Motivating and
Rewarding Employees
©Prentice Hall, 2001
Chapter 10
1
Learning Outcomes
• Describe the motivation process
• Define needs
• Explain the hierarchy of needs theory
• Compare Theory X and Theory Y
• Examine the motivation-hygiene theory
©Prentice Hall, 2001
Chapter 10
2
Learning Outcomes
• Examine motivation and equity theory
• Explain expectancy theory
• Design jobs to maximize performance
• Discuss workforce diversity and motivation
©Prentice Hall, 2001
Chapter 10
3
The Motivation Process
Unsatisfied
Need
Search
Behavior
Reduction
of Tension
Tension
Drives
©Prentice Hall, 2001
Satisfied
Need
Chapter 10
4
Maslow’s
Hierarchy
of Needs
Self
Esteem
Social
Safety
Physiological
©Prentice Hall, 2001
Chapter 10
5
Little Ambition
Theory X
Workers
Dislike Work
Avoid Responsibility
Self-Directed
Theory Y
Workers
Enjoy Work
Accept Responsibility
©Prentice Hall, 2001
Chapter 10
6
Herzberg’s Two-Factor Theory
Hygiene Factors
• Quality of supervision
• Salary and benefits
• Company policies
• Working conditions
• Relations with others
• Security and status
High
Job Dissatisfaction
©Prentice Hall, 2001
Motivators
• Career advancement
• Recognition
• Work itself
• Responsibility
• Advancement
•Growth
0
Chapter 10
Job Satisfaction
High
7
Need for
Achievement
The Theory
of Needs
(nAch)
Need for
Power
(nPow)
Need for
Affiliation
David
McClelland
(nAff)
©Prentice Hall, 2001
Chapter 10
8
Equity Theory
Employee’s
Perception
Ratio
Comparison*
Outcomes A
<
Inputs A
Outcomes A
Inputs A
*Where
Inequity (Under-Rewarded)
Inputs B
=
Inputs A
Outcomes A
Outcomes B
Outcomes B
Equity
Inputs B
>
Outcomes B
Inequity (Over-Rewarded)
Inputs B
A is the employee, and B is a relevant other or referent.
©Prentice Hall, 2001
Chapter 10
9
Skill Variety
Task Identity
The Job
Characteristics
Model
Task Significance
Autonomy
Feedback
©Prentice Hall, 2001
Chapter 10
10
Examples of High and Low Job Characteristics
Characteristics
Examples
Skill Variety
• High variety
The owner-operator of a garage who does electrical repair, rebuilds engines,
does body work, and interacts with customers
• Low variety
A bodyshop worker who sprays paint eight hours a day
Task Identity
• High identity
A cabinetmaker who designs a piece of furniture, selects the wood, builds the
object, and finishes it to perfection
• Low identity
A worker in a furniture factory who operates a lathe to make table legs
Task Significance
• High significance Nursing the sick in a hospital intensive-care unit
• Low significance Sweeping hospital floors
Autonomy
• High autonomy
A telephone installer who schedules his or her own work for the day, and
decides on the best techniques for a particular installation
• Low autonomy
A telephone operator who must handle calls as they come according to a
routine, highly specified procedure
Feedback
• High feedback
An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly
• Low feedback
An electronics factory worker who assembles a radio and then routes it to a
quality control inspector who tests and adjusts it
©Prentice Hall, 2001
Chapter 10
11
The Job Characteristics Model
Core Job
Dimensions
Skill variety
Task identify
Task significance
Critical
Psychological
States
Experienced
meaningfulness
of the work
Autonomy
Experienced
responsibility
for outcomes
of the work
Feedback
Knowledge of the
actual results of
the work activities
Personal
and Work
Outcomes















High internal
work motivation
High-quality
work performance
High satisfaction
with the work
Low absenteeism
and turnover
Employee Growth
Need Strength
©Prentice Hall, 2001
Chapter 10
12
The Motivating Potential Score
Motivating
=
Potential
Score (MPS)
Skill + Task +
Task
X Autonomy X Feedback
Variety Identity Significance
High MPS Increases
©Prentice Hall, 2001
3
Motivation
Performance
Satisfaction
Chapter 10
and Decreases
Absence
Turnover
13
Expectancy Theory
Individual
Effort
1
Individual
Performance
2
Organizational
Rewards
3
1. Effort-performance relationship
2. Performance-rewards relationship
Individual
Goals
3. Rewards-personal goals relationship
©Prentice Hall, 2001
Chapter 10
14
An Integrative Model of Motivation
High
nAch
Ability
Opportunity
Individual
Effort
Performance
Appraisal Criteria
Individual
Performance
Performance
Appraisal
System
©Prentice Hall, 2001
Equity
Comparison
O
O
IA
IB
Organization
Rewards
Reinforcement
Goals Direct
Behavior
Personal
Goals
Dominant
Needs
15
Contemporary
Motivation Issues
• Workforce diversity
• Pay-for-performance
• Minimum-wage workers
• Professional employees
• Technical workers
©Prentice Hall, 2001
Chapter 10
16
Flexible Work Options
Compressed
Workweek
Job
Sharing
Flextime
Telecommuting
©Prentice Hall, 2001
Chapter 10
17