Chapter 5 Motivation at Work

Chapter 5 Motivation at Work

Motivation Willingness to exert high levels of effort toward organizational goals. Conditioned by the effort’s ability to satisfy some individual need.

The Basic Motivation Behavior Sequence

What Motivates People at Work? External Incentives Vary by the individual Self-interest Economic gain Social Interpersonal

What Motivates People at Work? Internal needs Variables within the individual Enlightened self-interest Individual interests & benefits Protestant work ethic Hierarchy of needs Cultural differences affect motivation

Early Motivation Theories Psychological theories emphasized internal needs; ignored individual diversity Economic theories emphasized extrinsic incentives; technology was a force multiplier Process theory emphasized nature of interaction between individual and the environment External theories focused on environmental elements such as, behavioral consequences

Maslow’s Hierarchy of Needs SA Esteem Love (Social) Safety & Security Physiological

Motivational Theories X & Y SA Esteem Love (Social) Safety & Security Physiological Theory Y - a set of assumptions of how to manage individuals motivated by higherorder needs Theory X - a set of assumptions of how to manage individuals motivated by lowerorder needs

McGregor’s Assumptions About People Based on Theory X Naturally indolent Lack ambition, dislike responsibility, and prefer to be led Inherently self-centered and indifferent to organizational needs Naturally resistant to change Gullible, not bright, ready dupes Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org.

McGregor’s Assumptions About People Based on Theory Y Experiences in organizations result in passive and resistant behaviors; they are not inherent Motivation, development potential, capacity for assuming responsibility, readiness to direct behavior toward organizational goals are present in people Management’s task—arrange conditions and operational methods so people can achieve their own goals by directing efforts to organizational goals Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org.

Alderfer’s ERG Theory SA Esteem Love (Social) Safety & Security Physiological Growth Relatedness Existence

How Financial Rewards Meet Needs Develop a talent you have always wanted to explore. Self Actualizaton A pay raise that recognizes your value to the firm. Esteem Purchase equipment to join a sports team. Social Purchase an insurance policy. Food, clothing, rent. Security Physiological

Organizational Examples Self Actualization Esteem Social Security Physiological Challenging Work Opportunity to Grow Job Title – Recognition Friends at Work - Sports Teams Pension Plan - Insurance Salary to Purchase Basic Needs

Diagnose Employees’ Needs and Find Ways of Motivating Them by Satisfying the Needs MASLOW’S HIERARCHY OF NEEDS ALDERFER’S HIERARCHY OF NEEDS SelfGrowth Actualization Esteem Belongingness and Love Safety and Security Physiological Relatedness Existence

Herzberg’s Two-Factor Theory Hygiene Factor - work condition related to dissatisfaction caused by discomfort or pain maintenance factor contributes to employee’s feeling not dissatisfied contributes to absence of complaints Motivation Factor - work condition related to the satisfaction of the need for psychological growth job enrichment leads to superior performance & effort

Motivation-Hygiene Theory of Motivation Company Hygiene factors policy must & administration be present to avoid job Supervision dissatisfactionrelations Interpersonal Working conditions Salary Status Security Hygiene factors avoid job dissatisfaction Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission.

Motivators Worker Satisfaction. Hygiene Factors Worker Dissatisfaction. HYGIENE FACTORS Job Dissatisfaction No Job Dissatisfaction Pay Status Security Working Conditions Fringe Benefits Policies and Administrative Practices Interpersonal Relations MOTIVATORS No Job Satisfaction Job Satisfaction Meaningful Work Challenging Work Recognition for Accomplishments Feeling of Achievement Increased Responsibility Opportunities for Growth and Advancement The Job Itself

Motivation-Hygiene Theory of Motivation Company Hygiene factors policy must & administration be present to avoid job Supervision dissatisfactionrelations Interpersonal Working conditions Salary Status Security Hygiene factors avoid job dissatisfaction Motivation factors increase job satisfaction Achievement Achievement recognition Work itself Responsibility Advancement Growth Salary? Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission.

Resultant Job Conditions (Motivation M, Hygiene H) High M Low M high motivation low motivation High H few complaints few complaints high motivation low motivation Low H many complaints many complaints

Manifest Need Theory: Need for Achievement Need for Achievement - a manifest (easily perceived) need that concerns individuals’ issues of excellence, competition, challenging goals, persistence, and overcoming difficulties

Manifest Need Theory: Need for Power Need for Power - a manifest (easily perceived) need that concerns an individual’s need to make an impact on others, influence others, change people or events, and make a difference in life

Manifest Need Theory: Need for Affiliation Need for Affiliation - a manifest (easily perceived) need that concerns an individual’s need to establish and maintain warm, close, intimate relationships with other people

3 Motivational Need Theories Maslow [ Higher Order needs Self Actualization Esteem self interpersonal Belongingness Lower Order needs Alderfer [ Safety & security interpersonal physical Physiological ] ]] Growth McClelland Need for Achievement Need for Power Relatedness Existence Need for affiliation

Motivational Theory of Social Exchange Person Equity Comparison Other Outcomes Outcomes Inputs Inputs Negative Inequity Outcomes Inputs Outcomes Inputs Positive Inequity Outcomes Inputs Outcomes Inputs

Strategies for Resolution of Inequity Alter the person’s outcomes Alter the person’s inputs Alter the comparison other’s outputs Alter the comparison other’s inputs Change who is used as a comparison other Rationalize the inequity Leave the organizational situation

Managers Can Help Employees Perceive Their Work Situation As Equitable A’s outputs A’s Inputs B’s outputs B’s Inputs Inequity Problem with Motivation A’s outputs A’s Inputs B’s outputs B’s Inputs Equity No Problem with Motivation

Employee Responses to Perceived Inequities What happens when inequities exist? If person A believes an inequity exists and her ratio is too small, she may reduce her inputs ask for more outputs change her comparison person rationalize that equity exists leave the situation If person B believes an inequity exists, and his ratio is too large, he may increase his inputs ask for reduced outputs change his comparison person rationalize that equity exists leave the situation Table 4-1

New Perspectives on Equity Theory Equity Sensitive I prefer an equity ratio equal to that of my comparison other

New Perspectives on Equity Theory Benevolent I am comfortable with an equity ratio less than that of my comparison other

New Perspectives on Equity Theory Entitled I am comfortable with an equity ratio greater than that of my comparison other

Expectancy Theory of Motivation: Key Constructs Valence - value or importance placed on a particular reward Expectancy - belief that effort leads to performance Instrumentality - belief that performance is related to rewards

Expectancy Model of Motivation Effort Effort Performance Perceived effortPerformance probability Perceived performancereward probability “If I work hard, will I get the job done?” Reward Perceived value of reward “What rewards “What rewards will I get when do I value?” the job is done?”

Determinants of Performance Individual Differences Work Effort (Motivation) Organizational Support Job Performance

Reward System Organization provides inducements pay, benefits, vacation, status In return for individual contributions time, effort, knowledge, skills, creativity Inducements Individuals Organization Contributions

What is an effective reward?

A Reward Is Effective When It Is. available performance contingent timely reversible valuable

What Types of Rewards Are Available in Organizations?

Types of Rewards Economic rewards money benefits perks Non-economic rewards prestige job content

Multiple Means of Pay Merit Pay Creative Pay Practices Skill based pay Gain-sharing plans lump-sum pay increases Flexible benefit plans Managing pay as an extrinsic reward

Some Rules for Effective Rewards Differentiate the rewards Reward promptly Give feedback Give positive feedback publicly Give negative feedback privately Match consequences and behaviors

Individual & Situation Factors Affect Motivation & Performance Ability Commitment Feedback Complexity Situational Constraints Demands Made on Employee Specified Goals PERFORMANCE Attention Effort Persistence