Management_009 Motivation & Performance

8/9/2019 Management_009 Motivation & Performance

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C h a

p t e r

11

C h a

p t e r

99Motivation and

Performance

Motivation and

Performance


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13-2© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Learning ObjectivesLearning Objectives

After studying the chapter, you should be able to:

Explain what motivation is and why managersneed to be concerned about it.

Describe from the perspectives of expectancy

theory and equity theory what managers should do

to have a highly motivated workforce.

Explain how goals and needs motivate people andwhat kinds of goals are especially likely to result in

high performance.


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Learning ObjectivesLearning Objectives

Identify the motivation lessons that

managers can learn from operantconditioning theory and social learning

theory. Explain why and how managers can use

pay as a major motivation tool.


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The Nature of MotivationThe Nature of Motivation

Motivation

The psychological forces acting on an individualthat determine:

Direction—possible behaviors the individual could engage

in

Effort—how hard the individual will work

Persistence—whether the individual will keep trying or

give up

Explains why people behave the way they do in

organizations


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The Nature of Motivation (cont’d)The Nature of Motivation (cont’d)

Intrinsically Motivated Behavior

Behavior that is performed for its own sake. The source of the motivation that comes from actually

engaging in the behavior.

The sense of accomplishment and achievement derivedfrom doing the work itself

Extrinsically Motivated Behavior

Behavior that is performed to acquire material orsocial rewards or to avoid punishment. The source of the motivation is the consequences of the

behavior and not the behavior itself.


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Outcomes and InputsOutcomes and Inputs

Outcome

Anything a person gets from a job or anorganization

Pay, job security, autonomy, accomplishment

Input

Anything a person contributes to his or her job or organization

Time, effort, skills, knowledge, work behaviors


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The Motivation EquationThe Motivation Equation

Figure 13.1


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Expectancy TheoryExpectancy Theory

Motivation will be high when workers

believe: High levels of effort will lead to high

performance. High performance

will lead to theattainment of

desired outcomes.


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Major Factors of Motivation

Expectancy—the belief that effort (input)will result in a certain level of performance

Instrumentality—the belief thatperformance results in the attainment ofoutcomes

Valence—how desirable each of theavailable outcomes from the job is to aperson


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Expectancy, Instrumentality, and

Valence

Expectancy, Instrumentality, and

Valence

Figure 13.2


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Expectancy Theory in PracticeExpectancy Theory in Practice

Expectancy: Effort will result in a level ofperformance. Employees will work work hard if they believe they can

attain high performance—organizations must provide theresources that support performance.

Instrumentality: Performance leads to outcomes. Workers are only motivated if they think performance

leads to an outcome—managers must link performance to

outcomes. Valence: How desirable an outcome is to a person.

Workers have preferences for outcomes—managers must

determine which outcomes are valued.


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Expectancy and MotivationExpectancy and Motivation

Motivation is highest when expectancy,

instrumentality, and valence levels are high. If one of the values is low, motivation will be low.

Workers do not believe they can perform well.

Workers do not believe that performance and rewards are

closely linked.

Workers do not value the rewards offered for

performance.


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Figure 13.3


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Need TheoriesNeed Theories

Need

A requirement for survival and well-being.Need Theories

Theories of motivation that focus on what needs

people are trying to satisfy at work and whatoutcomes will satisfy those needs.

Basic premise is that people are motivated toobtain outcomes at work to satisfy their needs. Managers must determine what needs a worker wants

satisfied and ensure that a person receives the outcomes

when performing well.


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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Table 13.1

Self-

actualization

Self Self --

actualizationactualization

Realize one’s

full potential

Realize oneRealize one’’ss

full potentialfull potential

Use abil ities

to the fullest

Use abil itiesUse abil ities

to the fullestto the fullest

EsteemEsteemEsteemFeel good

about oneself

Feel goodFeel good

about oneself about oneself Promotions

and recognition

PromotionsPromotions

and recognitionand recognition

BelongingnessBelongingnessBelongingnessSocial

interaction, love

SocialSocial

interaction, loveinteraction, loveInterpersonal

relations, parties

InterpersonalInterpersonal

relations, partiesrelations, parties

Safety

SafetySafety

Security, stability

Security, stabilitySecurity, stability Job security,

health insurance

Job security,Job security,

health insurancehealth insurance

PhysiologicalPhysiologicalPhysiologicalFood, water,

shelter

Food, water,Food, water,

shelter shelter Basic pay level

to buy i tems

Basic pay levelBasic pay level

to buy i temsto buy items

NeedsNeeds DescriptionDescription ExamplesExamples

Lower Lower --level needs must be satisfied beforelevel needs must be satisfied before

higher higher --level needs are addressed.level needs are addressed.

HighestHighest--levellevel

needsneeds

LowestLowest--levellevel

needsneeds


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Alderfer’s ERG Theory Alderfer’s ERG Theory

After lower level needs satisf ied, person seeks higher needs. Wh After lower level needs satisfied, person seeks higher needs. Whenen

unable to satisfy higher needs, lower needs motivation is raisedunable to satisfy higher needs, lower needs motivation is raised..

GrowthGrowthGrowthSelf-development,

creative work

Self Self --development,development,creative workcreative work

Continually

improve skills

ContinuallyContinuallyimprove skillsimprove skills

RelatednessRelatednessRelatedness Interpersonal

relations, feelings

InterpersonalInterpersonal

relations, feelingsrelations, feelings

Good relations,

accurate feedback

Good relations,Good relations,

accurate feedbackaccurate feedback

ExistenceExistenceExistenceFood, water,

clothing, and shelter

Food, water,Food, water,

clothing, and shelter clothing, and shelter Adequate pay

for necessities

Adequate pay Adequate pay

for necessitiesfor necessities

NeedsNeeds DescriptionDescription ExamplesExamples

HighestHighest--levellevel

needsneeds

LowestLowest--levellevel

needsneeds

Table 13.2


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Herzberg’s Motivation-Hygiene

Theory

Herzberg’s Motivation-Hygiene

TheoryFocuses on outcomes that lead to higher

motivation and job satisfaction, and thoseoutcomes that can prevent dissatisfaction. Motivator needs relate to the nature of the work

itself—autonomy, responsibility, interesting work. Hygiene needs are related to the physical and

psychological context of the work—comfortable

work environment, pay, job security. Unsatisfied hygiene needs create dissatisfaction;

satisfaction of hygiene needs does not lead to motivation

or job satisfaction.


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McClelland’s Needs for Achievement,

Affiliation, and Power


Affiliation, and Power Need for

Achievement A strong need to

perform challenging

tasks well and meet

personal standards

for excellence


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Need for Affiliation

A concern for good interpersonal relations,

being liked, and getting along

Need for Power A desire to control or influence others


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Equity TheoryEquity Theory

Focuses on people’s perceptions of the

fairness (or lack of fairness) of their workoutcomes in proportion to their work inputs. A relative outcome to input ratio comparison to

oneself or to another person (referent) perceivedas similar to oneself.

Equity exists when a person perceives that their

outcome/input ratio to be equal to the referent’sratio. If the referent receives more outcomes, they should also

give more inputs to achieve equity.


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Condition Person Referent Example

EquityEquityEquityOutcomes = Outcomes

Inputs Inputs

OutcomesOutcomes == OutcomesOutcomes

Inputs InputsInputs Inputs

Worker contr ibutesmore inputs but also

gets more outputs

than referent

Worker contributesWorker contr ibutes

more inputs but alsomore inputs but also

gets more outputsgets more outputs

than referentthan referent

Underpayment

Equity

Underpayment

EquityOutcomes < Outcomes

Inputs Inputs

Outcomes < Outcomes

Inputs Inputs


gets the same outputs

as referent


gets the same outputs

as referent

Overpayment

Equity

OverpaymentOverpayment

EquityEquityOutcomes > Outcomes

Inputs Inputs

OutcomesOutcomes >> OutcomesOutcomes

Inputs InputsInputs Inputs

Worker contr ibutes

same inputs but also

gets more outputs

than referent

Worker contributesWorker contr ibutessame inputs but alsosame inputs but also

gets more outputsgets more outputs

than referentthan referent

Table 13.3


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Inequity exists when worker’s outcome/input

ratio is not equal to referent. Underpayment inequity: ratio is less than the

referent.

Workers feel they are not getting the outcomes they

should for their inputs.

Overpayment inequity: ratio is higher than the

referent.

Workers feel they are getting more outcomes than they

should for their inputs.


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Restoring Equity: Inequity creates tension in

workers causing them to attempt to restoreequity.

In underpayment, workers may reduce input levels

to correct (rebalance) the ratio or seek a raise.

In overpayment, workers may change the referent

person and readjust their ratio perception. If inequity persists, workers will often choose to

leave the organization.


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Goal Setting TheoryGoal Setting Theory

Focuses on identifying the types of

goals that are effective in producinghigh levels of motivation and explainingwhy goals have these effects.

Considers how managers can ensurethat workers focus their inputs in thedirection of high performance and theachievement of organizational goals.


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Goal Setting TheoryGoal Setting Theory

Goal

What a person is trying to accomplish.Characteristics of Motivating Goals

Specific and not vague in providing direction

Difficult but not impossible to attain

Accepted and committed to by workers

Feedback on goal attainment is important.Goals point out what is important to the firm.

Workers should be encouraged to develop action

plans to attain goals.


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Learning TheoriesLearning Theories

Theories that focus on increasing

motivation and performance by linkingoutcomes to performance and the

attainment of goals.


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Learning TheoriesLearning Theories

Learning

A relatively permanent change in person’sknowledge or behavior that results from

practice or experience.


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Operant Conditioning TheoryOperant Conditioning Theory

Operant Conditioning

People learn to perform behaviors that leadto desired consequences and learn not toperform behaviors that lead to undesired

consequences.

Linking specific behaviors to the attainment

of specific outcomes can motivate highperformance and prevent behaviors thatdetract from organizational effectiveness.


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Operant Conditioning ToolsOperant Conditioning Tools

Positive Reinforcement

Getting desired outcomes for performingneeded work behaviors Positive reinforcers: Pay, praises, or promotions

Negative Reinforcement

Eliminating undesired outcomes once the

desired behavior occurs Negative reinforcers: criticisms, pay cuts,

suspension


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Operant Conditioning ToolsOperant Conditioning Tools

Extinction

Curtailing the performance of a dysfunctionalbehavior by eliminating whatever is reinforcing it.

Behavior is not rewarded and over time, the worker stops

performing it.

Punishment

Administering an undesired/negative consequenceto immediately stop a dysfunctional behavior.

Manager administers an undesired consequence to

worker (verbal reprimand, demotion, pay cut).


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Organizational BehaviorOrganizational Behavior


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Organizational Behavior

Modification

Organizational Behavior

Modification Has been criticized for ethical implications

of application and effects on workers. Appears to be effective in promoting

organizational efficiency.


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Steps in

Organizational

Behavior

Modification

Figure 13.4


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Social Learning TheorySocial Learning Theory

A theory that takes into account how

learning and motivation are influencedby people’s

thoughts andbeliefs and their

observations ofother people’s

behavior.


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Conditions for Social Learning

The learner observes the model performing thebehavior.

The learner accurately perceives the model’s

behavior. The learner remembers the behavior.

The learner has the skills and abilities needed to

perform the behavior. The learner sees or knows that the model is

positively reinforced for the behavior.


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Vicarious Learning (Observational

Learning) Learning that occurs when a learner is

motivated to perform a behavior bywatching another person perform and berewarded.

People are motivated to imitate models who arehighly competent, expert, receive attractivereinforcers, and are friendly or approachable.


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Self-Reinforcement

Any desired or attractive outcome or award that aperson can give himself or herself for goodperformance. “The self-management of behavior”

Self-efficacy A person’s belief about his or her ability to perform

a behavior successfully. Influences motivation both when managers provide

reinforcement and when workers themselves provide it.


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Pay and MotivationPay and Motivation

Pay as a Motivator

Expectancy: Instrumentality, the associationbetween performance and outcomes, must be highfor motivation to be high.

Need Theory: pay is used to satisfy many needs. Equity Theory: pay is given in relation to inputs.

Goal Setting Theory: pay is linked to attainment of

goals. Learning Theory: outcomes (pay), is distributed

upon performance of functional behaviors.

f


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Merit Pay and PerformanceMerit Pay and Performance

Merit Pay Plan

A compensation plan that bases pay on based onindividual, group and/or organization performance.

Individual plan: when individual performance

(sales) can accurately measured.

Group plan: when group that works closely

together is measured and rewarded as a group.

Organization plan: when group or individual

outcomes not easily measured.

S l I B ?


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Salary Increase or Bonus?Salary Increase or Bonus?

Motivational Value of a Bonus Is Higher

When: Salary levels are unrelated to current performance.

Changes in other compensation items (cost of

living, seniority) are not having a large effect inincreasing compensation.

Salaries rarely change and performance does.

Benefits of Using Bonuses Do not become permanent part of compensation

Are more directly tied to current performance Provide more flexibility in distributing rewards

S l I B ?S l I B ?


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Salary Increase or Bonus?Salary Increase or Bonus?

Employee Stock Option

A financial instrument that entitles thebearer to buy shares of an organization’sstock at a certain price during a certain

period of time or under certain conditions. Uses

To attract high-level managersTo motivate employee performance through

ownership in the firm

E l f M it P PlE l f M it P Pl


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Examples of Merit Pay PlansExamples of Merit Pay Plans

Piece-rate Pay

Employee’s pay is based on the number of unitsthat the employee produces.

Commission Pay Employee’s pay is based on a percentage of sales

that the employee makes.

Organization-based Merit Plans Scanlon plan—focuses on reduced expenses or

cutting costs

Profit sharing—employees receive a share of anorganization’s profits

M i E l th t thi d !M i E l th t thi d !


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Movie Example: that thing you do!Movie Example: that thing you do!

What motivates the

members of theband, The

Oneders?

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