Note: Slides Adapted from Source

Warren Buffet

1) Warren bought his first share at age 11 and he now regrets that he started too late! 2) He bought a small farm at age 14 with savings from delivering newspapers. 3) He still lives in the same small 3 bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence. 4) He drives his own car everywhere and does not have a driver or security people around him. 5) He never travels by private jet, although he owns the world's largest private jet company. 6) His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.

7) Warren Buffet has given his CEO's only two rules. Rule number 1: Do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1. 8) He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch television. 9) Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet. 10) Warren Buffet does not carry a cell phone, nor has a computer on his desk. 11) His advice to young people: Stay away from credit cards and invest in yourself

MotivationAny influence that triggers, directs or maintains behavior

Processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal.

Common CharacteristicsMotivation is typified as an individual phenomenon Motivation is usually described as intentionalMotivation is multi-facetedThe purpose is to predict behavior

Why study motivation?Improve productivity and efficiencyRetain talents in the organizationImprove allocation of resourcesSocial and moral responsibility

Content vs Process Motivation TheoriesContent theoriesexplain why people have different needs at different times

Process theoriesdescribe the processes through which needs are translated into behavior

Alderfers ERG TheoryMaslows Need HierarchyContent Theories of MotivationSelf-ActualizationEsteemBelongingnessSafetyPhysiologicalGrowthRelatednessExistenceHerzbergsTheoryMotivatorsHygienesNeed forAchievementNeed forPowerNeed forAffiliationMcClellandsLearned Needs

Practical ImplicationsPeople have different needs at different timesOffer employees a choice of rewards -- a flexible reward systemDo not rely too heavily on financial rewards they mainly address lower level needs

1. Maslows HierarchyEach individual has needs, or feelings of deficiency that drive their behavior

Once a need is satisfied, then it is no longer motivating

Needs are in a hierarchy that an individual moves up as they satisfy levels of needs

Maslows HierarchySelf-ActualizationEsteemAffiliationSecurityPhysiological

2. Alderfers ERGConsolidates Maslows hierarchy into 3 categories

Existence-physiological and security

Relatedness-affiliation

Growth-esteem and self-actualization

ERG Model of MotivationFrustration-RegressionSatisfaction-ProgressionGrowth NeedsRelatedness NeedsExistence Needs

Frustration-RegressionDiffers from Maslows Hierarchy

When unable to satisfy upper level needs, the individual will revert to satisfying lower level needs

Interesting point from research....growth stimulates growth

3. McClellands Learned NeedsNeeds are acquired through interaction with environment

Not a hierarchy, but degrees of each type of need or motive

Types of NeedsN Ach-motive to meet some standard of excellence or to compete

N Aff-motive to develop and maintain close and meaningful relationships

N Pow-desire to influence and control others and the environment

4. Herzbergs Two Factor TheorySome variable prevent job dissatisfaction and some variables produce motivationHygiene factors-basic needs that will prevent dissatisfactionlight, temperature, pay, parkingMotivatorswhen present cause high levels of motivationinteresting work, advancement, growth, etc.

Herzbergs Two Factor TheoryHigh MotivationHighHygienesLowHighMotivatorsLowLow MotivationDissatisfactionLow Dissatisfaction

Process TheoriesReinforcement TheoryExpectancyEquityGoal Setting

1. Reinforcement TheoryBehaviors are functions of consequences that they produce

If a behavior is followed by a pleasant experience it will be repeated

In order to change behaviors the consequences must be changed

Types of ReinforcementPositive Reinforcement:

Rewards

Types of ReinforcementPunishment Application of a negative outcome

Types of ReinforcementRemoval of negative outcomes when behavior is performed

Types of ReinforcementExtinctionAbsence of reinforcement (removal of positive reinforcement)

Types of RewardsExtrinsic-external rewards such as money, fringe benefits, job securityIntrinsic-internal satisfaction outcomes from doing workSatisfaction-employees attitude about work situations

2. Expectancy TheoryCombines goal setting and reinforcement theoriesThree questions drive motivationWith effort can I perform?With performance, will I be rewarded?Do I value the rewards?

Two Factors The strength of his preference for a certain outcome

His expectation that that outcome will in fact result from a certain behavior.

FormulaIf either valence or expectation have a value of zero, there will be no motivationExpectation(that doing x will result in Y)xValence(strength of preference for outcome Y)Force or strength of motivation to do X=

3. Equity TheoryIndividuals try to find a balance between their inputs and outputs relative to a referent other

However, a referent other is not always present

Results of InequityEquity-I am being treated fairlyUnder-rewarded-will look to increase rewards, or decrease inputs to match rewardsOver-rewarded-will change referent to match cognitions or increase inputsLeaving and distortion

4. Goal Setting TheoryAssignment of specific, results oriented, moderately difficult goals, combined with adequate feedback will provide motivation to workEmployee participation in goal settingReceive rewardsProvide competencies necessary for achievement

HighTask PerformanceLowModerateChallengingImpossibleArea ofOptimalGoalDifficultyEffect of Goal Difficulty on PerformanceGoal Difficulty

Social Character and Personality Dimensions

Maccobys Social Character Type Theory

TypesDominant ValuesDescriptionExpertMastery, control, autonomyYou approach your work as an expert. Whatever your job, you want to provide high quality work and to exercise your skill and competenceHelperCaring for people, relatedness, sociabilityYou approach your work as a helper. You want to help peopleDefenderDignity, power, self-esteem, protectionYou approach your work as a defender. You want to defend against those who do not respect the law, who do harm, or who undermine the values essential to a good organization. InnovatorCompetition, glory, creating, experimentingYou approach your work as an innovator who knows how to play the game of business. You want to win by making the organization more successfulSelf-developerBalancing mastery and play, knowledge and funYou approach your work as the means to a self-fulfilling life. You want your work to further your own development.

New Generations Work NeedsClear management commitments on responsibilities and rewardsOpportunities for expression, challenge and developmentTeamwork combined with individual growthFair and meaningful rewardsReasons, information, to be included, to know why

Big Five

TraitMotivationOpennessSeek out the unfamiliar and look for complexityConscientiousnessAchievement through social conformityExtraversionChange, variety in lives, challenge and are easily boredAgreeablenessSociable behavior and helping othersNeuroticismMay motivate individual toward success in work situation

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