1 3 - 1 Bateman Snell Management Competing in the New Era 5th Edition Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 Part Four Chapter 13 - Motivating for Performance Chapter Outline Setting the Stage - Motivation at Lincoln Electric Motivating for Performance Setting Goals Reinforcing Performance Performance-Related Beliefs Understanding People’s Needs Designing Motivating Jobs Achieving Fairness Job Satisfaction Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 3 Learning Objectives After studying Chapter 13, you will know: the kinds of behaviors managers need to motivate in people how to set challenging, motivating goals how to reward good performance the key beliefs that affect people’s motivation the ways in which people’s individual needs affect their behavior how to create a motivating, empowering job how people assess fairness the causes and consequences of a satisfied workforce Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 4 Motivating For Performance Motivation forces that energize, direct, and sustain a person’ efforts highly motivated people, with adequate ability and understanding of the job, will be highly productive managers must know what behaviors they want to motivate people to exhibit Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 5 Behaviors That Companies Want Employees To Exhibit Join the organization Exhibit good citizenship Achieve high output Companies must motivate workers to: Remain in the organization Come to work regularly Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 6 Setting Goals Goal setting theory people have conscious goals that energize them and direct their thoughts and behaviors toward one end Goals that motivate goals should be acceptable to employees goals should be challenging but attainable goals should be specific, quantifiable, and measurable Limitations of goal setting individualized goals create competition and reduce cooperation single productivity goals interfere with other dimensions of performance Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 7 Reinforcing Performance Law of effect behavior that is followed by positive consequences probably will be repeated Reinforcers positive consequences that motivate behavior Organizational behavior modification (OB Mod) application of reinforcement theory in organizational settings influences people’s behavior and improves performance by systematically managing work conditions and the consequences of people’s actions Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 8 Reinforcing Performance (cont.) Consequences of behavior positive reinforcement - applying valued consequences that increase the likelihood that a person will repeat the behavior that led to it negative reinforcement - removing or withholding an undesirable consequence can involve the threat of punishment punishment - administering an aversive consequence extinction - withdrawing or failing to provide a reinforcing consequence Sometimes the wrong behaviors are reinforced Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 9 The Consequences Of Behavior Positive reinforcement or negative reinforcement Same behavior likely to be repeated Punishment or extinction Same behavior less likely to be repeated Behavior Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 0 Performance-Related Beliefs Expectancy theory proposes that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome - employees’ perception of the likelihood that their efforts will enable them to attain their performance goals instrumentality - perceived likelihood that performance will be followed by a particular outcome valence - value an outcome holds for the person contemplating it expectancy for motivation to be high, expectancy, instrumentalities, and total valence of all outcomes must all be high Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 1 Performance-Related Beliefs (cont.) Expectancy managerial theory (cont.) implications of expectancy theory increase expectancies identify positively valent outcomes make performance instrumental toward positive outcomes Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 2 Basic Concepts Of Expectancy Theory Effort Performance Expectancy Outcome Instrumentality Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 3 Understanding People’s Needs Content theories indicate the kinds of needs that people want to satisfy the extent to which and the ways in which a person’s needs are met or not met affect her/his behavior on the job Maslow’s human need hierarchy needs are organized into five major types physiological - food, water, sex, and shelter safety or security - protection against threat and deprivation social - friendship, affection, belonging, and love ego - independence, achievement, freedom, recognition, and self-esteem self-actualization - realizing one’s potential Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 4 Understanding People’s Needs (cont.) Maslow’s need hierarchy (cont.) postulates that people satisfy these needs one at a time, from bottom to top people motivated to satisfy lower needs before they try to satisfy higher needs once satisfied, a need is no longer a powerful motivator not altogether accurate theory of human motivation nonetheless, made three major contributions identified important need categories helped to think in terms of lower- and higher-level needs increased salience of personal growth and self-actualization Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 5 Understanding People’s Needs (cont.) Alderfer’s ERG theory postulates that people have three basic need sets Existence needs - material and physiological desires Relatedness needs - involve relationships with other people Growth needs - motivate people to productivity or creativity postulates that several different needs can be operating at once has greater scientific support than Maslow’s hierarchy both theories remind managers of the types of reinforcers or rewards that can be used to motivate people Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 6 Comparison Of Maslow’s Need Hierarchy And ERG Theory Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 7 Understanding Poeple’s Needs (cont.) McClelland’s needs achievement - strong orientation toward accomplishment, and obsession with success and goal attainment affiliation - strong desire to be liked by other people power - desire to influence or control other people personalized power - negative force expressed through the manipulation and exploitation of others socialized power - channeled toward the constructive improvement of organizations and societies Need theories: International perspectives need importance varies from country to country not all people are motivated by the same needs Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 8 Designing Motivating Jobs Rewards may be available from the nature of the job extrinsic reinforcers - reinforcement provided to a person by the boss, the company, or some other person intrinsic reward - derived directly from performing the job itself essential to the motivation underlying creativity the result of a challenging problem the result of work that is exciting in and of itself ‘mechanistic’ approach to job design - characterizes a demotivating job highly specialized, simple and routine results in employee dissatisfaction, absenteeism, and turnover Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 1 9 Designing Motivating Jobs (cont.) Job rotation changing from one routine task to another to alleviate boredom can Job benefit everyone when done properly enlargement giving people additional tasks at the same time to alleviate boredom additional Job tasks at the same level of responsibility enrichment changing a task to make it inherently more rewarding, motivating, and satisfying adds higher levels of responsibility Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 0 Designing Motivating Jobs (cont.) Herzberg’s two-factor theory distinguished between two broad categories of factors that affect people working on their jobs hygiene factors - characteristics of the workplace make people unhappy will not make people truly satisfied motivators - characteristics of the job itself when present, jobs presumed to be both satisfying and motivating theory has been widely criticized nevertheless, highlights the distinction between extrinsic and intrinsic rewards reminds managers that worker motivation depends on more than extrinsic rewards Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 1 Designing Motivating Jobs (cont.) The Hackman and Oldham model of job design well designed jobs produce three critical psychological states meaningfulness - believe that work is important to other people responsibility - feel personally responsible for how the work turns out knowledge of results - know how well the job was performed psychological states produced by five core job dimensions skill variety - different job activities involving several skills task identity - completion of a whole, identifiable piece of work task significance - important impact on the lives of others autonomy - independence and discretion in making decisions feedback - information about job performance Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 2 Designing Motivating Jobs (cont.) The Hackman and Oldham model of job design (cont.) effective job enrichment increases all five core dimensions effectiveness of a job enrichment program depends on a person’s growth need strength growth need strength - degree to which individuals want personal and psychological development Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 3 The Hackman And Oldham Model Of Job Design Core Job Characteristics Skill Variety Task Identity Task Significance Autonomy Feedback From Job Critical Psychological States Meaningfulness of Work Responsibility for Work Outcomes Knowledge of Results Outcomes High Internal Motivation High Growth Satisfaction High Job Satisfaction MODERATORS Knowledge and Skill Growth Need Strength Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 4 Designing Motivating Jobs (cont.) Empowerment process of sharing power with employees enhances beliefs about being influential contributors employees perceive meaning in work employees feel competent employees derive a sense of self-determination employees believe they have an impact on important decisions empowering environment information required to perform at one’s best knowledge available about how to use the information employees have the power to make decisions employees receive rewards for contributions provides Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 5 Actions That Empower Employees Increase signature authority at all levels Reduce the number of approval steps Provide more freedom of access to people Provide more freedom of access to resources Reduce the number of rules Specific Actions To Empower Assign nonroutine jobs Allow independent judgment Define jobs more broadly as projects Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 6 Achieving Fairness Equity theory people assess how fairly they have been treated according to two key factors outcomes - various things the person receives on the job inputs - contributions the person makes to the organization people expect the outcomes they receive to be proportional to the inputs they provide people Assessing also pay attention to the outcomes and inputs of others equity Their own Outcomes Outcomes versus Others' Inputs Inputs equity exists when the ratios are equal assessments of equity are subjective perceptions or beliefs Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 7 Achieving Fairness (cont.) Restoring equity inequity causes dissatisfaction and leads to attempts to restore balance to the relationship a variety of behavioral and perceptual options may be used to restore equity alter Person’s ratio reduce inputs - give less effort, perform at lower levels, quit increase outcomes - request higher grade, better pay alter Other’s ratio decrease outcomes increase inputs Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 8 Achieving Fairness (cont.) Fair process procedural justice - using a fair process in decision making and making sure others know that the process was as fair as possible fair processes make unfair outcomes more palatable explain how a decision is made make an unbiased decision offer a chance to voice complaints collaborate in making decision Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 2 9 Job Satisfaction Correlates of job satisfaction job satisfaction is unrelated to job performance the greater the job dissatisfaction: the higher turnover the higher absenteeism the lower corporate citizenship the more grievances and lawsuits the higher the probability of a strike the more likely that stealing and/or vandalism will occur the poorer the mental and physical health of the workers Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 3 0 Job Satisfaction (cont.) Quality of work life (QWL) programs designed to create a workplace that enhances employee well-being organizations differ drastically in their attention to QWL Psychological contracts a set of perceptions of what employees owe their employers, and what their employers owe them has important implications for employee satisfaction/motivation Benefits provided by Contributions provided the organization by the employee versus Benefits promised by Contributions promised the organization by the employee Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1 3 - 3 1 Categories Of Quality Of Life Safe and healthy environment Adequate and fair compensation Socially responsible organizational actions Minimum infringements on personal and family needs Constitutionalism Quality of Work Life Jobs develop human capacities Chance for personal growth and security Supportive social environment Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.