Motivation and RewardWhat does it mean to be motivated?

Questions:What motivates you? What demotivates you?

How is one motivated? Why is one motivated to do x or y?

Performance problems…

Signs and symptoms:-

• Organization• Group/Team• Individual

role of ‘motivation’?

Performance Regulation

• External regulation (Scientific Mgt)• Subjective regulation (Human Relations)

Regulation through understanding and managing the employee mind-set (cooperative systems approach)

Topic of satisfaction and motivation entered the agenda

Motivation and Reward….for love…isn’t that the reason why we do

anything….?

Do you love to work? Do you work for love? Do you work to enable you to love? Would you work if you didn’t have to?

‘Pay might be the reason why millions of people get out of bed in the morning and go to work but what they do when they get there is an entirely different manner’….(the lottery question…)

Herzberg (1968)

• The simplest method of getting someone to move is to kick him in the pants

• However, if you kick your dog it moves, but was it motivated to move?

…..it would certainly be motivated to move away!

• True motivation comes from within the person who wants to move=> goal directed

When we go out to play…

• How might the concept of play inform our understanding of motivation?

• What is play? What is work?

• Can we play in work? Can we work in play?

What motivates?Content Theories = taxonomic ‘lists’ of need (e.g. Maslow’s

Hierarchy), motives (e.g. sensation seeking, need for achievement, need for power)

- e.g. Maslow’s Hierarchy: theory of motivation in general versus work in particular => attractive ‘holistic’ idea

survival, security/safety, social/belonging, esteem, cognitive, aesthetic, self-actualising

Hierarchical proposition => movement into a higher order domain presupposes to fulfilment of lower order needs

Evaluation..Popularity versus scientific integrity- intuitive plausibility

Difficult to test – needs can operate simultaneously, depends on relative salience

Arbitrary categorisation – one may seek to fulfil a higher order need to satisfy lower order needs - e.g. for employability

Does need fulfilment motivate? (complete satisfaction or continuous striving)

So what? How do ‘needs’ they work? How might we use the theory?

Two Factor Theory

Herzberg (1968) – intrinsic (from within)extrinsic (from outside)

Hygiene needs = ‘disatisfiers’, must be fulfilled to prevent disatisfaction but won’t increase satisfaction

Motivators = ‘satisfiers’, but won’t prevent disatisfaction

Evaluation..No direct evidence, but again, plausible- e.g. ‘tip of the iceberg’ effect in absence of satisfiers,

dissatisfiers become more salientAlso maybe a threshold of hygiene needs after which more pay

adds nothing to satisfaction (Law of Diminishing Returns)

But, distinction intrinsic and extrinsic dubious e.g. payment (hygiene/extrinsic) makes possible the fulfilment of intrinsic (satisfiers) needs, also depends what ‘pay’ means (could be intrinsic motivator for some)

Again, so what?

How does motivation come about?

Process theories - e.g. equity theory (distributive justice, procedural justice) instrumentality-expectancy theory, social exchange theory, goal setting theory…

Social comparisons = reference pointPresuppose a superordinate need for equity/justice/balance of

exchange

Presuppose rational calculation of inputs/outputsHighly cognitive … where is the sentiment?So what? What do they tell us about motivation?

What, Why and How?

Content = what? Arbitrary lists of needs

Process = how? Cognitive mechanisms

How useful is either without an answer to ‘why is one motivated to do x rather than y?’

Importance of theory -> source of explanation and ‘intervention leverage’

Absence of coherent theory

Piecemeal/fragmented, mini-models, laboratory based, decontextualised

A theory of motivation must be able to deal with:-• Individual differences• Motivated behaviour can occur in adverse

circumstances - e.g. demoralised but continue to work hard

• Why there might be opposite reactions of some people to the same objective circumstances

Motivation and Satisfaction

All theories incorporate satisfaction, but, one can be motivated even if dissatisfied

Why?Scenario -> professional person in the caring

professions, there is low morale and high turnover, but not necessarily poor performance..

Work => self-expressive (directly or indirectly)

Motivation as an expression of identity

What higher order needs does work fulfil?

Competence/efficacy, achievement, meaning, esteem /worth / validation…

Why are we motivated to do what we do?

Can one be motivated in a ‘have to’ situation? - i.e. is pure ‘want to’ or intrinsic motivation possible without constraint?

Implications…

An identity theory of motivation…

Does the term ‘motivation’ signify something unitary (uni-dimensional) or multi-dimensional?

Is it more useful as an analytic framework than a concept?

Still doesn’t answer the question of how?

How?

Theories of goal directed and self-regulated behaviour

Psychological Contract Theory = schema theory (Rousseau) and/or relationship psychology (Herriot)

Critical importance of understanding processes, not just inside the head, but between people and the artefacts in their environment

Universal and Particular

• How can universal theories be used in particular instances?

• Importance of context…universal theories are acontextualparticularistic situations – apply only in

a particular context

Contingency theory….

The context of motivation…

Adequacy of individual level of analysisGroups as a critical link pin and source of

psychological leverageUnderstand group processes – formal and

informal – e.g. how do people maintain motivation in boring jobs? Informal compensatory mechanisms where there is some creative licence afforded by mgt (informal job redesign)

The context of reward

Payment systems => rarely truly contingent on performance (PRP)

Complex relationship between payment and intrinsic motivation – e.g. can change the meaning of work

Individual PRP in a team context can undermine teamwork by creating interpersonal competition

Control or Facilitation

• Balance between management control and personal/team autonomy

• Critical importance of informal as well as formal processes

• Imposition of new formal processes (e.g. job redesign, new technology) can undermine informal processes with big performance costs…

Doing more harm than good…

• Sweeping ‘potted’ job design solutions, out-of-context, potentially disruptive of informal processes naturally evolved to increase/maintain motivation in otherwise boring (formal) jobs..

• Context, history, meaning– What is the context? Context is created in part by informal

processes– History? Of the current situation, of the individual/group

situation..– Meaning? What does work mean to an individual or

group…

Work flow…

• What is the task and task objective?• What are the task conditions and constraints?• How will the task be completed (processes)

-optimise process by taking into consideration the task and its requirements and the people involved-select process that is win-win for task and people; involve people in deciding on process

Control versus Autonomy – Formal versus Informal Processes

Organizational Behavior Course Model

OB Outcomes: Attitudes and Behaviors

EffortJob SatisfactionAbsenteeismTurnoverStressWorkplace ViolenceOrganizational Citizenship

Behavior and CommitmentEmployee TheftSafety and AccidentsSexual HarassmentGrievances

Influenced by Managers Using

Application of Individual Differences

• Perceptions• Attributions• Attitude change• Values• Personality

Group DynamicsReward SystemsJob DesignLeadership

• Motivation Illustration • Misconceptions about Motivation

*Current generation has no work ethic* Some people are born “lazy”* Most people are motivated by the same thing

Why is Motivation Important?• Under optimal conditions,

effort can often be increased and sustained

• Delegation without constant supervision is always necessary

• Employees can become self-motivated

• Motivated employees can provide competitive advantage by offering suggestions & working to satisfy customers

Bottom LineMotivation is accomplishing things through the efforts of others. If you cannot do this, you will fail as a manager.

MAJOR THEORIES OF MOTIVATION

I. Need Approaches:

- Maslow’s Hierarchy of Needs

- Alderfer’s ERG Theory

- Herzberg’s Two Factor Theory

- McClelland’s Learned Needs Theory

II. Cognitive Approaches:

- Expectancy Theory

- Equity Theory/ Social Comparison

- Goal Setting Theory

III. REINFORCEMENT THEORY OR OPERANT CONDITIONING : How Rewards & Reinforcements Sustain Motivation Over Time

(Behavior Modification)

Job performance = f (ability X motivation X organizational

support)

“Issues” with Maslow’s Need Model

1. Businesses typically do well satisfying lower order needs.

2. Model stipulates that there are 5 needs and that the order is “fixed”. Research indicates some may only have 2-3 need hierarchy; others 5-6. The order may also be inverted and meeting needs outside of work not accounted for.

3. Model not developed from average employees

Alderfer’s ERG Theory

Need Growth Needs NeedProgression Regression

Relatedness Needs

Existence Needs

Herzberg’s Theory Rests on 2 Assumptions

1.) Being satisfied with one’s job is equivalent to being motivated; “a satisfied worker is a motivated worker”

2.) Job satisfaction and dissatisfaction are separate concepts with unique determinants based on work with accountants and engineers

Herzberg’s 2-Factor TheoryDeterminants of Job

Dissatisfaction are Hygiene* Factors:

• Pay, fringe benefits• Working conditions• Quality of supervision• Interpersonal relations

Job Environment Factors

* Poor hygiene can make you, sick, but good hygiene won’t necessarily make you healthy

Determinants of Job Satisfaction are Motivator Factors:

• Work itself, responsibility

• Advancement• Recognition

Job Content Factors

Assessment of Herzberg

Contributions• 1st to argue that job

content/job design was important

• Job enrichment (the work itself) as a job satisfaction strategy

• Model appealing and easy to understand

Criticisms• May be “method-bound” by

self-serving bias • Some individual differences, like desire for pay,

rejected as a motivator.• Also, not everyone wants an

enriched job• Assumes satisfaction

(presence of motivators) = motivation

WORK PREFERENCES OF PERSONS HIGH IN NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER

INDIVIDUAL NEED WORK PREFERENCES JOB EXAMPLE

High need for achievement

High need for affiliation

High need for power

- Individual responsibility

- Challenging but achievable goals

- Feedback on performance- Interpersonal relationships

- Opportunities to communicate

- Control over other persons

- Attention

- Recognition

Field sales person with challenging quota and opportunity to earn individual bonus

Customer service representative; member of work unit subject to group wage bonus plan

Formal position of supervisory responsibility; appointment as head of special task force or committee

A Comparison of Internal Need Theories of Motivation

Maslow’s Alderfer’s Herzberg’s McClelland’s Hierarchy ERG Two Factor Acquiredof Needs Theory Theory Needs Theory

Self- AchievementActualization Growth Motivator

Esteem Power RelatednessBelonging Affiliation HygieneSecurity ExistencePhysiological

THE GOALS OF COGNITIVE THEORIES ARE TO EXPLAIN THOUGHTS ABOUT EFFORT:

1.) the decision to expend effort

2.) the level of effort to exert

3.) how effort can be made to persist over time

Expectancy Theory

Involves 3 cognitions/perceptions:

1. Expectancy - the perceived probability that effort will lead to task performance. E link

2. Instrumentality - the perceived probability that performance will lead to rewards. I link

3. Valence - the anticipated value of a particular outcome to an individual. Effort Performance Rewards or Outcomes

E link I link

EXPECTANCY THEORY

(Text adds “Personal Goals” after Outcomes)

E P Expectancy or P O Theory Valence What is the probability What is the probability What value do I placethat I can perform at that my good performance on the potential the required level will lead to outcomes? outcomes? (see if I try? next slide)

Instrumentality

Effort Performance Outcomes

Motivation toExertEffort

Level of Performance

orProduction

Money (+9) Promotion (+6)Job Satisfaction (+1)Peer Disapproval (-8)

ELink

ILink

EXPECTANCY THEORY

Effort

-Earn high grades

-Feeling of accomplishment

-Learning something

practical

Partial Test of Expectancy Theory as Used in Simulation

E

Rewards or Outcomes

Implications for Managers

• Need to offer employees valued rewards (high valences)

• Need to insure that if people are willing to put forth effort that you help them succeed. Maintain the E link (Provide tools, info, support)

• Need to make sure that you follow through with reward system that is tied to performance. Maintain the I link (Differential rewards for performance)

What is the basis of equity theory?

• …the thinking process by which one makes a decision to exert effort is a function of social comparison

• Based on individual perceptions of outcomes (what your receive from expending effort to complete a task), job inputs (what you bring or contribute to the task) and perceptions of a referent person.

Equity Theory: The decision to exert effort is a function of social comparison

Involves 3 relevant perceptions:

1. Perceptions of outcomes received from performing a task. (e.g., pay)

2. Perceptions of inputs required to perform a task.

3. Perceptions of the outcomes and inputs of a REFERENCE PERSON.

If: Outcomes Self Outcomes Reference Person

=

Inputs Self Inputs Reference Person

Then equity exists.

How does equity theory work?

• Employees mentally construct outcome-to-input ratios for themselves and their referent other and “socially compare”

• If equity exists, you experience no tension and persist at your current level of effort

• When Outcome Self =/= Outcome Reference person

Input Self Input Reference person

Tension is created and employees are “motivated” to restore equity

Equity TheoryEquitable Situation:

Outcomes Self = Outcomes Reference Person

Job Inputs Self Job Inputs Reference Person

Inequitable Situations:

A. Under-reward or “Cheated” (from Self’s point of view)

Outcomes/Inputs Self 4/5 < Outcomes/Inputs Reference Person 5/5

B. Over-reward or “Guilty” (from Self’s point of view)

Outcomes/Inputs Self 5/4 > Outcomes/Inputs Reference Person 5/5

C. Either way, a person is “motivated” to restore equity with R.P.

Examples

You Ref. Person Ways to Reduce Tension

3 < 4 Outcomes a. increase outcomes like ask for

4 4 Inputs a raise (Δ Your outcome 3 to a 4)

b. reduce job inputs like effort

(Δ Your input 4 to a 3)

“Under-reward” (What YOU is, from You’s perspective)

4 > 3 Outcomes a. increase job inputs like work

3 3 Inputs harder (Δ Your input 3 to a 4) b. reduce outcomes

? refuse pay raise

? decline promotion, unrealistic

“Over-reward Condition” (What YOU is, from You’s perspective)

Restoring Equity

Under-reward:

Increase outcomesReduce inputs

Over-reward:

Increase inputsReduce Outcomes (?) -criticism of equity theory

Other Options:

Leave situationAlter perceptionsChange reference person

REASONING BEHIND GOAL SETTINGDirection - specific goals direct your focus to relevant activities

Effort - need to devote more intense levels of effort toward difficult goals - assumes people are goal driven

Persistence - specific, difficult goals encourage you to persist longer at a task than would be the case without such goals

Only possible exception is high “uncertainty avoidance” cultures.

Representative Goal Setting StudyUnexcused Quality

Goal Concept & Sample Item Effort Absenteeism Defects

Goal Challenge- 4 items(my full range of ability must + - -be used to reach my goals)

Goal Clarity- 5 items(The goals for my job are easy + - -to understand)

Goal Feedback- 6 items(The feedback I receive + - -concerning my goal progressis helpful)

Goal Participation- 4 items(My supervisor asks my opinion not - -when goals are set) related

Key: + = positively related, - = negatively related

MAJOR THEORIES OF MOTIVATIONII. Cognitive Approaches:

- Expectancy Theory

- Equity Theory/ Social Comparison

- Goal Setting Theory

III. REINFORCEMENT THEORY OR OPERANT CONDITIONING : How Rewards & Reinforcements Sustain Motivation Over Time (Behavior Modification)

●May best address how motivation can be made to persist over time

● Behaviors like effort can be sustained or changed by experiencing or observing reinforcements

Reinforcement Theory of Motivation• Some view as an explanation of motivation; others

limit it to how motivation is sustained over time.

• Does not have to rely on needs, perceptions or cognitions. Managers can design work environment to provide “reinforcers” that strengthen desired behaviors & weaken undesired behaviors. “Motivation is a function of the environment”.

• Others allow for cognitions in that people can observe rewards and punishments applied to others. Called social learning or vicarious learning.

Motivation as a Form of Learning: The Law of Effect

• Behavior that leads toward rewards tends to be repeated

• Behavior that tends to lead toward no rewards or toward punishment tends to be avoided

• The type of reinforcer & the timing (schedule) of reinforcement are key

Reinforcers Which Strengthen Behavior: What managers can do to increase the probability of behavior in the future

a. Positive reinforcement--rewards contingent on exhibiting the correct behavior.

b. Avoidance Learning—withholding something unpleasant when a desired behavior is engaged in (e.g., an annoying alarm is avoided when a machine is used properly, not operating in reverse). Or, using social learning, noticing how engaging in some behavior avoids an unpleasant outcome (e.g., arrive on time and the boss does not yell). Text: Negative reinforcement

Reinforcers Which Weaken Behavior: Whatmanagers can do to decrease the probability of behavior in the future

a. Punishment--administering unpleasant consequences following an undesirable behavior.

b. Extinction--when there are no rewards for a behavior which was previously rewarded.

Timing of Reinforcement

a. How quickly reinforcers work depends on their timing

b. Continuous. Used to “shape” new behaviors

c. But continuous reinforcement is impractical

1. Costly

2. Not as effective in sustaining behavior over time

Partial Reinforcement Schedules1. Based on passage of time

Fixed Interval- Reinforcer given after set period of time.

Ex.: Weekly pay.

Variable Interval- Reinforcer given randomly with passage of time.

Ex.: Surprise bonus based on time.

2. Based on behavior exhibited by the employee (team)

Fixed Ratio- Reinforcers based on behaviors.

Ex.: Piece rate pay.

Variable Ratio- Reinforcers applied randomly after exhibition of behaviors.

Ex.: A company vacation to Hawaii for all employees after a new contract landed; spot bonuses.

Schedules of Reinforcement Spacing or Timing of Reinforcer

Fixed Variable Based on

# of behaviors exhibited Fixed Ratio Variable Ratio

(ratio) -piece rate -door to door salesBasis for

determining Based on Fixed Interval Variable Interval frequency of passage -weekly -

Occasional reinforcer of time paycheck praise by boss (interval)

Which schedule sustains behavior the longest?

Summary of Motivation TheoriesA. View all these approaches as a “bag of tricks.” Alternatives to choose from, remembering that all are not compatible.

B. Judge whether you believe each “works.” Rely on the scientific data presented, your experiences, and your common sense.

C. Evaluate your prospects for successfully implementing each one--we all vary in our interpersonal skills and ability to render social rewards sincerely.

D. The question is not whether each of these approaches to motivation works, but where and when they work best.