Chapter 5 Motivation at Work Motivation Willingness to exert high levels of effort toward organizational goals. Conditioned by the effort’s ability to satisfy some individual need. The Basic Motivation Behavior Sequence What Motivates People at Work? External Incentives Vary by the individual Self-interest Economic gain Social Interpersonal What Motivates People at Work? Internal needs Variables within the individual Enlightened self-interest Individual interests & benefits Protestant work ethic Hierarchy of needs Cultural differences affect motivation Early Motivation Theories Psychological theories emphasized internal needs; ignored individual diversity Economic theories emphasized extrinsic incentives; technology was a force multiplier Process theory emphasized nature of interaction between individual and the environment External theories focused on environmental elements such as, behavioral consequences Maslow’s Hierarchy of Needs SA Esteem Love (Social) Safety & Security Physiological Motivational Theories X & Y SA Esteem Love (Social) Safety & Security Physiological Theory Y - a set of assumptions of how to manage individuals motivated by higherorder needs Theory X - a set of assumptions of how to manage individuals motivated by lowerorder needs McGregor’s Assumptions About People Based on Theory X Naturally indolent Lack ambition, dislike responsibility, and prefer to be led Inherently self-centered and indifferent to organizational needs Naturally resistant to change Gullible, not bright, ready dupes Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org. McGregor’s Assumptions About People Based on Theory Y Experiences in organizations result in passive and resistant behaviors; they are not inherent Motivation, development potential, capacity for assuming responsibility, readiness to direct behavior toward organizational goals are present in people Management’s task—arrange conditions and operational methods so people can achieve their own goals by directing efforts to organizational goals Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org. Alderfer’s ERG Theory SA Esteem Love (Social) Safety & Security Physiological Growth Relatedness Existence How Financial Rewards Meet Needs Develop a talent you have always wanted to explore. Self Actualizaton A pay raise that recognizes your value to the firm. Esteem Purchase equipment to join a sports team. Purchase an insurance policy. Food, clothing, rent. Social Security Physiological Organizational Examples Self Actualization Esteem Social Security Physiological Challenging Work Opportunity to Grow Job Title – Recognition Friends at Work Sports Teams Pension Plan Insurance Salary to Purchase Basic Needs Diagnose Employees’ Needs and Find Ways of Motivating Them by Satisfying the Needs MASLOW’S HIERARCHY OF NEEDS ALDERFER’S HIERARCHY OF NEEDS SelfGrowth Actualization Esteem Belongingness and Love Safety and Security Physiological Relatedness Existence Herzberg’s Two-Factor Theory Hygiene Factor - work condition related to dissatisfaction caused by discomfort or pain maintenance factor contributes to employee’s feeling not dissatisfied contributes to absence of complaints Motivation Factor - work condition related to the satisfaction of the need for psychological growth job enrichment leads to superior performance & effort Motivation-Hygiene Theory of Motivation Hygienepolicy factors • Company & administration must • Supervision be present to avoid • Interpersonal relations job conditions • Working • Salary dissatisfaction • Status • Security Hygiene factors avoid job dissatisfaction Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission. Motivators Worker Satisfaction. Hygiene Factors Worker Dissatisfaction. HYGIENE FACTORS Job Dissatisfaction No Job Dissatisfaction •Pay •Status •Security •Working Conditions •Fringe Benefits •Policies and Administrative Practices •Interpersonal Relations MOTIVATORS No Job Satisfaction Job Satisfaction •Meaningful Work •Challenging Work •Recognition for Accomplishments •Feeling of Achievement •Increased Responsibility •Opportunities for Growth and Advancement •The Job Itself Motivation-Hygiene Theory of Motivation Hygienepolicy factors • Company & administration must • Supervision be present to avoid • Interpersonal relations job conditions • Working • Salary dissatisfaction • Status • Security Hygiene factors avoid job dissatisfaction Motivation factors increase job satisfaction • • • • • • Achievement Achievement recognition Work itself Responsibility Advancement Growth • Salary? Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human. (Salt Lake City: Olympus, 1982). Reprinted by permission. Resultant Job Conditions (Motivation = M, Hygiene = H) High M Low M high motivation low motivation High H few complaints few complaints high motivation low motivation Low H many complaints many complaints Manifest Need Theory: Need for Achievement Need for Achievement - a manifest (easily perceived) need that concerns individuals’ issues of excellence, competition, challenging goals, persistence, and overcoming difficulties Manifest Need Theory: Need for Power Need for Power - a manifest (easily perceived) need that concerns an individual’s need to make an impact on others, influence others, change people or events, and make a difference in life Manifest Need Theory: Need for Affiliation Need for Affiliation - a manifest (easily perceived) need that concerns an individual’s need to establish and maintain warm, close, intimate relationships with other people 3 Motivational Need Theories Maslow [ Alderfer Self Actualization Higher Order needs Esteem self interpersonal Belongingness Lower Order needs [ Safety & security interpersonal physical Physiological ] ] ] Growth McClelland Need for Achievement Need for Power Relatedness Existence Need for affiliation Motivational Theory of Social Exchange Person Equity Comparison Other Outcomes = Outcomes Inputs Inputs Negative Inequity Outcomes < Inputs Outcomes Inputs Positive Inequity Outcomes > Inputs Outcomes Inputs Strategies for Resolution of Inequity Alter the person’s outcomes Alter the person’s inputs Alter the comparison other’s outputs Alter the comparison other’s inputs Change who is used as a comparison other Rationalize the inequity Leave the organizational situation Managers Can Help Employees Perceive Their Work Situation As Equitable A’s outputs B’s outputs A’s outputs B’s outputs A’s Inputs B’s Inputs Inequity = Problem with Motivation A’s Inputs B’s Inputs Equity = No Problem with Motivation Employee Responses to Perceived Inequities What happens when inequities exist? If person A believes an inequity exists and her ratio is too small, she may •reduce her inputs •ask for more outputs •change her comparison person •rationalize that equity exists •leave the situation If person B believes an inequity exists, and his ratio is too large, he may •increase his inputs •ask for reduced outputs •change his comparison person •rationalize that equity exists •leave the situation Table 4-1 New Perspectives on Equity Theory Equity Sensitive I prefer an equity ratio equal to that of my comparison other New Perspectives on Equity Theory Benevolent I am comfortable with an equity ratio less than that of my comparison other New Perspectives on Equity Theory Entitled I am comfortable with an equity ratio greater than that of my comparison other Expectancy Theory of Motivation: Key Constructs Valence - value or importance placed on a particular reward Expectancy - belief that effort leads to performance Instrumentality - belief that performance is related to rewards Expectancy Model of Motivation Effort Effort Performance Perceived effortPerformance probability Perceived performancereward probability “If I work hard, will I get the job done?” Reward Perceived value of reward “What rewards “What rewards will I get when do I value?” the job is done?” Determinants of Performance Individual Differences Work Effort (Motivation) Organizational Support Job Performance Reward System Organization provides inducements pay, benefits, vacation, status In return for individual contributions time, effort, knowledge, skills, creativity Inducements Individuals Organization Contributions What is an effective reward? A Reward Is Effective When It Is... available performance contingent timely reversible valuable What Types of Rewards Are Available in Organizations? Types of Rewards Economic rewards money benefits perks Non-economic rewards prestige job content Multiple Means of Pay Merit Pay Creative Pay Practices Skill based pay Gain-sharing plans lump-sum pay increases Flexible benefit plans Managing pay as an extrinsic reward Some Rules for Effective Rewards Differentiate the rewards Reward promptly Give feedback Give positive feedback publicly Give negative feedback privately Match consequences and behaviors Individual & Situation Factors Affect Motivation & Performance •Ability •Commitment •Feedback •Complexity •Situational Constraints Demands Made on Employee Specified Goals PERFORMANCE •Attention •Effort •Persistence