Motivation

A BBTI Presentation

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The Nature of Motivation

Motivation
The psychological forces that determine the
direction of a persons behavior in an
organization, a persons level of effort, and
a persons level of persistence
Explains why people behave the way they
do in organizations

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The Nature of Motivation

Direction - possible behaviors the
individual could engage in
Effort - how hard the individual will work
Persistence - whether the individual will
keep trying or give up

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Question?
What behavior is performed for its own
sake?
A. Intrinsically Motivated Behavior
B. Extrinsically Motivated Behavior
C. Centrally Motivated Behavior
D. Inherently Motivated Behavior

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The Nature of Motivation

Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes
from actually performing the behavior.
The sense of accomplishment and
achievement
derived from
doing the work
itself

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The Nature of Motivation

Extrinsically Motivated Behavior
Behavior that is performed to acquire
material or social rewards or to avoid
punishment.
The source of the motivation is the
consequences of the behavior and not
the behavior itself.

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Outcomes and Inputs

Outcome
Anything a person gets from a job or an
organization
Pay, job security, autonomy,
accomplishment

Input
Anything a person contributes to his or her
job or organization
Time, effort, skills, knowledge, work
behaviors
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The Motivation Equation

Figure 13.1

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Expectancy Theory
Motivation will be high when
workers believe:
High levels of effort will lead
to high performance.
High performance
will lead to the
attainment of
desired outcomes.

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Expectancy Theory
Major Factors of Motivation
Expectancy - the belief that effort (input)
will result in a certain level of performance
Instrumentality - the belief that
performance results in the attainment of
outcomes
Valence - how desirable each of the
available outcomes from the job is to a
person

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Expectancy, Instrumentality, and Valence

Figure 13.2

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Expectancy Theory

Figure 13.3

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Need Theories
Need
A requirement or
necessity for
survival and wellbeing.

Need Theories
People are
motivated to
obtain outcomes
at work that will
satisfy their needs

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Maslows Hierarchy of Needs

Needs
Highest-level
needs

Lowest-level
needs

Table 13.1

Description

Examples

SelfSelfactualization
actualization

Realize
Realizeones
ones
full
fullpotential
potential

Use
Useabilities
abilities
to
tothe
thefullest
fullest

Esteem
Esteem

Feel
Feelgood
good
about
oneself
about oneself

Promotions
Promotions
and
andrecognition
recognition

Belongingness
Belongingness

Social
Social
interaction,
interaction,love
love

Interpersonal
Interpersonal
relations,
relations,parties
parties

Safety
Safety

Security,
Security,stability
stability

Job
Jobsecurity,
security,
health
insurance
health insurance

Physiological
Physiological

Food,
Food,water,
water,
shelter
shelter

Basic
Basicpay
paylevel
level
to
buy
items
to buy items

Lower-level needs must be satisfied

before higher-level needs are addressed.
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Herzbergs Motivation-Hygiene Theory

Focuses on outcomes that lead to higher
motivation and job satisfaction, and
those outcomes that can prevent
dissatisfaction.
Unsatisfied hygiene needs create
dissatisfaction; satisfaction of hygiene
needs does not lead to motivation or job
satisfaction.

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Herzbergs Motivation-Hygiene Theory

Motivator needs relate to the nature of
the work itselfautonomy, responsibility,
interesting work.
Hygiene needs are related to the
physical and psychological context of the
workcomfortable work environment,
pay, job security.

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McClellands Needs for Achievement,

Affiliation, and Power

Need for Achievement

A strong need to perform challenging
tasks well and meet personal
standards for excellence

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McClellands Needs for Achievement,

Affiliation, and Power
Need for Affiliation
Concerned about establishing and
maintaining good interpersonal relations,
being liked, and having the people around
him get along with each other

Need for Power

A desire to control or influence others

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Equity Theory
Equity Theory
Focuses on peoples perceptions of the
fairness (or lack of fairness) of their work
outcomes in
proportion to
their work inputs.

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Equity Theory
A relative outcome to input ratio
comparison to oneself or to another
person (referent) perceived as similar to
oneself.
Equity exists when a person perceives
that their outcome/input ratio to be equal
to the referents ratio.
If the referent receives more outcomes, they
should also give more inputs to achieve
equity.
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Equity Theory
Condition

Equity
Equity

Underpayment
Underpayment
Equity
Equity

Overpayment
Overpayment
Equity
Equity

Table 13.3

Person

Referent

Example

Outcomes
Outcomes == Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
more
inputs
more inputsbut
butalso
also
gets
more
outputs
gets more outputs
than
thanreferent
referent

Outcomes
Outcomes << Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
more
inputs
more inputsbut
butalso
also
gets
the
same
outputs
gets the same outputs
as
asreferent
referent

Outcomes
Outcomes >> Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
same
inputs
same inputsbut
butalso
also
gets
more
outputs
gets more outputs
than
thanreferent
referent

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Equity Theory
Inequity exists when workers outcome/input
ratio is not equal to referent.
Underpayment inequity: ratio is less than the
referent.
Workers feel they are not getting the outcomes
they should for their inputs.
Overpayment inequity: ratio is higher than the
referent.
Workers feel they are getting more outcomes
than they should for their inputs.

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Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore
equity.
In underpayment, workers may reduce input levels
to correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent
person and readjust their ratio perception.
If inequity persists, workers will often choose to
leave the organization.

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Goal Setting Theory

Focuses on motivating workers to
contribute their inputs to their jobs and
organizations
Considers how managers can ensure
that workers focus their inputs in the
direction of high performance and the
achievement of organizational goals.

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Goal Setting Theory

Goal
What a person is trying to accomplish
through his efforts and behaviors
Must be specific and difficult
Goals point out what is important to the
firm.
Workers should be encouraged to develop
action plans to attain goals.
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Goal Setting Theory

Goals motivate people to contribute more inputs

to their jobs
Goals help people focus their inputs in the right
direction

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Learning Theories
Managers can increase employee
motivation and performance by the ways
they link the outcomes that employees
receive to the performance of desired
behaviors in an organization and the
attainment of goals

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Learning Theories
Learning
A relatively permanent change in persons
knowledge or behavior that results from
practice or experience.

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Operant Conditioning Theory

Operant Conditioning
People learn to perform behaviors that lead
to desired consequences and learn not to
perform behaviors that lead to undesired
consequences.
Linking specific behaviors to the attainment
of specific outcomes can motivate high
performance and prevent behaviors that
detract from organizational effectiveness.

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Question?
Which operant conditioning tool
administers an undesired consequence
to immediately stop a dysfunctional
behavior?
A. Positive reinforcement
B. Negative reinforcement
C. Extinction
D. Punishment
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Operant Conditioning Tools

Positive Reinforcement
Gives people outcomes they desire when
they perform organizationally functionally
behaviors
Positive reinforcers: Pay, praises, or
promotions

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Operant Conditioning Tools

Negative Reinforcement
Eliminating undesired outcomes once the
functional behavior occurs
Negative reinforcers: criticisms, pay cuts,
suspension

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Operant Conditioning Tools

Extinction
Curtailing the performance of a dysfunctional
behavior by eliminating whatever is
reinforcing it.

Punishment
Administering an undesired/negative
consequence to immediately stop a
dysfunctional behavior.
Manager administers an undesired consequence
to worker (verbal reprimand, demotion, pay cut).
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Avoiding Side Effects of Punishment

Downplay the emotional element
involved
Try to punish dysfunctional behaviors as
soon as they occur
Try to avoid punishing someone in front
of others

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Organizational Behavior Modification

Organizational Behavior Modification
Managers systematically apply operant
conditioning techniques to promote the
performance of organizationally functional
behaviors and discourage the performance
of dysfunctional behaviors

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Organizational Behavior Modification

Used to improve productivity, efficiency,
attendance, punctuality, safe work
practices, and customer service
Sometimes questioned because of lack
of relevance to certain work behaviors
To critics it is overly controlling and robs
workers of their dignity, individuality,
freedom of choice and creativity
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Steps in
Organizational
Behavior
Modification

Figure 13.4

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Pay and Motivation

Pay as a Motivator
Expectancy: Instrumentality, the association
between performance and outcomes, must
be high for motivation to be high.
Need Theory: pay is used to satisfy many
needs.
Equity Theory: pay is given in relation to
inputs.

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Pay and Motivation

Pay as a Motivator
Goal Setting Theory: pay is linked to
attainment of goals.
Learning Theory: outcomes (pay), is
distributed upon performance of functional
behaviors.

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Merit Pay and Performance

Merit Pay Plan
A compensation plan that bases pay on
based on individual, group and/or
organization performance.
Individual plan: when individual
performance (sales) can accurately
measured.

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Merit Pay and Performance

Merit Pay Plan
Group plan: when group that works closely
together is measured and rewarded as a
group.
Organization plan: when group or individual
outcomes not easily measured.

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Salary Increase or Bonus?

Motivational Value of a Bonus Is Higher
When:
Salary levels are unrelated to current
performance.
Changes in other compensation items (cost
of living, seniority) are not having a large
effect in increasing compensation.
Salaries rarely change and performance
does.

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Salary Increase or Bonus?

Benefits of Using Bonuses
Do not become permanent part of
compensation
Are more directly tied to current
performance
Provide more flexibility in distributing
rewards

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Salary Increase or Bonus?

Employee Stock Option
A financial instrument that entitles the bearer
to buy shares of an organizations stock at a
certain price during a certain period of time
or under certain conditions.

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Discussion Question?
Which merit pay plan is the most effective?
A. Piece rate
B. Commission
C. Scanlon plan
D. Profit sharing

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Examples of Merit Pay Plans

Piece-rate Pay
Employees pay is based on the number of units
that the employee produces.

Commission Pay
Employees pay is based on a percentage of sales
that the employee makes.

Organization-based Merit Plans

Scanlon planfocuses on reduced expenses or
cutting costs
Profit sharingemployees receive a share of an
organizations profits
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