Dan C. Lungescu, PhD, assistant professor2015-2016

ManagementPart IV: Leading

Ch. 12. Motivation

Course outline

Part I: Introduction

Part II: Planning

Part III: Organizing

Part IV: Leading

Part V: Controlling

Management

Part IV outline

Part IV: Leading

Management

Ch. 12. Motivation

Ch. 13. Leadership

Ch. 14. Communication

Ch. 15. Managing groups

Learning objectives

After studying this chapter, you should:

Define motivation, discuss its basic properties, and distinguish it from performance.

Compare and contrast intrinsic and extrinsic motivation. Explain and discuss the different factors that predict

performance and define general cognitive ability and emotional intelligence.

Explain and discuss need theories of motivation. Explain and discuss equity theory and expectancy theory. Discuss the major aspects of motivation in practice.

Chapter 12 outline

A. The nature of motivation

B. Need theories of motivation

C. Process theories of motivation

D. Motivation in practice

A. The nature of motivation

Outline » A. The nature of motivation

The force that energizes behavior, gives direction to behavior, andunderlies the tendency to persist.

Motivation

The extent to which persistent effort is directed toward a goal.

Motivation

Motivation that stems from the direct relationship between theworker and the task; it is usually self-applied.

1. Intrinsic motivation

Motivation that stems from the work environment external to thetask; it is usually applied by others.

2. Extrinsic motivation

Motivation and performance

Outline » A. The nature of motivation » Motivation and performance

Performance

Amount of effort Persistence of effort Direction of effort

Motivation

Personality GeneralcognitiveabilityTask

understandingEmotionalintelligenceChance

The extent to which an organizationalmember contributes to achieving theobjectives of the organization.

Performance

A person’s basic information processingcapacities and cognitive resources.

General cognitive ability

The ability to understand and manageone’s own and others’ feelings andemotions.

Emotional intelligence

The motivating process

Outline » A. The nature of motivation » The motivating process

Satisfaction

Needs

?

Rewards

Performance

Effort/action/behavior

Instrumentality

Management and motivation

Outline » A. The nature of motivation » Management and motivation

Satisfaction

Needs

Rewards

Performance

Effort/action/behavior

In order to be able to motivate their employees, managers must know:1. What rewards to provide.2. How to give those rewards, on the

basis of employees’ performances.Accordingly, two types of theories:1. Need theories.2. Process theories.

One can get motivated only if he/she has pressing needs.Importance of needs

Motivating people does not mean fulfilling their needs, but getting their effort (action/behavior).

Motivation is not satisfaction

B. Need theories of motivation

Outline » B. Need theories of motivation

Motivation theories that specify the kinds of needs people have andthe conditions under which they will be motivated to satisfy theseneeds in a way that contributes to performance.

Need theories (content theories)

The most important:

I. David McClelland’s Acquired-needs theory

II. Abraham Maslow’s Hierarchy of needs

III. Clayton Alderfer’s ERG theory

IV. Frederick Herzberg’s Two factor theory

I. Acquired-needs theory

Outline » B. Need theories of motivation » I. Acquired-needs theory [David MaClelland]

A nonhierarchical need theory of motivation thatoutlines the conditions under which certain needsresult in particular patterns of motivation.

Acquired-needs theory

There are 3 needs with special relevance for management:

A strong desire to establish and maintain friendly, compatible interpersonalrelationships.

Need for affiliation (nAff)

A strong desire to influence others, making a significant impact orimpression.

Need for power (nPow)

A strong desire to perform challenging tasks well.

Need for achievement (nAch)

II. Hierarchy of needs

Outline » B. Need theories of motivation » II. Hierarchy of needs [Abraham Maslow]

A five-level hierarchical need theory of motivationthat specifies that the lowest-level unsatisfied needhas the greatest motivating potential.

The hierarchy of needs

1. Human beings have needs that are never completely satisfied.2. Human action is aimed at fulfilling the needs that are unsatisfied

at a given point in time.3. Needs fit into a somewhat predictable hierarchy, ranging from

basic to higher-level needs.

3 assumptions about human nature

None of the needs is a “best” motivator; motivation depends on the person’s position in the need hierarchy.

Hierarchy of needs (2)

Outline » B. Need theories of motivation » II. Hierarchy of needs [Abraham Maslow] (2)

Physiological

Safety

Belongingness

Esteem

Self-actualization

Needs that pertain to the way the organism is functioning.

1. Physiological needs

Needs that pertain to the desire to feel safe, secure, andfree from threats to our existence.

2. Safety needs

Needs that involve the desire to affiliate with and beaccepted by others.

3. Belongingness needs

Needs related to the two-pronged desire to have a positiveself-image and to have our contributions valuated andappreciated by others.

4. Esteem needs

Needs that pertain to the requirement of developing ourcapabilities and reaching our full potential.

5. Self-actualization needs

Hierarchy of needs (3)

Outline » B. Need theories of motivation » II. Hierarchy of needs [Abraham Maslow] (3)

Breating, food, water, sex, sleep, homeostasis, excretion.Physiological

Security of: body, employment, resources, morality, the family, health,

property.Safety

Friendship, family, sexual intimacy.Belongingness

Self-esteem, confidence, achievement, respect of others, respect by others.Esteem

Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of

facts.

Self-actualization

III. ERG theory

Outline » B. Need theories of motivation » III. ERG theory [Clayton Alderfer]

A three-level hierarchical need theory of motivation(existence, relatedness, growth) that allows formovement up and down the hierarchy.

ERG theory

Unlike the need hierarchy, ERG theory does not assume that a lower-level need must be gratified before a less concrete need

becomes operative.

ERG theory assumes that if the higher-level needs are ungratified, individuals will increase their desire for the

gratification of lower-level needs.

ERG theory (2)

Outline » B. Need theories of motivation » III. ERG theory [Clayton Alderfer] (2)

Physiological

Safety

Belongingness

Esteem

Self-actualizationGrowth

Relatedness

Existence

IV. Two factor theory

Outline » B. Need theories of motivation » IV. Two factor theory [Frederick Herzberg]

2 types of factors are able to fulfill the needs:

Factors that increase satisfaction: achievement, recognition, workitself, responsibility, promotion, growth etc.

1. Motivator factors

Factors that decrease dissatisfaction: pay and benefits, companypolicy and administration, relationships with co-workers, physicalenvironment, supervision, job security etc.

2. Hygiene factors

Two factor theory (2)

Outline » B. Need theories of motivation » IV. Two factor theory [Frederick Herzberg] (2)

physiological

safety

belongingness

esteem

self-actualization

motivators

hygienefactors

satisfying

not satisfying

increasemotivation

decreasemotivation

C. Process theories of motivation

Outline » C. Process theories of motivation

Motivation theories that specify the details of how motivationoccurs.

Process theories of work motivation

The most important:

I. John Stacey Adams’s Equity theory

II. Victor Vroom’s Expectancy theory

III. Edwin A. Locke’s Goal-setting theory [see Chapter 5, §B]

I. Equity theory

Outline » C. Process theories of motivation » I. Equity theory [John Stacey Adams]

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Real equity:

Perceived equity:

Satisfaction

Needs

Rewards

Performance

Effort/action/behavior

Equity theory: different situations

Outline » C. Process theories of motivation » I. Equity theory [John Stacey Adams]: Situations

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II. Expectancy theory

Outline » C. Process theories of motivation » II. Expectancy theory [Victor Vroom]

A process theory that states that motivation isdetermined by the outcomes that people expect tooccur as a result of their actions on the job.

Expectancy theory

Consequences that follow work behavior:1. First-level outcomes = performances.2. Second-level outcomes = rewards.

Outcomes

The effort directed toward a first-level outcome.

Force

The purpose of this theory:to find out what is influencing this force.

Expectancy theory (2)

Outline » C. Process theories of motivation » II. Expectancy theory [Victor Vroom] (2)

Satisfaction

Needs

Rewards

Performance

Effort/action/behavior

Instrumentality

Force

Valence

Valence ofperformance

The expected value of rewards; theextent to which they are attractiveor unattractive.

Valence

The extent to which a performanceis attractive.

Valence of a performance

The probability that a particularperformance will be followed by aparticular reward.

Instrumentality

V (P) = ∑ ( I × V )

Expectancy theory (3)

Outline » C. Process theories of motivation » II. Expectancy theory [Victor Vroom] (3)

The probability that a particularfirst-level outcome can be achieved.

Expectancy

Satisfaction

Needs

Rewards

Performance

Effort/action/behavior

Instrumentality

Force

Valence

Valence ofperformance

V (P) = ∑ ( I × V )

Expectancy

F (E) = E × ∑ ( I × V )

F (E) = E × V (P)

F (E) = ∑ ( E × I × V )

Expectancy theory: example

Outline » C. Process theories of motivation » II. Expectancy theory [Victor Vroom]: Example

High performance

Average performance

Promotion

Salary increase

Promotion

Salary increase

Force: ?

9

7

9

7

V (HP) = 0.3 × 9 + 0.6 × 7 = 0.69V (AP) = 0.1 × 9 + 0.2 × 7 = 0.23

0.3

0.6

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0.2

High performance is more attractive.

0.6

0.90.2

0.8

F (HP) = 0.6 × 0.69 = 0.414F (AP) = 0.9 × 0.23 = 0.207

This one will choose to make the effort needed for a HP.

F (HP) = 0.2 × 0.69 = 0.138F (AP) = 0.8 × 0.23 = 0.184

This one will choose to NOT make the effort needed for a HP.

D. Motivation in practice

Outline » D. Motivation in practice

The major approaches:

I. Money as a motivator

II. Job design as a motivator

III. Management by objectives [see Chapter 5, §F]

IV. Alternative work schedules as motivators

I. Money as a motivator

Outline » D. Motivation in practice » I. Money as a motivator

A pay system in which individual workers are paid a certain sum ofmoney for each unit of production completed.

Piece-rate

Various systems that link pay to performance on production jobs.

Wage incentive plans

Lowered quality. Differential opportunity. Reduced cooperation. Incompatible job design. Restriction of productivity.

Potential problems with wage incentives

II. Job design as a motivator

Outline » D. Motivation in practice » II. Job design as a motivator

Approaches to job design:

Making jobs meaningful, interesting, and challenging.Job enrichment

Adding more tasks to the job for variety.Job enlargement

Doing different jobs for variety.

Job rotation

Balancing the social and technical aspects of the job.

Socio-technical approach

Concentrates on the efficiency of the job through time and motion analysisand person-machine interfaces.

Job engineering

Building goals, feedback, and incentives into the structure of the job.

Goal setting

Job enrichment

Outline » D. Motivation in practice » II. Job design as a motivator » Job enrichment

Herzberg's Two-factor theory » in order to motivate personnel, the job must be designed to provide opportunities for

achievement, responsibility, advancement.

Jobs should be designed to:Include a greater variety of work content

Require a higher level of knowledge and skill

Give workers more autonomy and responsibility

Provide the opportunity for personal growth

Provide the opportunity for a meaningful work experience

Two major approaches to job enrichment:

a. Job dimensions b. Job characteristics

a. Job dimensions

Outline » D. Motivation in practice » II. Job design » Job enrichment » a. Job dimensions

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b. Job characteristics

Outline » D. Motivation in practice » II. Job design » Job enrichment » b. Job characteristics

The extent to which the job entails a number of activities that requiredifferent skills.

Skill variety

The degree to which the job allows the completion of a major identifiablepiece of work, rather than just a fragment.

Task identity

The extent to which the worker sees the job output as having an importantimpact on others.

Task significance

The amount of discretion allowed in determining schedules and workmethods for achieving the required output.

Autonomy

The degree to which the job provides for clear, timely information aboutperformance results.

Feedback

Job characteristics (2)

Outline » D. Motivation in practice » II. Job design » Job enrichment » b. Job characteristics (2)

Core job characteristics

Critical psychological states

Personal andwork outcomes

1. Variety of skills2. Identity of the task3. Significance of the task

Experienced meaningfulness

of the work

4. Autonomy

5. Feedback

Experienced responsability for work outcomes

Knowledge of results from work

activities

high internal work motivation

high quality work performance

high satisfaction with the work

low turnover and absenteeism

Moderated by employeegrowth need strength

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Dan C. Lungescu, PhD, assistant professor2015-2016