really dont believe this would be a good practice. I dont believe programmers were hired to sell. Also, the business may lose potential customers because my personality is not be suited for sales. And, finally, I am a grown-up and my attitude should be addressed in a traditional fashion, not with the punishment of moving to the sales department for a brief time.

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3. Log on to Click Commerces Web site [www.clickinteractive.com] and find the information on Careers. Click on two of the job titles listed there and assess these jobs according to the job characteristics model.
Student responses are going to vary, but the following would represent one possible answer. www.clickinteractive.com Under the Company tab, click on Careers http://www. clickinteractive.com/html/careers.html At the bottom of the page is a drop-down menu of Opportunities Listed by Department that has the departments with job openings listed Job Characteristics Core Dimensions Skill variety Task identity Task significance Autonomy Feedback
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4. At a time when most managers are encouraged to be nice to their employees, would you suggest to Ferro that he change his motivational approach? Explain your answer. If Ferro is satisfied with the current status quo, and the following indicators have not shown any reasons for change, he should continue. Some indicators to consider include: Have revenues been affected? Has employee turnover changed? Has employee satisfaction changed? Have profits been affected? He should change his motivational approach if these indicators begin to fall.

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