Leading Through
Motivation
We Will:
Provide you with a thorough understanding
of the dynamics of motivation and the ways
in which rewards can be used to motivate
employees.
Examine the Content, Process, and
Reinforcement Theories of Motivation, and
Take a look at the connection between
Motivation and Compensation.
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Motivation
and Rewards
MOTIVATION is the term used to
describe the forces within the individual
that account for the level, direction, and
persistence of effort expended at work.
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Motivation
and Rewards
A REWARD is a work outcome of
positive value to the individual.
EXTRINSIC REWARDS are externally
administered (e.g., pay and verbal praise); the
motivational stimulus originates outside the
person.
INTRINSIC REWARDS are self-administered;
they occur "naturally" as a person performs a
task. The feelings of competency, personal
development, and self-control people experience
in their work.
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Rewards
and Performance
Both Intrinsic and Extrinsic rewards can
help the manager to lead effectively through
motivation, and to achieve maximum
motivational impact, it is necessary to:
Respect diversity and individual differences.
Clearly understand what people want from
work.
Allocate rewards to satisfy the interests of
both individuals and the organization.
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Three Types
of Motivation Theory
Content Theory
Needs are physiological and psychological
deficiencies that an individual feels some
compulsion to eliminate.
Process Theory
People give meaning to rewards and the work
opportunities available to them.
Reinforcement Theory
People's behavior is influenced by its
environmental consequences.
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Content Theories
of Motivation
Maslow's Hierarchy of Needs Theory
Lower Order Needs
Physiological
Safety
Social
Higher Order Needs
Esteem
Self-actualization
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Hierarchy
of Needs Theory
Deficit Principle
Holds that a satisfied need is not a motivator
of behavior; people act to satisfy needs in
which a deficit exists.
Progression Principle
Holds that the five needs exist in a strict
hierarchy of prepotency such that a need at
one level doesn't become activated until the
next lower-level need is satisfied.
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Alderfer's
ERG Theory
An extension of Maslow's theory that
proposes the existence of three needs as
opposed to five.
 Existence Needs: Desires for physiological
and material well-being.
 Relationship Needs: Desires for satisfying
interpersonal relationships.
 Growth Needs: Desires for continued
psychological growth and development.
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Alderfer's
ERG Theory
ERG Theory
Does not assume that lower-level needs must
be satisfied before higher-level needs become
activated and,
This theory includes a unique "frustrationregression" principle whereby an already
satisfied lower-level need becomes
reactivated when a higher-level need is
frustrated.
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Herzberg's
Two-Factor Theory
Hygiene Factors
Working Conditions
Interpersonal Relations
Organizational Policies
Quality of Supervision
Base Wage or Salary
Improvements in Hygiene Factors can prevent
and/or eliminate job dissatisfaction; they will
not improve job satisfaction.
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Herzberg's
Two-Factor Theory
Satisfier Factors
Sense of Achievement
Feeling of Recognition
Sense of Responsibility
Opportunity for Advancement
Feelings of Personal Growth
Improvements in Satisfier Factors can increase
job satisfaction; they will not prevent job
dissatisfaction.
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McClelland's
Acquired-Needs Theory
David McClelland proposes that people
acquire needs through their life
experiences.
He uses a Thematic Apperception Test
(TAT) to measure the strengths of three
acquired needs:
Achievement - Power - Affiliation
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McClelland's
Acquired-Needs Theory
Need for Achievement (nAch)
The desire to do something better or
more efficiently, to solve problems, or to
master complex tasks.
Need for Power (nPower)
The desire to control other persons, to
influence their behavior, or to be
responsible for other people. A finer
distinction can be made between:
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McClelland's
Acquired-Needs Theory
– The need for Personal Power and,
– The need for Social Power
 Need for Affiliation (nAff)
The desire to establish and maintain
friendly and warm relations with other
persons.
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The Need Profile
of Successful Executives
The most important need for executive
success is the need for social power.
Persons with a high need for affiliation
may not make the best managers.
While nPower is often accompanied by a
high need for achievement the later need
in itself is not consistently associated with
executive success.
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Process Theories
of Motivation
Equity Theory
Asserts that when people believe
that they have been treated
inequitably in comparison to others,
they eliminate the discomfort and
restore equity.
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Process Theories
of Motivation
Equity Theory (cont)
Perceived Equity - occurs whenever a
person perceives that their personal
rewards/inputs ratio is equivalent to the
rewards/inputs ratio of a comparison
other.
Perceived Inequity - occurs whenever
one's rewards/input ratio is perceived to
be unequal...
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Expectancy
Theory
“People will do what they can do when
they want to do it.” The question is ‘what
makes them want to do it?’
Vroom suggests that the motivation to
work depends on the relationships
between the following three expectancy
factors:
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Expectancy
Theory
Expectancy: A person's belief that
working hard will result in a desired level of
task performance.
Instrumentality: A person's belief that
successful task performance will be followed
by rewards and other potential outcomes.
Valence: The value a person assigns to
possible rewards and other work-related
outcomes.
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Expectancy Theory
Multiplier Effect
Implies that for motivation to be high,
Expectancy, Instrumentality and Valence
must be high.
Motivation =
Expectancy x Instrumentality x Valence
A zero at any location on the right side of
the equation will result in zero
motivation.
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Expectancy
Theory
To Maximize Expectancy
Select workers with ability
Train workers to use ability
Support work effort
Clarify performance goals
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Expectancy
Theory
To Maximize Instrumentality
Clarify psychological contracts
Communicate performance-outcome
possibilities
Demonstrate what rewards are
contingent on performance
To Maximize Valence
ID needs and adjust rewards to match
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Goal-Setting
Theory
The basic premise is that well-set and
well-managed task goals are important
sources for motivation.
Task goals, in the form of clear and
desirable performance targets,
Provide direction,
Energize persistent long-term work efforts,
Clarify performance expectations, and
Serve as a basis for feedback.
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Goal-Setting Theory
Set Specific Goals
Set Challenging Goals
Build Goal Acceptance and Commitment
Clarify Goal Priorities
Reward Goal Accomplishment
Management-by-Objectives ( MBO )
is one example of a goal-setting system
which promotes participation.
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Reinforcement
Theory
Unlike the prior motivation theories which rely
on cognitive explanations of behavior,
reinforcement theory focuses instead on the
impact which external environmental
consequences have on behavior.
The law of effects states that behavior followed
by pleasant consequences is likely to be
repeated; behavior followed by unpleasant
consequences is not likely to be repeated.
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Reinforcement
Theory
Operant Conditioning
A term popularized by B. F. Skinner, is
the process of controlling behavior by
manipulating its consequences; i.e.,
learning by reinforcement.
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Reinforcement
Theory
Organizational Behavior Modification
Involves the application of operant
conditioning techniques to influence
human behavior in work settings.
(Reinforcing desirable behaviors while
denying reinforcement for unwanted
behaviors.)
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Reinforcement
Theory
There Are Two Types of Reinforcement:
 Positive Reinforcement
Increases the frequency of a behavior
through the contingent presentation
of a desirable consequence.
 Negative Reinforcement
Increases the frequency of a behavior
through the contingent removal of an
undesirable consequence.
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Reinforcement
Theory
Punishment: decreases the
frequency of a behavior through the
contingent presentation of an
unpleasant consequence.
Extinction: decreases the frequency
of a behavior through the contingent
removal of a pleasant consequence.
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Positive Reinforcement
Law of Contingent Reinforcement
In order for a reward to have maximum
reinforcing value, it must be delivered only
if the desired behavior is exhibited.
Law of Immediate Reinforcement
The more immediate the delivery of a
reward after the occurrence of a desirable
behavior, the greater the reinforcing value
of the reward.
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Positive Reinforcement
Shaping
The creation of a new behavior by the
positive reinforcement of successive
approximations of the desired
behavior.
Intermittent reinforcement only rewards
behavior periodically.
 Continuous reinforcement administers a
reward each time a desired behavior
occurs.
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Guidelines for Positive
Reinforcement and Punishment
Clearly identify desired work behaviors
Maintain diverse inventory of rewards
Inform everyone what must be done to
get rewards.
Recognize individual differences when
allocating rewards.
Follow the laws of immediate and
contingent reinforcements.
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Guidelines for Positive
Reinforcement and Punishment
Tell the person what is being done wrong.
Tell the person what is right.
Make sure the punishment matches the
behavior.
Administer the punishment in private.
Follow the laws of immediate and
contingent reinforcement.
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The Ethics of Operant
Behavior Modification
There is considerable debate over the ethics
of using OB MOD to influence behavior.
But as the text notes, "the real question may
be not whether it is ethical to control
behavior, but whether it is ethical not to
control behavior well enough that the goals
of both the organization and the individual
are well served."
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An Integrated Model
of Individual Motivation
Motivation leads to Effort which, along
with appropriate Abilities and
Organizational Support, lead to
Performance.
This model illustrates how Rewards for
performance, when they are perceived as
Equitable and possess Reinforcement
Value, can produce satisfaction.
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MOTIVATION
and COMPEN$ATION
Incentive Compensation Systems
Bonus systems in which employees at all
levels participate.
Bonus Pay Plans
Profit-Sharing Plans
Gain-Sharing Plans
Employee Stock Ownership Plans
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MOTIVATION
and COMPEN$ATION
Pay for Knowledge
Skill-based pay ties pay to the number of
job-relevant skills an employee masters.
Entrepreneurial pay requires individuals
to put part of their pay at risk, in return
for the right to pursue entrepreneurial
ideas, and share in any resulting profits.
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