PowerPoint Presentation to Accompany Chapter 14 of Management

PowerPoint Presentation to Accompany Chapter 14 of Management Fundamentals Canadian Edition Schermerhorn Wright Prepared by: Michael K. McCuddy Adapted by: Lynda Anstett & Lorie Guest Published by: John Wiley & Sons Canada, Ltd.

Planning Ahead — Chapter 14 Study Questions What is motivation? What are the different types of individual needs? What are the process theories of motivation? What role does reinforcement play in motivation? What are the challenges of motivation in the new workplace? Management Fundamentals - Chapter 14 2

Study Question 1: What is motivation? Basic motivational concepts – Motivation—the forces within the individual that account for the level, direction, and persistence of effort expended at work. – Reward—a work outcome of positive value to the individual – Extrinsic rewards—valued outcomes given to someone by another person. – Intrinsic rewards—valued outcomes that occur naturally as a person works on a task. Management Fundamentals - Chapter 14 3

Study Question 1: What is motivation? To achieve maximum motivational potential in linking rewards to performance – Respect diversity and individual differences to best understand what people want from work. – Allocate rewards to satisfy the interests of both individuals and the organization. Management Fundamentals - Chapter 14 4

Study Question 1: What is motivation? Types of motivation theories – Content theories Human needs and how people with different needs may respond to different work situations. – Process theories How people give meaning to rewards and make decisions on various work-related behaviors. – Reinforcement theory How people’s behavior is influenced by environmental consequences. Management Fundamentals - Chapter 14 5

Study Question 2: What are the different types of individual needs? Needs – Unfulfilled physiological and psychological desires of an individual. – Explain workplace behavior and attitudes. – Create tensions that influence attitudes and behavior. – Good managers and leaders facilitate employee need satisfaction. Management Fundamentals - Chapter 14 6

Study Question 2: What are the different types of individual needs? Types of content theories: Hierarchy of needs theory ERG theory Two-factor theory Acquired needs theory Management Fundamentals - Chapter 14 7

Study Question 2: What are the different types of individual needs? Hierarchy of needs theory – Developed by Abraham Maslow. – Lower-order and higher-order needs affect workplace behavior and attitudes. – Lower-order needs: Physiological, safety, and social needs. Desires for physical and social well being. – Higher-order needs: Esteem and self-actualization needs. Desire for psychological growth and development. Management Fundamentals - Chapter 14 8

Study Question 2: What are the different types of individual needs? Hierarchy of needs theory – Deficit principle A satisfied need is not a motivator of behavior. – Progression principle A need at one level does not become activated until the next lower-level need is satisfied. Management Fundamentals - Chapter 14 9

Figure 14.1 Opportunities for satisfaction in Maslow’s hierarchy of human needs. Management Fundamentals - Chapter 14 10

Study Question 2: What are the different types of individual needs? ERG theory – Developed by Clayton Alderfer. – Three need levels: Existence needs — desires for physiological and material well-being. Relatedness needs — desires for satisfying interpersonal relationships. Growth needs — desires for continued psychological growth and development. Management Fundamentals - Chapter 14 11

Study Question 2: What are the different types of individual needs? ERG theory – Any/all needs can influence behavior at one time. – Frustration-regression principle. An already satisfied lower-level need becomes reactivated when a higher-level need is frustrated. Management Fundamentals - Chapter 14 12

Study Question 2: What are the different types of individual needs? Two-factor theory – Developed by Frederick Herzberg. – Hygiene factors: Elements of the job context. Sources of job dissatisfaction. – Satisfier factors: Elements of the job content. Sources of job satisfaction and motivation. Management Fundamentals - Chapter 14 13

Figure 14.2 Herzberg’s two-factor theory. Management Fundamentals - Chapter 14 14

Study Question 2: What are the different types of individual needs? Acquired needs theory – Developed by David McClelland. – People acquire needs through their life experiences. – Needs that are acquired: Need for Achievement (nAch) Need for Power (nPower) Need for Affiliation (nAff) Management Fundamentals - Chapter 14 15

Study Question 2: What are the different types of individual needs? Acquired needs theory – Need for Achievement (nAch) Desire to do something better or more efficiently, to solve problems, or to master complex tasks. – People high in (nAch) prefer work that: Involves individual responsibility for results. Involves achievable but challenging goals. Provides feedback on performance. Management Fundamentals - Chapter 14 16

Study Question 2: What are the different types of individual needs? Acquired needs theory – Need for Power (nPower) Desire to control other persons, to influence their behavior, or to be responsible for other people. Personal power versus social power. – People high in (nPower) prefer work that: Involves control over other persons. Has an impact on people and events. Brings public recognition and attention. Management Fundamentals - Chapter 14 17

Study Question 2: What are the different types of individual needs? Acquired needs theory – Need for Affiliation (nAff) Desire to establish and maintain friendly and warm relations with other persons. – People high in (nAff) prefer work that: Involves interpersonal relationships. Provides for companionship Brings social approval. Management Fundamentals - Chapter 14 18

Study Question 2: What are the different types of individual needs? Questions for summarizing the content theories of motivation: – How many different individual needs are there? – Can a work outcome or reward satisfy more than one need? – Is there a hierarchy of needs? – How important are the various needs? Management Fundamentals - Chapter 14 19

Figure 14.3 Comparison of Maslow’s, Alderfer’s, Herzberg’s, and McClelland’s motivation theories. Management Fundamentals - Chapter 14 20

Study Question 3: What are the process theories of motivation? Process theories of motivation – How people make choices to work hard or not. – Choices are based on: Individual preferences. Available rewards. Possible work outcomes. Types of process theories: – Equity theory. – Expectancy theory. – Goal-setting theory. Management Fundamentals - Chapter 14 21

Study Question 3: What are the process theories of motivation? Equity theory – Developed by J. Stacy Adams. – When people believe that they have been treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity to the situation. Perceived inequity. Perceived equity. Management Fundamentals - Chapter 14 22

Figure 14.4 Equity theory and the role of social comparison. Management Fundamentals - Chapter 14 23

Study Question 3: What are the process theories of motivation? Equity theory – People respond to perceived negative inequity by changing Work inputs. Rewards received. Comparison points. Situation. Management Fundamentals - Chapter 14 24

Study Question 3: What are the process theories of motivation? Managerial implications of equity theory— – Underpaid people experience anger. – Overpaid people experience guilt. – Perceptions of rewards determine motivational outcomes. – Negative consequences of equity comparisons should be minimized, if not eliminated. – Do not underestimate the impact of pay as a source of equity controversies in the workplace. Gender equity. Comparable worth. Management Fundamentals - Chapter 14 25

Study Question 3: What are the process theories of motivation? Expectancy theory – Developed by Victor Vroom. – Key expectancy theory variables: Expectancy — belief that working hard will result in desired level of performance. Instrumentality — belief that successful performance will be followed by rewards. Valence — value a person assigns to rewards and other work related outcomes. Management Fundamentals - Chapter 14 26

Figure 14.5 Elements in the expectancy theory of motivation. Management Fundamentals - Chapter 14 27

Study Question 3: What are the process theories of motivation? Expectancy theory – Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion: M ExIxV – If either E, I, or V is low, motivation will be low. Management Fundamentals - Chapter 14 28

Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory— – To maximize expectancy, managers should: Select workers with ability. Train workers to use ability. Support work efforts. Clarify performance goals. Management Fundamentals - Chapter 14 29

Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory— – To maximize instrumentality, managers should: Clarify psychological contracts. Communicate performance-outcome possibilities. Identify rewards that are contingent on performance. Management Fundamentals - Chapter 14 30

Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory— – To maximize valence in a positive direction, managers should: Identify individual needs. Adjust rewards to match individual needs. Management Fundamentals - Chapter 14 31

Figure 14.6 Managerial implications of expectancy theory. Management Fundamentals - Chapter 14 32

Study Question 3: What are the process theories of motivation? Goal-setting theory – Developed by Edwin Locke. – Properly set and well-managed task goals can be highly motivating. – Motivational effects of task goals: Provide direction to people in their work. Clarify performance expectations. Establish a frame of reference for feedback. Provide a foundation for behavioral self-management. Management Fundamentals - Chapter 14 33

Study Question 3: What are the process theories of motivation? Key issues and principles in the goal-setting process: – Set specific goals. – Set challenging goals. – Build goal acceptance and commitment. – Clarify goal priorities. – Provide feedback on goal accomplishment. – Reward goal accomplishment. Management Fundamentals - Chapter 14 34

Study Question 3: What are the process theories of motivation? Goal-setting theory – Participation in goal setting Unlocks the motivational potential of goal setting. Management by objectives (MBO) promotes participation. When participation is not possible, workers will respond positively if supervisory trust and support exist. Management Fundamentals - Chapter 14 35

Study Question 4: What role does reinforcement play in motivation? Fundamentals of reinforcement theory – Reinforcement theory focuses on the impact of external environmental consequences on behavior. – Law of effect — impact of type of consequence on future behavior. – Operant conditioning: Developed by B.F. Skinner. Applies law of effect to control behavior by manipulating its consequences. Management Fundamentals - Chapter 14 36

Study Question 4: What role does reinforcement play in motivation? Operant conditioning strategies: – Positive reinforcement Increases the frequency of a behavior through the contingent presentation of a pleasant consequence. – Negative reinforcement Increases the frequency of a behavior through the contingent removal of an unpleasant consequence. Management Fundamentals - Chapter 14 37

Study Question 4: What role does reinforcement play in motivation? Operant conditioning strategies: – Punishment Decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence. – Extinction Decreases the frequency of a behavior through the contingent removal of an pleasant consequence. Management Fundamentals - Chapter 14 38

Study Question 4: What role does reinforcement play in motivation? Successful implementation of positive reinforcement is based on – Law of contingent reinforcement — Reward delivered only if desired behavior is exhibited. – Law of immediate reinforcement — More immediate the delivery of a reward, the more reinforcement value it has. Management Fundamentals - Chapter 14 39

Study Question 4: What role does reinforcement play in motivation? Guidelines for using positive reinforcement: – Clearly identify desired work behaviors. – Maintain a diverse inventory of rewards. – Inform everyone about what must be done to get rewards. – Recognize individual differences when allocating rewards. – Follow the laws of immediate and contingent reinforcement. Management Fundamentals - Chapter 14 40

Figure 14.7 Applying reinforcement strategies: case of total quality management. Management Fundamentals - Chapter 14 41

Study Question 4: What role does reinforcement play in motivation? Schedules of reinforcement: – Continuous reinforcement administers a reward each time a desired behavior occurs. – Intermittent reinforcement rewards behavior only periodically. – Acquisition of behavior is quicker with continuous reinforcement. – Behavior acquired under an intermittent schedule is more permanent. Management Fundamentals - Chapter 14 42

Study Question 4: What role does reinforcement play in motivation? Guidelines for using punishment: – Tell the person what is being done wrong. – Tell the person what is being done right. – Match the punishment to the behavior. – Administer punishment in private. – Follow laws of immediate and contingent reinforcement. Management Fundamentals - Chapter 14 43

Study Question 4: What role does reinforcement play in motivation? Ethical issues in reinforcement: – Ignores individuality. – Restricts freedom of choice. – Ignores the possibility of other types of motivation. Key concern is whether it is ethical to not control behavior well enough to serve both individual and organizational goals. Management Fundamentals - Chapter 14 44

Study Question 5: What are the challenges of motivation in the new workplace? Integrated model of motivation – Motivation leads to work effort that, when combined with appropriate individual abilities and organizational support, leads to performance accomplishment. – The motivational impact of any rewards received for this performance accomplishment depends on equity and reinforcement considerations. – Ultimately, satisfaction with rewards should lead to increased motivation to work hard in the future. Management Fundamentals - Chapter 14 45

Figure 14.8 An integrated approach to motivational dynamics. Management Fundamentals - Chapter 14 46

Study Question 5: What are the challenges of motivation in the new workplace? Pay for performance – Paying people for performance is consistent with: Equity theory. Expectancy theory. Reinforcement theory. – Merit pay Awards a pay increase in proportion to individual performance contributions. Provides performance contingent reinforcement. May not succeed due to weakness in performance appraisal system or lack of consistency in application. Management Fundamentals - Chapter 14 47

Study Question 5: What are the challenges of motivation in the new workplace? Incentive compensation systems: – Skill-based pay. Links pay to the number of job-relevant skills an employee masters. – Bonus pay plans. One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution. Management Fundamentals - Chapter 14 48

Study Question 5: What are the challenges of motivation in the new workplace? Incentive compensation systems: – Profit-sharing plans. Some or all employees receive a proportion of net profits earned by the organization. – Gain-sharing plans. Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity. – Employee stock ownership plans. Employees own stock in the company that employs them. Management Fundamentals - Chapter 14 49

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