Chapter4a-Motivation and Rewards
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Transcript of Chapter4a-Motivation and Rewards
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Psychology Department
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Environment Opportunity
Needs &drives Tension Effort Performance Rewards
Goals and
incentives
Ability
Need
satisfaction
Model of Motivation
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Motivation
It is the term used to
describe the forces
within the individualthat account for the
level, direction, and
persistence of effort
expended at work
Direction
Persistence
Intensity
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Motivation and Rewards
It is a work outcome of positive value to theindividual
EXTRINSIC REWARDS are externallyadministered (e.g., pay and verbal praise); themotivational 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 helpthe manager to lead effectively through
motivation, and to achieve maximummotivational impact, it is necessary to:
Respect diversity and individual differences
Clearly understand what people want from work
Allocate rewards to satisfy the interests of bothindividuals and the organization
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Work Motivation
Is the set of internal and external forces that
cause an employee to choose a course of
action and engage in certain behaviors.Ideally, these behaviors will be directed at
the achievement of an organizational goal.
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McClel land's Acquired-Needs Theory
David McClelland proposes that people
acquire needs through their life experiences
Reflect elements of the culture in which they
grow up; affect the way people view their jobs
and approach their lives
He uses a Thematic Apperception Test (TAT)
to measure the strengths of three acquired
needs:
Achievement - Power - Affiliation
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McClel land's Acquired-Needs Theory
Need for Achievement (nAch)
The desire to do something better or more
efficiently, to solve problems, or to mastercomplex tasks
Need for Affiliation (nAff)The desire to establish and maintain
friendly and warm relations with other
persons
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McClel land's Acquired-Needs Theory
Need for Power (nPower)
The desire to control other persons, to influence
their behavior, or to be responsible for otherpeople. A finer distinction can be made between:
The need for Personal Power and,
The need for Social PowerInstitutional power
It is the need to influence others behavior for
the good of the whole organization
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The Need Profi le of Successful Executives
The most important need for executivesuccess is the need for social power
Persons with a high need for affiliation maynot make the best managers
While nPower is often accompanied by ahigh need for achievement the later need initself is not consistently associated withexecutive success
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Types of Needs
Primary needs
Physical needs include food, water, sex, sleep,
air, and reasonably comfortable temperature;arise from the basic requirements of life and are
important for survival of the human race; they
are universal but they vary in intensity from
one person to another
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Types of Needs
Secondary needs
Are more vague because they represent needs
of the mind and spirit rather than of thephysical body; many of these needs are
developed as people mature
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7 Conclusions about secondary needs
1. Conditioned by experience
2. Vary in type and intensity among people
3. Are subject to change across time within anyindividual
4. Cannot usually be isolated, but rather work in
combination and influence one another
5. Are often hidden from conscious recognition
6. Are vague feelings as opposed to specific
physical needs
7. Influence behavior in powerful ways
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Three Types of Motivation Theory
Content Theory
Needs are physiological and psychologicaldeficiencies that an individual feels somecompulsion 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 TheoryLower Order Needs
1. Physiological survival needs
2. Safety and security - Freedom from
dangerous work environment, economic security
Higher Order Needs
3. Belonging and Social
Friendships and compatible associates
4. Esteem and status
Ones feelings of competence and self-worth
5. Self-actualization and fulfillment
- Becoming all that one is capable of becoming, using ones skills to
the fullest, and stretching talents to the maximum
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H ierarchy of Needs Theory
Deficit Principle
Holds that a satisfied need is not a motivator of
behavior; people act to satisfy needs in which adeficit exists
Progression Principle
Holds that the five needs exist in a stricthierarchy 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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Limitations
1. Research has not supported the presence of
all 5 need levels as unique
2. The 5-step progression from lowest to
highest need levels has not been
established
3. Not easy to provide opportunities for self-
actualization
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Herzberg's Two-Factor Theory
Maintenance/Hygiene Factors
Working Conditions
Interpersonal Relations
Organizational Policies
Quality of Supervision
Base Wage or Salary, Fringe benefits
Improvements in Hygiene Factors can prevent and/or
eliminate job dissatisfaction; they will not improve
job satisfaction
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Maintenance/Hygiene Factors
Their absence can cause dissatisfaction
among employees but their presence
generally brings employees only to a neutralstate; they are necessary for building a
foundation on which to create a reasonable
level of motivation in employees; related tojob context
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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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Motivational/Motivators/Satisf iers
Are mostly job-centeredthey relate to job
content
Are based on an individual's need for personal
growth. When they exist, motivator factors
actively createjob satisfaction. If they are
effective, then they can motivate an individualto achieve above-average performance and
effort
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Motivators
Intrinsic motivators
Internal rewards that a person feels when
performing a job so there is a direct and often
immediate connection between work and
rewards
Extrinsic motivators
External rewards that occur apart from thenature of work, providing no direct satisfaction
at the time the work is performed (ex.
Retirement plans, health insurance, and
vacations)
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Dissatisfaction
and
demotivation
Not dissatisfied
but
not motivated
Positive
satisfaction
and motivation
Hygiene Factors
Company policies
Quality of supervisionRelations with others
Personal life
Rate of pay
Job security
Working conditions
Motivational Factors
Achievement
Career advancement
Personal growth
Job interest
Recognition
Responsibility
Herzbergs Two-Factor Theory
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Criticisms
1. Not universally applicable
2. Appears to reduce the importance of pay, status,
and relations to others3. The model seems to be method-bound, meaning
only Herzbergs approach produces the two-factor
model. In short, there may be an appearance of
two factors when in reality there is only one factor
4. The model only outlines general tendencies;
maintenance factors may be motivators to some
people
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Alderfer ' s E-R-G Theory
Clayton Alderfer proposed a modified need
hierarchy with just three levels
Does not assume as rigorous a progression fromlevel to level
It accepts the likelihood that that all three levels
might be active at any time or even that just one of
the higher levels might be active
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Alderfer ' s E-R-G Theory
An extension of Maslow's theory that proposes
the existence of three needs as opposed to five.
Existence Needs: Desires for physiologicaland security needs
Relatedness Needs: Desires for satisfying
interpersonal relationships Growth Needs: Desires for both self-esteem
and self-actualization
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Alderfer ' s E-R-G Theory
Does not assume that lower-level needs mustbe satisfied before higher-level needs becomeactivated and,
This theory includes a unique "frustration-regression" principle whereby an alreadysatisfied lower-level need becomes reactivated
when a higher-level need is frustrated
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Equity Theory
Asserts that when people believe that they have
been treated inequitably in comparison to others,
they eliminate the discomfort and restore equity
Perceived Equity - occurs whenever a person
perceives that their personal rewards/inputs ratio is
equivalent to the rewards/inputs ratio of acomparison other
Perceived Inequity - occurs whenever one's
rewards/input ratio is perceived to be unequal
Process Theories of Motivation
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Expectancy Theory
People will do what they can do whenthey want to do it. The question is what
makes them want to do it?
Vroom suggests that the motivation to workdepends on the relationships between the
following three expectancy factors:
Process Theories of Motivation
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Expectancy Theory
Expectancy: A person's belief that workinghard will result in a desired level of task
performance
Instrumentality: A person's belief thatsuccessful task performance will be followed
by rewards and other potential outcomesValence: The value a person assigns to
possible rewards and other work-relatedoutcomes
Process Theories of Motivation
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Expectancy Theory Mul tipl ier 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 theequation will result in zero motivation
Process Theories of 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
Process Theories of Motivation
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Expectancy Theory
To Maximize Instrumentality
Clarify psychological contracts
Communicate performance-outcomepossibilities
Demonstrate what rewards are
contingent on performanceTo Maximize Valence
ID needs and adjust rewards to match
Process Theories of Motivation
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Goal-Setting Theory
The basic premise is that well-set and well-managed task goals are important sourcesfor motivation
Task goals, in the form of clear anddesirable performance targets,Provide direction,
Energize persistent long-term work efforts,
Clarify performance expectations, and
Serve as a basis for feedback
Process Theories of Motivation
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Goal-Setting Theory
Set Specific Goals
Set Challenging Goals
Build Goal Acceptance and Commitment
Clarify Goal Priorities
Reward Goal AccomplishmentManagement-by-Objectives ( MBO ) is one
example of a goal-setting system which
promotes participation.
Process Theories of Motivation
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Expectancy Theory (Victor Vroom)
3. Rewards-Personal goals relationship = Valence
1. Effort-Performance relationship = Expectancy
2. Performance-Rewards relationship = Instrumentality
Individual
Effort
Individual
Performance
PersonalGoals
Organizational
Rewards
1 2
3
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Reinforcement Theory
Unlike the prior motivation theories which relyon cognitive explanations of behavior,
reinforcement theory focuses instead on theimpact which external environmentalconsequences have on behavior
The law of effects states that behavior followed
by pleasant consequences is likely to berepeated; behavior followed by unpleasantconsequences is not likely to be repeated
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Reinforcement Theory
Operant Conditioning
A term popularized by B. F. Skinner, isthe process of controlling behavior by
manipulating its consequences; i.e.,
learning by reinforcement
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Reinforcement Theory
Organizational Behavior Modif ication
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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Organizational Behavior Modif ication
Application in organizations of the principles of behavior
modification, which evolved from the work of B.F. Skinner
OB Mod is based on the idea that behavior depends on itsconsequences; therefore managers can control, or at least
affect, a number of employee behaviors by manipulating
their consequences
OB Mod relies heavily on the law of effect, which statesthat a person tends to repeat behavior that is accompanied
by favorable consequences
OB Mod states that external consequences tend to determine
behavior
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Reinforcement Theory
2 Types of Reinforcement
Positive Reinforcement
Increases the frequency of a behavior throughthe contingent presentation of a desirable
consequence
Negative ReinforcementIncreases 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 unpleasantconsequence
Extinction
decreases the frequency of a behavior throughthe contingent removal of a pleasantconsequence
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Positive Reinforcement
Law ofContingent Reinforcement
In order for a reward to have maximumreinforcing value, it must be delivered only ifthe desired behavior is exhibited
Law ofImmediate Reinforcement
The more immediate the delivery of a rewardafter the occurrence of a desirable behavior, thegreater the reinforcing value of the reward
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Positive Reinforcement
Shaping
The creation of a new behavior by the
positive reinforcement of successiveapproximations of the desired
behavior
Intermittent reinforcement only rewards
behavior periodically
Continuous reinforcement administers areward each time a desired behavior occurs
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Guidel ines forPositive
Reinforcementand Punishment
Clearly identify desired work behaviors
Maintain diverse inventory of rewards
Inform everyone what must be done to getrewards
Recognize individual differences whenallocating rewards
Follow the laws of immediate and contingentreinforcements
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Guidel ines for Positive
Reinforcement andPunishment
Tell the person what is being done wrong.
Tell the person what is right
Make sure the punishment matches thebehavior
Administer the punishment in private
Follow the laws of immediate and contingentreinforcement
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Ethics of Operant Behavior Modif ication
There is considerable debate over the ethics ofusing 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 theorganization and the individual are wellserved."
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An I ntegrated Model of I ndividual
Motivation
Motivation leads to Effort which, along withappropriate Abilities and Organizational
Support, lead to PerformanceThis 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$ation
Incentive Compensation Systems
Bonus systems in which employees at all levels
participate
Bonus Pay Plans
Profit-Sharing Plans
Gain-Sharing PlansEmployee Stock Ownership Plans
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Motivation and Compen$ation
Pay for Knowledge
Skill-based pay ties pay to the number ofjob-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