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OVERVIEW OF THE CHAPTER
This chapter describes what motivation is, the psychological forces that encourage it, 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: expectancy theory, needs theories, equity
theory, goal setting theory, and learning theories. Each of these theories provides managers
with insight concerning the motivation of organizational members. The theories are
complementary, since each approaches the topic from a different perspective. Only by
considering all of the theories together can managers gain a thorough understanding of the
many issues involved in encouraging high levels of motivation throughout an organization.
The chapter closes with a discussion of pay as a motivation tool.
LEARNING OBJECTIVES
1. Explain what motivation is and why managers need to be concerned about it. (LO1)
2. Describe from the perspectives of expectancy theory and equity theory what managers
should do to have a highly motivated workforce. (LO2)
3. Explain how goals and needs motivate people and what kinds of goals are especially
likely to result in high performance. (LO3)
4. Identify the motivation lessons that managers can learn from operant conditioning
theory and social learning theory. (LO4)
5. Explain why and how managers can use pay as a major motivation tool. (LO5)
MANAGER SNAPSHOT: THE CONTAINER STORE
The Container Store has experienced tremendous growth. It has also been continually ranked
among the very best companies to work for in Fortune Magazine’s annual survey of the “100
Best Companies to Work For”. Early on, the company’s co-founders recognized that people
were the organization’s most important asset. After hiring great people, the co-founders’
second most important managerial task was motivating them. While the retail industry
typically has a turnover rate in excess of 70% within its sales force, the Container Store’s is a
fraction of that. As part of Fortune Magazine’s survey, 97% of the employees indicated
“people care about each other here”. Tindell and Boone, the company’s co-founders, created
an environment of high motivation and performance by being clear about what is important in
their organization, enabling employees to be high performers, rewarding them in multiple
ways, creating a fair and stimulating work environment, and treating employees like the
highly capable individuals that they are. According to Fortune’s survey of employees, morale
at The Container Store is ‘exuberant.’
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LECTURE OUTLINE
I. THE NATURE OF MOTIVATION (LO1)
Motivation may be defined as psychological forces that determine the direction of a person’s
behavior in an organization. Motivation is central to management because it explains why
people behave the way they do.

The direction of a person’s behavior refers to the many possible behaviors that
people actually engage in.

Effort refers to how hard people work.

Persistence refers to whether people keep trying or give up when faced with
roadblocks.
Motivation can come from intrinsic or extrinsic sources.

Intrinsically motivated behavior is behavior that is performed for its own sake. The
source of motivation is actually performing the desired behavior, and motivation
comes from doing the work itself.
Ethics in Action: McDonough Protects the Planet
William McDonough, along with his partner, focuses on developing ways for organizations to
produce goods and services in ways that do not produce waste or pollute the natural
environment. Recycling is not enough for them, since products made from recycled materials
retain some of the toxic substances of its raw materials’ origins. Instead, they advocate that
managers adopt the ‘cradle-to-cradle design’ outlined in their recent book. This technique has
been adopted by a unit of Berkshire Hathaway and China’s Housing Industry Association.
William McDonough’s intrinsic motivation comes knowing that he is saving the natural
environment from pollution and waste and also encouraging large corporations and their
managers to do the same.

Extrinsically motivated behavior is behavior that is performed to acquire material or
social rewards, or to avoid punishment.

People can be intrinsically motivated, extrinsically motivated, or both. Whether a
person is intrinsically or extrinsically motivated depends upon a wide vary of factors,
including the worker’s personal characteristics, the nature of the job, and the nature of
the organization.
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
People join and are motivated to work in organizations in order to obtain outcomes.
An outcome is anything a person gets from a job or organization. Some outcomes,
such as autonomy or a feeling of accomplishment, result in intrinsically motivated
behavior. Other outcomes, such as pay and job security, result in extrinsically
motivated behavior.

Organizations hire people in order to obtain inputs. An input is anything a person
contributes to his or her job or organization.

Managers use outcomes to motivate people to contribute their inputs to the
organization. Giving people outcomes when they contribute inputs aligns the interests
of employees with the goals of the organization.

Managers seek to ensure that people 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, and that high performance results in workers obtaining the
outcomes they desire. Each of the theories of motivation discussed in this chapter
focuses on an aspect of this equation.
II.
EXPECTANCY THEORY (LO2)
Expectancy theory posits 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
attainment of desired outcomes. Expectancy theory identifies three major factors that
determine a person’s motivation level: expectancy, instrumentality, and valence.
Expectancy
Expectancy is a person’s perception concerning the extent to which effort will result in a
certain level of performance. 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.

Members of an organization will be motivated to put forth a high level of effort only if
they think that doing so will lead to high performance. Therefore, managers need to
make sure that their subordinates believe that if they try hard, they actually can
succeed.

Managers can also boost subordinates’ expectancy levels by providing training so that
people have the expertise they need for high performance.
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Instrumentality
Instrumentality, the second major concept in expectancy theory, is a person’s perception
concerning the extent to which performance at a certain level will result in the attainment of
outcomes. Employees will be motivated to perform at a high level only if they think that high
performance will lead to desirable outcomes.
Valence
Expectancy theory acknowledges that people differ in their preferences for outcomes.
Valence refers to how desirable each of the outcomes available from a job or organization is
to a person. To motivate organizational members, managers need to determine which
outcomes have high valence for them.
Bringing It All Together
High motivation results from high levels of expectancy, instrumentality, and valence. If any
one factor is low, motivation is likely to be low. Managers should strive to ensure that
employees’ levels of expectancy, instrumentality, and valence are high so that they will be
highly motivated.
III.
NEEDS THEORIES (LO3)
According to needs theories, people are motivated to obtain outcomes at work that will
satisfy their needs. A need is a requirement or necessity for survival and well-being.

Needs theories suggest that, in order to motivate a person to contribute valuable inputs
and perform at high level, a manager must determine what needs the person is trying
to satisfy at work and ensure that the person receives outcomes that help to satisfy
those needs.

There are several needs theories. Each attempts to describe needs that people try to
satisfy at work. In doing so, they provide managers with insights about what outcomes
motivate workers to perform at high levels and contribute outputs to help the
organization achieve its goals.
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Maslow's Hierarchy of Needs
Psychologist Abraham Maslow proposed that all people seek to satisfy five basic kinds of
needs: physiological, safety, belongingness, esteem, and self-actualization needs. These
constitute a hierarchy of needs, with the most basic needs at the bottom.

According to Maslow, the lowest level of unmet needs is the prime motivator of
behavior. Once a need is satisfied, it ceases to operate as a source of motivation. If
and when one level is satisfied, needs at the next highest level will motivate behavior.

Research does not support Maslow’s contention that there is a needs hierarchy or that
only one level of needs can be motivational at a time. However, a key conclusion still
can be drawn from it: People try to satisfy different needs at work.

In an increasingly global economy, it is important for managers to understand that
citizens of different countries often differ in the needs they seek to satisfy though
work.
Herzberg’s Motivator-Hygiene Theory
Frederick Herzberg focuses on two factors: outcomes that can lead to high levels of
motivation and job satisfaction and outcomes that can prevent people from being dissatisfied.
According to Herzberg’s motivator-hygiene theory, people have two sets of needs or
requirements: motivator needs and hygiene needs.

Motivator needs are related to the nature of the work itself and how challenging it is.
Outcomes such as interesting work and responsibility help to satisfy motivator needs.
To have a highly motivated and satisfied workforce, managers should take steps to
ensure that employees’ motivator needs are being met.

Hygiene needs are related to the physical and psychological context in which the work
is performed. Hygiene needs are satisfied by outcomes such as pleasant working
conditions, pay, and job security.

When hygiene needs are not met, workers are dissatisfied. However, satisfying
hygiene needs alone does not result in high levels of motivation or job satisfaction. For
motivation and job satisfaction to be high, motivator needs must also be met.

Many research studies have failed to support Herzberg’s propositions. Nevertheless,
Herzberg’s formulations have contributed to the understanding of motivation in at
least two ways: 1) they helped focus management attention on the distinction between
intrinsic motivation and extrinsic motivation, and 2) they helped prompt managers to
study how jobs can be designed to be more intrinsically motivating.
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McClelland’s Needs for Achievement, Affiliation, and Power
Psychologist David McClelland has extensively researched the needs for achievement,
affiliation, and power.

The need for achievement is the extent to which an individual has a strong desire to
perform challenging tasks well and to meet personal standards of excellence.

The need for affiliation is the extent to which an individual is concerned about
establishing and maintaining good interpersonal relations, being liked, and having
other people around them get along with each other.

The need for power is the extent to which an individual desires to control or influence
others.

Research suggests that having high needs for achievement and power are assets to
first-line and middle managers, and that a high need for power is especially important
for upper managers.

A high need for affiliation may not always be desirable in managers and other leaders
because it might cause them to focus too much on be liked by others, rather than on
high performance.
Other Needs
 Clearly, other needs motivate workers beyond those described by these four theories.
For example, more and more workers are feeling the need for work-life balance. Also,
recent research indicates that having some time during the day when one can view
nature may be another important need.
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Information Technology Byte: High Motivation Rules at the SAS Institute
Right behind the Container Store on Fortune Magazine’s list of Best Places to Work is the
SAS Institute, which ranked number eight in 2004. SAS is the world’s largest privately owned
software company with 8,000 employees worldwide and about $1.1 billion in sales. SAS
employees are highly motivated. They work 35 hours per week in jobs that are intrinsically
motivating and provide economic security. The work environment is pleasant, benefits are
generous, and the company makes work-life balance a priority. Amenities include an on-site
day care center, unlimited sick days, and high chairs in the cafeteria so that employees can
have lunch with their children. Employees are encouraged to use the 200 acres that surround
the company headquarters for family walks and picnics. The CEO believes in treating his
employees as he would like to be treated.
III. EQUITY THEORY
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. It focuses upon how people
perceive the relationship between the outcomes they receive and the inputs they contribute.

According to J. Stacy Adams, who formulated the equity theory, what is important in
determining motivation is the relative rather than the absolute level of outcomes a
person receives and inputs a person contributes.

Motivation is influenced by the comparison of one’s own outcome/input ratio with the
outcome/input ratio of a referent. The referent could be another person or group who
is perceived to be similar to one's self.

One’s perceptions of outcomes and inputs, not any objective indicator of them, are the
determinants of motivation.
Equity
Equity exists when a person perceives his or her own outcome/input ratio to be equal to a
referent’s outcome/input ratio. Under conditions of equity, if a referent receives more
outcomes than you, then the referent contributes proportionately more inputs to the
organization. Therefore, both have the same output/input ratio.

When equity exists, people are motivated to continue contributing their current levels
of inputs in order to receive their current levels of outcomes.
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
Under conditions of equity, if people wish to increase their outcomes, they are
motivated to increase their inputs.
Inequity
Inequity exists when a person’s outcome/input ratio is not perceived to be equal to a
referent’s. Inequity creates pressure or tension inside people and motivates them to restore
equity by bringing the two ratios back into balance.

Underpayment inequity exists when a person’s own outcome/input ratio is perceived
to be less than that of a referent. Overpayment inequity exists when a person
perceives that his or her own outcome/input ratio is greater than that of a referent.
Ways to Restore Equity
Both underpayment inequity and overpayment inequity create tension that motivates most
people to restore equity.

When people experience underpayment inequity, they may be motivated to lower their
inputs or they may be motivated to increase their outcomes.

When people experience overpayment inequity, they may try to restore equity by
changing their perceptions of their own or their referents’ inputs or outcomes.

When experiencing inequities, choosing a more appropriate referent might bring the
ratios back into balance.

When people experience underpayment inequity, they can change their perceptions of
their own or the referents’ inputs or outcomes.

Motivation is highest when as many people as possible in an organization perceive
that they are being equitably treated.
GOAL SETTING THEORY
Goal setting suggests that the goals that organizational members strive to attain are prime
determinants of their motivation. A goal is what a person is trying to accomplish through his
or her efforts.
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
In order to result in high motivation and performance, goals must be specific and
difficult. Specific goals are often quantitative. Difficult goals are hard but not
impossible to attain. Both easy and moderate goals have less motivational power than
difficult goals.

It is important that subordinates accept the goals managers set for them and that they
are committed to them. Also, it is important for organizational members to receive
feedback concerning how they are doing.

Specific, difficult goals motivate people to contribute greater input to their jobs, to be
more persistent, and to focus their inputs in the right direction. The fact that their goals
are specific and difficult frequently causes people to develop action plans for reaching
them.
Research suggests that specific, difficult goals may detract from performance under
certain conditions. When people are performing complicated and very challenging
tasks, difficult goals may actually impair performance. All of a person’s attention must
first be focused on learning the complicated and difficult tasks. Once a person has
learned the tasks, then the assignment of specific, difficult goals is likely to have its
usual effects.

IV.
LEARNING THEORIES (LO4)
Learning theories focus on increasing employee motivation and performance by linking the
outcomes that employees receive to the performance of desired behaviors and the attainment
of goals.

Learning can be defined as a relatively permanent change in a person’s knowledge or
behavior that results from practice or experience.

Learning takes place when people learn to perform certain behaviors to receive certain
outcomes.
Operant Conditioning Theory
According to operant conditioning theory, developed by psychologist B. F. Skinner, people
learn to perform behaviors that lead to desired consequences and learn not to perform
behaviors that lead to undesired consequences.
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
According to Skinner, managers can motivate organizational members to perform in
ways that help an organization achieve its goals by linking the performance of specific
behaviors to specific outcomes.

Operant conditioning theory provides four tools that managers can use to motivate
high levels of performance and prevent workers from engaging in behaviors that
detract from organizational effectiveness, such as absenteeism. Those tools are
positive reinforcement, negative reinforcement, punishment, and extinction.
Positive Reinforcement
 Positive reinforcement gives people outcomes they desire when they perform
organizationally functional behaviors. Desired outcomes, called positive reinforcers,
include any outcomes that a person desires, such as pay, a promotion, or praise.

Organizationally functional behaviors are behaviors that contribute to organizational
effectiveness.
Negative Reinforcement
 Negative reinforcement is the elimination or removal of undesired outcomes when
people perform organizationally functional behaviors.

Undesired outcomes are called negative reinforcers. When negative reinforcement is
used, people are motivated to perform behaviors because they want to avoid undesired
outcomes such as criticism, unpleasant assignments, or the threat of losing their job.

Whenever possible, managers should try to use positive reinforcement, since the use
of negative reinforcement can create an unpleasant work environment and a negative
culture in the organization.
Identifying the Right Behaviors for Reinforcement
 It is important that managers identify the right behaviors for reinforcement. Managers
must be sure to reinforce only those behaviors over which subordinates have control
and that contribute to organizational effectiveness.
Extinction and Punishment
 Managers can curtail dysfunctional behaviors of organizational members by
eliminating whatever is reinforcing those dysfunctional behaviors. This is called
extinction.
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Punishment
 Managers cannot always use extinction as a means of eliminating dysfunctional
behaviors. Sometimes they do not have control over whatever is reinforcing the
undesired behavior or they cannot afford the time needed for extinction to work. In
such cases, punishment may be required.

Punishment is administering an undesired or negative consequence when
dysfunctional behavior occurs. When employees are performing dangerous behaviors
or behaviors that are illegal or unethical, their behavior must be eliminated
immediately. Punishments used by organizations can include verbal reprimands, pay
cuts, or firings.

Sometimes punishment can have unintended side effects, such as resentment, loss of
self-respect, or a desire for retaliation. Therefore, it should be used only when
necessary. To avoid unintended side effects of punishment, managers should: 1)
downplay its emotional aspects, 2) try to punish dysfunctional behaviors as soon after
they occur as possible, and 3) try to avoid punishing in front of others.
Often negative reinforcement and punishment are confused with each other. The
major differences between the two are: 1) negative reinforcement is used to promote
the performance of functional behaviors while punishment is used to stop the
performance of dysfunctional behaviors, and 2) negative reinforcement entails the
removal of a negative consequence while punishment entails the administration of
negative consequences.

Social Learning Theory
Social learning theory extends operant conditioning’s contribution to the understanding of
motivation by explaining vicarious learning, self-reinforcement, and self-efficacy.

Vicarious learning, also called observational learning, occurs when the learner
becomes motivated to perform a behavior by watching another perform it. It is a
powerful source of motivation on many jobs in which people learn to perform
functional behaviors by watching others.

People are more likely to be motivated to imitate the behavior of models that are
highly competent, receive attractive reinforcers, and are friendly. To promote
vicarious learning, managers should ensure that the learner:
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Observes the model performing the behavior.
Accurately perceives the model’s behavior.
Remembers the behavior.
Has the skills and abilities needed to perform the behavior.
Sees or knows that the model is positively reinforced for the behavior.
Self-Reinforcement
Sometimes organizational members motivate themselves through self-reinforcement. Selfreinforcement occurs when people control their own behavior by setting goals for themselves
and then reinforcing themselves when the goal is achieved.

Self-reinforcers are any desired or attractive outcomes or rewards that people can
give to themselves for good performance, such as a dinner out or taking time out for a
golf game.

When members of an organization manage their own behavior, managers do not need
to spend as much time trying to motivate and control behavior.
Self-Efficacy
Self-efficacy is a person’s belief about his or her ability to perform a behavior successfully.
People are not motivated if they do not think that they actually can perform at a high level.
The greater the level of self-efficacy, the greater is the level of motivation and likelihood of
high performance.
V. PAY AND MOTIVATION (LO5)
Managers often use pay to motivate employees to perform at a high level and attain their work
goals. Pay is used to motivate workers at all levels within the organization. It can also be
used to motivate people to join the organization and remain with the organization.

Each of the theories previously discussed in this chapter alludes to the importance of
pay. As these theories suggest, pay should be distributed so that high performers
receive more pay than low performers.

A merit pay plan is a compensation plan that bases pay on performance. Once
managers have decided to use a merit pay plan, they face two important choices: 1)
whether to base pay on individual, group, or organizational performance, and 2)
whether to use salary increases or bonuses.
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Basing Merit Pay on Individual, Group, or Organizational Performance

Managers can base pay on individual, group, or organizational performance. When
individual performance can be accurately determined, individual motivation is likely
to be highest when pay is based on individual performance. When the attainment of
organizational goals hinges on members working closely together, group or
organization based plans may be more appropriate than individual based plans.

It is possible to combine elements of an individual-based plan with a group or
organization based plan so that each individual is motivated, while also motivating all
individuals to work well together.
Salary Increase or Bonus?
Managers can distribute merit pay in the form of a salary increase or a bonus on top of salary.

Bonuses, however, tend to have greater motivational impact because: 1) the absolute
level of salaries are typically based on factors unrelated to current performance, 2) a
salary increase may be affected by other factors in addition to performance, and 3)
salary levels tend to vary less than performance levels.

Bonuses give managers more flexibility because unlike salary increases, bonus levels
can be reduced when organizational performance sags. Bonus plans have a greater
motivational impact than salary increases because the amount of a bonus can be
directly linked to performance and can vary from year to year and from employee to
employee.

In addition to pay raises and bonuses, high-level managers and executives are
sometimes granted employee stock options. Employee stock options are financial
instruments that entitle the bearer to buy shares of an organization’s stock at a certain
period of time or under certain conditions.
Examples of Merit Pay Plans
Managers can choose among several merit pay plans, depending on the work that employees
perform and other considerations.

When using piece-rate pay, managers base employees’ pay on the number of units
each employee produces.

When using commission pay, managers base pay on a percentage of sales.
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
The Scanlon plan focuses on reducing expenses. Organizational members are
encouraged to develop and implement cost cutting strategies, and a percentage of the
cost savings achieved is distributed back to employees.

Under profit sharing, employees receive a share of an organization’s profits.
VII.
SUMMARY AND REVIEW
LECTURE ENHANCERS
Lecture Enhancer 9.1
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 has 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 approximately 99 million cards. Hallmark traditionally captures about 42 percent of
the market.
Sabbaticals like Hurlburt’s are only one way that 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.
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Hallmark isn’t the only greeting company that makes a special effort to tweak, coax, and
nourish its creative staff. Its biggest competitor, American Greetings Corp., operates similar
programs. “No company, especially one that relies on ideas, can afford to do otherwise”, says
Calvin Moyer, executive director of the American Creative Association., a nonprofit group in
Hockessin, Del., that encourages creativity throughout society.
“Hiring talented people isn’t enough”, Moyer said. “It’s like planting blueberries or apple
trees in your backyard. They’ll probably grow and produce fruit but if you fertilize and prune
them, you’ll have not just fruit but great fruit”.
Massaging Hallmark’s creative staff of about 700 is the responsibility of Marita WesleyClough, 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 the day by watching a tape of the
previous night’s David Letterman show. They flip through magazines and sometimes even
work out in the middle of the workday. It sounds like fun, but there are deadlines. The group
is expected to turn out 70 cards per week. To do that, they generate an average of 150 pieces
of writing per day.
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. Despite
massive restructuring to improve efficiency, writers and artists still seem to have a great time.
However, the competitive pressure that is typical of any business exists at Hallmark. 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”.
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Lecturer Enhancer 9.2
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
that applied 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 an enormous impact on me”. Yet after a limited run, Maslow’s book
slipped into obscurity.
What made 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 these reactions. The result was a journal, initially called “Summer Notes”. In these
journals, Maslow coined the phrase “enlightened management” to describe the work
conditions leading to self-actualization, or the achievement of one’s full potential, such as
trust, teamwork, and recognition. Teams, he found, made better workers, and better workers
made better teams. “Creativity flowed from ambiguity and knowledge breeds knowledge”,
said Maslow.
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 its 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 was reprinted several times during the early 1970s, but they were small runs. Only the
terms “synergy” and “enlightened management” endured.
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Lecturer Enhancer 9.3
RECOGNITION: MAKING HEROES
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. 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:






Deliver recognition and reward in an open and publicized way. If not made public,
recognition loses much of its impact and defeats much of its purpose.
Timing is crucial. Recognize contribution throughout a project and reward it close to
the time an achievement is realized. Time delays weaken the impact of most rewards.
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.
Deliver recognition in a personal and honest manner. Avoid providing recognition that
is too “slick” or overproduced.
Strive for a clear, unambiguous, and well-communicated connection between
accomplishments and rewards. Be sure people understand why they receive rewards
and the criteria used to determine rewards.
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.
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Other suggestions include:
 Send a letter to every team member at the conclusion of their work, thanking them for
their contribution.
 Mention an employee’s outstanding work or ideas during your staff meetings or at
meetings with your peers and management.
 Create a “Best Accomplishments of the Year” booklet, and include everyone’s picture,
name, and statement of their best achievement.
 Show a personal interest in the development and career of an employee after a special
achievement by asking them how you can help them take the next step.
 Invite employees to your home for special celebrations, and recognize them in front of
their colleagues and spouses.
MANAGEMENT IN ACTION
Notes for Topics for Discussion and Action
Discussion
1.
Discuss why two people with similar abilities may have very different expectancies for
performing at a high level. (LO1)
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.
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2.
Describe why some people have low instrumentalities even when their managers
distribute outcomes based on performance. (LO2)
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 to employees how this works and the steps necessary 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.
3.
Analyze how professors try to promote equity to motivate students. (LO3)
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.
4. Describe three techniques or procedures that managers can use to determine if a goal is
difficult. (LO3)
A goal is what a person is trying to accomplish through his or her efforts and behavior.
Difficult goals are hard but possible to attain.
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One technique that managers can use to determine if a goal is difficult is to look at the number
of people who 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 behavior, 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 on what they should be focusing their attention.
Managers can determine if employees are developing action plans to help them attain the goal
and effectively manage their time. If the goal is motivating this kind of behavior, it is
probably a difficult goal.
5. Discuss why managers should always try to use positive reinforcement instead of negative
reinforcement. (LO4)
Positive reinforcement gives people outcomes they want when they perform behavior that
contributes to organizational effectiveness. Negative reinforcement also encourages members
to perform organizationally functional behavior, but does this by eliminating or removing
undesired outcomes once the functional behavior 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 create 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
through sabotage of their work, if they quit or are fired.
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Action
6. Interview three 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. (LO3)
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.
Three 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 one is a
full-time waitress who desires the security and stability of a consistent income, along with
safe working conditions. These are safety needs, as described by Maslow.
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. Maslow would call the needs
satisfied through these interactions belongingness needs.
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 is can be categorized as an
esteem need in Maslow’s hierarchy.
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7. Interview a manager in an organization in your community to determine the extent to
which the manager takes advantage of vicarious learning to promote high motivation among
his or her subordinates. (LO4)
Social learning theory considers how learning and motivation are influenced by people’s
thoughts and beliefs and their observations of other people’s behavior. One component of this
theory is vicarious learning. This is a method by which people are motivated by observing
other people perform a behavior and be reinforced for doing so.
Jake Bertram is a manager at men’s clothing store in a large city. He uses vicarious learning
to teach his less experienced salespeople how to interact with customers and sell more
merchandise. The salespeople are paid on commission, and Jake would like to see his
employees sell a lot of clothing to help the store and increase their own paychecks.
Jake has new staff members observe the behavior of highly competent and experienced
salespeople. The new staffers watch the salesperson approach customers, direct them to
certain items, make suggestions, and offer assistance. They accurately perceive this behavior
as leading to higher sales and more repeat business. They then commit this information to
memory and use it when they interact with their own customers. Since the new staffers have
already received formal training, they have the skills and abilities to perform these behaviors.
By observing the experienced salesperson, they see that these behaviors lead to positive
reinforcements such as higher commissions, praise from the store manager, and bonuses and
discounts for clothing.
AACSB standards: 1, 3, 6, 10
NOTES FOR BUILDING MANAGEMENT SKILLS
Diagnosing Motivation (LO 1, 2, 3, 4)
(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?
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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 from 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.
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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 himself 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.
What goals would you strive to achieve on this job? Why? What role would your
manager play in determining your goals?
A goal is what a person is trying to accomplish through his or her efforts and behavior. 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 responsibilities 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.
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5.
What behaviors would your manager positively reinforce for you on this job? Why?
What positive reinforcers would your manager use?
Behaviors targeted for positive reinforcement are usually quantitative. When people perform
organizationally effective behaviors, they are given outcomes they want. Behaviors that are
positively reinforced should be behaviors over which subordinates have control, that is, the
freedom and opportunity to perform the behaviors. These behaviors must also contribute to
organizational effectiveness. Organizationally functional behaviors can include producing
high-quality goods and services, providing high-quality customer service, and meeting
deadlines.
Positive reinforcers are any outcomes that a person desires, and anything that increases the
behavior desired. Specific reinforcers may include time off, bonus pay, praise and
recognition, an interesting assignment, or a promotion.
6.
Would there be any vicarious learning on this job? Why or why not?
Vicarious learning is a component of social learning theory, which proposes that motivation
results not only from the receipt of rewards and punishments but also from a person’s
thoughts and beliefs. Vicarious learning occurs when a person (learner) becomes motivated to
perform a behavior by watching another person (model) perform the behavior and be
positively reinforced for doing so.
Vicarious learning is useful when models are available who are highly competent, are experts
in the behavior, have high status, receive attractive reinforcers, and are friendly or
approachable. The learner must also meet the following conditions: (1) observe the model
performing the behavior, (2) accurately perceive the model’s behavior, (3) remember the
behavior, (4) have the skills and abilities needed to perform the behavior, and (5) see or know
that the model is positively reinforced for the behavior.
7.
To what extent would you be motivated by self-control on this job? Why?
Self-control refers to the self-management of behavior, as opposed to management by a
manager or other superior. People using self-control set goals for themselves and reinforce
them when they achieve their goals.
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One benefit of employees using self-control is that managers do not need to spend as much
time as they ordinarily would trying to motivate and control behavior through the
administration of consequences. Instead, subordinates control and motivate themselves.
Another advantage of self-control is that if frees managers from having to determine which
reinforcers have high valence for employees, and from the job of monitoring the
administration of these reinforcers.
8.
What would be your level of self-efficacy on this job? Why would your self-efficacy be
at this level? Should your manager take steps to boost your self-efficacy? If not, why not? If
so, what would these steps be?
Self-efficacy is a person’s belief about his or her ability to perform behavior successfully.
Even if outcomes have been closely linked to performance, people will not be motivated if
they do not think that they can actually perform at a high level. Employees need to think that
they have the capability to reach goals that they and others set for them. Self-efficacy
influences motivation both when managers provide reinforcement and when workers
themselves provide it. The greater the self-efficacy, the greater is the motivation and
performance.
If managers want to influence employees’ self-efficacy, they need to express confidence in
their employees’ abilities to reach challenging goals. Verbal persuasion may help to increase
self-efficacy as well. Other factors that play a role in determining a person’s self-efficacy
include a person’s past performances and accomplishments, and also the accomplishments of
other people. These accomplishments can serve as benchmarks for measuring one’s own
abilities.
AACSB standards: 1, 3, 6, 10
Managing Ethically (LO5)
(Note to the instructor: Student responses to these questions will vary.)
1. Either individually or in a group, thinks about the ethical implications of closing
linking pay to performance.
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When closing linking pay to performance, the following conditions must exist: a) the worker
must have influence or control over all variables that contribute to improved performance
levels, and b) an objective, easily quantifiable means of assessing the level and quality of
work performance must exist. If either of these conditions is missing, the meritorious element
of the pay-for-performance program can become compromised, and workers will begin to
question its fairness.
2. Under what conditions might contingent pay be most stressful and what steps can
managers take to try to help their subordinates perform effectively and not experience
excessive amounts of stress?
Pay for performance should be something extra, compensation that is above and beyond basic
wages and salaries. Ethically speaking, companies should ensure that they are paying all
employees a basic wage that, at the minimum, allows employees to support their families at a
level above the poverty line. Being forced to rely upon contingent pay to in order to meet
basic physiological or security needs can create excessive amounts of stress in an employee.
Also, failure of management to base incentive determinations on objective performance data
or to encourage two-way communication about other potential problems with a pay-forperformance plan can induce excessive employee stress.
AACSB standards: 1, 2, 6, 7, 10
NOTES FOR SMALL GROUP BREAKOUT EXERCISE
Increasing Motivation (LO 1, 2, 3, 4, 5)
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.
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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 a partner is not watching them.
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 behavior, such as
“attend to customers within 30 seconds of their arrival into the store”. The clerks should be
involved in setting this criterion. This directs clerks’ behavior to an organizationally
functional task. This criterion 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 these 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 a partner is not watching them.
After determining whether spotters are capable of performing the behavior, 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.
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4.
Design a plan to increase the motivation of pressers to do a topnotch job on all
clothes they press, no matter how difficult.
An organizational behavior modification strategy may be implemented with the pressers.
There may be a reason why the pressers fail to 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 behavior 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
pressed a second time, 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 behavior of giving up on difficult garments. Partners could then measure
how many garments are being returned and determine if this strategy solved the problem.
Answers to this question should include the type of merit plan in place, and whether pay is
based on individual, group, or organizational performance. Merit pay may be distributed in
the form of salary increases or bonuses. An example of an individual merit plan is a piece-rate
pay system, with pay based on the number of units each employee produces. Commission pay
is based on a percentage of sales. The Scanlon plan rewards employees with a percentage of
cost savings achieved through cost-cutting strategies. Under profit sharing, employees receive
a share of an organization’s profits.
AACSB standards: 1, 3, 9, 10
Notes for Be the Manager (LO 1, 2, 3, 4, 5)
It would appear that the analysts have little motivation to fill out the forms. There appears to
be no specific reward for filling out the forms, even though they contain important
information on the productivity of each person. You should talk to the analysts and find out
why they are not filling out the forms well and why they are late. After talking with the
employees, and consulting with your boss, you should try to come up with incentives for the
analysts to fill out the forms accurately and on time. Completing the forms should be part of
the employee's performance appraisal and linked to merit increases.
AACSB standards: 1, 3, 9, 10
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BUSINESS WEEK CASES IN THE NEWS
Case Synopsis: A Real Stake in Your Customers
Nancy Kramer, the founder and owner of Resource Interactive, developed a very unique way
to motivate her employees. As a benefit, each employee is given a mini-portfolio, called a
REEF, consisting of one share of each of her marketing agency’s clients. Kramer’s objective
is to keep employees focused on her clients’ businesses. She says, “I wanted our employees to
have the awareness of how clients are pressured. If (the stock price) does go down, what can
we do to help?” This employee benefit costs Kramer $1,337 per employee. She also boosted
employee salaries the first year to offset any income tax hits from their REEF.
Questions:
1. How does Resource Interactive motivate its employees?
Reefs are an example of an extrinsic motivator.
2. How might the Resource Employment Equity Fund (REEF) contribute to employee
motivation?
Because employees have a financial stake in their client companies (albeit a very small one),
they now have a personal stake in seeing it prosper, and thus should be willing to do all they
can to contribute to its prosperity.
3. What behaviors might REEF motivate employees to perform?
Kramer is using Reefs as a positive reinforce. By linking positive reinforcers to the
performance of functional behaviors, managers encourage employees to continue performing
desired behaviors, such as producing high quality service, providing high quality customer
service, and meeting deadlines, according to operant theory.
4. How might REEF boost instrumentalities for employees at Resource Interactive?
According to expectancy theory, employees are motivated to perform at a high level only if
they think that high performance will lead to desired outcomes. If the majority of the firm’s
clients experience an increase in their stock price, employees will benefit financially.
Therefore, employees are motivated to do everything in their power to help their clients
achieve their goals.
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Case Synopsis: Held Hostage by Health Care
An increasing number of American workers feel forced to remain at jobs they would
otherwise leave, according to this article. They cling to their current jobs to retain their
employers’ health insurance coverage although they are unhappy and would be more
productive somewhere else. This phenomenon is called ‘job lock.’ Although the 1986
Consolidated Omnibus Budget Reconciliation Act (COBRA) was designed to remedy this,
only about 7% of persons who lose their job can afford COBRA payments. Medical related
bankruptcies have increased dramatically since 1981, with the middle class accounting for
90% of them. Some feel that the only way to resolve this problem is to permanently sever the
link between jobs and health care.
Questions:
1. How might motivation suffer when employees remain on jobs they do not like because they
fear losing their health insurance?
Job dissatisfaction is linked to a decrease in motivation.
2. Are employees who are ‘locked’ to their jobs because of fear of losing their health
insurance primarily extrinsically motivated or intrinsically motivated?
These employees are extrinsically motivated since the primary reason they are performing
their jobs is to acquire a material benefit.
3. What outcomes likely have high valence for these employees?
It is evident that generous employee benefits have a high valence for these employees.
4. What needs are they motivated to satisfy through their jobs?
According to Maslow, the are motivated by a need for security.
AACSB standards: 1, 3, 9, 10, 12, 13
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Chapter 9 Video Case Teaching Note
Childcare Help and other Work –Life Programs
Teaching Objective: To illustrate the positive impact of work-life programs on the
motivation and performance of employees.
Video Summary: This video explores IBM’s work-life programs and discusses why they
have been successful as a motivational tool. Several employees using these programs,
especially childcare centers, discuss the benefit to their personal lives. IBM managers explain
that the company remains committed to its work-life programs, in spite of tough economic
times and corporate lay-offs.
Questions:
1. To what extent do you think work-life programs, such as flexibility, extended leave,
and employer-supported child or elder care, can motivate employees and contribute to
performance?
Employers have found that such programs are a good investment because they boost
organizational commitment and productivity. “The idea underlying child care and elder care
assistance is to help employees be able to get to work and focus on work”, according to a VP
at Prudential. “Companies with workplace flexibility have employees who are more engaged,
more satisfied with their jobs, more productive and who have better mental health”, according
to a VP at the Families and Work Institute.
2. Do you think that work-life benefits have high valence for most employees? Explain.
Yes, since many employees are seeking relief from the stress that results from attempting
to juggle work and family responsibilities.
3. Employee benefits are often quite costly to companies. Do you think more
organizations will offer them in the future, regardless of economic conditions?
Explain.
Studies have found that many employers have recently reduced benefits with direct costs,
such as contributions to health care, disability insurance, and retirement plans, while keeping
or increasing programs designed to provide work-life support. This shift helps companies to
effectively manage health care costs while continuing to offer benefits that improve the
quality of life for employees.
Jones and George, Essentials of Contemporary Management, Third Edition
9-32