13
Management
4th Edition
Chuck Williams
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Prepared by
Deborah Baker
Texas Christian University
1

Wegmans’ Headquarters, Rochester, New York.

Wegmans is feeling the pressure from Wal-Mart

How can Wegmans differentiate themselves in the highly competitive grocery business?

Wegmans can’t compete on price, so outstanding customer service is key
How can you motivate people to work at Wegmans?
How do you motivate them to give exceptional service and make a career there?
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2

After reading this section, you should be able to:
1.
explain the basics of motivation.
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 3

Direction
Initiation
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Persistence
4

Effort and
Performance
Extrinsic and Intrinsic
Rewards
Need
Satisfaction
Motivating
People
1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 5

Effort
•
Initiation
• Direction
• Persistence
1.1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Performance
6

Job Performance = Motivation x Ability x Situational Constraints
1.1

Job performance
 how well someone performs the job

Motivation
 effort put forth on the job

Ability
 capability to do the job

Situational Constraints
 external factors affecting performance
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7

Faking It, Not Making It
 With technology, you may be tempted to look like you’re working hard when you aren’t
 But, you’re usually leaving “tracks” and
“footprints” along the way
 Motivation is all about effort. Work hard for your company, your customers, and yourself.
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8

1.2

Needs
 physical or psychological requirements
 must be met to ensure survival and well being

Unmet needs motivate people

Three approaches:
 Maslow’s Hierarchy of Needs
 Alderfer’s ERG Theory
 McClelland’s Learned Needs Theory
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 9

Adding Needs Satisfaction to the Model
1.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10

Belongingness
Safety
Physiological
1.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Self-Actualization
Esteem
11

Growth
Relatedness
Existence
1.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12

Power
Achievement
Affiliation
1.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13

Maslow’s
Hierarchy
Alderfer’s
ERG
Higher-
Order
Needs
Self-
Actualization
Esteem
Belongingness
Lower-
Order
Needs
Safety
Physiological
Growth
Relatedness
Existence
McClelland’s
Learned Needs
Power
Achievement
Affiliation
1.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted From Exhibit 13.4
14

Extrinsic Rewards
 tangible and visible to others
 given contingent on performance
1.3
Intrinsic Rewards
 natural rewards
 associated with performing the task for its own sake
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15

Extrinsic Rewards motivate people to:

Join the organization

Regularly attend their jobs

Perform their jobs well

Stay with the organization
1.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16

Intrinsic Rewards include:

Sense of accomplishment

Feeling of responsibility

Chance to learn something new

The fun that comes from performing an interesting, challenging, and engaging task
1.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 17

Extrinsic
Intrinsic

Good benefits

Health insurance

Job security

Vacation time

Interesting work

Learning new skills

Independent work situations
1.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 18

1.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 19


Ask people what their needs are

Satisfy lower-order needs first
 Expect people’s needs to change

Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards
1.4
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted from Exhibit 13.6
20

How Perceptions and Expectations
Affect Motivation
After reading these sections, you should be able to:
2.
use equity theory to explain how employees’ perceptions of fairness affect motivation.
3.
use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation.
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 21

Components of
Equity Theory
Reaction to
Perceived
Inequity
Motivating
People Using
Equity Theory
2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22

2.1

Inputs
 employee contributions to the organization

Outcomes
 rewards employees receive from the organization

Referents
 comparison others

Outcome/input (O/I) ratio
Outcomes self
Inputs self
= referent
Inputs referent
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23

When a person’s O/I ratio differs from their referent’s O/I ratio
2.1

Underreward
 referent’s O/I ratio is greater than yours
 experience anger or frustration

Overreward
 referent’s O/I ratio is less than yours
 experience guilt
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24

Are perceptions of equity culturally bound?
2.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25

How People React to Perceived Inequity

Reduce inputs

Increase outcomes

Rationalize inputs or outcomes

Change the referent

Leave
2.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26

Adding Equity Theory to Model
2.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27

 Look for and correct major inequities
 Reduce employees’ inputs
 Make sure decision-making processes are fair
 distributive justice
 procedural justice
2.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted from Exhibit 13.9
28

Components of
Expectancy
Theory
Motivating with
Expectancy
Theory
3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29

Valence
Expectancy
Instrumentality
3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30

Adding Expectancy Theory to Model
3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31

One way to increase expectancy is to train employees.
3.1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32


Systematically gather information to find out what employees want from their jobs

Clearly link rewards to individual performance

Empower employees to make decisions which enhance expectancy perceptions
3.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted from Exhibit 13.11
33

How Rewards and Goals
Affect Motivation
After reading these sections, you should be able to:
4.
explain how reinforcement theory works and how it can be used to motivate.
5.
describe the components of goal-setting theory and how managers can use them to motivate workers.
6.
discuss how the entire motivation model can be used to motivate workers.
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 34

Components of
Reinforcement
Theory
Schedules for
Delivering
Reinforcement
Motivating with
Reinforcement
Theory
4
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 35

Reinforcement Theory
A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.
4
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 36

Reinforcement Contingencies

Positive reinforcement
 desirable consequence strengthens behavior

Negative reinforcement
 withholding unpleasant consequence strengthens behavior

Punishment
 unpleasant consequence weakens behavior
4.1

Extinction
 no consequence weakens behavior
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 37

Adding Reinforcement Theory to Model
4.1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 38

Schedules for Delivering Reinforcement
Continuous
Intermittent
4.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 39

Continuous Reinforcement Schedules
Continuous Reinforcement Schedules
A schedule that requires a consequence to be administered following every instance of a behavior.
4.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 40

Intermittent Reinforcement Schedules
Fixed Variable
Interval
(Time) consequences follow behavior after a fixed time has elapsed
Consequences follow behavior after different times that vary around an average time
Ratio
(Behavior)
Consequences follow a specific number of behaviors
Consequences follow a different number of behaviors that vary around an average number
4.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted from Exhibit 13.12
41

Motivating with Reinforcement Theory
 Identify, measure, analyze, intervene, and evaluate
 Don’t reinforce the wrong behavior
 Correctly administer punishment at the appropriate time
 Choose the simplest and most effective schedule of reinforcement
4.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Adapted from Exhibit 13.14
42

Financial, Nonfinancial, and Social Rewards probability of success
Financial Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall 68% manufacturing 84% service 61%
4.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 43

Financial, Nonfinancial, and Social Rewards probability of success
Nonfinancial Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall 58% manufacturing 87% service 54%
4.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 44

Financial, Nonfinancial, and Social Rewards
Social Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 63%
Financial and Nonfinancial Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 62%
4.3
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 45

Financial, Nonfinancial, and Social Rewards
Financial and Social Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 52%
Nonfinancial and Social Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 61%
4.3
Financial, Nonfinancial, and Social Rewards
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 90%
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 46

Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort.
5
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Effort
Initiation
Direction
Persistence
Performance
47


Goal Specificity
 the clarity of goals

Goal Difficulty
 how challenging goals are

Goal Acceptance
 how well goals are agreed to or understood

Performance Feedback
 information on goal progress
5.1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 48

5.1

JetBlue has what is perhaps the industry’s most aggressive goal relative to baggage handling: from plane’s hold to baggage claim in 20 minutes.
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 49

Adding Goal-Setting Theory to Model
5.1
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 50

Motivating with Goal-Setting Theory
 Assign specific, challenging goals
 Make sure workers truly accept organizational goals
 Provide frequent, specific performance-related feedback
5.2
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 51

Motivating with the Integrated Model
Motivating with the Basics
Motivating with
Expectancy Theory
Motivating with
Equity Theory
Motivating with
Goal-Setting Theory
Motivating with
Reinforcement
Theory
6
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 52

Motivating with the Integrated Model
6
Chapter 13
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 53