MNGT 5590
Organizational Behavior
Week 3: Chapters 5 & 6
Dr. George Reid
1
• Chapter 5:
Foundations of
Employee Motivation
• Chapter 6: Applied
Performance
Practices
5-2
Lt. Governor
Executive Director
Directors
HR Specialists
<<State Agencies >>
5
Chapter 5:
Foundations of
Employee Motivation
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Employee Engagement and
Motivation at DHL Express
DHL Express, the courier division of Germany’s
Deutsche Post, has been building a workforce of highly
engaged employees in Africa (shown here) and
globally. “Motivated and engaged employees are
crucial to the success of any business,” says a DHL
Express executive.
5-5
Motivation Defined
 The forces within a person that affect the
direction, intensity, and persistence of voluntary
behavior
 Motivated employees are willing to exert a
particular level of effort (intensity), for a certain
amount of time (persistence), toward a particular
goal (direction)
5-6
Employee Engagement
 Both emotional and cognitive motivation
 Focused, intense, persistent, purposive effort
toward goals
 High level of absorption (focus)
 High self-efficacy
5-7
Maslow’s Needs Hierarchy
Theory
 Seven categories – five in a
hierarchy -- capture most
needs
 Lowest unmet need is
strongest -- when satisfied,
next higher need becomes
primary motivator
 Model lacks empirical support
 Main problem: Needs
hierarchy is unique to each
person, not universal
Need to
know/learn
Selfactualization
Need for
beauty/order
Esteem
Belongingness
Safety
Physiological
5-8
Maslow’s Contribution to
Motivation
 Holistic perspective
 Study multiple needs
together
 Humanistic perspective
Abraham Maslow
 Influence of social
dynamics, not just instinct
 Positive perspective
 Self-actualization (growth
needs)
 Foundation of positive OB
5-9
Learned Needs Theory
Needs can be “learned”
 strengthened through reinforcement, learning, and
social conditions
5-10
Three Learned Needs
Need for achievement (nAch)
 Want to accomplish reasonably challenging goals
 Desire clear feedback, moderate risk tasks
Need for affiliation (nAff)
 Seek approval from others, conform to others’
wishes, avoid conflict
 Effective decision makers have low nAff
Need for power (nPow)
 Desire to control one’s environment
 Personalized versus socialized power
5-11
Expectancy Theory of
Motivation
E-to-P Expectancy
P-to-O Expectancy
Probability a specific
effort level will result
in a specific level of
performance
Probability a specific
performance level
will result in specific
outcomes
Valence
Anticipated
satisfaction from
the outcome
Outcome 1 +/–
Effort
Performance
Outcome 2 +/–
Outcome 3 +/–
Environment
Ability
5-12
Expectancy Theory in Practice
 Increasing E-to-P Expectancies
 Hire, train, and match people to job requirements
 Provide role clarity and sufficient resources
 Provide behavioral modeling and coaching
 Increasing P-to-O Expectancies
 Measure performance accurately
 Explain how rewards are linked to performance
 Explain how rewards are caused by past performance
 Increasing Outcome Valences
 Ensure that rewards are valued
 Individualize rewards
 Minimize countervalent outcomes
5-13
Four OB Mod Consequences
 Positive reinforcement – when reinforcer (consequence)
is introduced, the behavior is increased/maintained
 Punishment – when introduced, the frequency or
probability of the behavior decreases
 Negative reinforcement –when this consequence is
removed, behavior is increased/maintained
 Extinction –behavior decreases when no consequence
occurs
5-14
Social Cognitive Theory
Learning behavior outcomes
 Observing consequences that others experience
 Anticipate consequences in other situations
Behavior modeling
 Observing and modeling behavior of others
Self-regulation
 We engage in intentional, purposive action
 We set goals, set standards, anticipate
consequences
 We reinforce our own behavior (self-reinforcement)
5-15
Effective Goal Setting Features
Specific – What, how, where, when, and with whom the
task needs to be accomplished
Measurable – how much, how well, at what cost
Achievable – challenging, yet accepted (E-to-P)
Relevant – within employee’s control
Time-framed – due date and when assessed
Exciting – employee commitment, not just compliance
Reviewed – feedback and recognition on goal progress
and accomplishment
5-16
Balanced Scorecard
Organizational-level goal setting and
feedback
Usually financial, customer, internal, and
learning/growth process goals
Several goals within each process
5-17
Characteristics of Effective
Feedback
Specific – connected to goal details
Relevant – Relates to person’s behavior
Timely –links actions to recent outcomes
Credible – trustworthy source
Frequent – often enough to be meaningful
5-18
Strengths-Based Coaching
 Builds on employee’s strengths rather than trying to
correct weaknesses
 Motivational because:
 People inherently seek feedback about their strengths,
not their flaws
5-19
Sources of Feedback
 Social sources -- feedback directly from others
 e.g., boss, customers, multisource
 Nonsocial sources -- feedback not conveyed
directly by people
 e.g., electronic displays, customer survey results
 Preferred feedback source:
 Nonsocial feedback for goal progress feedback
 considered more accurate
 negative feedback less damaging to self-esteem
 Social sources for conveying positive feedback
 Enhances employee’s self-esteem
5-20
Organizational Justice/Equity
 Distributive justice
 Perceived fairness in outcomes we receive relative to
our contributions and the outcomes and
contributions of others
 Procedural justice
 Perceived fairness of the procedures used to decide
the distribution of resources
5-21
6
Chapter 6: Applied
Performance
Practices
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Meaning of Money at Work
 Money motivates, more than previously
thought
 Different meanings of money
 Symbol of achievement/status; motivator;
performance indicator; anxiety source/avoider
 Strong money ethic
 Money is perceived as (a) not evil, (b) symbol of
achievement/power, (c) budget carefully
 Gender differences –more valued by men
 Men -- money is a symbol of power/status
 Women -- money is instrumental (exchanged)
 Cultural differences
 Money importance increases with power
distance
6-23
Job Status-Based Rewards
 Includes job evaluation and status
perks
 Advantages:
 Job evaluation tries to maintain
fairness
 Motivates competition for promotions
 Disadvantages:
 Encourages bureaucratic hierarchy
 Reinforces status vs egalitarian culture
 Employees exaggerate duties, hoard
resources
6-24
Competency-Based Rewards
Two types of competency rewards
1. Skill-based pay
 employees paid more with number of skill
modules learned
2. Advantages of competency-based
pay
 More flexible work force, better quality,
consistent with employability
3. Disadvantages of competencybased pay
 Potentially subjective, higher training
costs
6-25
Performance-based Rewards
 Individual rewards
 Bonuses, commissions, piece rate systems
 Team rewards
 Mostly bonuses, also gainsharing plans
 Organizational rewards
 Organizational bonuses, ESOPs, stock options, profitsharing
 Evaluating organizational rewards
 ESOPs and stock options create “ownership culture”
 Profit sharing adjusts pay with firm's prosperity
 Problem: organizational rewards have weak P-to-O link
6-26
Improving Reward
Effectiveness
 Link rewards to
performance
 Ensure rewards are
relevant
 Team rewards for
interdependent jobs
 Ensure rewards are valued
 Watch out for unintended
consequences
6-27
Unintended Consequences of
Rewards at TransSantiago
 Santiago, Chile, bus drivers
paid per passenger
 Motivated start time, shorter
breaks, efficient driving,
passengers paid fares
 Unintended consequences
 Speeding to next stop, cutting
off competing buses
 Passenger injuries/deaths –
doors left open, bus departs
before all on board
 Drove past stops with only one
passenger waiting
6-28
Job Design
 Assigning tasks to a job,
including the
interdependency of those
tasks with other jobs
 Organization's goal -- to
create jobs that can be
performed efficiently yet
employees are motivated
and engaged
6-29
Job Specialization and
Scientific Management
 Dividing work into separate jobs, each with a subset of
tasks to complete the product/service
 Scientific management
 Frederick Winslow Taylor
 Championed job specialization and standardization
 Also popularized training, goal setting, work incentives
 Advantages and disadvantages of job specialization
Frederick Winslow Taylor
6-30
Job Characteristics Model
Core Job
Characteristics
Critical
Psychological
States
Outcomes
Work
motivation
Skill variety
Task identity
Task significance
Meaningfulness
Autonomy
Responsibility
General
satisfaction
Feedback
from job
Knowledge
of results
Work
effectiveness
Growth
satisfaction
Individual
differences
6-31
Other Job Characteristics
Social characteristics of the job
 Required interaction with other people
 clients, coworkers, etc
 Task interdependence -- job requires social
interaction with coworkers
 Feedback from others -- from coworkers, clients,
etc
6-32
Job Rotation
 Moving from one job to
another
 Benefits
1. Minimizes repetitive strain
injury
2. Multiskills the workforce
3. Potentially reduces job
boredom
Job ‘A’
Job ‘B’
Job ‘D’
Job ‘C’
6-33
Job Enlargement
 Adding tasks to an existing job
 Example: video journalist
Traditional news team
Employee 1
Operates camera
Employee 2
Operates sound
Video journalist
• Operates camera
• Operates sound
• Reports story
Employee 3
Reports story
6-34
Job Enrichment
Giving employees more responsibility for
scheduling, coordinating, and planning work
1. Natural grouping
 Stitching highly interdependent tasks into one job
 e.g., video journalist, assembling entire product
2. Establishing client relationships
 Directly responsible for specific clients
 Communicate directly with those clients
6-35
Dimensions of Empowerment
Selfdetermination
Employees feel they have
freedom and discretion
Meaning
Employees believe their work is
important
Competence
Employees have feelings of selfefficacy
Impact
Employees feel their actions
influence success
6-36
Self-Leadership
The process of influencing oneself to
establish the self-direction and selfmotivation needed to perform a task
Includes concepts/practices from goal
setting, social cognitive theory, and sports
psychology
6-37
Business Performance Model
Employee/team
performance
Business results
Work environment
& structures
Robinson & Robinson
Business Performance Model
Employee/team
performance
Business results
Work environment
& structures
Business Performance Model
Employee/team
performance
Business results
Work environment
& structures
Business Performance Model
Employee/team
performance
Business results
Work environment
& structures
Schedule for Week 4 – Be On Time!
Location
Time
Terry
Pat
Sandy
Sam
Chris
A
B
C
D
E
Teams
E
A
B
C
D
Teams
D
E
A
B
C
Teams
C
D
E
A
B
Teams
B
C
D
E
A
Teams
8:45-9:15
9:20-9:50
add 5 min break
9:55-10:25
10:35-11:05
11:10-11:40
Wrap-Up Summary
11:45-12:00
All
Classroom
Schedule for Week 4 – Be On Time!
Location
Time
Terry
Pat
Sandy
Sam
Chris
A
B
C
D
E
Teams
E
A
B
C
D
Teams
D
E
A
B
C
Teams
C
D
E
A
B
Teams
B
C
D
E
A
Teams
1:15-1:45
1:50-2:20
add 5 min break
2:25-2:55
3:05-3:35
3:40-4:10
Wrap-Up Summary
4:15-4:30
All
Classroom