Motivating and
Rewarding Employees
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Where We Are
Part 1 Introduction
Part 2 Planning
Chapter
Chapter 88
Motivating
Motivating &
& Rewarding
Rewarding Employees
Employees
Part 3 Organizing
Part 4 Leading
Part 5 Controlling
Chapter 9
Leadership & Trust
Chapter 10
Communication & Interpersonal Skills
Chapter Guide
• Motivation Overview
• Theories of Motivation
– Early Theories: Maslow’s Hierarchy of Needs; McGregor’s
Theories of X and Y; Hertzberg’s Two-Factors Theory
– Contemporary Theories: Three-Needs Theory; The Job
Characteristics Model; Equity Theory; Expectancy Theory
• Further Discussion Issues
Diverse workforce; Pay for Performance or Time;
Minimum-wage Workers; Professional Employees;
Technical Workers; Flexible Work options.
Overview
Motivation
Motivation is the willingness to
exert a persistent and high level
of effort toward
organizational goals.
Overview
Motivation and Need
Need is some internal state that
makes certain outcomes
appear attractive.
Overview
Components of Motivation
Needs
Motivation
Organizational
Goals
Effort
Overview
The Motivation Process
Unsatisfied
Unsatisfied
Need
Need
Search
Behavior
Reduction
of Tension
Tension
Drives
Satisfied
Need
Early Motivation Theory
Early Theories of Motivation
• Maslow’s Hierarchy of Needs
• MacGregor’s Theories X and Y
• Herzberg’s Two-Factor Theory
Early Motivation Theory 1: Abraham Maslow
Maslow’s
Hierarchy
of Needs
Self
Esteem
Social
Safety
Physiological
Early Motivation Theory 1: Abraham Maslow
Maslow’s Hierarchy of Needs
• Is predetermined in order of importance.
• Lower level needs had to be satisfied before
the next higher level need would motivate
employees.
• Might create misunderstanding
(1 or 5 needs)
Early Motivation Theory 2: Douglas McGregor
Little Ambition
Theory X
Workers
Dislike Work
Avoid Responsibility
Self-Directed
Theory Y
Workers
Enjoy Work
Accept Responsibility
Early Motivation Theory 3: Frederick Herzberg
Herzberg’s Two-Factor Theory
– Job satisfaction and job dissatisfaction are
created by different factors.
• Hygiene factors: environmental factors that create
job dissatisfaction.
• Motivators: psychological factors that create job
satisfaction.
– Attempted to explain why job satisfaction does
not result in increased performance.
• The opposite of satisfaction is not dissatisfaction,
but rather no satisfaction.
Early Motivation Theory: Frederick Herzberg
Herzberg’s Two-Factor Theory
Hygiene Factors
• Quality of supervision
• Salary and benefits
• Company policies
• Working conditions
• Relations with others
• Security and status
High
Job Dissatisfaction
Motivators
• Career advancement
• Recognition
• Work itself
• Responsibility
• Advancement
• Growth
0
Job Satisfaction
High
Early Motivation Theory: Frederick Herzberg
Contrasting Views of
Satisfaction-Dissatisfaction
Traditional View
Satisfaction
Dissatisfaction
Herzberg‘s View
Motivators
Satisfaction
No Satisfaction
Hygiene Factors
No Dissatisfaction
Dissatisfaction
Contemporary Motivation Theory
Contemporary Theories of
Motivation
• Three-Needs Theory
• Equity Theory
• The Job Characteristics Model
• Expectancy Theory
Contemporary Motivation Theory 1: David McClelland
Need for
Achievement
(nAch)
The Theory
of Needs
Need for
Power
(nPow)
Need for
Affiliation
(nAff)
David
McClelland
Contemporary Motivation Theory 2: J Stacey Adams
Equity Theory
Employees perceive
what they get from
a job situation (outcomes) in relation to
what they put into it (inputs) and
then compare their input-outcome ratio
with the input-outcome ratios of
relevant others.
Contemporary Motivation Theory: J Stacey Adams
Equity Theory
Inputs typically include:
• Effort
• Loyalty & trust
• Hard Work
• Commitment
• Skill
• Ability
• Tolerance
• Support of
colleagues
Outputs typically include:
• Financial rewards
• Intangibles that include:
– Recognition & Praise
– Reputation
– Responsibility
– Sense of Achievement
– Sense of Advancement
– Job Security
Motivation Theory: J Stacey Adams
Equity Theory
Ratio
Comparison*
Outcomes A
<
Inputs A
Outcomes A
Inputs A
*Where
Inequity (Under-Rewarded)
Inputs B
=
Inputs A
Outcomes A
Outcomes B
Employee’s
Perception
Outcomes B
Equity
Inputs B
>
Outcomes B
Inequity (Over-Rewarded)
Inputs B
A is the employee, and B is a relevant other or referent.
Motivation Theory: J Stacey Adams
Equity Theory
• Referent
– The other persons, the systems, or the
personal experiences against which
individuals compare themselves to assess
equity.
– The choice of a particular set of referents is
related to the information available about
referents as well as to the perceived
relevance.
Motivation Theory: J Stacey Adams
Inequity people’s choice
• When employees perceive an inequity
they may:
– Distort either their own or others’ inputs or
outcomes.
– Behave so as to induce others to change their
inputs or outcomes.
– Behave so as to change their own inputs or
outcomes.
– Choose a different comparison referent.
– Quit their job.
Contemporary Motivation Theory 3: J Richard Hackman
Skill Variety
Task Identity
The Job
Characteristics
Model
Task Significance
Autonomy
Feedback
Motivation Theory: Job Characteristic Model
Examples of High and Low Job Characteristics
Characteristics
• High variety
• Low variety
Examples
Skill Variety
The owner-operator of a garage who does electrical repair, rebuilds engines,
does body work, and interacts with customers
A bodyshop worker who sprays paint eight hours a day
Task Identity
• High identity
A cabinetmaker who designs a piece of furniture, selects the wood, builds the
object, and finishes it to perfection
• Low identity
A worker in a furniture factory who operates a lathe to make table legs
Task Significance
• High significance Nursing the sick in a hospital intensive-care unit
• Low significance Sweeping hospital floors
Autonomy
• High autonomy
A telephone installer who schedules his or her own work for the day, and
decides on the best techniques for a particular installation
• Low autonomy
A telephone operator who must handle calls as they come according to a
routine, highly specified procedure
Feedback
• High feedback
An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly
• Low feedback
An electronics factory worker who assembles a radio and then routes it to a
quality control inspector who tests and adjusts it
Motivation Theory: Job Characteristic Model
The Job Characteristics Model
Contemporary Motivation Theory 4: Victor Vroom
Expectancy Theory
An individual tends to act in
a certain way, in the expectation that
the act will be followed by given outcome,
and according to the attractiveness
of that outcome.
Contemporary Motivation theory: Victor Vroom
Expectancy Theory
Individual
Effort
1
Individual
Performance
2
Organizational
Rewards
3
1. Effort - Performance relationship
2. Performance - Rewards relationship
3. Rewards - Personal Goals relationship
Individual
Goals
Other issues
Contemporary
Motivation Issues
• How to motivate a diverse workforce
• How to Pay -- for performance or time
• How to motivate minimum-wage workers
• How to motivate professional and technical
employees
• How to use flexible work options
Other issues 1: Diversity of workforce
Motivate
Diverse
Workforce
Recognize
people
have
different needs
Be
aware of
cultural
differences
Other issues: Diversity of workforce
The Key To Motivating
A Diverse Workforce
• Recognizing the different personal needs
and goals of individuals
• Providing a diversity of rewards to match the
varied needs of employees
• Being flexible in accommodating the cultural
differences within a diverse workforce
– Motivating a diverse workforce through flexibility:
• Men desire more autonomy than do women.
• Women desire learning opportunities, flexible work schedules, and
good interpersonal relations.
Other issues 2: payment
Use Pay to Motivate
Pay for
Performance
Pay for
Time
Pay for
Competency
Other issues 2: payment
Pay-for-performance programs
• pay employees on the basis of
performance measures not directly
related to time spent on the job
Other issues 3: Minimum wage workers
Motivate Minimum-wage Workers
• Money is important, but not the only
reward that people seek
• Other rewards can help motivating
– Recognition program
– Praise
– Empowering
Other issues 4: Professional and technical
Strong and long-term
commitment to
their field
Loyal to their
profession rather
than their employers
Professional and
Technical Employees
May not be interested
in becoming managers
Tend to like
Challenges from jobs
Other issues 4: Professional and technical
Motivating Professionals &
Technical Employees
– Motivators
• Job challenge
• Organizational support of their work
• New assignments
• Autonomy
• Training and educational opportunities
• Recognition
• ……
Other issues 5: Flexibility
Flexible Work Options
Compressed
Workweek
Job
Sharing
Flextime
Telecommuting
Chapter Summary
• Motivation process
• Meaning of needs
• Hierarchy of needs theory
• Theory X vs. Theory Y
• Motivation-hygiene theory
Chapter Summary
• Equity theory
• Expectancy theory
• Jobs designs to maximize performance
• Workforce diversity and motivation