Note: Slides Adapted from Source

Warren Buffet
1) Warren bought his first share at age 11 and he now
regrets that he started too late!

2) He bought a small farm at age 14 with savings from
delivering newspapers.

3) He still lives in the same small 3 bedroom house in mid-
town Omaha, that he bought after he got married 50 years
ago. He says that he has everything he needs in that house.
His house does not have a wall or a fence.

4) He drives his own car everywhere and does not have a
driver or security people around him.

5) He never travels by private jet, although he owns the
world's largest private jet company.

6) His company, Berkshire Hathaway, owns 63 companies.
He writes only one letter each year to the CEOs of these
companies, giving them goals for the year. He never holds
meetings or calls them on a regular basis.



7) Warren Buffet has given his CEO's only two rules.

Rule number 1: Do not lose any of your share holder's money.

Rule number 2: Do not forget rule number 1.

8) He does not socialize with the high society crowd. His past
time after he gets home is to make himself some pop corn and
watch television.

9) Bill Gates, the world's richest man met him for the first time
only 5 years ago. Bill Gates did not think he had anything in
common with Warren Buffet. So he had scheduled his meeting
only for half hour. But when Gates met him, the meeting lasted
for ten hours and Bill Gates became a devotee of Warren Buffet.

10) Warren Buffet does not carry a cell phone, nor has a
computer on his desk.

11) His advice to young people: Stay away from credit cards
and invest in yourself
Motivation
Any influence that triggers,
directs or maintains behavior

Processes that account for an
individuals intensity,
direction, and persistence of
effort toward attaining a goal.
Common Characteristics
Motivation is typified as an
individual phenomenon
Motivation is usually
described as intentional
Motivation is multi-faceted
The purpose is to predict
behavior
Why study motivation?
Improve productivity and efficiency
Retain talents in the organization
Improve allocation of resources
Social and moral responsibility


Content vs Process Motivation Theories
Content theories
explain why people have different needs at
different times

Process theories
describe the processes through which needs
are translated into behavior
Alderfers
ERG Theory
Maslows
Need Hierarchy
Content Theories of Motivation
Self-
Actualization
Esteem
Belongingness
Safety
Physiological
Growth
Relatedness
Existence
Herzbergs
Theory
Motivators
Hygienes
Need for
Achievement
Need for
Power
Need for
Affiliation
McClellands
Learned Needs
Practical Implications
People have different needs at different times
Offer employees a choice of rewards -- a flexible
reward system
Do not rely too heavily on financial rewards
they mainly address lower level needs
1. Maslows Hierarchy
Each individual has needs, or feelings of
deficiency that drive their behavior

Once a need is satisfied, then it is no longer
motivating

Needs are in a hierarchy that an individual
moves up as they satisfy levels of needs
Maslows Hierarchy
Self-
Actualization
Esteem
Affiliation
Security
Physiological
2. Alderfers ERG
Consolidates Maslows hierarchy into 3
categories

Existence-physiological and security

Relatedness-affiliation

Growth-esteem and self-actualization
ERG Model of Motivation
Frustration-Regression Satisfaction-Progression
Growth Needs
Relatedness Needs
Existence Needs
Frustration-Regression
Differs from Maslows Hierarchy

When unable to satisfy upper level needs, the
individual will revert to satisfying lower level
needs

Interesting point from research....growth
stimulates growth
3. McClellands Learned Needs
Needs are acquired through interaction with
environment

Not a hierarchy, but degrees of each type of
need or motive
Types of Needs
N Ach-motive to meet some standard of
excellence or to compete

N Aff-motive to develop and maintain close and
meaningful relationships

N Pow-desire to influence and control others
and the environment
4. Herzbergs Two Factor Theory
Some variable prevent job dissatisfaction and some
variables produce motivation
Hygiene factors-basic needs that will prevent
dissatisfaction
light, temperature, pay, parking
Motivators
when present cause high levels of motivation
interesting work, advancement, growth, etc.
Herzbergs Two Factor Theory
High
Motivation
High
Hygienes
Low High
Motivators
Low
Low Motivation
Dissatisfaction
Low Dissatisfaction
Process Theories
Reinforcement Theory
Expectancy
Equity
Goal Setting
1. Reinforcement Theory
Behaviors are functions of consequences that
they produce

If a behavior is followed by a pleasant
experience it will be repeated

In order to change behaviors the consequences
must be changed
Types of Reinforcement
Positive Reinforcement:

Rewards

Types of Reinforcement
Punishment

Application of a negative outcome
Types of Reinforcement
Removal of negative outcomes when behavior is performed
Types of Reinforcement
Extinction

Absence of reinforcement (removal of
positive reinforcement)
Types of Rewards
Extrinsic-external rewards such as money,
fringe benefits, job security
Intrinsic-internal satisfaction outcomes from
doing work
Satisfaction-employees attitude about work
situations
2. Expectancy Theory
Combines goal setting and reinforcement
theories
Three questions drive motivation
With effort can I perform?
With performance, will I be rewarded?
Do I value the rewards?
Two Factors
a. The strength of his preference for a
certain outcome

b. His expectation that that outcome will in
fact result from a certain behavior.
Formula
If either valence or expectation have a value of zero,
there will be no motivation
Expectation
(that doing x will
result in Y)
x
Valence
(strength of
preference for
outcome Y)
Force or strength
of motivation
to do X
=
3. Equity Theory
Individuals try to find a balance between
their inputs and outputs relative to a referent
other

However, a referent other is not always
present
Results of Inequity
Equity-I am being treated fairly
Under-rewarded-will look to increase rewards,
or decrease inputs to match rewards
Over-rewarded-will change referent to match
cognitions or increase inputs
Leaving and distortion
4. Goal Setting Theory
Assignment of specific, results oriented,
moderately difficult goals, combined with
adequate feedback will provide motivation to
work
Employee participation in goal setting
Receive rewards
Provide competencies necessary for
achievement
High
T
a
s
k

P
e
r
f
o
r
m
a
n
c
e

Low Moderate Challenging Impossible
Area of
Optimal
Goal
Difficulty
Effect of Goal Difficulty on Performance
Goal Difficulty
Social Character and
Personality Dimensions
Maccobys Social Character Type Theory
Types Dominant
Values
Description
Expert
Mastery, control,
autonomy
You approach your work as an expert.
Whatever your job, you want to provide high
quality work and to exercise your skill and
competence
Helper
Caring for people,
relatedness, sociability
You approach your work as a helper. You want
to help people
Defender
Dignity, power, self-
esteem, protection
You approach your work as a defender. You
want to defend against those who do not
respect the law, who do harm, or who
undermine the values essential to a good
organization.
Innovator
Competition, glory,
creating, experimenting
You approach your work as an innovator who
knows how to play the game of business. You
want to win by making the organization more
successful
Self-developer
Balancing mastery and
play, knowledge and fun
You approach your work as the means to a
self-fulfilling life. You want your work to
further your own development.
New Generations Work Needs
Clear management commitments on
responsibilities and rewards
Opportunities for expression, challenge and
development
Teamwork combined with individual growth
Fair and meaningful rewards
Reasons, information, to be included, to know why
Big Five
Trait Motivation
Openness
Seek out the unfamiliar and look for
complexity
Conscientiousness
Achievement through social conformity
Extraversion
Change, variety in lives, challenge and are
easily bored
Agreeableness
Sociable behavior and helping others
Neuroticism
May motivate individual toward success in
work situation
End