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Motivation Principles of Management 2.0 Mason Carpenter, Talya Bauer, Berrin Erdogan, and Jeremy Short ©2013 Flat World Knowledge, Inc. 1 Chapter 13 Motivating Employees Understand need-based theories of motivation Understand process-based theories of motivation Describe how fairness perceptions are determined and their consequences Learn to use performance appraisals in a motivational way Learn to apply organizational rewards in a motivational way Develop your personal motivation skills © Jupiterimages Corporation ©2013 Flat World Knowledge, Inc. 2 Motivation in the P-O-L-C Framework ©2013 Flat World Knowledge, Inc. 3 Motivation is defined as “the intention of achieving a goal, leading to goal-directed behavior.” Ability Resources Information Support Factors Needed for Motivation ©2013 Flat World Knowledge, Inc. 4 Motivation, ability, and environment are the major influences over employee performance ©2013 Flat World Knowledge, Inc. 5 Need-Based Theories of Motivation Maslow’s Hierarchy of Needs ERG Theory Herzberg’s Dual Factor Theory McClelland’s Acquired Needs Theory ©2013 Flat World Knowledge, Inc. 6 http://en.wikipedia.org/wiki/Hierarchy_of_needs Maslow's Hierarchy of Needs ©2013 Flat World Knowledge, Inc. 7 ©2013 Flat World Knowledge, Inc. 8 Clayton Alderfer 9 Contrasting Maslow and ERG Theory ERG Theory does not rank needs in any particular order One need may operate at a given time Contains a “frustrationregression” hypothesis Important Conclusion Recognizes multiple needs may be driving an individual at a given point to understand their behavior and to motivate them http://www.yourcoach.be/en/employee-motivation-theories/erg-motivation-theory-alderfer.php ©2013 Flat World Knowledge, Inc. 10 Two-Factor Theory Frederick Herzberg • General satisfaction • Prevention of dissatisfaction • High motivation • High satisfaction • Strong commitment ©2013 Flat World Knowledge, Inc. 11 Satisfied and Motivated http://www.ibbusinessandmanagement.com/25-motivation.html 12 Acquired Needs Theory Douglas McClelland Need for achievement Need for affiliation ©2013 Flat World Knowledge, Inc. Need for power 13 Discussion • Many managers assume that if an employee is not performing well, the reason must be lack of motivation. What is the problem with this assumption? • Review Maslow’s hierarchy of needs. Do you agree with the particular ranking of employee needs? • Review the hygiene factors and motivators in the two factor theory. Are there any hygiene factors that you would consider to be motivators and vice versa? • A friend of yours is competitive, requires frequent and immediate feedback, and enjoys accomplishing things. She has recently been promoted to a managerial position and seeks your advice. What would you tell her? • Which motivation theory have you found to be most useful in explaining why people behave in a certain way? Why? ©2013 Flat World Knowledge, Inc. 14 Intrinsic (internal) vs. Extrinsic (external) motivation • Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward. • Studies has shown that people would engage in playful and curiosity driven behaviors in the absence of reward. http://en.wikipedia.org/wiki/Motivation#Intrinsic_and_extrinsic_motivation ©2013 Flat World Knowledge, Inc. 15 It’s All Relative (regarding rewards) • Employees don’t look only at absolute rewards; they look at relative rewards. • People seem to have a great tolerance of overpayment inequities than underpayment, or they are better able to rationalize them. The Truth about Managing People, 3rd edition. ©2013 Flat World Knowledge, Inc. 16 Process-Based Theories Equity Formula (Theory) ? > < It’s All Relative! ©2013 Flat World Knowledge, Inc. 17 ©2013 Flat World Knowledge, Inc. 18 Individual Differences in Reactions to Inequity • These individuals experience distress when they feel they are over- or under-rewarded Equity Sensitivity Benevolents Entitleds • Give without waiting to receive much in return • Expect to receive a lot without giving much in return ©2013 Flat World Knowledge, Inc. 19 Fairness Beyond Equity • Distributive Justice – The degree to which outputs received from the organization are fair. • Procedural Justice – The degree to which fair decision-making procedures are used. Ways to identify procedural justice include: advance notice, allowing employee voices into decision making, and explanations • Interactional Justice – The degree to which people are treated with respect, kindness, and dignity in interpersonal interactions. ©2013 Flat World Knowledge, Inc. 20 Expectancy Theory An individual will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be. (Attractiveness) "This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients." Study this diagram at http://educ.jmu.edu//~gallagsr/smm.pdf ©2013 Flat World Knowledge, Inc. 21 Reinforcement Theory According to this theory, behavior is a function of its consequences Ivan Pavlov Behavioral Conditioning (video) B.F. Skinner Operant Conditioning ©2013 Flat World Knowledge, Inc. 22 ++ Reinforcement Methods -- Five procedures are defined by the presentation or removal of a reinforcement or punishment. Here the terms positive and negative are not used in their popular sense, but rather: positive refers to addition, and negative refers to subtraction. The procedures are: • Positive reinforcement (Reinforcement): Occurs when a behavior (response) is followed by a stimulus that is appetitive or rewarding, increasing the frequency of that behavior. In the Skinner box experiment, a stimulus such as food or a sugar solution can be delivered when the rat engages in a target behavior, such as pressing a lever. This procedure is usually called simply reinforcement. • Negative reinforcement (Escape): Occurs when a behavior (response) is followed by the removal of an aversive stimulus, thereby increasing that behavior's frequency. In the Skinner box experiment, negative reinforcement can be a loud noise continuously sounding inside the rat's cage until it engages in the target behavior, such as pressing a lever, upon which the loud noise is removed. • Positive punishment (Punishment) (also called "Punishment by contingent stimulation"): Occurs when a behavior (response) is followed by a stimulus, such as introducing a shock or loud noise, resulting in a decrease in that behavior. Positive punishment is sometimes a confusing term, as it denotes the "addition" of a stimulus or increase in the intensity of a stimulus that is aversive (such as spanking or an electric shock). This procedure is usually called simply punishment. • Negative punishment (Penalty) (also called "Punishment by contingent withdrawal"): Occurs when a behavior (response) is followed by the removal of a stimulus, such as taking away a child's toy following an undesired behavior, resulting in a decrease in that behavior. • Extinction: Occurs when a behavior (response) that had previously been reinforced is no longer effective. For example, a rat is first given food many times for lever presses. Then, in "extinction", no food is given. Typically the rat continues to press more and more slowly and eventually stops, at which time lever pressing is said to be "extinguished." ©2013 Flat World Knowledge, Inc. 24 Rewards and Punishments • Positive enforcement: Rewards • Negative enforcement: Punishments "Carrot and Stick Approach" refers to a policy of offering a combination of rewards and punishment to induce behavior. 25 Reinforcement Schedules Fixed interval schedules Continuous schedule Fixed ratio schedules Variable ratio ©2013 Flat World Knowledge, Inc. 26 ©2013 Flat World Knowledge, Inc. 27 ©2013 Flat World Knowledge, Inc. 28 ©2013 Flat World Knowledge, Inc. 29 Scientific Management and Job Specialization Frederick Taylor Negative Outcomes What is it? Proposed to minimize waste by identifying the best method to perform the job Identified Job Specialization the breaking down of tasks to their simplest components and assigning them to employees so that each person would perform few tasks in a repetitive manner ©2013 Flat World Knowledge, Inc. Poor motivation Boring and repetitive Increased absenteeism 30 Ford panel assembly line in Berlin, Germany This is an example of specialization Each person on the line has a different job © Jupiterimages Corporation ©2013 Flat World Knowledge, Inc. 31 Alternatives to Job Specialization Job Rotation Moving employees from job to job at regular intervals Relieves the monotony and boredom typical in repetitive jobs Job enlargement Expands the tasks performed by employees to add more variety Job enrichment Gives workers more control over how they perform their own tasks ©2013 Flat World Knowledge, Inc. 32 Job Characteristics Model ©2013 Flat World Knowledge, Inc. 33 Goal Setting Theory Acclaimed as one of the most influential and practical theories of motivation Studies indicate that setting goals is related to performance improvements © Jupiterimages Corporation ©2013 Flat World Knowledge, Inc. 34 Setting SMART goals Specific Timely Measurable Realistic Achievable ©2013 Flat World Knowledge, Inc. 35 Why do SMART goals motivate? ©2013 Flat World Knowledge, Inc. 36 ` • • • • Progress in meaningful work Small wins Creativity Productivity Commitment Collegiality. Amabile, T. and Kramer, S. (2011) The Progress Principle http://www.bretlsimmons.com/2011-10/inner-work-life/ ©2013 Flat World Knowledge, Inc. ** https://www.youtube.com/watch?v=f_KxrFGhV5E 4 min or so. 37 Discussion • Your manager tells you that the best way of ensuring fairness in reward distribution is to keep the pay a secret. How would you respond to this assertion? • What are the distinctions among procedural, interactional, and distributive justice? List ways in which you could increase each of these justice perceptions. • Using an example from your own experience in school or at work, explain the concepts of expectancy, instrumentality, and valence. • Some practitioners and researchers consider OB Mod as unethical because it may be viewed employee manipulation. What would be your reaction to this criticism? • Consider a job you held in the past. Analyze the job using the framework of job characteristics model. • If a manager tells you to “sell as much as you can,” is this goal likely to be effective? Why or why not? ©2013 Flat World Knowledge, Inc. 38 Guidelines for Giving Feedback in a Performance Appraisal Meeting Before the meeting, ask the person to complete a self-appraisal Plan for adequate time and a private area to talk During the meeting, be sure to recognize effective performance through specific praise Give employees opportunities to talk Show empathy and support Set goals and create an action plan for the future After the meeting, continue to give the employee periodic and frequent feedback Follow through on the goals that were set ©2013 Flat World Knowledge, Inc. 39 Five Guidelines for Seeking Feedback Consider seeking regular feedback from your boss Be genuine in your desire to learn Consider finding trustworthy peers who can share information with you regarding your performance Develop a good relationship with your manager as well as the employees you manage Be gracious when you receive unfavorable feedback ©2013 Flat World Knowledge, Inc. 40 Discussion • Why can discussing performance feedback with employees be so hard? • What barriers do you perceive in asking for feedback? • How would you react if one of your employees came to you for feedback? • Imagine that your good friend is starting a new job next week. What recommendations would you give to help your friend do a great job seeking feedback? ©2013 Flat World Knowledge, Inc. 41 The Truth about Motivation • Recognition motivates (and it costs very little) • There’s more to high employee performance than just motivation • It’s All Relative! • You get what you reward • Managing across the generation gap • When giving feedback: Criticize behaviors, not people • Professional workers go for THE FLOW • Not everyone wants to participate in setting their goals • Telling employees to “DO YOUR BEST” isn’t likely to achieve their best • Why many workers aren’t motivated at work today • Happy workers aren’t necessarily productive workers! • Ways to motivate low-skill, low-pay employees 42 http://www.pearsoned.co.uk/bookshop/detail.asp?item=100000000263509&tab=Table%20of%20Contents ©2013 Flat World Knowledge, Inc. 43 Service Profit Chain Source: Putting the Service-Profit Chain to Work (HBR Classic)