Learning Module 1-Second Semester Freshmen
(Business Human Relations)
After Completing This Chapter You Should Be Able To:
1. Explain the motivation process and the three factors affecting performance.
2. Describe four content motivation theories.
3. Describe two process motivation theories.
4. State how reinforcement is used to increase performance.
5. List the four steps in the giving praise model.
6. Explain the three steps of managing by objectives.
7. State ways to enrich, design, and simplify jobs.
8. Explain possible limitations of using motivation theories outside North America.
A. What is Motivation and Why is it Important?
KT- Motivation is the process of meeting our needs. The motivation process steps include: need-> motive--> behavior--> satisfaction or dissatisfaction. This motivation process is illustrated in
question 1.
Work Application (WA): NOTE: All the work application questions appear in the test bank
so that you can assess students’ ability to apply the concepts to their work world. However,
because student answers will vary, there are no answers in the test bank.
WA 1- Give an example of how you followed the motivation process. Identify the need, motive,
behavior and satisfaction or dissatisfaction.
SA- I had a need for a college education, so I was motivated to apply to different colleges and am
attending Springfield College now (behavior). So far I am satisfied.
1. Why knowing how to motivate employees is important. As was stated earlier, the goal of
human relations is to meet employee needs while achieving organizational objectives. Through
meeting needs employees are motivated to achieve the organization's objectives.
B. How Motivation Affects Behavior, Human Relations, and Performance.
Our needs lead to behavior and interaction with others as we attempt to meet our needs.
1. How motivation affects behavior and human relations. Without motivation performance is
usually below potential. Motivation is one of the three interdependent factors of performance.
The Performance Formula states that performance = ability X motivation X resources. If any one
of these three factors is missing, performance will be adversely affected. EX. There are two
athletes on the college team. One is highly motivated and practices hard on his own, as well as
during team practices; however, he has low ability. A second athlete has high ability but is not
motivated to practice. As a result both athletes and the team do not perform well.
2. How motivation affects performance. The performance formula is useful because it helps one
to determine the cause of low performance, and to take corrective action.
LO 1. Explain the motivation process and the three factors affecting performance.
The motivation process steps are: need--> motive--> behavior--> satisfaction or dissatisfaction.
The three factors affecting performance are in the performance formula: performance = ability X
motivation X resources.
KT- content motivation theories. They focus on identifying people's needs in order to understand
what motivates them. We do the things we do to meet our needs.
A. Needs Hierarchy.
KT- Needs hierarchy. It is based on five categories of needs. According to Maslow our five levels
of needs are:
1. physiological
2. safety
3. social
4. esteem
5. self-actualization
B. ERG Theory. Alderfer's ERG Theory classifies three needs rather than five- existence,
relatedness, and growth needs.
Motivating with Needs Hierarchy and ERG Theory. The supervisor should get to know and
understand employee's needs, and meet them as a means of increasing productivity.
C. Two Factor Theory. KT- Two-factor theory. It classifies needs as hygienes and motivators.
According to Herzberg, if you want to motivate employees do not give them hygiene factors like
job security, better working conditions, and fringe benefits; give them motivators like
achievement, recognition, challenge, advancement, and growth.
WA 2- In Self-Assessment Exercise 9.1 Motivators and Hygienes, did you select motivators or
hygienes as being important to you? Explain.
SA- Motivators are more important to me. My hygiene score was 18 and my motivator score was
25. The only hygiene that I scored a 5 was a satisfying personal life. The important motivators
were an interesting job and a job I can do well and succeed at.
1. Using two-factor theory to motivate employees.
D. Manifest Needs Theory. KT- Manifest needs theory. It classifies achievement, power, and
affiliation needs. Everyone has these three needs, but to various levels. Understanding your own
dominate need can help you to understand your own behavior, and that of others.
1. The need for achievement (n Ach). People with a high need for achievement are goal oriented,
they seek challenging situations, and they like getting feedback.
To motivate them the supervisor should continue to delegate more responsibility for challenging
jobs with clear goals.
2. The need for power (n Pow). People with a high need for power like to compete, control the
situation, and they are willing to confront others. Managers tend to have a high need
To motive employees with n Pow the supervisor should allow them as much autonomy as
they are capable of, delegate entire assignments to them, and let them work alone.
3. The need for affiliation (n Aff). People with a high need for affectation want to be liked by
others, they put relationships before the task.
To motive employees with n Aff the supervisor should let them work as part of a team, delegate
task like orientation and training to them.
LO 2. Describe four content motivation theories.
Content motivation theories focus on identifying people's needs in order to understand what
motivates them. Needs hierarchy is Maslow's theory of motivation based on five categories of
needs. Alderfer's ERG Theory classifies existence, relatedness, and growth needs. Two-factor
theory is Herzberg's classification of needs as hygiene and motivators. Manifest needs theory of
motivation is primarily McClelland's classification of needs as achievement, power, and
E. How Organizations Meet Employee Needs.
KT- Process motivation theories. They attempt to understand how and why people are motivated.
A. Expectancy Theory. KT- Expectancy theory. According to Vroom motivation = expectancy X
valence. To motivate employees they must perceive that they can do the job that their efforts will
result in rewards. Employees must view the rewards as valuable to them. EX. We all know some
students who expect to do well in school and place value in good grades. They are motivated to
study hard to be successful students. Students with ability usually do well. While on the other
hand, you may know some students who say "I could get good grades if I wanted to, but it’s not
worth the time and effort, I'd rather have a good time than study." These students are not
1. Motivating with expectancy theory. Supervisors should: 1. clearly define objectives and the
performance needed, 2. tie performance to rewards, and 3. offer rewards employees value.
WA3- Give an example of how expectancy theory has affected your motivation. How can you
use expectancy theory to motivate employees?
SA- On my job I work on different projects and I have noticed that my motivation is stronger
when I know I can do the project well. When I am not sure of myself I procrastinate. Also, I
know that if I do a good job my boss will tell others, and this is a reward of value to me. As a
supervisor I will know what motivates my employees, and give them jobs that they will want to
do well.
B. Equity Theory. KT- Equity theory. People tend to compare their situation to relevant others. In
doing so they perceive one of three situations: 1. equitable reward, they are satisfied that their
inputs and outputs are equal. 2. underreward, they perceive their inputs exceed their output. They
tend to change the situation by trying to increase outputs, reduce inputs, rationalize, or leave the
situation to make thing equitable. 3. Overrewarded, people don't usually get upset when they are
over rewarded, but they may increase inputs or reduce outputs to maintain equity.
1. Motivating with equity theory. To motivate employees the supervisor should: 1. understand
employee perception of equity, 2. make rewards equitable, 3. reward high performance to
motivate people to work harder to attain the rewards.
WA4- Give an example of how equity theory has affected your motivation. How can you use
equity theory to motivate employees?
SA- Equity theory has definitely affected my motivation. My inputs (study) affect my outputs
(grades) when I first came to college I did not study much, and got low grades. I started to study
more and my grades increased. Understanding this relationship, I now study and get good grades
in all my classes.
I compare my inputs to others all the time. Based on my inputs I can predict what others will
think, but also what I will perceive about myself. I will change my behavior when I am not
satisfied, to create a more satisfying environment.
I will use equity theory to motivate employees by telling them to compare there inputs to their
outputs, and what they perceive should be realistic. I will discuss their inputs and outputs with
LO 3. Describe two process motivation theories.
Process motivation theories attempt to explain how and why people are motivated. Expectancy
theory is Vroom's formula which states that motivation = expectancy X valence. Equity theory is
primarily Adams' motivation theory, which is based on the comparison of perceived inputs to
KT- Reinforcement theory. Reinforcement theory attempts to get employees to do what
management wants them to do. The process is: stimulus-->response-->consequences.
A. Types of Reinforcement.
1. Positive reinforcement. When employees perform to management standards they are rewarded
to reinforce this behavior.
EX. If an employee does a good job, the supervisor can say thank you for a job well done.
2. Avoidance reinforcement. It is also known as negative reinforcement. When management
establishes rules employees often do not break them because they want to avoid the negative
consequences for doing so. EX. Company rule- wear safety shoes in the shop. Consequenceemployees who come to work without safety shoes will be sent home to get them, at a loss of pay
while gone. Employees will tend to wear safety shoes to work, but not necessarily because they
want to; they may be avoiding a trip home without pay.
3. Extinction. With extinction the manager ignores the behavior or withholds rewards in order to
get the employee to perform to expectations.
EX. An employee purposely makes faces at the supervisor because he gets upset by the
employee's behavior. To stop the employee the supervisor realizes what is going on and ignores
the faces. He does not say or do anything to punish the employee. After a short period of time the
employee realizes that the behavior is not getting the supervisor upset, so he stops making the
4. Punishment. Employees who conduct undesirable behavior are given a negative consequence.
Rules are designed to be avoidance reinforcement. However, when rules are broken, punishment
for the violation is designed to stop repeat offenses.
EX. Soldiers reporting for role call late are told to do 50 push-ups.
B. Schedule of Reinforcement. The second consideration is when to reinforce behavior. There are
two major schedules:
1. Continuous reinforcement. Each and every time the desired behavior is performed the
employee is reinforced.
EX. A commissioned sales person knows that every time she makes a sale 20% of the sales price
will be put in her pay envelope. This reinforcement helps motivate sales people to increase sales.
2. Intermittent reinforcement. It is not always practical or possible to use continuous
reinforcement. In most situations the supervisor can reinforce behavior based on the passage of
time or output. The four alternatives are:
fixed interval schedule
variable interval schedule
fixed ration schedule
variable ration schedule
3. Motivating with reinforcement. To motivate employees supervisors should select the
appropriate types and schedules of reinforcement. Use positive rather than negative
reinforcement, and only reward good performance.
A. Organizational Reinforcement for Getting Employees to Come to Work and to Be on Time.
You may simply ask students for examples from organizations they work for, and/or give your
own examples.
LO 4. State how reinforcement is used to increase performance.
Reinforcement theory is primarily Skinner's motivation theory contending that behavior can be
controlled through the use of rewards. Through the use of positive, avoidance, extinction, and
punishment reinforcement employees can learn which behavior is, and is not appropriate.
Appropriate behavior that is productive is encouraged, while nonproductive behavior is
WA 5- What type(s) and schedule(s) of reinforcement does or did your supervisor use to
motivate you? Explain each. How can you use reinforcement to motivate employees?
SA- My boss used positive reinforcement. He gave me time off when I needed it (variable
interval) and bonuses and commissions for sales (variable ratio). Supervisors can motivate
employees by doing things like I just mentioned above.
A. Giving Praise
LO 5. List the four steps in the giving praise model.
Step 1. tell the employee exactly what was done correctly, 2. tell the employee why the behavior
is important, 3. stop for a moment of silence, 4. encourage repeat performance.
B. Objectives and MBO. KT- objectives and MBO.
1. Criteria for objectives. For objectives to motivate employees they must meet the following five
criteria. They must be:
-difficult but achievable
-observable and measurable
-specific, with a target date
-participatively set when possible
2. Management by objectives (MBO) KT- MBO. The three steps to MBO are: (1) Set individual
objectives and plans. (2) Give feedback and evaluate performance. (3) Reward according to
LO 6. Explain the three steps of managing by objectives.
1. Set individual objectives and plans. 2. give feedback and evaluate performance. 3. reward
according to performance.
C. Job Enrichment. Four simple was to make jobs more interesting and challenging are: (1)
Delegate more variety and responsibility. (2) Form natural work groups. (3) Make employees
responsible for their own identifiable work. (4) Give employees more autonomy.
WA 6- Describe how a present or past job you hold or have held could be enriched.
SA- I saw a little of job enrichment at Stormy Container Co. If work groups in a department do a
good job over a couple of months the whole department receives jackets than other prizes.
Delegating more responsibility to employee could be used, and should be, to help keep
employees from getting bored and going through the motions.
D. Job Design. KT- job design and job simplification. Working with both experts and employees,
supervisors can come up with effect job designs. Job design and simplification call for increase
productivity through working smarter not harder.
WA 7- Describe how a present or past job you hold or have help could be simplified. Specify if it
is an elimination, combination, or change in sequence has simplified the job.
SA- When I worked at Shore Co. I had to keep track of the present employees. We used to use
lists of names for each department. However, with the high turnover rate, the lists were always a
mess, and had errors. We got a big board that had magnets. We divided the board up into
departments, than we put employees names on the magnet and put them in their departments. We
eliminated paper lists, and combined all the list on one big board. It is a lot simpler to put new
magnets up when employees are hired, move them to a new department when they are
transferred, or take them off when they leave.
LO 7. State ways to enrich, design, and simplify jobs.
Job enrichment is the process of building motivators into the job itself by making it more
interesting and challenging. Job design is the employee's system for transforming inputs into
outputs. Job simplification is the process of eliminating, combining, and/or changing the work
sequence to increase performance.
WA 8- Which motivation theory do you feel is the best? Explain why.
SA- This is a tough question, but I guess I'll say reinforcement theory. I picked it because it gives
you some good guidelines on how to use it to get employees to do the job the way you want it
done. I'm more concerned with getting the job done, than meeting people’s needs or expectations.
WA 9- What is your motivation theory. What are the major methods, techniques, etc., you plan to
use on the job as a supervisor to increase motivation and performance?
SA- My motivation theory is to meet employee’s needs while getting the job done. I will get to
know my employees and try to give them rewards that are of value to them. I want to motivate
employees as individuals. Positive reinforcement will also be used. I'll praise good performance.
I will try to enrich jobs for those who are interested.
Not exactly. Cultural differences limit theory generalizations.
LO 8. Explain possible limitations of using motivation theories outside North America.
People of different cultures have different needs and values. What works well in one country may
not be effective in a different one.
A. Cross-Cultural Differences in Motivation
1. Hierarchy of Needs, ERG, and Two-Factor Theory
2. Manifest Needs Theory
3. Equity Theory
4. Expectancy Theory
5. Reinforcement Theory
6. Goal Setting
7. Motivation in E-Organizations
B. Deming's View of North American Motivation Methods.
The late Deming said that North America must change from an individualistic society to a
collective society.
WA 10- Do you agree with Deming's statement that to survive in the global economy, the U.S.
must change to the group approach of doing business?
SA- Yes. The U.S. was the clear world leader in business. Now the Japanese are outperforming
any of our industries using the group approach. The Japanese have shown us a better way, we
need to use it. Change should come from schools as well. Schools encourage individual, not
group work.
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