MNGT 5590Organizational Behavior

Week 3: Chapters 5 & 6

Dr. George Reid

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• Chapter 5: Foundations of Employee Motivation

• Chapter 6: Applied Performance Practices

Case G11: California DMS

HR Specialists

<<State Agencies >>

Directors

Executive Director

Lt. Governor

5Chapter 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.

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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.

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Motivation DefinedThe 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)

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Employee Engagement

Both emotional and cognitive motivation

Focused, intense, persistent, purposive effort toward goals

High level of absorption (focus)

High self-efficacy

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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 supportMain problem: Needs

hierarchy is unique to each person, not universal

Self-actual-ization

Physiological

Safety

Belongingness

Esteem

Need toknow/learn

Need for beauty/order

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Maslow’s Contribution to Motivation

Holistic perspectiveStudy multiple needs

together

Humanistic perspectiveInfluence of social

dynamics, not just instinct

Positive perspectiveSelf-actualization (growth

needs)Foundation of positive OB

Abraham Maslow

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Learned Needs TheoryNeeds can be “learned”

strengthened through reinforcement, learning, and social conditions

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Three Learned NeedsNeed for achievement (nAch)

Want to accomplish reasonably challenging goalsDesire clear feedback, moderate risk tasks

Need for affiliation (nAff)Seek approval from others, conform to others’

wishes, avoid conflictEffective decision makers have low nAff

Need for power (nPow)Desire to control one’s environmentPersonalized versus socialized power

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Outcome 1

Outcome 2

Outcome 3

E-to-P Expectancy

Probability a specific effort level will result in a specific level of performance

P-to-O Expectancy

Probability a specific performance level will result in specific outcomes

Valence

Anticipated satisfaction fromthe outcome

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+/–

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Expectancy Theory of Motivation

Effort Performance

Environment

Ability

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Expectancy Theory in PracticeIncreasing E-to-P Expectancies

Hire, train, and match people to job requirementsProvide role clarity and sufficient resourcesProvide behavioral modeling and coaching

Increasing P-to-O ExpectanciesMeasure performance accuratelyExplain how rewards are linked to performanceExplain how rewards are caused by past performance

Increasing Outcome ValencesEnsure that rewards are valuedIndividualize rewardsMinimize countervalent outcomes

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Four OB Mod ConsequencesPositive 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

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Social Cognitive TheoryLearning behavior outcomes

Observing consequences that others experienceAnticipate consequences in other situations

Behavior modelingObserving and modeling behavior of others

Self-regulationWe engage in intentional, purposive actionWe set goals, set standards, anticipate

consequencesWe reinforce our own behavior (self-reinforcement)

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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

SMARTER

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Balanced ScorecardOrganizational-level goal setting and

feedback

Usually financial, customer, internal, and learning/growth process goals

Several goals within each process

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Characteristics of Effective FeedbackSpecific – 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

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Strengths-Based CoachingBuilds on employee’s strengths rather than trying

to correct weaknesses

Motivational because:People inherently seek feedback about their

strengths, not their flaws

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Sources of FeedbackSocial sources -- feedback directly from others

e.g., boss, customers, multisource

Nonsocial sources -- feedback not conveyed directly by peoplee.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

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Organizational Justice/EquityDistributive justice

Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others

Procedural justicePerceived fairness of the procedures used to

decide the distribution of resources

6Chapter 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.

6-23

Meaning of Money at WorkMoney 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

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Job Status-Based RewardsIncludes job evaluation and status

perks

Advantages: Job evaluation tries to maintain

fairnessMotivates competition for promotions

Disadvantages:Encourages bureaucratic hierarchyReinforces status vs egalitarian

cultureEmployees exaggerate duties, hoard

resources

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Competency-Based Rewards

Two types of competency rewards

1.Skill-based payemployees 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 competency-based pay

Potentially subjective, higher training costs

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Performance-based RewardsIndividual rewards

Bonuses, commissions, piece rate systems

Team rewardsMostly bonuses, also gainsharing plans

Organizational rewardsOrganizational bonuses, ESOPs, stock options, profit-

sharing

Evaluating organizational rewardsESOPs and stock options create “ownership culture”Profit sharing adjusts pay with firm's prosperityProblem: organizational rewards have weak P-to-O link

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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

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Unintended Consequences of Rewards at TransSantiago

Santiago, Chile, bus drivers paid per passenger Motivated start time, shorter

breaks, efficient driving, passengers paid fares

Unintended consequencesSpeeding to next stop,

cutting off competing busesPassenger injuries/deaths –

doors left open, bus departs before all on board

Drove past stops with only one passenger waiting

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Job DesignAssigning 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

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Job Specialization and Scientific ManagementDividing work into separate jobs, each with a subset

of tasks to complete the product/service

Scientific managementFrederick Winslow TaylorChampioned job specialization and standardizationAlso popularized training, goal setting, work incentives

Advantages and disadvantages of job specialization

Frederick Winslow Taylor

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Job Characteristics Model

Workmotivation

Growthsatisfaction

Generalsatisfaction

Workeffectiveness

Feedbackfrom job

Knowledgeof results

Skill varietyTask identity

Task significanceMeaningfulness

Autonomy Responsibility

Individualdifferences

CriticalPsychological

States

Core JobCharacteristics Outcomes

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Other Job CharacteristicsSocial characteristics of the job

Required interaction with other peopleclients, coworkers, etc

Task interdependence -- job requires social interaction with coworkers

Feedback from others -- from coworkers, clients, etc

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Job RotationMoving from one job to

another

Benefits1.Minimizes repetitive

strain injury

2.Multiskills the workforce

3.Potentially reduces job boredom

Job ‘A’

Job ‘B’

Job ‘C’

Job ‘D’

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Adding tasks to an existing jobExample: video journalist

Job Enlargement

Employee 1Operates camera

Employee 2Operates sound

Employee 3Reports story

Traditional news team

Video journalist

• Operates camera• Operates sound• Reports story

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Job EnrichmentGiving 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

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Dimensions of Empowerment

Meaning

Competence

Employees believe their work is important

Employees have feelings of self-efficacy

ImpactEmployees feel their actions influence success

Self-determination

Employees feel they have freedom and discretion

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Self-LeadershipThe process of influencing oneself to

establish the self-direction and self-motivation needed to perform a task

Includes concepts/practices from goal setting, social cognitive theory, and sports psychology

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

Time Terry Pat Sandy Sam Chris

Location

8:45-9:15

A B C D E Teams

9:20-9:50

E A B C D Teams

9:55-10:25

D E A B C Teams add 5 min break

10:35-11:05

C D E A B Teams

11:10-11:40

B C D E A Teams

11:45-12:00

Wrap-Up Summary All Classroom

Schedule for Week 4 – Be On Time!

Time Terry Pat Sandy Sam Chris

Location

1:15-1:45

A B C D E Teams

1:50-2:20

E A B C D Teams

2:25-2:55

D E A B C Teams add 5 min break

3:05-3:35

C D E A B Teams

3:40-4:10

B C D E A Teams

4:15-4:30

Wrap-Up Summary All Classroom

Schedule for Week 4 – Be On Time!