5-1

Motivation: Theories and Application

Chapter 5 & 6

Tuesday June 1st, 2010

5-2

What is Motivation?

• The processes that account for an individual’s intensity, direction and persistence of effort toward attaining a goal. Intensity – how hard a person tries Direction – one that benefits the

organization Persistence – how long the effort is

maintained

5-3

Early Theories of Motivation

• Early motivation theories are important for two reasons: They represent a foundation from which

contemporary theories have grown, Practicing managers still regularly use these

theories and their terminology in explaining employee motivation.

• However, Early theories have not been backed up by empirical research.

5-4

Maslow’s Hierarchy of Needs Theory

5-5

Theory X and Theory Y

Theory X• Inherent dislike for work

and will attempt to avoid it• Must be coerced,

controlled or threatened with punishment

• Will avoid responsibilities and seek formal direction

• Place security above all factors and will display little ambition

Theory Y• View work as being as

natural as rest or play• Will exercise self-direction

and self-control if committed to objectives

• Can learn to accept, even seek, responsibility

• Can make innovative decisions on their own

5-6

Theory X and Y Cont.

• This theory led to the suggestion that programs such as participative decision making, responsibility and challenging jobs, and good group relations could help maximize an employee's job motivation.

• No evidence suggests that Either set of assumptions are valid Accepting the assumptions and modifying managerial

style improves employee motivation

5-7

Two-Factor Theory

HighHigh HighHighJob DissatisfactionJob Dissatisfaction Job SatisfactionJob Satisfaction00

Hygiene factors affectHygiene factors affectjob dissatisfactionjob dissatisfaction

Motivator factors affectMotivator factors affectjob satisfactionjob satisfaction

• Quality of supervisionQuality of supervision• PayPay• Company policiesCompany policies• Physical working Physical working

conditionsconditions• Relations with othersRelations with others• Job securityJob security

• Promotional opportunitiesPromotional opportunities• Opportunities for personal Opportunities for personal

growthgrowth• RecognitionRecognition• ResponsibilityResponsibility• AchievementAchievement

5-8

Herzberg’s Two-Factor Theory

• Managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation.

• If a manager wants to motivate people on their jobs, he should emphasize factors associated with the work itself or to outcomes directly derived from it.

5-9

McClelland's Theory of Needs

• Need for achievement (nAch) - drive to excel

• Need for power (nPow) - the need to make others behave in a way they would not have behaved otherwise

• Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships

5-10

McClelland's Theory of Needs

• High achievers prefer jobs with personal responsibilityresponsibility, feedbackfeedback, and intermediate degree of risk.risk.

• High achievers are not necessarily goodgood managers.

• AffiliationAffiliation and powerpower closely related to managerial success

• Employees can be trained to stimulatestimulate their achievement need.

5-11

Cognitive Evaluation Theory

• Proposes that the introduction of extrinsic rewards for work that was previously intrinsically rewarding tends to decrease overall motivation

• Verbal rewards increase intrinsic motivation, while tangible rewards undermine it

• Implication: Managers need to provide both extrinsic and intrinsic rewards to keep employees motivated.

5-12

Goal-Setting Theory

• Specific goals lead to increased performance.• Difficult goals, when accepted, result in higher

output than easy goals.• Self-generated feedback is a more powerful

motivator than externally generated feedback.• Influences on goal-performance relationship:

Commitment Task characteristics National culture

5-13

Self-Efficacy Theory

• Refers to an individual’s belief that they are capable of performing a task

• Ways self-efficacy can be increased: Enactive mastery – gain experience Vicarious modeling – see someone else do the task Verbal persuasion – someone convinces you that you

have the skills Arousal – get energized

5-14

Equity Theory

• Employees weigh what they put into a job situation (input) against what they get from it (outcome).

• Then they compare their input-outcome ratio with the input-outcome ratio of relevant others.

5-15

Equity Theory

5-16

Equity Cont.

• Type of referents Self inside Self outside Other inside Other outside

• Moderators Gender Length of tenure Level in the organization Amount of education

5-17

Choices when perceived inequity

1. Change their inputs

2. Change their outcomes

3. Distort perceptions of self

4. Distort perceptions of others

5. Choose a different referent

6. Leave the field

5-18

Expectancy Theory

5-19

The Job Characteristics Model

• Proposes that any job can be described in terms of five core job dimensions: Skill variety Task identity Task significance Autonomy Feedback

5-20

The Job Characteristics Model

5-21

How can jobs be Redesigned?

• Job Rotation or Cross-training – the periodic shifting of an employee from one task to another

• Job Enlargement – increasing the number and variety of tasks

• Job Enrichment – increasing the degree to which the worker controls the planning, execution and evaluation of the work

5-22

Alternate Work Arrangements

• Flextime – allows some discretion over when worker starts and leaves

• Job Sharing – two or more individuals split a traditional job

• Telecommuting – work remotely at least two days per week

5-23

Employee Involvement Programs

• A participative process that uses the input of employees to increase their commitment to the organization’s success

• Two types: Participative Management – subordinates share a

significant degree of decision-making power with their immediate superiors

Representative Participation – workers are represented by a small group of employees who participate in decisions affecting personnel

5-24

Rewarding Employees

• Major strategic rewards decisions: What to pay employees How to pay individual employees What benefits to offer How to construct employee

recognition programs

5-25

What to pay

• Need to establish a pay structure

• Balance between: Internal equity – the worth of the job to the

organization External equity – the external competitiveness

of an organization’s pay relative to pay elsewhere in its industry

• A strategic decision with trade-offs

5-26

How to pay: Variable-Pay Programs

• Bases a portion of the pay on some individual and/or organizational measure of performance

• Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed

• Merit-Based Pay – pay is based on individual performance appraisal ratings

• Bonuses – rewards employees for recent performance

5-27

Problems with Merit Pay Plans

• Performance Appraisal is not a perfect process

• Merit pay pool can fluctuate based on economic trends

• Resistance from unions and others

5-28

Variable Pay Programs (cont.)

• Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability

• Gain Sharing – compensation based on sharing of gains from improved productivity

• Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices

5-29

How to pay: Skill-Based Pay Plans

• Pay is based on skills acquired instead of job title or rank

• Advantage: Flexibility • Disadvantages:

Employees top out Skills become obsolete May be no current need for certain skills Doesn’t address the level of performance, only ability

to perform skill

5-30

Flexible Benefits

• Allows each employee to put together a benefit package tailored to their own needs and situation

• Modular plans – predesigned packages to meet the needs of a specific group

• Core-plus plans – core of essential benefits and menu of options to choose from

• Flexible spending plans – full choice from menu of options

5-31

Employee Recognition Programs

• Are in addition to extrinsic compensation systems

• Are intrinsic rewards Can be as simple as a spontaneous comment Can be formalized in a program

• Recognition is the most powerful workplace motivator