CHAPTER 9 Motivation Learning Objectives 9-1. Explain what mo.va.on is and why managers need to be concerned about it. 9-2. Describe from the perspec.ves of expectancy theory and equity theory what managers should do to have a highly mo.vated workforce. 9-3. Explain how goals and needs mo.vate people and what kinds of goals are especially likely to result in high performance. 9-4. Iden.fy the mo.va.on lessons that managers can learn from operant condi.oning theory and social learning theory. 9-5. Explain why and how managers can use pay as a major mo.va.on tool. The Nature of Motivation (1 of 4) Mo+va+on The psychological forces that determine the direc.on of a person’s behavior in an organiza.on, a person’s level of effort, and a person’s level of persistence © LWA/Dann Tardif/Blend Images/ Corbis RF The Nature of Motivation (2 of 4) Direc+on Possible behaviors an individual could engage in Effort How hard an individual will work Persistence Whether an individual will keep trying or give up The Nature of Motivation (3 of 4) Intrinsically Mo+vated Behavior Behavior that is performed for its own sake Extrinsically Mo+vated Behavior Behavior that is performed to acquire material or social rewards or to avoid punishment Prosocially Mo+vated behavior Behavior performed to benefit or help others The Nature of Motivation (4 of 4) Outcome • Anything a person gets from a job or an organiza.on • Pay, job security, autonomy, accomplishment Input • Anything a person contributes to his or her job or organiza.on • Time, effort, skills, knowledge, work behaviors The Motivation Equation Figure 9.1 Expectancy Theory Expectancy Theory The theory that mo.va.on will be high when workers believe that high levels of effort lead to high performance and high performance leads to the aNainment of desired outcomes Expectancy Theory (1 of 2) Expectancy A percep.on about the extent to which effort will result in a certain level of performance Instrumentality A percep.on about the extent to which performance results in the aNainment of outcomes Valence How desirable each of the available outcomes from a job or organiza.on is to a person Topics for Discussion (1 of 5) Discuss why two people with similar abili.es may have very different expectancies for performing at a high level. [LO 9-2] Expectancy, Instrumentality, and Valence Figure 9.2 Topics for Discussion (2 of 5) Describe why some people have low instrumentali.es even when their managers distribute outcomes based on performance. [LO 9-2] Expectancy Theory (2 of 2) Figure 9.3 Need Theories Need A requirement or necessity for survival and wellbeing Need Theories • Theories of mo.va.on that focus on what needs people are trying to sa.sfy at work and what outcomes will sa.sfy those needs • Basic premise is that people are mo.vated to obtain outcomes at work to sa.sfy their needs Maslow’s Hierarchy of Needs Level Needs Descrip+on Examples of How Managers Can Help People Sa+sfy These Needs at Work Highest-level needs Self-actualiza+on needs The needs to realize one’s full poten.al as a human being. Giving people the opportunity to use their skills and abili.es to the fullest extent possible. Next to highest-level needs Esteem needs The needs to feel good about oneself and one’s capabili.es, to be respected by others, and to receive recogni.on and apprecia.on. Gran.ng promo.ons and recognizing accomplishments. Medium-level needs Belongingness needs Needs to social interac.on, friendship, affec.on, and love. Promo.ng good interpersonal rela.ons and organizing social func.ons such as company picnics and holiday par.es. Next to lowest-level needs Safety needs Needs for security, stability, and a safe environment Providing job security, adequate medical benefits, and safe working condi.ons. Lowest-level needs (most basic or compelling) Physiological needs Basic needs for things such as food, water, and shelter that must b met in order for a person to survive. Providing a level of pay that enables a person to buy food and clothing and have adequate housing. The lowest level of unsa+sfied needs mo+vates behavior; once this level of needs is sa+sfied, a person +res to sa+sfy the needs at the next level. Herzberg’s Motivation-Hygiene Theory (1 of 2) Herzberg’s Mo+va+on-Hygiene Theory A need theory that dis.nguishes between mo.vator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that mo.vator needs must be met for mo.va.on and job sa.sfac.on to be high Herzberg’s Motivation-Hygiene Theory (2 of 2) Mo+vator needs relate to the nature of the work itself and how challenging it is. Hygiene needs are related to the physical and psychological context in which the work is performed. McClelland’s Needs for Achievement, Affiliation, and Power (1 of 2) Need for Achievement A strong desire to perform challenging tasks well and meet personal standards for excellence McClelland’s Needs for Achievement, Affiliation, and Power (2 of 2) Need for Affilia+on Extent to which an individual is concerned about establishing and maintaining good interpersonal rela.ons, being liked, and having the people around him or her get along with each other Need for Power Extent to which an individual desires to control or influence others Equity Theory (1 of 4) Equity Theory A theory of mo.va.on that focuses on people’s percep.ons of the fairness of their work outcomes rela.ve to their work inputs Equity Theory (2 of 4) Equity Jus.ce, impar.ality, and fairness to which all organiza.onal members are en.tled Inequity Lack of fairness Equity Theory (3 of 4) Table 9.2 Equity Theory (4 of 4) Underpayment Inequity Exists when a person perceives that his or her own outcome–input ra.o is less than the ra.o of a referent Overpayment Inequity Exists when a person perceives that his own outcome–input ra.o is greater than the ra.o of a referent Topics for Discussion (3 of 5) Analyze how professors try to promote equity to mo.vate students. [LO 9-2] Equity and Justice in Organizations (1 of 2) Distribu+ve Jus+ce A person’s percep.on of the fairness of the distribu.on of outcomes in an organiza.on Procedural Jus+ce A person’s percep.on of the fairness of the procedures that are used to determine how to distribute outcomes in an organiza.on Equity and Justice in Organizations (2 of 2) Interpersonal Jus+ce A person’s percep.on of the fairness of the interpersonal treatment he or she receives from whoever distributes outcomes to him or her Informa+onal Jus+ce A person’s percep.on of the extent to which his or her manager provides explana.ons for decisions and the procedures used to arrive at them Goal-Setting Theory Goal-Se_ng Theory Focuses on iden.fying the types of goals that are most effec.ve in producing high levels of mo.va.on and performance and explaining why goals have these effects © Stockbyte/ Punchstock Images RF Topics for Discussion (4 of 5) Describe three techniques or procedures that managers can use to determine whether a goal is difficult. [LO 9-3] Learning Theories (1 of 2) Learning Theories Theories that focus on increasing employee mo.va.on and performance by linking the outcomes that employees receive to the performance of desired behaviors and the aNainment of goals Learning Theories (2 of 2) Learning A rela.vely permanent change in person’s knowledge or behavior that results from prac.ce or experience Operant Conditioning Theory (1 of 3) Operant Condi+oning People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences Operant Conditioning Theory (2 of 3) Posi+ve Reinforcement Giving people outcomes they desire when they perform organiza.onally func.onal behaviors Nega+ve Reinforcement Elimina.ng undesired outcomes when people perform organiza.onally func.onal behaviors Operant Conditioning Theory (3 of 3) Ex+nc+on Curtailing the performance of a dysfunc.onal behavior by elimina.ng whatever is reinforcing them Punishment Administering an undesired or nega.ve consequence when dysfunc.onal behavior occurs Topics for Discussion (5 of 5) Discuss why managers should always try to use posi.ve reinforcement instead of nega.ve reinforcement. [LO 9-4] Social Learning Theory (1 of 3) Social Learning Theory A theory that takes into account how learning and mo.va.on are influenced by people’s thoughts and beliefs and their observa.ons of other people’s behavior Social Learning Theory (2 of 3) Vicarious Learning • Learning that occurs when a learner is mo.vated to perform a behavior by watching another person perform and be reinforced for doing so • Also called observa.onal learning Social Learning Theory (3 of 3) Self-Reinforcer Any desired or aNrac.ve outcome or award that a person can give himself or herself for good performance Self-Efficacy A person’s belief about his or her ability to perform a behavior successfully Pay and Motivation (1 of 2) Pay as a Mo+vator • Expectancy: Instrumentality, the associa.on between performance and outcomes (such as pay), must be high for mo.va.on to be high. • Need Theory: Pay is used to sa.sfy many needs. • Equity Theory: Pay is given in rela.on to inputs. Pay and Motivation (2 of 2) Pay as a Mo+vator • Goal-Secng Theory: Pay is linked to aNainment of goals. • Learning Theory: Outcomes (pay), is distributed upon performance of func.onal behaviors. Merit Pay and Performance Merit Pay Plan A compensa.on plan that bases pay on performance Salary Increase or Bonus? Employee Stock Op+on A financial instrument that en.tles the bearer to buy shares of an organiza.on’s stock at a certain price during a certain period of .me or under certain condi.ons Examples of Merit Pay Plans (1 of 2) Piece-Rate Pay Employee’s pay is based on the number of units that the employee produces. Commission Pay Employee’s pay is based on a percentage of sales that the employee makes. Examples of Merit Pay Plans (2 of 2) Scanlon Plan Focuses on reducing expenses or cucng costs Profit Sharing A share of an organiza.on’s profits