Motivation Outline • What is Motivation? • Content Theories • Goal Setting Theory • Expectancy Theory • Organizational Justice • Applied Motivation Practices Motivation • • Result of interaction of individual and situation • • Motivated employees are willing to exert a particular level of effort (intensity) for a certain period of time (persistence) toward a particular goal (direction) Content Theories of Motivation • Explain the dynamics of employee needs and why people have different needs at different times • Content (Needs) Theories – Maslow’s Needs Hierarchy Theory – Herzberg’s Two Factor Theory • Motivation-Hygiene Theory – Alderfer’s ERG Theory – McClelland’s Theory of Needs Maslow’s Needs Hierarchy Theory • There is a hierarchy of five needs within every human being Self-actualization Esteem Social Safety Physiological Maslow’s Needs Hierarchy Theory (cont’d) Self-actualization Esteem • Social – As each of the needs becomes substantially satisfied, the next need becomes dominant Safety Physiological • Although no need is ever fully gratified, a substantially satisfied need no longer motivates • If we want to motivate someone, according to Maslow, we need to understand what level of the hierarchy that person is currently on Alderfer’s ERG Theory • Revision of Maslow’s theory • Three groups of core needs – Existence need: Maslow’s physiological and safety needs – Relatedness: Maslow’s Social Needs – Growth: Maslow’s esteem and self-actualization needs • • – If we are unable to satisfy a higher need, we become frustrated and regress back to the next lower need level Herzberg’s Two Factor Theory • • Certain job characteristics (i.e., motivators) tend to be consistently related to job satisfaction and others (i.e. hygiene) to job dissatisfaction – Motivators include recognition, personal growth, whereas – Hygiene factors include job security, working conditions, etc • To motivate people, managers need to emphasize intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it • Removing hygiene factors from a job does not necessarily make the job satisfying McClelland’s Theory of Needs • Focus on three needs – Need for achievement, Need for power, and Need for affiliation • Individuals with a high need for achievement prefer job with high responsibility, feedback, and intermediate degree of risk • • Practical Implications of Content Theories • People have different needs at different times • Offer employees a choice of rewards – a flexible reward/benefits system • Do not rely too heavily on financial rewards – they mainly address lower level needs Organizational Justice • • Explains how people develop perceptions of fairness in the distribution and exchange of resources • Explains what people are motivated to do when they feel inequitably treated • Two major components of organizational justice – • The perceived fairness of the amount and allocation or rewards distributed among people – • The perceived fairness of the process used to determine the distribution of rewards Distributive Justice: Equity Theory • Distributive justice – • Adams (1965) - People appraise rewards in terms of their equitability • Argues that we calculate our outcome/input ratio, which is compared to others. Based on this comparison, we feel equity or inequity – Outcome/input ratio • Inputs - what employee contributes (e.g. skill) • Outcomes - what employees receive (e.g. pay) – Comparison other • Person/people we compare ratio with – Equity evaluation • Compare outcome/input ratio with comparison other Equity Theory (Cont’d) Comparison Other You Outcomes Outcomes Inputs Outcomes Inputs Outcomes Inputs = Inputs Outcomes < Inputs > Outcomes Inputs Equity Theory (Cont’d) • Consequences of Inequity – Changing inputs: less effort – Changing outcomes: ask for more desired outcome – Cognitively distorting perceptions of our inputs and outcomes – Cognitively distorting perceptions of comparison other’s inputs and outcomes – Changing comparison other – Leaving the field: turnover • Manager’s guidelines – Treat people fairly in the distribution of rewards Avoid underpayment Avoid overpayment – Give people a voice in decisions affecting them – Explain outcomes thoroughly using a socially sensitive manner – Be sensitive to feelings of inequity and change reward criteria if employees believe current system is unfair Procedural Justice • • Focuses on the manner in which the decision-making process is conducted • • Fairness of the end result and the fairness of the determining process can be evaluated independently Procedural Justice (Cont’d) • Effects – Satisfaction – Commitment – Citizenship behaviors • Volunteering for extra job activities, helping others, and engaging in similar positive behavior – • Still satisfied because they feel that outcome was reached through a fair process • Remain committed • Employees are likely to view their bosses and the organization as positive Procedural Justice (Cont’d) • Procedures consistent across time • Based on shared standards of the group – Takes into account everyone’s concerns • Procedure is free of bias – Decisions based on accurate information • Interactional Justice • Third Dimension of Organizational Justice • Focus on leader, rather than system. • Quality of the treatment they receive at the hands of decision makers, i.e. leaders • Sub-dimensions – Interpersonal justice: The degree to which leaders treat people with respect and dignity – Informational justice: The degree to which leaders explain the rationale for decisions thoroughly Interactional Justice (Cont’d) • Effects – OCB (Organizational Citizenship Behaviors) – Task Performance – Trust in supervisor and organization – Organizational Commitment – Reduce negative affect and counterproductive work behavior – People respond much more favorably to negative outcomes Goal Setting Theory • One of the most effective and widely practiced theories of motivation • • A goal serves as a motivator because it causes people to compare their present capacity to perform with that required to succeed at the goal. • Goals – The immediate or ultimate objective that employees are trying to accomplish from their work effort Characteristics of Effective Goals Task Effort Task Performance Managers’ Guidelines for Setting Effective Performance Goals… 1. Specific goals > “do your best” or no goals. 8 - 16% increase in performance. Oklahoma lumber camp study. Loggers filled trucks only to 60% of capacity for 3 months. A specific goal challenged them to reach 94%. Dramatic improvement was sustained 7 years after goal was first set. Why Do Vague Goals Result in Lower Performance? • • A much greater range of success can be interpreted • – There is no “benefit of the doubt” with specific goals. Managers’ Guidelines for Setting Effective Performance Goals… 2. 91% of studies found that difficult goals result in better performance than easy goals. 10-16% boost in performance due to goals People work for challenging goals within their limits. As goals become too difficult, performance suffers. Effect of Goal Difficulty on Performance… Task Performance High Low Area of Optimal Goal Difficulty Moderate Challenging Goal Difficulty Impossible Managers’ Guidelines for Setting Effective Performance Goals… 3. Study on pizza delivery drivers. Observed drivers’ stopping habits in 2 towns over 9 months. Experimental group = asked to come to complete stop 75% of time and given feedback over 4 months. Control group = no goal. Results = feedback helped experimental group approach goal until feedback was withdrawn. Joint Effects of Goals and Feedback… 10 9 8 7 6 5 4 3 2 1 0 SD goal DYB goal No Feedback Feedback sample data: weight loss Managers’ Guidelines for Setting Effective Performance Goals… 4. Commitment and acceptance (involve employees). Ability/Self-efficacy. Expectancy Theory • Work effort is directed toward behaviors believed to lead to desired outcomes • Effort: key variable, the individual’s actual exertion of energy E-to-P Expectancy Effort P-to-O Expectancy Performance Outcome Valence Reward Personal Goal Expectancy Theory (Cont’d) • – An individual’s perceived probability that his/her effort will result in a particular level of performance • – An individual’s perceived probability that a specific behavior or performance level will lead to specific outcomes • – The anticipated satisfaction or dissatisfaction that an individual feels toward an outcome • If any of these three components weakens, motivation weaken Expectancy Theory in Practice • Expectancy theory provides clear guidelines for increasing employee motivation • – Training, selection, resources, clarify roles, provide coaching and feedback • – Measure performance accurately, explain how rewards are based on past performance • – Use valued rewards, individualize rewards, minimize countervalent outcomes Applied Motivation Practices • Job Design – Job Specialization – Job Rotation – Job Enlargement – Job Enrichment • • • • Management by Objectives Employee recognition programs Employee involvement programs Rewards systems – Variable pay systems – Skill-based pay systems • Flexible benefits Job Design • Motivation can be enhanced by making jobs more appealing to people • Assigning tasks to a job, including the interdependency of those tasks with other jobs • Employees expected to perform a variety of work (employability) • Approach – – • Job Rotation • Job Enlargement • Job Enrichment: Job Characteristics Model Job Specialization • • Dividing work into separate jobs – Each job now includes subset of tasks necessary to complete the product/service • – Systematically determining how to partition work into smallest elements and how to standardize tasks for maximum efficiency. – Frederick Winslow Taylor (early 1900s) -- advocated job specialization, goal setting, training, person-job matching, individual incentives – Methods-time measurement - systematically observe/measure physical job behavior for work efficiency Job Specialization Advantages • • • • • • Less time changing tasks Job mastered quickly Better person-job matching Disadvantages • • Discontentment pay • Lower quality • Efficient use of the diversity of skills • Job Redesign – Job Rotation – Job Enlargement – Job Enrichment: Job Characteristics Model Job Rotation and Enlargement Job Rotation Job 1 Undergraduate OB Job 2 MBA OB Job 3 PhD OB Seminar Job Enlargement Job 1 Job 2 Job 3 Undergraduate OB MBA OB PhD OB Seminar Undergraduate OB MBA OB PhD OB Seminar Undergraduate OB MBA OB PhD OB Seminar Job Enrichment Strategies • • Empowering employees – giving employees more autonomy – feeling of control and self-efficacy • Forming natural work units – completing an entire task Job Characteristics Model • An approach to job enrichment (Hackman and Oldham) • Jobs can be designed to help people get enjoyment out of their job and to care about the work they do • How jobs can be designed to help people feel that they are doing meaningful and valuable work • Five core job dimensions – Skill variety, task identity, task significance, autonomy, and feedback • – Experienced meaningfulness, experienced responsibility, and knowledge of results Job Characteristics Model (Cont’d) Core Job Characteristics Critical Psychological States Outcomes Skill variety Task identity Task significance Meaningfulness Work motivation Autonomy Responsibility Feedback from job Growth satisfaction Knowledge of results Individual differences General satisfaction Work effectiveness Job Characteristics Model (Cont’d) • Putting it all together – MPS (motivating potential score) • Skill variety + Task identity + Task Significance * Autonomy* Feedback 3 • Summary index of a job’s potential for motivating people • The higher the score for a give job, the greater the likelihood of experiencing the personal and work outcomes specified by the model • Does the model apply to everyone? Management by Objectives (MBO) • Means of using goals to motivate people • Emphasizes converting overall organizational objectives into specific objectives for organizational unit and individual members • Four common components – • mutually set - both top-down and bottom-up – • each goal has specific objectives to meet • each goal has specific time period – • feedback on progress during goal period • Evaluation based on success in meeting the goals which were set Employee Recognition Programs • Basic philosophy – • Often not associated with money – Tangible vs Intangible • Recognition – Source of feedback on performance – Source of rewards for performance – Most powerful motivator • Increase satisfaction • Increase commitment Employee Involvement Plans • A participative process that uses the entire capacity of employees • Designed to increase satisfaction and commitment to the organization • Source of information/knowledge sharing – Allows those above or company to make better decisions • Examples – Participative management, representative participation, quality circle Variable Pay Systems • A portion of individual pay is based on some measure of performance • • Pay becomes variable with the performance of individual, group or organization • • Examples – piece-rate plan – profit sharing – gainsharing Skill-based Pay Plans • Pay levels are based on how many skills the employee has • • Encourages employees to be – continue to learn and grow – work cooperatively with others – more flexible Flexible Benefits • Workforce diversity – • Allow employees to pick from a menu of benefit options • These programs allow Summary • What is Motivation? • Content Theories • Goal Setting Theory • Expectancy Theory • Organizational Justice • Applied Motivation Practices