Foundations of Employee Motivation McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Standard Chartered Bank Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths-based feedback, employee development, and other practices. 5-2 Motivation Defined The forces within a person that affect the direction, intensity, and persistence of voluntary behavior. Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction). 5-3 Employee Engagement Individual’s emotional and cognitive (rational) motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals. High absorption in the work. High self-efficacy – believe you have the ability, role clarity, and resources to get the job done 5-4 Drives and Needs Drives (primary needs, fundamental needs, innate motives) • Hardwired brain characteristics (neural states) that energize individuals to maintain balance by correcting deficiencies • Prime movers of behavior by activating emotions Self-concept, social norms, and past experience Drives and Emotions Needs Decisions and Behavior 5-5 Drives and Needs Needs • Goal-directed forces that people experience. • Drive-generated emotions directed toward goals • Goals formed by self-concept, social norms, and experience Self-concept, social norms, and past experience Drives and Emotions Needs Decisions and Behavior 5-6 Maslow’s Needs Hierarchy Theory Selfactualization Need to know Seven categories – five in a hierarchy -- capture most needs Need for beauty Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator Self-actualization -- a growth need because people desire more rather than less of it when satisfied Esteem Belongingness Safety Physiological 5-7 What’s Wrong with Needs Hierarchy Models? Maslow’s theory lacks empirical support • People have different hierarchies • Needs change more rapidly than Maslow stated Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy Instead, needs hierarchies are shaped by person’s own values and self-concept Abraham Maslow 5-8 What Maslow Contributed to Motivation Theory Holistic perspective • Integrative view of needs Humanistic perspective • Influence of social dynamics, not just instinct Positive perspective • Pay attention to strengths (growth needs), not just deficiencies Abraham Maslow 5-9 Learned Needs Theory Needs are amplified or suppressed through self-concept, social norms, and past experience Therefore, needs can be “learned” • strengthened through reinforcement, learning, and social conditions 5-10 Three Learned Needs Need for achievement • Need to reach goals, take responsibility • Want reasonably challenging goals Need for affiliation • Desire to seek approval, conform to others wishes, avoid conflict • Effective executives have lower need for social approval Need for power • Desire to control one’s environment • Personalized versus socialized power 5-11 Four-Drive Theory Drive to Acquire • Drive to take/keep objects and experiences • Basis of hierarchy and status Drive to Bond • Drive to form relationships and social commitments • Basis of social identity Drive to Learn • Drive to satisfy curiosity and resolve conflicting information Drive to Defend • Need to protect ourselves • Reactive (not proactive) drive • Basis of fight or flight 5-12 How Four Drives Affect Motivation 1. Four drives determine which emotions are automatically tagged to incoming information 2. Drives generate independent and often competing emotions that demand our attention 3. Mental skill set relies on social norms, personal values, and experience to transform drivebased emotions into goal-directed choice and effort 5-13 Four Drive Theory of Motivation Drive to Acquire Drive to Bond Drive to Learn Social norms Personal values Past experience Mental skill set resolves competing drive demands Goal-directed choice and effort Drive to Defend Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort 5-14 Implications of Four Drive Theory Provide a balanced opportunity for employees to fulfill all four drives • employees continually seek fulfilment of drives • avoid having conditions support one drive more than others 5-15 Expectancy Theory of Motivation E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - Effort Performance Outcome 2 + or - Outcome 3 + or - 5-16 Increasing E-to-P and P-to-O Expectancies Increasing E-to-P Expectancies • Develop employee competencies • Match employee competencies to jobs • Provide role clarity and sufficient resources • Provide behavioral modeling Increasing P-to-O Expectancies • Measure performance accurately • Increase rewards with desired outcomes • Explain how rewards are linked to performance 5-17 Increasing Outcome Valences Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes 5-18 A-B-Cs of Behavior Modification Antecedents Behavior Consequences What happens before behavior What person says or does What happens after behavior Machine operator turns off power Co-workers thank operator Example Warning light flashes 5-19 Four OB Mod Consequences Positive reinforcement – any consequence that, when introduced, increases/maintains the target behavior. Punishment – any consequence that decreases the target behavior. Negative reinforcement –any consequence that, when removed, increases/maintains target behavior. Extinction – when no consequence occurs, resulting in less of the target behavior 5-20 Reinforcing the Healthy Walk The British municipality of Stokeon-Trent, Staffordshire, issued pedometers to its staff and encouraged them to do more walking each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organizations also reinforce walking with financial rewards. 5-21 Behavior Modification in Practice Behavior modification applications: • every day to influence behavior of others • company programs – attendance, safety, etc. Behavior modification problems: • Reward inflation • Variable ratio schedule viewed as gambling • Ignores relevance of cognitive processes in motivation and learning 5-22 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 • People engage in intentional, purposive action – they develop goals, achievement standards, action plans • People form expectancies (anticipate consequences) from others -- not just from their own experiences • People reinforce their own behavior (selfreinforcement) 5-23 Goal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives 5-24 Effective Goal Setting Characteristics 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 5-25 Balanced Scorecard Organizational-level goal setting and feedback Attempts to include measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes Usually includes several goals within each process 5-26 Characteristics of Effective Feedback 1. 2. 3. 4. 5. Specific – connected to goal details Relevant – Relates to person’s behavior Timely – to improve link from behavior to outcomes Credible – trustworthy source Sufficiently frequent • Employee’s knowledge/experience • Task cycle 5-27 Strengths-Based Coaching Feedback Maximizing the person’s potential by focusing on their strengths rather than weaknesses Motivational because: • people inherently seek feedback about their strengths, not their flaws • person’s interests, preferences, and competencies stabilize over time 5-28 Multisource Feedback Received from a full circle of people around the employee Provides more complete and accurate information Several challenges • expensive and time-consuming • ambiguous and conflicting feedback • inflated rather than accurate feedback • stronger emotional reaction to multiple feedback 5-29 Organizational Justice 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 5-30 Equity Theory Your Own Outcome/Input Ratio Comparison Other’s Outcome/Input Ratio Own outcomes Other’s outcomes Own inputs Compare own ratio with Other’s ratio Other’s inputs Perceptions of equity or inequity 5-31 Elements of Equity Theory Outcome/input ratio • inputs -- what employee contributes (e.g., skill) • outcomes -- what employee receives (e.g., pay) Comparison other • person/people against whom we compare our ratio • not easily identifiable Equity evaluation • compare outcome/input ratio with the comparison other 5-32 Correcting Inequity Tension Actions to correct underreward inequity Example Reduce our inputs Less organizational citizenship Increase our outcomes Ask for pay increase Increase other’s inputs Ask coworker to work harder Reduce other’s outputs Ask boss to stop giving preferred treatment to coworker Change our perceptions Start thinking that coworker’s perks aren’t really so valuable Change comparison other Compare self to someone closer to your situation Leave the field Quit job 5-33 Procedural Justice Perceived fairness of procedures used to decide the distribution of resources Higher procedural fairness with: • Voice • Unbiased decision maker • Decision based on all information • Existing policies consistently • Decision maker listened to all sides • Those who complain are treated respectfully • Those who complain are given full explanation 5-34 Foundations of Employee Motivation