Transcript motivation - McGraw Hill Higher Education

Essentials of
Contemporary
Management
Chapter
9
Motivation
PowerPoint Presentation by Charlie Cook
© Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.
Learning Objectives
• After studying the chapter, you should be able to:
Explain what motivation is and why managers
need to be concerned about it.
Describe from the perspectives of expectancy
theory and equity theory what managers should
do to have a highly motivated workforce.
Explain how goals and needs motivate people
and what kinds of goals are especially likely to
result in high performance.
© Copyright 2004 McGraw-Hill. All rights reserved.
9–2
Learning Objectives (cont’d)
Identify the motivation lessons that managers can
learn from operant conditioning theory and
social learning theory.
Explain why and how managers can use pay as a
major motivation tool.
© Copyright 2004 McGraw-Hill. All rights reserved.
9–3
The Nature of Motivation
• Motivation
The psychological forces acting on an individual
that determine:
• 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.
Explains why people behave the way they do in
organizations.
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9–4
The Nature of Motivation (cont’d)
• Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
• The source of the motivation that comes from
actually engaging in the behavior.
• The sense of accomplishment and achievement
derived from doing the work itself
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9–5
The Nature of Motivation (cont’d)
• 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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9–6
Sources of Motivation
Personal
Characteristics
Nature of the
Job
Individual
Motivation
Nature of the
Organization
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9–7
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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9–8
The Motivation Equation
Figure 9.1
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9–9
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.
• 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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9–10
Expectancy, Instrumentality, and Valence
Figure 9.2
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9–11
Expectancy Theory in Practice
Expectancy: Effort will result in a level of
performance.
• Employees will work work hard if they believe
they can attain high performance—organizations
must provide the resources that support
performance.
Instrumentality: Performance leads to outcomes.
• Workers are only motivated if they think
performance leads to an outcome—managers
must link performance to outcomes.
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9–12
Expectancy Theory in Practice
Valence: How desirable an outcome is to a person.
• Workers have preferences for outcomes—
managers must determine which outcomes are
valued.
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9–13
Expectancy and Motivation
• Motivation is highest when expectancy,
instrumentality, and valence levels are high.
If one of the values is low, motivation will be low:
• Workers do not believe they can perform well.
• Workers do not believe that performance and
rewards are closely linked.
• Workers do not value the rewards offered for
performance.
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9–14
Expectancy Theory
Figure 9.3
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9–15
Need Theories
• Need
A requirement for survival and well-being.
• Need Theories
Theories of motivation that focus on what needs
people are trying to satisfy at work and what
outcomes will satisfy those needs.
Basis premise is that people are motivated to obtain
outcomes at work to satisfy their needs.
• Managers must determine what needs a worker
wants satisfied and ensure that a person
receives the outcomes when performing well.
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9–16
Maslow’s Hierarchy of Needs
Needs
Highest-level
needs
Lowest-level
needs
Description
Examples
Selfactualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower-level needs must be satisfied
before higher-level needs are addressed.
Table 9.1
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9–17
Herzberg’s Motivation-Hygiene Theory
• Focuses on outcomes that lead to higher
motivation and job satisfaction, and those
outcomes that can prevent dissatisfaction.
Motivator needs relate to the nature of the work
itself—autonomy, responsibility, interesting work.
Hygiene needs are related to the physical and
psychological context of the work—comfortable
work environment, pay, job security.
• Unsatisfied hygiene needs create dissatisfaction;
satisfaction of hygiene needs does not lead to
motivation or job satisfaction.
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9–18
McClelland’s Needs for Achievement,
Affiliation, and Power
• Need for Achievement
A strong need to perform challenging tasks well
and meet personal standards for excellence.
• Need for Affiliation
A concern for good interpersonal relations, being
liked, and getting along.
• Need for Power
A desire to control or influence others.
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9–19
Adam’s Equity Theory
• Focuses on people’s perceptions of the
fairness (or lack of fairness) of their work
outcomes in proportion to their work inputs.
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 referent’s
ratio.
• If the referent receives more outcomes, they
should also give more inputs to achieve equity.
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9–20
Equity Theory
Condition
Equity
Underpayment
Equity
Overpayment
Equity
Person
Outcomes
Inputs
Outcomes
Inputs
Outcomes
Inputs
Referent
Example
= Outcomes
Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
< Outcomes
Inputs
Worker contributes
more inputs but also
gets the same outputs
as referent
> Outcomes
Inputs
Worker contributes
same inputs but also
gets more outputs
than referent
Table 9.2
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9–21
Equity Theory (cont’d)
• Inequity exists when worker’s 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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9–22
Equity Theory (cont’d)
• 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 leave
the organization.
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9–23
Goal Setting Theory
• Focuses on identifying the types of goals that
are effective in producing high levels of
motivation and explaining why goals have
these effects.
• Considers how managers can ensure that
workers focus their inputs (efforts) in the
direction of high performance and the
achievement of organizational goals.
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9–24
Goal Setting Theory (cont’d)
• Goal
What a person is trying to accomplish.
• Characteristics of Motivating Goals
Specific and not vague in providing direction
Difficult but not impossible to attain
Accepted and committed to by workers
Feedback on goal attainment is important.
• Goals point out what is important to the firm.
Workers should be encouraged to develop action
plans to attain goals.
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9–25
Learning Theories
• Theories that focus on increasing motivation
and performance by linking outcomes to
performance and the attainment of goals.
• Learning
A relatively permanent change in person’s
knowledge or behavior that results from practice or
experience.
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9–26
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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9–27
Operant Conditioning Tools
• Positive Reinforcement
Getting desired outcomes for performing needed
work behaviors.
• Positive reinforcers: pay, praises, or promotions.
• Negative Reinforcement
Eliminating undesired outcomes once the desired
behavior occurs.
• Negative reinforcers: criticisms, pay cuts,
suspension.
• Is not the same as punishment.
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9–28
Operant Conditioning Tools (cont’d)
• Extinction
Curtailing the performance of a dysfunctional
behavior by eliminating whatever is reinforcing it.
• Behavior is not rewarded and over time, the
worker stops performing 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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9–29
Guidelines for Administering Punishment
• Downplay the emotional element involved in
punishment.
Punish the behavior, not the person.
• Punish behaviors as soon as possible after
they occur.
Swift punishment increases the connection between
punishment and behavior.
• Avoid punishing someone in front of others.
Punish the behavior, not the person.
People learn for punishment of others.
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9–30
Social Learning Theory
• A theory that takes into account how learning
and motivation are influenced by people’s
thoughts and beliefs and their observations of
other people’s behavior.
• Vicarious Learning (Observational Learning)
When a learner is motivated to perform a behavior
by watching another person perform and be
rewarded.
• People are motivated to imitate models who are
highly competent, expert, receive attractive
reinforcers, and are friendly or approachable.
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9–31
Social Learning Theory (cont’d)
• Conditions for Social Learning
The learner observes the model performing the
behavior.
The learner accurately perceives the model’s
behavior.
The learner remembers the behavior.
The learner has the skills and abilities needed to
perform the behavior.
The learner sees or knows that the model is
positively reinforced for the behavior.
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9–32
Social Learning Theory (cont’d)
• Self-Reinforcement
Any desired or attractive outcome or award that a
person can give himself or herself for good
performance.
• “The self-management of behavior”
• Self-efficacy
A person’s belief about his or her ability to perform
a behavior successfully.
• Influences motivation both when managers
provide reinforcement and when workers
themselves provide it.
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9–33
Pay and Motivation
• Pay as a Motivator
Expectancy
• Pay is an instrumentality (and outcome)
• Expectancy must be high for motivation to be
high.
Need Theory
• Pay is used to satisfy many needs.
Equity Theory
• Pay is given in proportion to inputs.
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9–34
Pay and Motivation
• Pay as a Motivator (cont’d)
Goal Setting Theory
• Pay is linked to attainment of goals.
Learning Theory
• The distribution of outcomes (pay) is contingent
upon the performance of functional behaviors.
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9–35
Merit Pay and Performance
• Merit Pay Plan
A compensation plan that bases pay on individual,
group and/or organization performance.
• Individual plan: when individual performance
(sales) can accurately measured.
• Group plan: when group that works closely
together is measured and rewarded as a group.
• Organization plan: when group or individual
outcomes are not easily measured.
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9–36
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.
• 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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9–37
Salary Increase or Bonus? (cont’d)
• Employee Stock Option
A financial instrument that entitles the bearer to
buy shares of an organization’s stock at a certain
price during a certain period of time or under
certain conditions.
Uses:
• To attract high-level managers.
• To motivate employee performance through
ownership in the firm.
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9–38
Examples of Merit Pay Plans
• Piece-rate Pay
Employee’s pay is based on the number of units
that the employee produces.
• Commission Pay
Employee’s pay is based on a percentage of sales
that an employee makes personally.
• Organization-based Merit Plans
Scanlon plan—focuses on reduced expenses or
cutting costs.
Profit sharing—employees receive a share of an
organization’s profits.
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9–39