Last Week… We discussed specific aspects of motivation and leadership including some reference to theories related to both motivation and leadership. The information came primarily from chapters 5 and 7. This week, we will do more application of both leadership and motivational theories and follow more closely the points made in chapters 6 and 8. ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Motivational Models Drives and Needs • Herzberg’s hygiene factors • Maslow’s physiological and security needs • Alderfer’s existence needs Expectancy and Valence • Valence x Expectancy x Instrumentality = Motivation Behavior Modification • High instrumentality is desired Equity • Cost-reward comparison ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Importance of Pay Pay relationships carry immense social value • Money is not a direct incentive • Motivation is encouraged by a complete reward system ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved A Complete Program Many types of pay are required for a complete economic reward system • Base pay (jobs) • Performance rewards (individuals) • Profit sharing (the organization) Non-incentive Pay Adjustments • Seniority pay • Pay for inconvenience • Pay for time not worked ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Rewarding Employees with Money Money has Social Value • Status value when received • Status value when spent • Represents to employees what their employer thinks of them • Indicates one employee’s status relative to that of other employees • Has as many values as there are possessors ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Additional Money Considerations Extrinsic and Intrinsic Rewards • Money is less immediately satisfying than intrinsic rewards Difficult Integration • Employees differ in amount of intrinsic and extrinsic rewards desired • Payment of an extrinsic reward decreases the intrinsic satisfaction received • Hard to administer intrinsic rewards on a systematic basis ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Additional Money Considerations Compliance With the Law • Equal Pay Act of 1963 • Comparable worth • Equal opportunity Other Factors • Equality • Secrecy • Control • Flexibility ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved OB and Performance Appraisal Management by Objectives is a four-step, cyclical process… • Objective setting • Action planning • Periodic reviews • Annual evaluation ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved OB and Performance Appraisal Reasons For Employee Appraisal • Allocate resources in a dynamic environment • Motivate and reward employees • Give employees feedback about their work • Maintain fair relationships within groups • Coach and develop employees • Comply with regulations • Formal opportunity to express appreciation for employee contributions • Compliance with state and federal laws ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Performance Feedback Leads to improved performance and improved attitudes • If handled properly Greatest chance for behavioral change if… • Feedback is desired by the employee • It is connected to job tasks • Receiver can choose a new behavior from alternatives offered • It is provided on an ongoing basis ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved 360-Degree Feedback Systematic data gathering from a variety of sources • Manager(s) • Peers • Subordinates • Customers or clients Advantages • Can be compared across time • Rich feedback • Can aid in performance improvement ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Appraisal Problems Management Problems • Lack of vital skills • Failure to gather data systematically • Reluctance to address difficult/sensitive topics • Failure to involve employees in assessment process and discussion • Cynical about probability that changes will occur in employees • Sees appraisals as a meaningless game • Intentional distortion of feedback and ratings ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Attribution The process by which people interpret and assign causes for their own and others’ behavior • Consistency – is behavior the same over time • Consensus – is behavior similar to others • Distinctiveness – is behavior the same across situations ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Attributions Personal Versus Situational Attributions • Self-serving bias • Fundamental attribution bias • Perceptual set • Self-fulfilling prophecy ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Servant Leadership Key Behaviors • Listen actively and empathetically • Engage in introspection to better understand one’s own attitudes and feelings • Treat others as equals, with respect • Engage in dialogue/paraphrasing to ensure understanding • Affirm the worth and contributions of others • Admit mistakes and ask for help • Build trust by articulating values and acting consistently with them ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Leadership Theories Trait Theories • Personality Situational and Behavioral Theories • Leadership styles and behaviors • Blake and Mouton Managerial Grid Contingency Approaches • Fiedler’s Contingency Model • Hersey and Blanchard Situational Leadership • Path-Goal ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Impact on Managerial Power Leader-Member Exchange • Reciprocal relationships develop • High-quality relationship results in greater decision influence • Participative managers retain final authority ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Participative Process ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment African-American participants in North Carolina (i.e., social context in which groups were predominately African-American) reported the highest levels of perceived offensiveness when the target of disempowerment was an AfricanAmerican women (rather than a Caucasian man) Further, men in North Carolina reported the highest levels of perceived offensiveness. Demographic composition of groups may indeed have a strong influence on perceptions and behaviors • Young, Vance, and Harris (2007) and Young, Vance, and Ensher (2003) ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment gender as a predictor of perceived offensiveness when observing disempowering acts Other factors such as social context: • study examined perceived offensiveness reported by people in the same ethnic group (i.e., African-Americans). Specifically, data from African-Americans observers from two different regions, one in which observers held a majority status (i.e., North Carolina) and one in which observers held a minority status (i.e., Southern California), were analyzed to determine differences based on social context. ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Disempowerment Disempowerment • negative workplace behaviors including bullying and incivility • intentional and unintentional behaviors • perceived offensiveness resulting from disempowerment can be direct or vicarious ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Process of Empowerment ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Behavioral Tools • Mutual goal setting • Job feedback • Modeling • Contingent reward systems • Participative management ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Broad Approaches to Empowerment • Job mastery • Control • Role models • Social reinforcement and persuasion • Emotional support ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Nature of Empowerment and Participation Powerlessness Causes Low Self-esteem • Imposter phenomenon Empowerment is any process that provides greater autonomy to employees through: • Sharing of relevant information • Control over factors affecting job performance ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved