X X

X

Definition : willingness to exert high levels of effort toward organizational goals, conditioned by the efforts ability to satisfy individual needs

3 key element 1. Intensity : how hard a person tries 2. Direction : effort directed toward & consistent with goals3. Persistence : how long a person maintain effort

ContemporaryTheories

1. Hierarchy of needs = Abraham Maslow

2. Theory X & Theory Y3. Two Factor Theory

(motivation-hygiene theory)

Application1. Hierarchy of needs • Higher-order needs

(social, esteem, self actualization) = U.S

• Safety hierarchy = Japan,Greece, Mexico• Social hierarchy =Denmark, Sweden,Netherlands, Finland2. Two Factor Theory =widely read & familiar amongmanagers

Motivation

Coping different needs1. nAch = flexibility,

responsibility, clear standard, rewards, clarity, commitment

2. nAff = plans as a group, give recognition & incentives, rarely criticize/punish, use peer pressure for individual discipline

3. nPow = negotiate goals, tasks, strategies, work unit decisions with them= give assignment involve project leadership/recognition/compensation/

symbols of power

6 choices for employees perceive inequity :1. Change input2. Change outcome3. Distort self perception4. Distort others perception5. Choose different referent6. Quit job

ERG Theory = Clayton Alderfer=3 core needs : existence, relatedness,growthThree Needs Theory / Learned NeedsTheory - McClelland=Needs for : achievement (nAch), power(nPow), affiliation (nAff)Equity Theory = Individual comparejob inputs & outcomes with others thenrespond to eliminate inequities= 4 referent comparisons : self-inside,self-outside, other-inside, other-outsideExpectancy Theory = strength oftendency to act in certain way depends

onstrength of expectation that the actfollowed by outcome/attractiveness ofoutcome

X X

X

Organizational justice : overall perception of what is fair in workplace – distributive, procedural

Practice & reality element 1. Effort-performance relationship = source of low motivation : likelihood of getting good performance appraisal low, no matter how hard they work2. Performance- reward relationship = weak, demotivating : pay based on seniority, being cooperative, “kissing up” bosses3. Rewards-personalgoals relationship = limited in rewards distributed : difficult to taillor rewards to individual needs

Distributive justice : Perceived fairness of amount & allocation of rewards among individuals

Procedural justice :Perceived fairness of processused to determine distributionof rewards

Expectency Theory

Equity Theory

Rewards-personal goalsrelationship = rewards /attractiveness of rewardssatisfy individual personalgoals or needs

Effort-performance relationship =Exerting given amount of effort leadto performance

Performance- reward relationship =

performing at particular level lead to attainment

of desired outcome

Learned Needs

Theory / Three Needs Theory - McClelland

nAch = drive to excel, to achieve a set of standards

nPow = need to make others behave in a way they would not otherwise

nAff = desire for friendly & close interpersonal relationships

X

X

Profit-sharing plansDistributes compensation based on established formula design around company’s profitabilityGreater feeling of psychological ownership on employees

X

X

Variable-pay programs

Piece-rate pay fixed sum for each unit of

production not feasible for many

job

Merit-based pay Pays for individuals based

on performance appraisal rating

Because of unions resist, seniority-based pay where employees get same raises predomiates

Rewards As Motivation

Bonuses Many companies

reward production employees with bonuses when profits improve

Pay structure : Pay more = better qualified, highly motivated, stay longer with organization, higher morale, more productiveVariable-pay programs : piece-rate, merit-based, bonuses, skill-based, profit-sharing plans, gainsharing, employee stock ownership plansFlexible benefits : modular plans, core-plus options, flexible spending accountsIntrinsic rewards : recognition programs = spontaneous & private thank-you/formal• most powerful workplace motivator•inexpensive

Skill-based pay Also called competency-

based / knowledge-based pay

Bases pay levels on how many skills employees have / how many jobs they can do

Don’t address level of level of performance, only whether someone can perform the skill

Gain sharing Formula-based group

incentives plan uses improvement in group productivity

Employee stock ownership plan Company-established benefit

plan, employees acquire stock