Learning Outcomes • • • • • Describe the motivation process Define needs Explain the hierarchy or needs theory Differentiate Theory X and Theory Y Describe the motivational implications of equity theory (continued) Learning Outcomes (continued) • Explain the key relationships in expectancy theory • Describe how managers can design individual jobs to maximize employee performance • Describe the effect of workforce diversity on motivational practices • Describe how entrepreneurs motivate their employees Motivation and Individual Needs • Willingness • High level of effort • Satisfaction of individual need The Motivation Process (Exhibit 10-1) Unsatisfied Need Search Behaviour Reduction of Tension Tension Drives Satisfied Need Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological Source: Motivation and Personality, Second Edition, by A. H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. Little Ambition Theory X Employees Dislike Work Avoid Responsibility Self-Directed Theory Y Employees Enjoy Work Accept Responsibility The ThreeNeeds Theory Achievement (aAch) Power (nPow) Affiliation (nAff) Equity Theory Perceived Ratio Comparison* Outcomes A < Inputs A Outcomes A Inputs A *Where Inequity (Under-Rewarded) Inputs B = Inputs A Outcomes A Outcomes B Employee’s Assessment Outcomes B Equity Inputs B > Outcomes B Inequity (Over-Rewarded) Inputs B A is the employee, and B is a relevant other or referent. Skill Variety Task Identity JOB DESIGN Task Significance INFLUENCES MOTIVATION Autonomy Feedback Expectancy Theory Individual Effort 1 Individual Performance 2 Organizational Rewards 3 1. Effort-performance relationship 2. Performance-rewards relationship 3. Attractiveness relationship Individual Goals Motivating a Diverse Workforce • Flexibility – Not everyone sees their job the same way- what motivates me may not motivate you • Recognize differences – People are Different • Accommodate – Cultural Differences Pay-for-Performance • Piece rate • Gainsharing • Wage-incentive • Profit-sharing • Bonuses Competency-Based Compensation • Skills • Knowledge • Abilities • Behaviour – I.e. leadership, decision making, problem solving, etc Motivating Minimum-Wage Employees • Employee recognition • Praise • Empowerment Motivating Professional and Technical Employees • • • • • • New assignments Challenges Autonomy Training and educational opportunities Recognition Simplify non-work life Flexible Work Options • Compressed work week • Flex-time • Job sharing • Telecommuting Additional Suggestions for Motivating Employees Recognize individuals Match people to jobs Use goals Make goals attainable Further Suggestions for Motivating Employees Individualize rewards Link rewards to performance Check the system for equity Don’t ignore money Entrepreneurs and Motivation • Motivation for entrepreneurs is critical • Employee empowerment is key motivational tool – Gradual process – Delegation – Job redesign