Chapter 13 Motivation Learning Outcomes After reading this chapter, you should be able to: 1. Explain the basics of motivation. 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. Copyright © 2015 by Nelson Education Ltd. 13-2 Learning Outcomes After reading this chapter, 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. Copyright © 2015 by Nelson Education Ltd. 13-3 Motivation PERSISTENCE INITIATION DIRECTION GOALS 4 Copyright © 2015 by Nelson Education Ltd. 13-4 4 Basics of Motivation 1 Effort and Performance Need Satisfaction Extrinsic and Intrinsic Rewards Motivating People Copyright © 2015 by Nelson Education Ltd. 13-5 5 A Basic Model of Work Motivation and Performance 1.1 Copyright © 2015 by Nelson Education Ltd. 13-6 6 Job Performance = Motivation (effort put forth on the job) X Ability (capability to do the job) X Situational Constraints (external factors affecting performance) 1.1 Copyright © 2015 by Nelson Education Ltd. 13-7 7 Adding Need Satisfaction to the Model 1.2 Copyright © 2015 by Nelson Education Ltd. 13-8 8 Needs Classification of Different Theories Higher-Order Maslow’s Hierarchy Self-Actualization Esteem Belongingness 1.2 Alderfer’s ERG Growth Relatedness McClelland’s Learned Needs Power Achievement Affiliation Copyright © 2015 by Nelson Education Ltd. 13-9 Needs Classification of Different Theories Lower-Order Maslow’s Hierarchy Safety Physiological 1.2 Alderfer’s ERG Existence McClelland’s Learned Needs Copyright © 2015 by Nelson Education Ltd. 13-10 Adding Rewards to the Model 1.3 Copyright © 2015 by Nelson Education Ltd. 13-11 11 Extrinsic and Intrinsic Rewards • Extrinsic Reward: – A reward that is tangible, visible to others, and given to employees contingent on the performance of specific tasks or behaviours • Intrinsic Reward: – A natural reward associated with performing a task or activity for its own sake 1.3 Copyright © 2015 by Nelson Education Ltd. 13-12 12 Extrinsic Rewards • Companies offer extrinsic rewards in order to get people to do what they wouldn’t otherwise do. • Richard Yerema, managing editor of the Canada’s Top 100 Employers, says: “Create an ownership culture.” • Money is important when it comes to attracting and retaining skilled labour. However, a motivated and productive workplace often hinges on nonfinancial strategies and incentives that boost morale, productivity, and quality of work life. 1.3 Copyright © 2015 by Nelson Education Ltd. 13-13 13 Instrinsic Rewards • Intrinsic rewards are the natural rewards associated with performing a task or activity for its own sake. • Examples: – A sense of accomplishment or achievement – A feeling of responsibility – The chance to learn something new or interact with others – The fun that comes from performing an interesting, challenging, and engaging task 1.3 Copyright © 2015 by Nelson Education Ltd. 13-14 14 Class Activity: Extrinsic and Intrinsic Motivators Beyond the Book • What are some of your intrinsic and extrinsic motivators for your education and future career? • Discuss as a class. Copyright © 2015 by Nelson Education Ltd. 13-15 15 Class Activity: Praise Beyond the Book • How do you respond to praise? • How exactly does it motivate you? • Can one be motivated by praise without being a “glory seeker”? • Discuss your answers in small groups. Copyright © 2015 by Nelson Education Ltd. 13-16 16 Motivating with the Basics 1. 2. 3. 4. 1.4 Ask employees what their needs are. Satisfy lower-order needs first. Expect people’s needs to change. Create opportunities for employees to satisfy higher-order needs. Copyright © 2015 by Nelson Education Ltd. 13-17 17 Class Activity: What Motivates Us Beyond the Book Watch the video What Motivates Us. The video discussed three factors that lead to better performance and personal satisfaction: 1. Autonomy: 24 hours to work on whatever with whomever (i.e., Atlassian) 2. Mastery: highly skilled people work for free and give away their creation (i.e., Wikipedia) 3. Purpose: people want to be inspired–profit and purpose motives must be related (i.e., Apeoplee’s goal is to make a ding in the universe) What did you learn? Copyright © 2015 by Nelson Education Ltd. 13-18 18 How Perceptions and Expectations Affect Motivation • Equity Theory: People will be motivated when they perceive that they are being treated fairly. • The average CEO now makes 364 times more than the average worker. 2 Copyright © 2015 by Nelson Education Ltd. 13-19 19 Components of Equity Theory Outcome / Input (O/I) Ratio = Outcomesself = Outcomesreferent Inputsself Inputsreferent Under-reward Over-reward 2.1 Copyright © 2015 by Nelson Education Ltd. 13-20 20 Adding Equity Theory to the Model 2.2 Copyright © 2015 by Nelson Education Ltd. 13-21 21 Motivating with Equity Theory 1. Start by looking for and correcting major inequities. 2. Reduce employees’ inputs. 3. Make sure the decision-making processes are fair. 2.3 Copyright © 2015 by Nelson Education Ltd. 13-22 22 Fair Decision-Making Processes Distributive Justice: • The perceived degree to which outcomes and rewards are fairly distributed or allocated Procedural Justice: • The perceived fairness of the process used to make reward allocation decisions 2.3 Copyright © 2015 by Nelson Education Ltd. 13-23 23 Class Activity: How People Perceive Inequity? Beyond the Book Are perceptions of equity culturally bound? Copyright © 2015 by Nelson Education Ltd. 13-24 24 Components of Expectancy Theory Valance: • Attractiveness or desirability of various rewards or outcomes Expectancy: • Perceived relationship between effort and performance Instrumentality: • Perceived relationship between performance and rewards 3.1 Copyright © 2015 by Nelson Education Ltd. 13-25 25 Adding Expectancy Theory to the Model Copyright © 2015 by Nelson Education Ltd. 13-26 26 Motivating with Expectancy Theory 1. Find out what employees want from their jobs. 2. Link rewards to individual performance in a clear and understandable way to employees. 3. Empower employees to make decisions. 3.2 Copyright © 2015 by Nelson Education Ltd. 13-27 27 Class Activity: Class Expectations Beyond the Book • Have your expectations for this class (and whether they have been met) influenced your attendance, investment of time and money, or performance? • If so, how? If not, why not? • What motivates you to continue to learn and do your work? Copyright © 2015 by Nelson Education Ltd. 13-28 28 Reinforcement Theory • Reinforcement: – The process of changing behaviour by changing the consequences that follow behaviour • Reinforcement Theory: – Behaviours followed by positive consequences will occur more frequently, and behaviours followed by negative consequences, or not followed by positive consequences, will occur less frequently. 4 Copyright © 2015 by Nelson Education Ltd. 13-29 29 Reinforcement Theory • Reinforcement Contingencies: – The cause-and-effect relationships between the performance of specific behaviours and specific consequences • Schedule of Reinforcement: – The set of rules regarding reinforcement contingencies, such as which behaviours will be reinforced, which consequences will follow those behaviours, and the schedule by which those consequences will be delivered 4 Copyright © 2015 by Nelson Education Ltd. 13-30 30 Components of Reinforcement Theory Positive Reinforcement: • Strengthens behaviour by following behaviours with desirable consequences Negative Reinforcement: • Strengthens behaviour by withholding an unpleasant consequence when employees perform a specific behaviour 4.1 Copyright © 2015 by Nelson Education Ltd. 13-31 Components of Reinforcement Theory Punishment: • Weakens behaviour (i.e., decreases its frequency) by following behaviours with undesirable consequences Extinction: • A positive consequence is no longer allowed to follow a previously reinforced behaviour. 4.1 Copyright © 2015 by Nelson Education Ltd. 13-32 Adding Reinforcement Theory to the Model Copyright © 2015 by Nelson Education Ltd. 13-33 33 Reinforcement Schedules Continuous • Follows every instance of a behaviour 4 Intermittent • Consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviours has occurred. Copyright © 2015 by Nelson Education Ltd. 13-34 -34 Intermittent Reinforcement Schedules Interval (time) Ratio (behaviour) 4.2 Fixed Consequences follow behaviour after a fixed time has elapsed. Consequences follow a specific number of behaviours. Variable Consequences follow behaviour after different times, some shorter and some longer, that vary around a specific average time. Consequences follow a different number of behaviours, sometimes more and sometimes less, that vary around a specified average number of behaviours. Copyright © 2015 by Nelson Education Ltd. 13-35 35 Motivating with Reinforcement Theory 1. 2. 3. 4. 5. 4.3 Identify Measure Analyze Intervene Evaluate Copyright © 2015 by Nelson Education Ltd. 13-36 36 Components of Goal-Setting Theory • Goal: – A target, objective, or result that someone tries to accomplish • Goal-Setting Theory: – A theory that states that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement • Goal Specificity: – Extent to which goals are detailed, exact, and unambiguous 5.1 Copyright © 2015 by Nelson Education Ltd. 13-37 37 Components of Goal-Setting Theory • Goal Difficulty: – Extent to which a goal is hard or challenging to accomplish • Goal Acceptance: – Extent to which people consciously understand and agree to goals • Performance Feedback: – Information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a goal 5.1 Copyright © 2015 by Nelson Education Ltd. 13-38 38 Feedback Leads to Stronger Motivation 1. Encourages employees who don’t have specific, challenging goals to set goals to improve their performance 2. Encourages employees to set higher, more difficult goals 3. Makes employees aware if they need to increase their efforts or change strategies in order to accomplish their goals 5.2 Copyright © 2015 by Nelson Education Ltd. 13-39 39 Adding Goal-Setting Theory to the Model Copyright © 2015 by Nelson Education Ltd. 13-40 40