Chapter 4
Motivating Self and Others
What is Motivation?
Motivation

The processes that account for
an individual’s intensity, direction,
and persistence of effort toward
attaining a goal



Intensity: how hard a
person tries
Direction: where effort
is channeled
Persistence: how long
effort is maintained
Theory X and Theory Y

Theory X


The assumption that employees dislike work, will
attempt to avoid it, and must be coerced, controlled,
or threatened with punishment if they are to
perform.
Theory Y

The assumption that employees like work, are
creative, seek responsibility, and can exercise selfdirection and self-control.
Motivators

Intrinsic


A person’s internal desire to do something,
due to such things as interest, challenge,
and personal satisfaction.
Extrinsic
Motivation that comes from outside
the person, such as pay, bonuses,
and other tangible rewards.

Needs Theories of Motivation
Basic idea:

Individuals have needs that, when
unsatisfied, will result in motivation
Maslow’s hierarchy of needs
 Herzberg’s two factor theory (motivation-hygiene
theory)
 Alderfer’s ERG theory
Less Important
 McClelland’s theory of needs

Maslow’s Hierarchy of Needs
Selfactualization
Esteem
Social
Safety
Physiological
Herzberg’s Motivation-Hygiene
Theory

Hygiene factors - necessary, but not
sufficient, for healthy adjustment

Extrinsic factors; context of work
Company policy and administration
 Unhappy relationship with employee's
supervisor
 Poor interpersonal relations with one's peers
 Poor working conditions

These needs must be met so employee is not dissatisfied – but they
do not necessarily lead to satisfaction
Herzberg’s Motivation-Hygiene
Theory

Motivators - the sources of satisfaction

Intrinsic factors; content of work
Achievement
 Recognition
 Challenging, varied or interesting work
 Responsibility
 Advancement

Contrasting Views of Satisfaction
and Dissatisfaction
Traditional view
Satisfaction
Dissatisfaction
Herzberg's view
Motivators
No Satisfaction
Satisfaction
Hygiene Factors
Dissatisfaction
No dissatisfaction
Alderfer’s ERG Theory

Existence


Relatedness


Concerned with providing basic material
existence requirements
Desire for maintaining important
interpersonal relationships
Growth

Intrinsic desire for personal development
McClelland’s Theory of Needs

Need for Achievement


Need for Power


The drive to excel, to achieve in relation to a
set of standards, to strive to succeed
The need to make others behave in a way
that they would not have behaved otherwise
Need for Affiliation

The desire for friendly and close
interpersonal relationships
Summarizing the Various Needs
Theories
Maslow
Alderfer
Herzberg
McClelland
Self-Actualization
Growth
Motivators
Need for Achievement
Esteem
Affiliation
Hygiene
Factors
Security
Existence
Physiological
Need for Power
Relatedness
Need for Affiliation
Summary: Hierarchy of Needs
 Maslow:
Argues that lower-order needs
must be satisfied before one
progresses to higher-order needs.
 Herzberg: Hygiene factors must be met
if person is not to be dissatisfied. They
will not lead to satisfaction, however.
Motivators lead to satisfaction.
Summary: Impact of Theory
 Maslow:
Enjoys wide recognition
among practising managers. Most
managers are familiar with it.
 Herzberg: The popularity of giving
workers greater responsibility for
planning and controlling their work can
be attributed to his findings. Shows
that more than one need may operate
at the same time
Process Theories of Motivation

Look at the actual process of motivation
Expectancy theory
 Goal-setting theory

Expectancy Theory
An employee will be motivated to exert a high
level of effort when he/she believes:
 That effort will lead to good performance
 That performance will lead to organizational
rewards
 The rewards will satisfy the employee’s
personal goals
Expectancy Relationships

The theory focuses on three relationships:

Effort-performance relationship


Performance-reward relationship


The perceived probability that exerting a given
amount of effort will lead to performance.
The degree to which the individual believes that
performing at a particular level will lead to a desired
outcome.
Rewards-personal goals relationship

The degree to which organizational rewards satisfy
an individual’s personal goals or needs and are
attractive to the individual.
How Does Expectancy Theory
Work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Expectancy
Effort
Performance Link
No matter how much effort
I put in, probably not possible
to memorize the text in 24 hours
E=0
Instrumentality
Performance
Rewards Link
My professor does not look
like someone who has $1 million
I=0
Valence
Rewards
Personal Goals Link
There are a lot of wonderful things
I could do with $1 million
V=1
Conclusion: Though I value the reward, I will not be motivated to do this task.
Steps to Increasing Motivation, Using Expectancy
Theory
Improving Expectancy
Improve the ability of the
individual to perform
Improving Instrumentality
’ s belief that
Increase the individual
performance will lead to reward
Improving Valence
Make sure that the reward is
meaningful to the individual
Steps to Increasing Motivation, Using Expectancy
Theory
Improving Expectancy
Improving Instrumentality
Improving Valence
Improve the ability of the
Increase the individual ’s belief that
Make sure that the reward is
individual to perform
performance will lead to reward
meaningful to the individual
• Make sure employees have skills
for the task
• Provide training
• Assign reasonable tasks and goals
• Observe and recognize performance
• Deliver rewards as promised
• Indicate to employees how previous
good performance led to greater
rewards
• Ask employees what rewards they
value
• Give rewards that are valued
Goal-Setting Theory

The theory that specific and difficult goals lead
to higher performance.


Goals tell an employee what needs to be done and
how much effort will need to be expended.
 Specific goals increase performance
 Difficult goals, when accepted, result in higher
performance than do easy goals
 Feedback leads to higher performance than does
nonfeedback.
Specific hard goals produce a higher level of output
than does the generalized goal of “do your best.”
 The specificity of the goal itself acts as an internal
stimulus.
Management by Objectives

A program that encompasses
Specific goals
 Participative decision-making
 Explicit time period
 Performance feedback

Summary so far …
What is motivation?
 Needs theory of motivation

Maslow’s Hierarchy
 Motivation-Hygiene Theory


Process Theories of Motivation
Expectancy Theory
 Goal-setting Theory
 Management by Objectives

Responses to the Reward System
Two more theories of motivation
Equity Theory
 Fair Process

Equity Theory
Individuals compare their job inputs
and outcomes with those of others and
then respond so as to eliminate any
inequities.
 Equity theory recognizes that
individuals are concerned not only with
the absolute amount of rewards for
their efforts, but also with the
relationship of this amount to what
others receive.

Exhibit 4-7 Equity Theory
Ratio of Output to Input
Person 1
Person 1’s
Perception
Inequity, underrewarded
Person 2
Person 1
Equity
Person 2
Person 1
Inequity, overrewarded
Person 2
Responses to Inequity
Change Inputs
 Change Outcomes
 Adjust Perceptions of Self
 Adjust Perceptions of Others
 Choose a Different Referent
 Leave the Field

Fair Process and Treatment

Historically, equity theory focused on:


Distributive justice
However, equity should also consider

Procedural justice
Fair Process

Distributive Justice


Procedural Justice


Perceived fairness of the amount and allocation of
rewards among individuals
Perceived fairness of the process used to
determine the distribution of rewards
Interactional Justice

The quality of the interpersonal treatment received
from another
Summary of motivation theories …

Needs theories of motivation



Process Theories of Motivation




Maslow’s Hierarchy
Motivation-Hygiene Theory (Hertzberg)
Expectancy Theory
Goal-setting Theory
Management by Objectives
Equity Theory
 Fair Process Theory
Group Exercise on Motivation
Theories

Jesse has been underperforming at work,
coming in late, and causing some problems
with the other workers. Previously Jesse has
been one of your star employees. Using the
theory assigned to your group, explain what
steps you might take to motivate Jesse to
perform better.


Describe the plan
Indicate how the plan relates to the theory
Theories to Apply
Herzberg Motivation-Hygiene (TwoFactor) Theory
 Expectancy Theory
 Goal-Setting Theory
 Equity Theory
 Fair Process Theory

Motivating to Show People
Matter

Employee Recognition Programs


Linking Programs and Reinforcement Theory


Programs that use multiple sources and recognizes
both individual and group accomplishments.
Consistent with reinforcement theory, rewarding a
behaviour with recognition immediately following
that behaviour is likely to encourage its repetition.
Employee Recognition Programs in Practice

In contrast to most other motivators, recognizing an
employee’s superior performance often costs little
or no money, making them highly attractive to
industry.
Variable Pay Programs

A portion of an employee’s pay is based on
some individual and/or organizational
measure(s) of performance.

Individual-based



Piece-rate wages, bonuses
Workers are paid a fixed sum for each unit of
production completed.
Group-based

Gainsharing: an incentive plan where improvements
in group productivity determine the total amount of
money that is allocated.
Variable Pay Programs

Organizational-based


Profit-sharing: organization wide programs that
distribute compensation based on some established
formula designed around a company’s profitability.
Employee stock ownership plans (ESOPs):
company-established benefit plans in which
employees acquire stock as part of their benefits.
Variable-Pay Programs

Linking variable-pay plans and expectancy
theory


Evidence supports the importance of this linkage,
especially for operative employees working under
piece-rate systems.
Group and organization wide incentives reinforce
and encourage employees to sublimate personal
goals for the best interests of their department or
organization.
Rewards for Other Types of
Performance

Commissions beyond sales


Leadership effectiveness


Customer satisfaction and/or sales team outcomes,
such as meeting revenue or profit targets.
Employee satisfaction, or how the manager
handles his or her employees.
New goals

All employees who contribute to specific
organizational goals, such as customer satisfaction,
cycle time, or quality measures.
Rewards for Other Types of
Performance

Knowledge workers in teams


Performance of knowledge workers and/or
professional employees who work on teams.
Competency and/or skills

Abstract knowledge or competencies—for example,
knowledge of technology, the international business
context, customer service, or social skills.
Management Reward Follies
We hope for …
But we reward …
Teamwork and collaboration
The best individual team members
Innovative ideas and risk taking
Proven methods and not making mistakes
Development of people skills
Technical achievements and
accomplishments
Employee involvement and empowerment
Tight control over operations and resources
High achievement
Another year’s effort
Long-term growth; environmental
responsibility
Quarterly earnings
Commitment to total quality
Shipping on schedule, even with defects
Candour, surfacing bad news early
Reporting good news, whether its true or
not; agreeing with the manager, whether or
not he/she’s right
Why Do Managers Engage in
Reward Follies?

Stuck in old patterns of rewards and
recognition


Don’t look at the big picture


Stick to rewarding things that can be easily
measured
Subunits compete with each other
Focus on short-term results
Cross-Cultural Differences in
Motivation
Canada and US rely on extrinsic rewards
more than other countries
 Japan and Germany rarely use individual
incentives



Japan emphasizes group rewards
China more likely to give bonuses to
everyone
Are Rewards Overrated? Cognitive
Evaluation Theory
Allocating extrinsic rewards for behaviour
that had been previously intrinsically
rewarded tends to decrease the overall
level of motivation.
Abolishing Rewards

Alfie Kohn suggests that organizations should
focus less on rewards, more on creating
motivating environments






Abolish incentives
Re-evaluate evaluation
Create conditions for authentic motivation
Collaboration
Content
Choice
Summary

Need Theories


Goal Setting Theory


Be aware that individuals differ in their levels and
types of needs
Clear and difficult goals lead to higher levels of
employee productivity.
Expectancy Theory

Offers a relatively powerful explanation of employee
productivity, absenteeism, and turnover.
Summary

Equity Theory



Strongest when predicting absence and turnover
behaviours.
Weakest when predicting differences in employee
productivity.
Cognitive Evaluation Theory

When you give extrinsic rewards for behaviour that
had been previously intrinsically rewarded this can
result in a decrease in the overall level of
motivation.
Implications

Recognize Individual Differences
Employees have different needs.
 Don’t treat them all alike.
 Spend the time necessary to understand
what’s important to each employee.

Use Goals and Feedback
 Allow Employees to Participate in
Decisions That Affect Them

Implications

Link Rewards to Performance


Employees must perceive a clear linkage.
Check the System for Equity
Homework
“Rewards for Workforce Diversity” – page
135
Chose 3 of the employees described in the
case and design a benefits package for
them
Why would your benefit package be best
for motivating them?