EOM 11 Motivation

7/30/2019 EOM 11 Motivation

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CHAPTER 9

Motivation



9-2

Learning Objectives

1. Explain the relationship between motivation andperformance.

2. Present an overview of major theories of needsatisfaction in explaining motivation.

3. Explain how goal setting is used to motivate people.

4. Describe the application of positive reinforcementincluding recognition and praise to worker motivation.

5. Explain the conditions under which a person will bemotivated according to expectancy theory.

6. Describe the role of financial incentives, including profitsharing and gainsharing in worker motivation.



9-3

1. The Relationship Between Motivation,Performance, and Engagement

Skill

Motivation AbilityPerformance

(and Engagement) X

Technology

Motivation and Ability as Factors in Performance



9-4

2. Motivation Through Need Satisfaction

“People are willing to expend effort toward achieving a goal

because it satisfies one of their important needs.”

The need-satisfaction approach requires two key steps inmotivating workers.

First, you must know what people want —what needs they aretrying to satisfy.

Second, you must give each person a chance to satisfy needs onthe job.

Needs and motivation will be examined from two relatedperspectives:

a. Maslow’s need hierarchy

b. Herzberg’s two-factor theory



9-5

Maslow’ s need hierarchy: The motivation theorythat arranges human needs into a pyramid-shapedmodel with basic physiological needs at the bottomand self-actualizing needs at the top.

Deficiency needs: Lower-order needs that must besatisfied to ensure a person’s existence, security, andrequirements for human contact.

Growth needs: Higher-order needs that are concernedwith personal development and reaching one’s potential.

a. Maslow’s Need Hierarchy



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Maslow’s Need Hierarchy (cont.)

Self- Actualization

Esteem

Affiliation

Security

Physiological

Higher Order(GrowthNeeds)

Lower Order

(DeficiencyNeeds)


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b. Herzberg’s Two-Factor Theory of Work Motivation

Herzberg’s theory contending that there are twodifferent sets of job factors. One set can satisfy andmotivate people (Satisfiers and motivators), andthe other set can only prevent dissatisfaction

(Dissatisfiers).

Satisfiers and motivators generally refer to thecontent (the heart or guts) of a job.

Dissatisfiers are more relevant to lower-level needsthan upper-level needs and relate mostly to thecontext of a job (the job setting or external elements).



b. Herzberg’s Two-Factor Theory (cont.)

• Achievement

• Recognition

• Challenging Work

• Responsibility

• Advancement

Satisfiers or Motivators

Presence - Positive effect onmotivation

Absence - No negative effect onmotivation

• Relationships withsupervisor, peers, andsubordinates

• Company policy andadministration

•

Work conditions• Job Security

• Salary

Dissatisfiers

Presence - No positive effect onmotivation

Absence - Negative effect onmotivation

A key take- away from Herzberg’s theory is that intrinsic motivation is a major form of motivation; it is the basis for job enrichment as well as job crafting.



3. Motivation Through Goal Setting

Goals That Are:

• Specific

• Difficult but realistic

• Accepted by the person

• Used to evaluateperformance

• Linked to feedback andrewards

• Set by individuals or

groups

ImprovedPerformance

Values

The Basics of Goal Theory

f



4. Positive Reinforcement andRecognition Programs

Behavior modification is a way of changingbehavior by rewarding the right responses andpunishing or ignoring the wrong responses.

Positive reinforcement is part of behavior

modification, which increases the probabilitythat behavior will be repeated by rewardingpeople for making the right response.

Positive reinforcement is the most

effective behavior modification strategy. Most people respond better to being rewarded for the

right response than to being punished for the wrongresponse.



Rules for Positive Reinforcement

1. Specify desired behavior, give feedback

2. Use appropriate (effective) rewards

3. Rewards contingent on good performance

4. Administer rewards intermittently

5. Administer rewards promptly

6. Change rewards periodically

(avoid staleness of rewards)

7. Make the rewards visible to other workers

8. Reward groups and teams as well as individuals



5. Expectancy Theory of Motivation

A. Individual believes effort (E) will lead to favorableperformance (P) - that is, when E --> P

B. Individual believes performance (P) will lead to afavorable outcome (O) - that is, when P --> O

C. Outcome or reward satisfies an important need

D. Need satisfaction is intense enough to make effortseem worthwhile

An individual will be motivated when:



Guidelines from Expectancy Theory

1. Individual differences are important

2. Help workers feel that they are makingprogress toward their goals

3. Tie rewards to worthwhile actions

4. Training and encouragement are key

5. Show that performance gets rewards6. Explain meaning and implications of outcomes

such as high performance evaluation

6 M ti ti Th h



6. Motivation ThroughFinancial Incentives

Link pay toperformance

Stock optionplans

Employeestock

ownership

Gainsharing

Profit sharing



Linking Pay to Performance

Financial incentives work better whenlinked to performance. Merit pay is additional income earned for

meeting performance standards.

Bonuses are based on performance.

An increasing effort to link pay toperformance that supports business

strategies.

Performance must be measured carefullyand regularly.



Profit Sharing and Gainsharing

Profit-sharing plans give workerssupplemental income based on theprofitability of the entire firm or a selectedunit.

Gainsharing is a specific form of sharingprofits that enables workers to share in the

productivity gains they create. Gainsharing payouts go the groups, not

individuals.

Gainsharing depends on employee involvementand cooperation.

bl i d i h i i l



Problems Associated with FinancialIncentives

Workers and managers might disagree on the value of worker’s contribution.

Executives grab too much money.

Financial incentives detract from joy of accomplishment. Incentives do not breed lasting commitment.

Lack of bonus may feel like punishment.

Useful perspective for managers: for financial rewards

to be effective motivators, they must be combined with: meaningful responsibility,

respect for the worker,

constructive relationships on the job, and

recognition.


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Homework for group presentation

Prepare for a 15 minute grouppresentation on Case Problem 11-B:

“Justin Tries a Little Recognition” ,page 426:

Describe shortly the case problem

Answer all questions in the case problem

Email your files to the lecturer

EOM 11 Motivation

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