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All rights reserved.
5e
Chapter 11
Part IV: Leading
PowerPoint Presentation by Charlie Cook
The University of West Alabama

After studying this chapter, you should be able to:
1.
Illustrate the motivation process.
2.
Explain the performance formula and how to use it.
3.
Discuss the major similarities and differences among the four content motivation theories: hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory.
4.
Discuss the major similarities and differences among the three process motivation theories: equity theory, goal-setting theory, and expectancy theory.
5.
Explain the four types of reinforcement.
6.
State the major differences among content, process, and reinforcement theories.
7.
Define the key terms listed at the end of the chapter.
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at Market America
1.
What does Market America do to motivate its distributors, and how does it affect performance?
2.
How does Market America meet its distributors’ content motivation needs?
3.
How does Market America meet its distributors’ process motivation needs?
4.
How does Market America use reinforcement theory to motivate its distributors?
5.
Does the Market America UnFranchise ® business model for motivation work in other countries?
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• Motivation
 The willingness to achieve organizational objectives.
 People are motivated by self-interest —the key to understanding motivation.
• Motivation Process
 Employees go from need to motive to behavior to consequence to satisfaction or dissatisfaction.
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• Expectations, Motivation, and Performance
 Pygmalion effect

Managers’ attitudes toward, expectations of, and treatment of employees largely determine employees’ motivation and performance.
 Self-fulfilling prophecy

“If you believe you can, or believe you can’t, then you are right”—Henry Ford.
 If you think you will be successful, then you will be.
• The Performance Formula
 Performance = Ability
×
Motivation
×
Resources
 For maximum performance, all three factors must be high.
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Content Motivation
Theories
Process Motivation
Theories
Motivation
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Reinforcement
Theory
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Exhibit 11 –1 ●
Major Motivation Theories
Class of Motivation Theories Specific Theory (Creator)
Content motivation theories focus on identifying and understanding employees’ needs
Hierarchy of needs theory (Maslow) proposes that employees are motivated by five levels of needs: physiological, safety, social, esteem, and self-actualization.
ERG theory (Alderfer) proposes that employees are motivated by three needs: existence, relatedness, and growth.
Two-factor theory (Herzberg) proposes that employees are motivated by motivators (higher-level needs) rather than by maintenance factors (lower-level needs).
Acquired needs theory (McClelland) proposes that employees are motivated by their need for achievement, power, and affiliation.
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Exhibit 11 –1 ● Major Motivation Theories (cont’d)
Class of Motivation Theories Specific Theory (Creator)
Process motivation theories focus on understanding how employees choose behaviors to fulfill the needs.
Equity theory (Adams) proposes that employees will be motivated when their perceived inputs equal outputs.
Goal-setting theory (Locke) proposes that achievable but difficult goals motivate employees.
Expectancy theory (Vroom) proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort.
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Exhibit 11 –1 ● Major Motivation Theories (cont’d)
Class of Motivation Theories Specific Theory (Creator)
Reinforcement theory (Skinner) proposes that the consequences of behavior will motivate employees to behave in predetermined ways.
Types of reinforcement
Positive reinforcement is offering attractive consequences
(rewards) for desirable performance to encourage the continuation of that behavior.
Avoidance reinforcement is threatening to provide negative consequences for poor performance to encourage desirable behavior.
Punishment is providing an undesirable consequence
(punishment) for an undesirable behavior to prevent the behavior.
Extinction is the withholding of reinforcement for a particular behavior.
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• Hierarchy of Needs
1.
2.
3.
4.
Only unmet needs motivate.
People’s needs are arranged in order of importance for basic to complex.
Satisfaction of lower-level needs precedes satisfaction of higher-level needs.
There are five levels of needs:
 Physiological needs
 Safety needs
 Social needs
 Esteem needs
 Self-actualization needs
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Exhibit 11 –2
How Managers Motivate
Based on Maslow‘s
Hierarchy of Needs Theory
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• ERG Theory (Alderfer)
 Proposes that employees are motivated by three needs:
 Existence: physiological and safety needs.
 Relatedness: social needs.
 Growth: esteem and self-actualization needs.
 Needs can be active on more than one level at the same time.
 Starving actor: being hungry and wanting fame and fortune.
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Exhibit 11 –3 ● Herzberg’s Two-Factor Theory
Proposes that employees are motivated by motivators rather than by maintenance factors
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• Acquired Needs Theory (McClelland)
 Proposes that employees are motivated by their needs for achievement, power, and affiliation.
 Need for Achievement (n Ach): the desire for responsibility and accomplishment.
 Need for Power (n Pow): the desire to control the situation, to influence others, to enjoy competition in which they can win, and to be willing to confront others.
 Need for Affiliation (n Aff): the tendency to want to be liked, to seek close relationship with others, to enjoy social activities, and to seek to belong.
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Exhibit 11 –4 ●
A Comparison of Four Content Motivation Theories
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• Process Motivation Theories
 Focus on understanding how employees choose behavior to fulfill their needs.
 Equity theory
 Goal-setting theory
 Expectancy theory
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• Equity Theory (Adams)
 Proposes that employees are motivated when their perceived inputs equal outputs.
 People compare their inputs (effort, experience, seniority, status, intelligence, etc.) and outputs
(praise, recognition, pay, benefits, promotions, increased status, supervisor’s approval, etc.) to those of relevant others and conclude that they are:
 Underrewarded
 Overrewarded
 Equitably rewarded
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• Goal-Setting Theory
 Proposes that goals that are challenging, achievable, specific, and measureable will motivate employees, leading them to higher levels of motivation and performance.
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Join the Discussion
Ethics & Social Responsibility
• Academic Standards
1.
How many hours outside of class, on average, do you and other students you know spend preparing for class each week?
2.
Are college professors today assigning students 2 hours of preparation for every hour in class? If not, why do you think they have dropped this standard?
3.
Are students who are essentially doing part-time work (that is, attending classes but doing little or no academic work outside of class) during college being prepared for a career after graduation (with a 40- to 60-hour work weeks)?
4.
Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees for doing less work than students did 5, 10, or 20 years ago?
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• Expectancy Theory (Vroom)
 Proposes that employees are motivated when they believe they can accomplish a task and the rewards for doing so are worth the effort.
 Motivation = Expectancy
×
Valence
 Expectancy —the person’s perception of his or her ability to accomplish an objective.
 Valence —the value the person places on the outcome or reward for his or her performance.
 Instrumentality —the perception of the relationship between performance and reward.
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• Expectancy Theory Assumptions:
1.
2.
Both internal factors (needs) and external factors
(environment) affect behavior.
Behavior is the individual’s decision.
3.
People have different needs, desires, and goals.
4.
People make behavior decisions based on their perception of the outcome.
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11
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• Keys to using expectancy theory successfully:
1.
Clearly define objectives and the performance needed to achieve them.
2.
Tie performance to rewards.
3.
Be sure rewards have value to employees.
4.
Make sure employees believe that management will do what it says it will.
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• Reinforcement Theory
 Proposes that through the consequences for behavior employees will be motivated to behave in predetermined ways.
Stimulus
Responding
Behavior
Consequences of Behavior
(Reinforcement)
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• Positive Reinforcement
 Encouraging continued behavior by offering attractive consequences (rewards) for desirable performance.
• Avoidance Reinforcement (Negative Reinforcement)
 Encouraging continued desirable behavior to avoid a negative consequence.
• Punishment
 Providing an undesirable consequence for the undesirable behavior.
• Extinction
 Discouraging undesirable behavior by withholding reinforcement when the behavior occurs.
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Exhibit 11 –5
Types of
Reinforcement
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• Continuous Reinforcement
 Each and every desirable behavior is reinforced.
• Intermittent Reinforcement
 Time-based schedules
 Fixed interval
 Variable interval
 Output-based schedules
 Fixed ratio
 Variable ratio
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11
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• General guidelines for using reinforcement:
1.
Make sure employees know what behavior is expected and reinforced.
2.
Select appropriate rewards.
3.
Select the appropriate reinforcement schedule.
4.
Do not reward mediocre or poor performance.
5.
Look for the positive and give praise regularly, rather than focusing on the negative and criticizing.
6.
Do things for your employees, instead of to them, and you will see productivity increases.
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11
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Join the Discussion
Ethics & Social Responsibility
• Airlines
1.
Not using an airline ticket fully breaks the airline’s rules, not any law, so it’s not illegal. But is it ethical and socially responsible of travelers to do so?
2.
Is it ethical and socially responsible of airlines to charge more for less travel?
3.
Is it ethical and socially responsible to punish people who break the ticket rules?
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11
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Copyright © 2011 Cengage Learning. All rights reserved.
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Join the Discussion
Ethics & Social Responsibility
• Using Reinforcement Theory
1.
Does reinforcement motivate you?
2.
Is reinforcement effective (does it serve to motivate) in today’s global economy?
3.
Is the use of reinforcement theory ethical and socially responsible or manipulative?
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11
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Exhibit 11 –6
●
The Motivation
Process and the
Motivation Theories
The groups of theories are complementary; each refers to a different stage in the motivation process or answers a different question.
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11
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Reward Programs
Variable Pay Bonuses Profit Sharing Stock Options
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~
–33

Model 11 –1 ●
Giving Praise
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• Cultural Differences in Motivation
 The source of motivation (intrinsic vs. extrinsic)
 The level of needs on which people focus varies.
 Individualistic societies tend to value individual accomplishment; collective societies tend to value group accomplishment and loyalty.
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• acquired needs theory
• content motivation theories
• equity theory
• ERG theory
• expectancy theory
• giving praise model
• goal-setting theory
• hierarchy of needs theory
• motivation
• motivation process
• performance formula
• process motivation theories
• reinforcement theory
• two-factor theory
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