CHAPTER EIGHT
MOTIVATION
CHAPTER CONTENTS
OVERVIEW OF THE CHAPTER
2
LEARNING OBJECTIVES
2
KEY TERMS
2
LECTURE OUTLINE
3
LEARNING OBJECTIVES REVISITED
12
LECTURE ENHANCERS
13
NOTES FOR TOPICS FOR DISCUSSION AND ACTION
16
NOTES FOR BUILDING MANAGEMENT SKILLS
18
NOTES FOR MANAGEMENT FOR YOU
19
NOTES FOR SMALL GROUP BREAKOUT EXERCISE
19
NOTES FOR MANAGING ETHICALLY
20
NOTES FOR WEB EXERCISES
20
NOTES FOR YOU’RE THE MANAGEMENT CONSULTANT
20
NOTES FOR MANAGEMENT CASE
21
NOTES FOR MANAGEMENT CASE IN THE NEWS FROM THE PAGES OF THE VANCOUVER SUN
22
OVERVIEW OF THE CHAPTER
This chapter describes what motivation is, where it comes from, and why managers need to
promote high levels of it for an organization to be effective and achieve its goals. It examines important
theories of motivation: need theory, expectancy theory, goal-setting theory, equity theory, and
reinforcement theory. Each of these theories provides managers with important insights about how to
motivate organizational members. The theories are complementary in that each focuses on a somewhat
different aspect of motivation. Only by considering all of the theories together will managers gain an
understanding of the many issues and problems involved in encouraging high levels of motivation
throughout an organization. Finally, the chapter considers the use of pay as a motivation tool.
LEARNING OBJECTIVES
1. Explain what motivation is and why managers need to be concerned about it.
2. Describe from the point of view of expectancy theory and equity theory what managers should
do to have a highly motivated workforce.
3. Explain how goals and needs motivate people and what kinds of goals are especially likely to
result in high performance.
4. Explain why and how managers can use pay as a major motivation tool.
KEY TERMS
equity
equity theory
expectancy
expectancy theory
extinction
extrinsically motivated behaviour
goal-setting theory
Herzberg’s motivator-hygiene theory
inequity
instrumentality
intrinsically motivated behaviour
Maslow’s hierarchy of needs
motivation
need theories
need
negative reinforcement
8.2
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
organizational behaviour modification
overpayment inequity
positive reinforcement
process theories
punishment
reinforcement theory
reinforcement
underpayment inequity
valence
LECTURE OUTLINE
A CASE IN CONTRAST: “Motivating Employees at Eastman Kodak and Mars.”
George Fisher of Eastman Kodak, and John and Forrest Mars of Mars Inc. could not have
more different ways of motivating their employees.
I.
THE NATURE OF MOTIVATION.
A.
Motivation may be defined as psychological forces that determine the
direction of a person’s behaviour in an organization, a person’s level of effort
and a person’s level of persistence in the face of obstacles.
B.
People are motivated to obtain certain outcomes.
1.
An outcome is anything a person gets from a job or organization.
a. Some outcomes, such as autonomy or a feeling of accomplishment,
result in intrinsically motivated behaviour.
b.
C.
Other outcomes, such as pay and job security, result in extrinsically
motivated behaviour.
2.
Intrinsically motivated behaviour is behaviour that is performed for
its own sake; the source of motivation is actually performing the
behaviour.
a. The motivation comes from the work itself.
3.
Extrinsically motivated behaviour is behaviour that is performed to
acquire material or social rewards or to avoid punishment.
a. The source of motivation is the consequences of the behaviour, not
the behaviour itself.
Organizations hire people in order to obtain inputs.
1.
Chapter 8 Motivation
An input is anything a person contributes to his or her job or
organization, such as time, effort, skills and work behaviours.
8.3
2.
D.
Managers strive to motivate members of an organization to contribute
inputs that help the organization achieve its goals.
3. Managers use outcomes to motivate people to contribute their inputs to
the organization.
4. Giving people outcomes when they contribute inputs aligns the interests
of employees with the goals of the organization as a whole.
Managers aim to ensure that people:
1.
2.
Are motivated to contribute important inputs to the organization.
That these inputs are put to good use or focused in the direction of high
performance.
3. That high performance results in workers obtaining the outcomes they
desire.
Figure 8.1: “The Motivation Equation” shows the relationship between inputs,
performance and outcomes received by organizational members.
E.
Each of the theories of motivation discussed in this chapter focuses on
aspects of this equation.
Lecture Enhancer 8.1: “Motivation and Creativity”
II.
NEED THEORIES.
A.
Basic Concepts.
1.
2.
3.
A need is a requirement or necessity for survival and well-being.
According to need theories people are motivated to obtain outcomes at
work that will satisfy their needs.
Need theories suggest that, in order to motivate a person to contribute
valuable inputs and perform at high level, managers must:
a. Determine what needs the person is trying to satisfy at work.
b.
Ensure that the person receives outcomes that help to satisfy those
needs when they perform well and help achieve organizational
goals.
4.
B.
These theories provide managers with insights about what outcomes will
motivate members of an organization to perform at high level.
Maslow's Hierarchy of Needs.
1.
8.4
Psychologist Abraham Maslow proposed that all people seek to satisfy
five basic kinds of needs: physiological, safety, belongingness, esteem,
and self-actualization needs.
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
Table 8.1: “Maslow’s Hierarchy of Needs” gives a description and examples of
the five levels of needs.
2.
These constitute a hierarchy of needs with the most basic needs at the
bottom.
a. These lowest-level needs must be met before a person will strive to
satisfy needs higher up in the hierarchy.
b.
3.
4.
5.
Once a need is satisfied, it ceases to operate as a source of
motivation and needs at the next highest level become motivators.
Research does not support Maslow’s contention that there is a need
hierarchy or that only one level of needs is motivational at a time.
A key conclusion still can be drawn: People differ in what needs they
are trying to satisfy at work.
In an increasingly global economy it is important for managers to
understand that citizens of different countries might differ in the needs
they seek to satisfy through work.
a. In poor countries with low standards of living, physiological and
safety needs are likely to be the prime motivators of behaviour.
b.
As countries become wealthier, it is likely that needs related to
personal growth and accomplishment become important as
motivators.
Lecture Enhancer 8.2: Maslow’s Further Study of Motivation
C.
Herzberg’s Motivator-Hygiene Theory.
1.
According to Herzberg’s motivator-hygiene theory, people have two
sets of needs or requirements: motivator needs and hygiene needs.
a. Motivator needs are related to the nature of the work itself and how
challenging it is.
i.
Outcomes such as interesting work, autonomy, responsibility,
and a sense of accomplishment help to satisfy motivator
needs.
ii. Managers should take steps to ensure that employees’
motivator needs are being met.
b.
Chapter 8 Motivation
Hygiene needs are related to the physical and psychological context
in which the work is performed.
i.
Hygiene needs are satisfied by outcomes such as pleasant
working conditions, pay, job security and good working
relationships.
8.5
ii.
When hygiene needs are met, workers will not be dissatisfied.
Figure 8.2: “Herzberg’s Motivation-Hygiene Theory” lists the hygiene factors
and motivators.
2.
3.
4.
For motivation and job satisfaction to be high, motivator needs must be
met.
Many research studies have failed to support Herzberg’s propositions.
Herzberg’s formulations have contributed to understanding of
motivation in at least two ways.
a. Herzberg helped focus managers’ attention on the distinction
between intrinsic motivation and extrinsic motivation.
b.
D.
His theory helped prompt managers to study how jobs can be
designed to be more intrinsically motivating.
Other Needs
1.
More needs than those described motivate employees.
a. For example, need for work-life balance and being exposed to
nature.
2.
E.
Managers of successful companies try to satisfy as many of their valued
employees’ needs as possible.
Process theories focus on more concrete ways of motivating someone.
1.
III.
These include expectancy, goal-setting and reinforcement theories.
EXPECTANCY THEORY.
A.
Victor Vroom’s Expectancy theory states that motivation will be high when
workers believe that high levels of effort will lead to high performance and
high performance will lead to the receiving of desired outcomes.
1.
2.
Expectancy theory is popular because it focuses on all three parts of the
motivation equation.
Expectancy theory identifies three major factors that determine a
person’s motivation:
a. Expectancy.
b.
Instrumentality.
c.
Valence.
Figure 8.3: “Expectancy, Instrumentality, and Valence” diagrams the link
between effort, performance and outcomes.
B.
8.6
Expectancy.
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
1.
Expectancy is a person’s perception about the extent to which effort
will result in a certain level of performance.
a. A person’s level of expectancy determines whether he or she
believes that a high level of effort will result in a high level of
performance.
b.
People are motivated to put forth a lot of effort on their jobs only if
they think that their effort will pay off in high performance.
2.
C.
Managers need to make sure that their subordinates believe that, if they
do try hard, they actually can succeed.
3. Managers can also boost subordinates’ expectancy levels by providing
training so that people have all the expertise they need for high
performance.
Instrumentality.
1.
Instrumentality is a person’s perception about the extent to which
performance at a certain level will result in the attainment of outcomes.
a. Employees will be motivated to perform at a high level only if they
think that high performance will lead to desirable outcomes.
2.
D.
Managers promote high levels of instrumentality when they clearly link
performance to desired outcomes.
3. When outcomes are linked to performance, high performers receive
more outcomes than low performers.
Valence.
1.
D.
Expectancy theory acknowledges that people differ in the preferences
for outcomes.
2. Valence refers to how desirable each of the outcomes available from a
job or organization is to a person.
3. To motivate organizational members, managers need to determine which
outcomes have high valence for them.
Bringing It All Together.
1.
2.
3.
Chapter 8 Motivation
High motivation results from high levels of expectancy, instrumentality,
and valence.
If any one factor is low, motivation will be low.
Managers should strive to ensure that employees’ levels of expectancy,
instrumentality, and valence are high so that they will be highly
motivated.
8.7
Figure 8.4: “Expectancy Theory” shows the conditions leading to high motivation
according to this theory.
IV.
GOAL-SETTING THEORY.
A.
Ed Locke and Gary Latham’s goal setting theory suggests that the goals that
organizational members strive to attain determine their motivation and
performance.
1.
B.
A goal is what a person is trying to accomplish through his or her
efforts.
In order to result in high motivation and performance, goals must be specific
and difficult.
1.
2.
3.
4.
V.
Specific goals are often quantitative.
Difficult goals are hard but not impossible to attain.
It is important that their subordinates accept the goals managers set and
that they are committed to them.
Also, it is important for organizational members to receive feedback
about how they are doing.
REINFORCEMENT THEORY.
A.
Reinforcement theory is a motivation theory that looks at the relationship
between behaviour and its consequences.
1.
B.
Reinforcement is defined as anything that causes a certain behaviour to
be repeated or stopped.
Positive reinforcement gives people outcomes they desire when they
perform well.
1.
C.
Desired outcomes, positive reinforcers, include any outcomes that a
person desired.
2. By linking positive reinforcers to positive performance managers
motivate people to perform desired behaviours.
Negative reinforcement is eliminating or removing undesired outcomes
when people perform organizationally functional behaviours.
1.
2.
3.
4.
8.8
Managers using negative reinforcement actually eliminate undesired
outcomes once the functional behaviour is performed.
Undesired outcomes are called negative reinforcers.
People are motivated to perform behaviours because they want to avoid
undesired outcomes.
Managers should try to use positive reinforcement.
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
5.
D.
The use of negative reinforcement sometimes causes subordinates to
resent managers and try to get back at them.
Extinction.
1.
2.
E.
Sometimes workers are motivated to engage in poor performance.
Extinction is curtailing the performance of dysfunctional behaviours by
eliminating whatever is reinforcing them.
Punishment.
1.
F.
When employees are performing behaviours that are dangerous, illegal
or unethical, the behaviour needs to be stopped immediately.
2. Punishment is administering an undesired or negative consequence
when dysfunctional behaviour occurs.
3. Punishment, however, can have some unintended side effects—
resentment, loss of self-respect, a desire for retaliation—and should be
used only when absolutely necessary.
Organizational Behaviour Modification.
1.
Organizational behaviour modification (OB MOD) is the systematic
application of operant conditioning techniques to promote the
performance of organizationally functional behaviours and discourage
the performance of dysfunctional behaviours.
2. OB MOD has been successfully used to improve productivity,
efficiency, punctuality, and other important behaviours.
3. It works best for behaviours that are specific, objective, and countable.
4. OB MOD may be questioned because of its lack of relevance to certain
kinds of work behaviours.
5. People also have questioned it on ethical grounds.
6. Supporters counter that it is a highly effective means of promoting
organizational efficiency.
Figure 8.5: “Five Steps in OB MOB” provides a flow chart of the steps in OB
MOD and examples of each step.
VI.
EQUITY THEORY.
A.
Equity theory is a theory of motivation that concentrates on people’s
perception of the fairness of their work outcomes relative to their work
inputs.
1.
B.
Equity theory focuses on how people perceive the relationship between
the outcomes they receive and the inputs they contribute.
Equity.
Chapter 8 Motivation
8.9
1.
C.
Equity exists when a person perceives his or her own outcome/input
ratio to be equal to a referent’s outcome/input ratio.
2. The referent could be another person or group who are perceived to be
similar to oneself, or oneself in a previous situation.
3. Under conditions of equity, if you receive more outcomes than a
referent, then your inputs are perceived to be proportionately higher.
4. One’s perceptions of outcomes and inputs, not any objective indicator of
them, are key.
5. When equity exists, people are motivated to continue contributing their
current levels of inputs in order to receive their current levels of
outcomes.
Inequity.
Inequity exists when a person’s outcome/input ratio is not perceived to
be equal to a referent’s.
2. Inequity creates pressure or tension inside people and motivates them to
restore equity by bringing the two ratios back into balance.
3. Underpayment inequity exists when a person’s own outcome/input
ratio is perceived to be less than that of a referent.
4. Overpayment inequity exists when a person perceives that his or her
own outcome/input ratio is greater than that of a referent.
Table 8.2: “Equity Theory” provides examples of equity, underpayment inequity
and overpayment inequity.
1.
D.
Ways to Restore Equity.
1.
E.
8.10
Both underpayment inequity and overpayment inequity create tension
that motivates most people to restore equity.
2. When people experience underpayment inequity, they may be motivated
to lower their inputs or they may be motivated to increase their
outcomes.
3. When people experience overpayment inequity, they may try to restore
equity by changing their perceptions of their own or their referents’
inputs or outcomes.
4. Experiencing inequity, you might decide that your referent is not
appropriate.
5. When people experience underpayment inequity, they may leave the
organization.
Motivation is highest when as many people as possible in an organization
perceive that they are being equitably treated.
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
VII.
PAY AND MOTIVATION.
A.
Pay is used to motivate entry-level workers, first-level and middle managers,
and even top managers.
Figure 8.6: “How Pay Motivates” illustrates what the five motivation theories
suggest about pay.
B.
How Does Pay Motivate?
1.
2.
3.
4.
5.
Each theory alludes to the importance of pay.
a. Need theories. Pay can be used to satisfy several different kinds of
needs.
b.
Expectancy theory. Pay is an outcome that has high valence for
many people.
c.
Goal-setting theory. Outcomes such as pay should be linked to the
attainment of goals.
d.
Reinforcement theory. The distribution of outcomes such as pay
should be contingent on the performance or organizationally
functional behaviours.
e.
Equity theory. Outcomes such as pay should be distributed in
proportion to inputs.
To promote high motivation, managers should base the distribution of
pay on performance levels so that high performers receive more pay
than low performers.
Managers must decide whether to use salary increases or bonuses.
With variable-pay, such as bonuses, earnings go up and down based on
performance.
In 2002, a survey found that 76% of 191 firms had some sort of
variable-pay plans, up from 43% in 1993. The programs are more
common for non-unionized workers than unionized ones.
VIII. SUMMARY AND REVIEW.
Chapter 8 Motivation
8.11
LEARNING OBJECTIVES REVISITED
Learning Objective 1. Explain what motivation is and why managers need to be concerned about it.
• Motivation may be defined as psychological forces that determine the direction of a person’s
behaviour in an organization, and come from intrinsic or extrinsic sources.
•
People join and are motivated to work in organizations to obtain certain outcomes.
•
Managers seek to ensure that people:
› Are motivated to contribute important inputs to the organization.
› That these inputs are focused in the direction of high performance.
› That high performance results in workers obtaining the outcomes they desire.
Learning Objective 2. Describe from the point of view of expectancy theory and equity theory
what managers should do to have a highly motivated workforce.
• Expectancy theory states that motivation will be high when workers believe that high levels of
effort will lead to high performance and that in turn will lead to attaining desired outcomes.
› Expectancy is a person’s perception about the extent to which effort will result in a certain
level of performance.
› Instrumentality is a person’s perception about the extent to which performance at a certain
level will result in the attainment of outcomes.
› Valence refers to how desirable the outcomes available from a job or organization are.
› High motivation results from high levels of expectancy, instrumentality, and valence.
• Equity theory is a theory of motivation that concentrates on people’s perception of the fairness
of their work outcomes relative to their work inputs.
› Under conditions of equity, if you receive more outcomes than a referent, then your inputs
are perceived to be proportionately higher.
› Both underpayment inequity and overpayment inequity create tension that motivates most
people to restore equity.
› Motivation is highest when as many people as possible in an organization perceive that
they are being equitably treated.
Learning Objective 3. Explain how goals and needs motivate people and what kinds of goals are
especially likely to result in high performance.
• Goal-setting theory focuses on motivating workers to contribute their inputs to their jobs and
organizations.
•
•
In order to result in high motivation and performance, goals must be specific and difficult.
› Specific, difficult goals motivate people to contribute more inputs to their jobs and focus
their inputs in the right direction.
According to need theories people are motivated to obtain outcomes at work that will satisfy
their needs.
› Maslow’s hierarchy of needs suggests that all people seek to satisfy five basic kinds of
needs: physiological, safety, belonging, esteem, and self-actualization needs.
› According to Herzberg’s motivator-hygiene theory, people have two sets of needs or
requirements: motivator needs and hygiene needs.
Learning Objective 4. Explain why and how managers can use pay as a major motivation tool
8.12
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
•
Pay is used to motivate entry-level workers, low-, mid-level, and even top managers.
•
They can distribute a salary increase or a bonus on top of salary.
•
Pay should be based on performance so high performers receive more pay than low performers.
•
The use of variable-pay plans is increasing in Canada, but is more common for non-unionized
than for unionized workers.
LECTURE ENHANCERS
Lecture Enhancer 8.1
MOTIVATION AND CREATIVITY
In a large studio at the headquarters of Hallmark Cards Inc., Robert Hurlburt bent over a potter’s
wheel. His fingers stained with clay, his face clenched in concentration, Hurlburt was completely out of
his element. And in his 17 years at Hallmark, he had never been happier. A metal engraver by trade,
Hurlburt was in the midst of a three-month rotation into an artist’s heaven—carte blanche to do whatever
he wanted to regenerate his creative spirit. After three weeks in the ceramics shop, Hurlburt was
producing pots and vases that looked like the work of a professional. His work likely will only end up on
a shelf at his home, but if Hurlburt’s mood is any indication, Hallmark is likely to see a payoff when he
returns to his regular duties. “It’s given me an opportunity to get back to thinking wild, crazy things,” he
said.
Keeping its artists and writers happy and creative is a top priority at Hallmark, the nation’s largest
greeting card seller with $3.4 billion in sales in 1996. Each Father’s Day, Americans snap up some 99
million cards; Hallmark traditionally captures about 42 percent of the market.
Sabbaticals like Hurlburt’s are only one way Hallmark tries to help workers be creative. Staffers can
desert Hallmark’s midtown Kansas City headquarters for a downtown loft, where teams of writers and
artists get away from phones to exchange ideas. They may spend days in retreat at a farm in nearby
Kearney, Missouri, taking part in fun exercises like building birdhouses.
Some go farther afield, sent by the company on trips overseas to soak up atmosphere and culture. Not
all the methods are high-budget; for the creators of the irreverent Shoebox line, there are free movie
passes and daily screenings of the hippest television shows.
Hallmark isn’t the only greeting company that makes a special effort to tweak and coax and nourish
its creative staff. Its biggest competitor, American Greetings Corp., operates similar programs. No
company, especially one that rely on ideas, can afford to do otherwise, said Calvin Moyer, executive
director of the American Creative Association., a nonprofit group in Hockessin, Del., founded six years
ago to encourage creativity throughout society.
Hiring talented people isn’t enough, Moyer said. “It’s like planting blueberries or apple trees in your
backyard,” Moyer said. “It’ll probably grow and produce fruit but if you fertilize it and prune it, you’ll
have not just fruit but great fruit.”
Massaging Hallmark’s creative staff of about 700 is the responsibility of Marita Wesley-Clough, a
20-year company veteran who was named director of creative strategy about a year ago. Wesley-Clough
sounded like the philosophy major she was in college as she tried to explain her job, describing herself
alternately as a shepherd, a midwife and a water bearer. “It’s sort of like catching the wind,” she said.
“The road to creative strategy isn’t a clear one.”
Nurturing the creative spirit reaches its wackiest heights at the Shoebox Cards division, where a team
of seven writers and four editors usually starts its day by watching a tape of the previous night’s David
Letterman show. They flip through magazines, even work out in the middle of the workday. Sounds like
fun, but there are deadlines. The group is expected to turn out 70 cards a week. To do that, they’ll
generate an average of 150 pieces of writing a day.
Chapter 8 Motivation
8.13
At the end of the day, the staff’s efforts are sifted at a raucous conference led by chief editor Steve
Finken. With a practiced ear for the staff’s reaction, Finken reads each card aloud and swiftly separates
them into two piles. The reject pile is much larger than the save pile.
Hallmark perennially ranks high on lists of the best U.S. companies to work for, and despite a
massive restructuring announced last year to improve efficiency, writers and artists still seem to be
having a great time. But there’s the same pressure as in any other business. Each card’s success is rated
through surveys and information gathered by electronic cash registers, and the staff knows exactly how
well their work is doing.
The appetite for new products must be fed, and the need to be thoughtful, witty, caring, wise and a
dozen other things every day is unceasing. It can be a grind. Hurlburt said he felt his artistic impulses
narrowing after 17 years. When he gets back to work after a few more weeks of puttering, he said, “I
don’t know if I’ll be a better engraver, but I’ll be more creatively applied.”
Lecture Enhancer 8.2
MASLOW’S FURTHER STUDY OF MOTIVATION
Anyone who has taken Psychology 101 knows about Abraham Maslow’s “hierarchy of needs.”
People, Maslow found, strive to fulfill progressively higher levels of need, from nourishment, safety,
love, and esteem to “self-actualization.”
It’s less well known that Maslow, in the early 1960s, also delved deeply into management and
economics. Setting up shop in a Southern California electronics plant, he produced a journal applying the
concept of self-actualization to both the workplace and the marketplace. “This is by far Maslow’s best
book,” says Peter Drucker, perhaps the foremost management authority today. “It had enormous impact
on me.” Yet after a limited run, Maslow’s book slipped into obscurity.
What makes Maslow’s book so special—and why did it vanish? In 1962, a few years after
postulating the hierarchy of needs, the Brandeis University professor took a summer sabbatical at a
company in Del Mar, California, called Non-Linear Systems. The company made voltmeters in a
converted blimp hangar. The owner, Andy Kay, had noticed that workers were most productive at the end
of the line, where the finality of the assembly provided a sense of accomplishment. So Kay broke his
work force into teams, each responsible for an entire product.
Maslow was amazed at the spirit and productivity of the plant and picked up a tape recorder to
capture his reactions. The result was a journal, initially called “Summer Notes.” In these Maslow coined
the phrase “enlightened management” to describe the work conditions leading to self-actualization, or the
achievement of one’s full potential: trust, teamwork and recognition. Teams, he found, made better
workers, and better workers made better teams. Creativity flowed from ambiguity. “Knowledge breeds
knowledge.”
By 1963, Maslow had given mimeographed copies of “Summer Notes” to several fellow academics.
His friend Warren Bennis, a prominent university dean and business theorist, urged him to publish the
journal commercially. “It was very radical for the time,” Bennis recalls. Yet, he adds, “it never caught
on.”
The main reason was a new title. Maslow’s term for a society of self-actualizing people was
“eupsychia,” so he gave his book the ghastly title of “Eupsychian Management, A Journal.” Bennis and
Drucker tried to dissuade him, but Maslow was proud of his wordsmithing. The book did go through
many printings through the early 1970s, but they were small. Only the terms “synergy” and “enlightened
management” endured.
Lecture Enhancer 8.3
RECOGNITION: MAKING HEROES
8.14
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
Rosabeth Moss Kanter, author of the book The Change Masters, has concluded that companies often
make the mistake of equating pay with rewards. Pay is not a reward for outstanding performance, it is
compensation for doing the job in the first place. A reward should be a special gain for special
achievements. Compensation is a right; recognition is a gift.
Recognition—saying thank you in public and perhaps giving a tangible gift along with the words—
has multiple functions beyond simple courtesy. To the employee, recognition signifies that someone
noticed and someone cares. To the rest of the organization, recognition creates role models—heroes—
and communicates the standards: these are the kinds of things that constitute great performance. Kanter’s
management consulting firm has also found a remarkable correlation between recognition and
innovation.
Some basic rules should be followed in handing out praise and recognition:
(1)
Deliver recognition and reward in an open and publicized way. If not made public,
recognition loses much of its impact and defeats much of the purpose for which it is
provided.
(2)
Timing is crucial. Recognize contribution throughout a project. Reward contribution
close to the time an achievement is realized. Time delays weaken the impact of most
rewards.
(3)
Tailor recognition and reward to the unique needs of the people involved. Have several
recognition and reward options to enable managers to acknowledge accomplishment in
ways appropriate to the particulars of a given situation.
(4)
Deliver recognition in a personal and honest manner. Avoid providing recognition that
is too “slick” or overproduced.
(5)
Strive for clear, unambiguous, and well-communicated connection between
accomplishments and rewards. Be sure people understand why they receive awards and
the criteria used to determine rewards.
(6)
Recognize recognition. That is, recognize people who recognize others for doing what is
best for the company.
Celebrating and publicizing employee achievements need not be expensive. Professor Kanter
suggests some simple, low-cost ways to make employees “heroes,” such as having coffee with an
employee or group of employees that you do not normally see, or letting employees attend important
meetings in your place when you’re not available.
Others:
(1)
Send a letter to every team member at the conclusion of their work, thanking them for
their contribution.
(2)
Mention an employee’s outstanding work or ideas during your staff meetings or at
meetings with your peers and management.
(3)
Create a “Best Accomplishments of the Year” booklet, and include everyone’s picture,
name, and statement of their best achievement.
(4)
Show a personal interest in employees’ development and career after a special
achievement, asking them how you can help them take the next step.
(5)
Invite employees to your home for special celebrations, and recognize them in front of
their colleagues and spouses.
Chapter 8 Motivation
8.15
NOTES FOR TOPICS FOR DISCUSSION AND ACTION
1.
Interview four people who have the same kind of job (such as salesperson, waiter/waitress, or
teacher), and determine what kinds of needs they are trying to satisfy at work.
A requirement or necessity for survival and well-being is called a need. People are motivated to
obtain outcomes at work that will satisfy their needs.
Four waitresses at a mid-priced restaurant were asked about the kinds of needs they are trying to
satisfy at work. Each woman said that they were working to pay their rent and bills, which is a
physiological need as described by Maslow. Two waitresses are working part-time while they go to
school and are not looking to make waitressing a career. The other two are full-time waitresses who
desire the security and stability (or safety needs described by Maslow) of a secure income under safe
working conditions.
Besides these “lower level” needs, the waitresses admitted that they valued the friendships they had
made in the restaurant, and enjoyed working there because they liked having interacting with customers,
managers, and other restaurant staff. These needs satisfied through these interactions are called
belongingness needs by Maslow.
One waitress is training to be a manager, and is trying to fulfill the need to improve her skills and
abilities, and engage in meaningful work. This kind of need may be categorized as an esteem need in
Maslow’s hierarchy.
2.
Discuss why two people with similar abilities may have very different expectancies for performing
at a high level.
Expectancy is a person’s perception about the extent to which effort (an input) will result in a
certain level of performance. Two people with similar abilities may have very different expectancies for
performing at a high level. One employee may think that a high level of effort will lead to high
performance, while another may think that a high level of effort will not result in high performance.
These employees may have similar abilities, but their managers may not provide the same motivation for
the two employees. Managers who encourage their employees and express confidence in their ability to
perform at a high level will likely have employees with higher expectancies than managers who do not
encourage or support their employees. Also, the employees may receive different training, another factor
in expectancy level. Managers who provide training to ensure that employees have the expertise needed
for high performance will have employees with higher expectancies than managers who do not provide
training for their employees.
3.
Describe why some people have low instrumentalities even when their managers distribute
outcomes based on performance.
Instrumentalities include perceptions that people have about the extent to which performance at a
certain level will result in the attainment of outcomes. One important aspect of instrumentality is the
linking of outcomes to performance. Employees will only be motivated to perform at a high level if they
think high performance will lead to (is instrumental for attaining) rewards and benefits.
Besides linking outcomes to performance, managers need to clearly communicate this linkage to
subordinates. Managers who only apply the outcome aspect, but do not clearly communicate with
employees on how this works and the steps necessary for employees to achieve desired outcomes, are
missing the other half of the equation. Consequently, these managers may have employees with low
instrumentalities, despite their efforts to base outcomes on performance.
4.
8.16
Describe 3 techniques or procedures that managers can use to determine whether a goal is difficult.
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
A goal is what a person is trying to accomplish through his or her efforts and behaviour. Difficult
goals are hard but possible to attain.
One technique that managers can use to determine whether a goal is difficult is to look at how
many people achieve the goal. If practically everyone achieves a goal, it is likely an easy rather than a
difficult goal. Moderate goals are also more easily attainable than difficult goals, with about half of the
people able to attain these goals. By comparison, difficult goals are those that less than half of the people
attain.
Another technique is for managers to examine how motivation is affected by the goal. Difficult
goals motivate people to contribute more inputs to their jobs. They cause people to put forth high levels
of effort. Difficult goals cause people to be more persistent when they run into difficulties than easy,
moderate, or vague goals. If the goal is having these effects on employee behaviour, it is probably a
difficult goal.
One other technique is to examine the direction toward which employees focus their inputs.
Specific, difficult goals let people know what they should be focusing their attention on. Managers can
determine if employees are developing action plans for helping them to attain the goal and effectively
manage their time. If the goal is motivating this kind of behaviour, it is probably a difficult goal.
5.
Discuss why managers should always try to use positive reinforcement instead of negative
reinforcement.
Positive reinforcement gives people outcomes they want when they perform behaviour that
contributes to organizational effectiveness. Negative reinforcement also encourages members to perform
organizationally effective behaviour, but does this by eliminating or removing undesired outcomes once
the functional behaviour is performed. People are motivated by negative reinforcement because they
want to stop receiving undesired outcomes.
Managers should always try to use positive reinforcement instead of negative reinforcement for a
variety of reasons. Negative reinforcement can make for a very unpleasant workplace characterized by
threats and control. People do not like to be nagged, threatened, or exposed to other negative outcomes as
a “motivation” for doing their jobs. Employees who are subjected to negative reinforcement may resent
their managers and try to get back at them, either through negative evaluations (as with 360 degree
performance appraisals) or sabotage of their work if they quit or are fired.
6.
Analyze how professors try to promote equity to motivate students.
Equity theory is a motivation theory that concentrates on fairness and people’s perception of the
fairness of their work outcomes relative to their inputs. Equity is achieved when a person perceives that
his or her own outcome/input ratio is equal to a referent’s outcome/input ratio.
Professors try to promote equity to motivate students by establishing standards of performance in
their courses. A professor should specify the inputs that will be required for a student to achieve certain
outcomes. For example, the amount of work, effort, class participation, and enthusiasm needed to get an
“A” in a course should be equal for all students. If one student contributes significantly more inputs that
another student, that student should receive a higher grade, or outcome. A student who fails to contribute
even minimal requirements of input should not be allowed to pass the course, a desired outcome. By
standardizing these specifications and refraining from giving some students “special treatment,”
professors can help ensure that students will feel that their input/outcome ratio is equal to a referent’s
ratio, be it another student, or their own ratios in other courses. Motivation is highest when as many
people as possible perceive that they are being equitably treated.
Chapter 8 Motivation
8.17
NOTES FOR BUILDING MANAGEMENT SKILLS
Diagnosing Motivation
(Note to the instructor: Because students will have unique answers for this exercise, the answers
given are helpful for definitions and summaries of the relevant topics.)
1.
What would be your levels of expectancy and instrumentality on this job? Which outcomes would
have high valence for you on this job? What steps would your manager take to influence your
levels of expectancy, instrumentality, and valence?
Expectancy is a person’s perception about the extent to which effort will result in a certain level of
performance. Instrumentality is a person’s perception about the extent to which performance at a certain
level will result in the attainment of outcomes. Valence refers to how desirable each outcome available
from a job or organization is to a person. High expectancy is the belief that a high level of effort will
result in a high level of performance. High instrumentality is the belief that a high level of performance
will result in attainment of desired outcomes. High valence is subjective, and refers to preferences for
certain outcomes over others.
Managers can influence levels of expectancy, instrumentality, and valence. High expectancy can be
encouraged by expressing confidence in employees’ abilities, holding employees to high standards, and
giving employees autonomy and responsibility. Managers can also provide employees with training to
ensure expertise needed for high performance. High instrumentality can be encouraged by linking
performance to outcomes and clearly communicating this linkage to all employees. Managers also need
to determine which outcomes have high valence for organizational members and make sure that those
outcomes are provided when members perform at a high level.
2.
Whom would you choose as a referent on this job? What steps would your manager take to make
you feel that you were being equitably treated? What would you do if, after a year on the job, you
experienced underpayment equity?
A referent is someone to whom comparison is made to determine if treatment is equitable. A
referent could be another person or a group of people who are perceived to be similar to oneself. The
referent could also be a person in a previous job or one’s expectations about what outcome/input ratios
should be.
Employees feel equitably treated when they feel that their outcome/input ratio is equal to a
referent’s outcome/input ratio. Equity has to do with fairness of outcomes relative to inputs. Managers
can help employees feel equitably treated by making sure that those who contribute many inputs are
rewarded with more outcomes than those who contribute fewer inputs. If a person changes one aspect of
his or her ratio, the manager should make sure that the other side of the ratio changes as well. If inputs
increase, outcomes should increase. If inputs decrease, outcomes should decrease as well.
Underpayment equity exists when a person’s own outcome/input ratio is perceived to be less than
that of a referent. This happens when an employee compares him or herself to a referent and feels that he
or she is not receiving the outcomes they should, given their inputs. Equity can be restored by trying to
increase outcomes (asking for a raise, bonus, or time off) or by decreasing the inputs (not staying late or
coming in early, doing fewer tasks), and changing to a more appropriate referent. If these techniques fail,
an employee may choose to leave the organization.
3.
8.18
What goals would you strive to achieve on this job? Why? What role would your manager play in
determining your goals?
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
A goal is what a person is trying to accomplish through his or her efforts and behaviour. Goalsetting theory suggests that to result in high motivation and performance, goals must be specific and
difficult. Goals are usually quantitative, such as an amount of merchandise sold, or time needed to finish
a project.
Managers may be entirely responsible for setting goals, or employees may participate in the setting
of goals to ensure acceptance and commitment to the goals. Regardless of whether specific, difficult
goals are set by managers, workers, or both together, they lead to high levels of motivation and
performance. Managers also contribute to goal-setting by providing feedback about how employees are
doing. This feedback allows both managers and employees to determine progress, and helps them to
reevaluate goals when necessary.
4.
What needs would you strive to satisfy on the job? Why? What role would your manager play in
helping you satisfy these needs?
A need is a requirement or necessity for survival and well-being. Maslow identified five basic
kinds of needs: physiological, safety, belongingness, esteem, and self-actualization needs. Maslow
proposed that people differ in what needs they are trying to satisfy at work. Herzberg focused on two
factors: motivator needs related to the nature of the work, and hygiene needs related to the physical and
psychological context in which the work is performed.
Managers can help employees to satisfy their needs at work by determining which needs a person
is trying to satisfy at work. It is the manager’s responsibility to ensure that the person receives outcomes
that help to satisfy those needs when the person performs at a high level and helps the organization
achieve its goals. By doing these things, managers can motivate employees to perform at a high level.
Managers need to align the interests of individual members with the interests of the organization as a
whole. In addition, Herzberg’s model emphasizes the distinction between intrinsic and extrinsic
motivation, which is important for managers to consider in designing and enriching jobs.
NOTES FOR MANAGEMENT FOR YOU
Responses to this exercise will vary.
NOTES FOR SMALL GROUP BREAKOUT EXERCISE
Increasing Motivation
1.
Discuss the extent to which you believe that you have a motivation problem in your stores.
The conclusion that there is a motivation problem in the stores is a likely one because it is apparent
that employees are capable of doing the work. The fact that customers receive quality service and
treatment when one of the partners is in the store illustrates that employees know how to provide
excellent service, remove most stains, and press difficult items well. The problems occur when one of the
partners is not there, and employees are not motivated to do their best work.
In addition, the problem may not be lack of motivation alone. If customers are waiting a long time
for service, it may be that there are too few employees working at certain times. Employees may be
unable to control the volume and speed of business without more assistance.
2.
Given what you have learned in this chapter, design a plan to increase the motivation of clerks to
provide prompt service to customers even when they are not being watched by a partner.
After determining whether the problem is due to understaffing, a plan for motivating clerks can be
devised. An effective plan would include specification of the desired behaviour, such as “attend to
customers within 30 seconds of their arrival into the store.” The clerks should be involved in setting this
Chapter 8 Motivation
8.19
criterion. This directs clerks’ behaviour to an organizationally functional task. This criteria also serves as
a goal for employees. If the goal is specific and difficult, the clerks should be motivated to contribute
more inputs, such as effort, to their jobs.
Employees should be positively reinforced and rewarded for meeting this criteria. Employees
should also be reinforced for suggesting ways to decrease the amount of time customers wait for service.
The partners should also determine if the clerks believe that they are being equitably treated. If clerks
perceive inequity, their performance will not be at a high level.
3.
Design a plan to increase the motivation of spotters to remove as many stains as possible even
when they are not being watched by a partner.
After determining whether spotters are capable of performing the behaviour, the partners can try to
increase expectancy by expressing confidence in the spotters’ ability to perform at a high level even
when they are not being directly supervised. A plan similar to the one developed for clerks can be applied
to the spotters for increasing motivation to remove as many stains as possible. This plan may include
goal-setting, positive reinforcement, and feedback on performance. Merit pay may also be included, with
spotters receiving bonuses for every week in which no clothes are returned to be re-done.
4.
Design a plan to increase motivation of pressers to do a topnotch job on all clothes they press, no
matter how difficult.
An organizational behaviour modification strategy may be implemented with the pressers. There
may be a reason why the pressers do not do a topnotch job on all clothes. It may be that they are paid for
the number of garments they press, rather than the quality of work that they do. Their pay system should
be changed to reflect an emphasis on quality instead of quantity. A specific behaviour could be
identified, such as to continue working on an item even if the garment is difficult to press. After
determining how many clothing items are returned to be re-pressed, partners could positively reinforce
pressers for having weeks without any garments returned. By switching the pay system to one that
focuses on quality, partners would extinguish the behaviour of giving up on difficult garments. Partners
could then measure how many garments are being returned and determine if this strategy solved the
problem.
NOTES FOR MANAGING ETHICALLY
Responses to this set of questions will differ, based upon the varying experiences of students.
NOTES FOR WEB EXERCISES
As web site information changes, it is best that each instructor check for the most current information
when they assign these exercises.
NOTES FOR YOU’RE THE MANAGEMENT CONSULTANT
Motivating a Team of Marketing Analysts
It would appear that the analysts have little motivation to prepare the reports. There appears to be no
specific reward for preparing the reports, even though they contain important information. Joudin should
talk to the analysts and find out why they are not preparing the reports well and why they are late. After
talking with the employees, and consulting with her boss, she should try to come up with incentives for
the analysts to prepare the reports accurately and on time. Preparing the reports should be part of the
employee's performance appraisal and linked to variable pay increases.
8.20
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
NOTES FOR MANAGEMENT CASE
Motivating with Stretch Targets
CASE SYNOPSIS:
There are many techniques that organizations use to try to motivate employees to perform at a high
level. One technique is the use of stretch targets. Stretch targets are goals set to motivate extraordinary
increases in organizational effectiveness and performance. Instead of setting incremental goals, managers
who use stretch targets set one difficult goal, and allow employees to figure out the best ways to reach
the goal. Employees may set their own intermediary goals, but they are ultimately responsible for
reaching the stretch goal. Some examples of organizations that employ stretch goals are given. Also
illuminated are five reasons why stretch goals are motivating, and why they are successful.
1.
Why do stretch targets result in high levels of motivation and performance?
Stretch goals result in high levels of motivation and performance because they set difficult, specific
goals for employees to attain. Second, managers who set stretch targets make sure that they boost
confidence and expectancy in their employees so that employees believe that their efforts will result in a
high level of performance. To do this, managers concentrate on things employees can control. Managers
who wish to motivate their employees may also increase self-efficacy by showing employees that other
organizations have been able to raise their standards with stretch targets. Managers may go even further
than demonstrating, and may use vicarious learning to allow employees to actually observe and become
motivated by exemplary organizations. The final element is that employees are given considerable
autonomy in deciding how to reach their stretch targets. Often the people closest to the work are the ones
who have the best ideas for improving efficiency and effectiveness. Managers who allow employees to
control their paths toward stretch targets are more successful in attaining their organization’s goals.
2.
How can or should managers respond to employees who complain that a stretch target is
impossible to achieve?
Some employees may complain that a stretch target, which is an ambitious goal, is simply
impossible to achieve. Managers should respond to these employees in a positive way. Managers need to
make sure that employees have the expectancy that their efforts will lead to performance at a high level,
and the instrumentality that their high performance will result in desirable outcomes. Managers can also
boost self-efficacy by showing employees that it is possible to attain the stretch goals, and can
communicate confidence in the employees’ skills and abilities. In addition, managers can explain to
employees that a stretch target is designed to be ambitious and difficult, and it is not supposed to be
achieved immediately. Employees need to understand that they can set their own intermediary goals that
will allow them to make progress toward stretch goals. Managers should positively reinforce all progress
toward stretch goals, and be understanding in their interactions with employees who are working toward
these goals.
3.
In what kinds of situations might it be particularly appropriate for managers to implement stretch
targets?
Situations where employees possess the skills and abilities needed to perform at high levels, but
lack motivation, are particularly appropriate for stretch targets. In these situations, employees may know
what to do, buy may be unsure of the level at which they should be performing. Mature industries with
stable prices are also appropriate situations for stretch targets. In these industries, the focus is less on
constant innovation than on increasing productivity and quality. It may be easier for these industries to
make substantial improvements to existing products and operations than it would be for highly unstable
Chapter 8 Motivation
8.21
industries, such as computer software development and other technology-related fields. The goals that are
set in these organizations may not be as long-term because of the dynamic nature of the field, and the
shifting expectations of consumers and businesses. The technique of setting a long-term goal may not be
as useful.
4.
In what kinds of situations might stretch targets not be such a good idea?
As mentioned above, highly dynamic industries that change rapidly and sometimes suddenly may
have less use for stretch targets. Many companies need to respond to demands in the present and
immediate future. With technology constantly changing and moving, companies need to be flexible in
their goals and may need to set short-term goals that are appropriate for the present.
Another situation that may be inappropriate for stretch targets is one where the employees do not
yet possess the skills, knowledge, and abilities they need to increase efficiency and effectiveness.
Employees who do not have these skills may become frustrated when they cannot achieve what they
believe to be a difficult, long-range goal. In this situation, employees may not have enough experience
and confidence to control their own paths toward goal attainment. They may require guidance and
smaller, more intermediary goals that will allow them to build confidence, self-efficacy, and experience
that will make them more receptive to stretch targets in the future.
NOTES FOR MANAGEMENT CASE IN THE NEWS FROM THE PAGES OF
THE VANCOUVER SUN
Telus Gives Stock Options to All Its Employees
Source: The Vancouver Sun, March 2, 2001, pp. C7, C8.
CASE SYNOPSIS:
Team Telus Options is touted as the first plan to offer stock options to every employee of a
Canadian telecom company. The idea behind the plan is to help Telus create a performance culture.
Some analysts suggest that more giving stock options to all employees does not happen often enough.
Companies that do so, however, have been very successful.
1.
To what extend does rewarding employees with stock options support the motivation theories
presented in this chapter?
With respect to the needs theories, stock options may meet the need for employees to have greater
earnings. Herzberg’s theory would find stock options a hygiene factor rather than a motivator. Maslow
would find money fulfilling some of the lower-order needs.
Equity theory could be used to explain why stock options should be given to both managers and
lower level employees, which is what Telus has done. Many firms just give stock options to managers.
Employees may feel that they are not being treated equitably if they are not given some of the same
opportunities for rewards as managers. By granting stock options, employees have their performance
rewarded in some of the same ways as managers.
Stock options are consistent with expectancy theory: the value of the options is tied to productivity
of the company. However, sometimes firm performance is not directly related to the actions of
individual employees, so they might also find the stock options demotivating, particularly when their
value goes down. Thus, expectancy theory can predict both positive and negative effects of stock
options.
8.22
CONTEMPORARY MANAGEMENT: Instructors’ Resource Manual
2.
To what extent are lower level employees likely to find stock options as motivating as upper
management?
Lower level employees may find stock options less motivating than upper management,
particularly if the value falls, and they feel that they had little or no control over the actions of the
companies that caused the value to fall. Management is more likely to make the decisions that affect
company outcomes, and so the stock options are a closer link to their actions. When the price of stock
options is increasing, however, both lower level employees and upper management may find the options
equally motivating.
Chapter 8 Motivation
8.23