OB- Lecture 3 - 2011- Motivation

MGMT2008OrganisationalBehaviour

Lectures 4 & 5 Motivation

Nicole Knight

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Levels of Analysis

Group Level

Individual Level

Organizational Level

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Components of Organizational Behavior

Understanding organizational behavior

requires studying

Individuals in Organizations

Group and Team Processes

Organizational Processes

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Two UWI students are discussing the topic of work motivation. One says, "Motivation can never come from the boss, " while the other states, "If people aren't motivated, managers are to blame." How can each position be defended? How can the two positions be reconciled with each other? Give examples to illustrate your answer.

Motivation The set of internal and external forces that

initiate workrelated behaviour, and determine its form, direction, intensity, and duration. (Pinder 1998)

This definition recognises the influence of both environmental forces (eg reward systems, nature of work being performed) and forces inherent in the person (eg individual needs and motives) on work related behaviour. Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Duration: how long a person tries 5

General Model of Motivation

Inner state of 1disequilibrium

Behaviour or action

Incentive 2or goal

Modification of inner state 3

1 = source of motivation (need, desire, expectation)2 = anticipation that certain behaviours will satisfy needs and

desires, or fulfil expectations (provides directive / goaloriented function of motivation)

3 = feedback process (observation of results to see if goal anynearer to being achieved)

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Motivation Illustration Misconceptions about Motivation

*Current generation has no work ethic

* Some people are born lazy

* Most people are motivated by the same thing7

Why is Motivation Important? Under optimal conditions,

effort can often be increased and sustained

Delegation without constant supervision is always necessary

Employees can become selfmotivated

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

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Bottom Line

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

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MAJOR THEORIES OF MOTIVATION

I. Need Approaches:

Maslows Hierarchy of Needs Alderfers ERG Theory Herzbergs Two Factor Theory McClellands 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)

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Job performance = f (ability X motivation X organizational

support)

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Individual Motivation and Job Performance

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A Job Performance Model of Motivation

Individual Inputs

Job Context

Motivational Factors

Motivated Behaviors

Performance

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Maslows Hierarchy of Needs

Maslows Needs Hierarchy Theory People have needs, and when one need is relatively

fulfilled, other emerge in predictable sequence to take its place.

Maslows hierarchy of needs: Physiological needs: food, water, sleep, and sex. Safety needs: safety from the elements and enemies. Love needs: desire for love, affection, and belonging. Esteem needs: selfperception as a worthwhile

person. Selfactualization: becoming all that one can become.

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The SelfActualizing Manager Has warmth, closeness, and sympathy. Recognizes and shares negative information and feelings. Exhibits trust, openness, and candor. Does not achieve goals by power, deception, or manipulation. Does not project own feelings, motivations, or blame onto others. Does not limit horizons; uses and develops body, mind, and senses. Is not rationalistic; can think in unconventional ways. Is not conforming; regulates behavior from within.

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Relevance of Maslows Theory for Managers Beyond physical and safety needs, which higher

order need will emerge cannot be predicted. A fulfilled need does not motivate an individual. Effective managers can anticipate emerging needs

based on individual need profiles and provide opportunities for fulfillment.

The esteem level of needs satisfied by jobs and recognition provides managers with the greatest opportunity to motivate better performance.

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Evaluation of Maslow

Failure to find confirmatory evidence in tests of proposed hierarchical process (Hall & Nougaim 1968; Lawler & Suttle 1972; Rauschenberger et al 1980)

In particular Satisfied needs not consistently less important

than unsatisfied needs

Satisfaction of lower level needs does not raise importance of higher level ones

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Alderfers ERG Theory

Existence Relatedness Growth (ERG) Theory Alderfers theory of human needs focuses on three

needs: existence, relatedness, and growth. Existence needs are similar to Maslows physiological and

security needs. Relatedness needs are those that require interpersonal

interaction to satisfy (prestige and esteem from others).

Growth needs are similar to Maslows needs for selfesteem and selfactualization.


Core Needs

Existence: provision of basic material requirements.

Relatedness: desire for relationships.

Growth: desire for personal development.

Concepts:

More than one need can be operative at the same time.

If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.

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Need Growth Needs NeedProgression Regression

Relatedness Needs

Existence Needs

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Herzbergs TwoFactor Theory A theory of motivation based on job satisfaction.

A satisfied employee is motivated from within to work harder.

A dissatisfied worker is not selfmotivated to work. Conclusion: Enriched jobs are the key to self

motivation. Dissatisfiers: factors associated with the job context

or work environment. Satisfiers: factors associated with the nature of the

task itself (job content).

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Herzbergs Theory Basically Rests on Two Main Propositions

1.) Job satisfaction is equivalent to being motivated (influence of Human Relations) and assumption that the happy worker is a productive worker

2.) Job satisfaction and dissatisfaction are separate concepts with unique determinants

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Herzbergs 2Factor TheoryDeterminants of Job

Dissatisfaction are Hygiene* Factors:

Pay, fringe benefits Working conditions Quality of supervision Interpersonal relationsJob Environment Factors

* Poor hygiene can make you, sick, but good hygiene wont necessarily make you healthy

Determinants of Job Satisfaction are Motivator Factors:

Work itself, responsibility

Advancement Recognition

Job Content Factors

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Summary of Herzbergs MotivatorHygiene Findings

Source:Adapted from Frederick Herzberg, One More Time: How Do You Motivate Employees,Harvard Business Review, JanuaryFebruary 1968.

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Evaluation of Herzbergs Theory

Contributions 1st to argue that job

content/job design was important

Job enrichment as a motivational strategy

Model appealing, easy to understand

Explained why morehygiene factors did not increase motivation

Criticisms

Some individual differences, like desire for pay, rejected as a motivator. Not everyone wants an enriched job.

Assumes satisfaction = motivation

May be methodboundby selfserving bias

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What are the implications of two factor theory for how managers design work?

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David McClellands Theory of NeedsThis theory focuses on three needs:

achievement, power, and affiliation that help explain motivation The Need for Achievement

A predisposition to strive for success and the satisfaction of accomplishing a challenging task or goal.

The Need for Power A desire to influence others directly by making suggestions,

giving opinions and evaluations, and trying to talk others into things.

The Need for Affiliation The motivation to maintain strong, warm relationships with

friends and relatives.

David McClellands Theory of Needs, Contd.,

High Achievers will be Motivated, if

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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

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A Graphic Comparison of Four Content Approaches to Motivation

Maslow Herzberg Alderfer McClelland

Self-actualization

Esteem

Belongingness, social, and love

Safety and security

Physiological

The work itself- Responsibility- Advancement- Growth

AchievementRecognition

Salary

Job security

Quality of inter-personal relations among peers, with supervisors

Growth

Relatedness

Existence

Need for achievement

Need for power

Need for affiliation

Motivators

Hygiene conditions

Higher order needs

Basic needs

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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

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Expectancy Theory (Vroom)

A model that assumes motivational strength is determined by perceived probabilities of success.

Expectancy: ones subjective belief or expectation that one thing will lead to another.

A Basic Expectancy Model Ones motivational strength increases as ones

perceived effortperformance and performancereward probabilities increase the likelihood of obtaining a valued reward.

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Vrooms Expectancy Theory

People are conscious agents who are continually sizing up situations in terms of their perceived needs and then acting in accordance with these perceptions.

Motivation = E x I x V E represents expectancy (probability of success) I is instrumentality (correlation) V is valence (value of a particular reward)

Expectancy TheoryVictor Vrooms Expectancy Theory argues that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards such as bonus, a salary increase, or a promotion; and that the rewards will satisfy the employees personal goals. The theory, therefore, focuses on three relationships:

1.Effort-performance relationship

2.Performance-reward relationship

3.Rewards-personal goals relationship.

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Expectancy Theory

Involves 3 cognitions/perceptions:

1. Expectancy the perceived probability that effort willlead 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 particularoutcome to an individual.

Effort Performance Rewards orOutcomes

E link I link 36

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

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Motivation toExertEffort

Level of Performance

orProduction

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

ELink

ILink

EXPECTANCY THEORY

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Effort

Earn high gradesFeeling of accomplishmentLearning something practical

Partial Test of Expectancy Theory

E

Rewards or Outcomes

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Effort Outcome (Extrinsic)

Outcome (Extrinsic)

Performance

Outcome (Intrinsic)

Outcome

Outcome

E P expectancy Perceived Probability of successful performance,

given effort

P O expectancy Perceived probability of receiving an outcome,

given successful performance

Instrumentality Perceived probability of a first

level outcome leading to a second level outcome

First-level outcomes, each

with valence

Second-level outcomes, each

with valence

Motivation is expressed as follows: M= [E P] x [(P O)(V)]

Relevance of Expectancy Theory for Managers

Employee expectations can be influenced by managerial actions and organizational experience.

Training increases employee confidence in their efforts to perform.

Listening provides managers with insights into employees perceived performancereward probabilities.

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Evaluation of VIE Theory From Schwab et al 1979; Landy 1985; Leon 1981; Arnold et al

1998: Predicts better where none of outcomes undesirable Predicts better where effort / performance measured objectively / self

report rather than by peer / supervisor rating Predicts better with an optimum range of choices (10 to 15) Many research designs are a poor test of the model (comparing

individuals rather than different outcomes for the same person) Is the relationship between components additive or multiplicative? Selfreport measures of V, I and E often poorly constructed Need to combine abilities and role perceptions with expectancy /

instrumentality (Lawler & Suttle 1973)

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Implications for Managers

Increase expectancy Strengthen the link between expectations that effort will lead to performance, and performance, ie make the desired performance level attainable (training, job redesign)

Increase instrumentality Clear links between valued rewards and performance

Increase valance Provide rewards that have positive valance, that employees want

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Adams Equity Theory

People strive for fairness and justice in social exchanges

Cognitive perception of fairness or lack of it affects behavior

Inputs education, skills, training, effort, etc. Outputs pay, fringe, security, recognition,

etc.

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Adamss Equity Theory

People have a need for, and therefore value and seek, fairness in employeremployee relationships.

If a person perceives an inequity, a tension or drive will develop in the persons mind, and the person will be motivated to reduce or eliminate the tension and the perceived inequity.

Employees can do this by reducing what they put into the job, or by boosting the magnitude of the rewards they take out (or both).

It matters less what the reality is than how the person perceives his or her inputs and outputs as compared with the other (referent) persons.

G.Dessler, 2003

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How a Perceived Inequity Can Affect Performance

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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.

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Equity Theory: The decision to exert effort is a functionof 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 REFERENCEPERSON.

If: Outcomes Self Outcomes Reference Person=

Inputs Self Inputs Reference Person

Then equity exists.

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How does equity theory work? Employees mentally construct outputto

income 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 OutputSelf =/= OutputReference person

Input Self InputReference personTension is created and employees are

motivated to restore equity

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Equity TheoryEquitable Situation:

Outcomes Self = Outcomes Reference PersonJob Inputs Self Job Inputs Reference Person

Inequitable Situations:

A. Underreward or Cheated (from Selfs point of view)

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

B. Overreward or Guilty (from Selfs 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.50

Examples

You Ref. Person Ways to Reduce Tension

3 < 4 Outcomes a. increase outcomes like ask for

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

b. reduce job inputs like effort ( Your input 4 to a 3)

Underreward (What YOU is, from Yous perspective)

4 > 3 Outcomes a. increase job inputs like work

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

? refuse pay raise? decline promotion, unrealistic

Overreward Condition (What YOU is, from Yous perspective)51

Restoring Equity

Underreward:

Increase outcomesReduce inputs

Overreward:

Increase inputsReduce Outcomes (?)criticism of equity theory

Other Options:

Leave situationAlter perceptionsChange reference person 52

Distributive Justice: The perceived fairness of how resources and rewards are distributed.

Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions.

Interactional Justice:The perceived fairness of thedecision makers behavior inthe process of decisionmaking.

Organizational Justice

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Equity Theory: Evaluation

Evidence from laboratory and field studies (Pritchard 1972, Sweeney et al 1990)

Problems: difficult to predict behaviour range of variable in equity ratio individual differences in perceptions, tolerance, timescales

Management implications: comparative pay and benefits, major source of motivation employees need to believe treated fairly and equitably

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Lessons in Equity Theory

Pay attention to what employees perceive to be fair and equitable

Allow employees to have a voice Employees should have opportunity to appeal Organizational changes, promoting cooperation, etc.

can come easier with equitable outcomes

Failure to achieve equity could be costly Climate of justice

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GoalSetting TheoryGoal setting: the process of improving performance

with objectives, deadlines, or quality standards. In addition when goals are properly conceived they trigger a motivational process that improves performance.

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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 avoidancecultures.

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A Model of How Goals Can Improve Performance

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GoalSetting Theory Personal Ownership of Challenging Goals

Characteristics of effective goals: Specificity makes goals measurable. Difficulty makes goals challenging. Participation gives personal ownership of the goal.

How Do Goals Actually Motivate? Goals are exercises in selective perception. Goals encourage effort to achieve something specific. Goals encourage persistent effort. Goals foster creation of strategies and action plans.

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How Goals Influence Performance

Goals direct attention and effort towards goalrelevant activities (Rothkopf & Billington, 1979, Locke & Bryan, 1969)

Goal have an energising function high goals lead to greater effort than low goals (Bandura & Cervone, 1983, Bryan and Lock, 1967)

Goals affect persistence: when participants are allow to control the time they spend on a task, haod goals prolong effort (LaPorte & Nath, 1976).

Goals affect action indirectly by leading to the arousal, discovery, and/or use of taskrelevant knowledge (Wood & Locke, 1990).

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Evidence from Goal Setting Research

When given a goal, people automatically use the knowledge and skills they already have in task attainment.

If the goal cannot be achieved using automatised skills, people draw on a repertoire of skills that have used previously in related contexts.

If the task is new, people will engage in deliberate planning to develop strategies that will enable them to attain their goal.

People will high efficacy are more likely than those with low efficacy to develop effective task strategies.

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When people are confronted with a task that is complex, urging them to do there best is sometimes leads to better strategies than setting specific performance goals.

When people are trained in the proper strategies, those given specific high performance goals are more likely to use those strategies than those given other types of goals, and performance improves.

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Moderators

Goal commitment Goal importance Self efficacy Feedback on results Task complexity

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Important Question Is participation in setting of goals necessary?

Locke et al (1981): No! Mento et al (1987): Maybe! Erez (1980s / 1990s): Yes!

Different results due to differences in experimental procedure? Locke used tell and sell procedure with assigned

goals, results of which resemble Erezs participatory results. Purely assigned goals least effective motivator (Locke, Erez & Latham 1987)

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Role of Goal Commitment

Moderator or motivation in itself? Something that affects how much impact goals have on performance

(moderator)? Is commitment to a goal the same as saying you are motivated to

achieve it (Arnold et al 1998)?

Goal commitment a function of: Closeness of personal goals to goal assigned Importance of that personal goal

Goal commitment also influenced by difficulty and participation, as well as personal congruence, since these affect efficacy beliefs etc.

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Input SourcesTime and Motion Study Previous performance level ParticipationDelegationExternal constraints Organizational Goals

Achieving Goal Commitment Instructions TrustSupportiveness Spontaneous competitionPast Success

Overcoming Resistance to Goal Acceptance Training skill development ParticipationReward incentives

Support ElementsResources Company Policies Selection(ability)Training (knowledge)Action plansFeedback

BenefitsHigh performanceRole clarityPride in achievement (with success)

Goal AttributesSpecificityDifficultyGroup or Individual l

Performance (goal success

or failure

Direct effort

Dangers Dissatisfaction (with failure)Short cuts Nongoal areas ignored

GOAL-SETTING MODEL

Evaluation & Critique 1 Austin & Bobko (1985)

4 major points of critique Emphasis on work quantity rather than quality Failure to address conflicting goals Emphasis upon individual rather than collective goals Emphasis on laboratory research

Points 3 and 4 not substantiated Consistent supportive evidence across work settings and contexts

(Arnold et al 1998) 90% of evaluation studies report supportive findings Does work for groups as well as individuals (Pritchard et al 1998)

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Evaluation & Critique 2

Points 1 and 2 more problematic: Yearta et al (1995)

Goal setting impaired work performance of research scientists

Meyer & Gellatly (1988) Manipulating beliefs about performance norms and

standards reduced effectiveness of goal setting

Earley et al (1989) Goal setting harmful where people tackling novel

problems and multiple strategies are available

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Practical implications of goal setting?

Management by objectives

Challenging goals Specific goals (measurable, clearly specified) Knowledge of results Personal goal commitment

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Difficult Goals Lead to Higher Performance.- Easy goals produce low effort because the goal is too easyto achieve.

- Impossible goals ultimately lead to lower performancebecause people begin to experience failure.

Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks.- Goal specificity pertains to the quantifiability of a goal.- Specific difficult goals impair performance on novel, complex

tasks when employees do not have clear strategies forsolving these types of problems.

Feedback Enhances The Effect of Specific, Difficult Goals.- Goals and feedback should be used together.

Insights from Goal-Setting Research

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Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective.- Managers should set goals by using a contingency approach. Different methods work in different situations.

Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes.- Difficult goals lead to higher performance when employeesare committed to their goals.

- Difficult goals lead to lower performance when employeesare not committed to their goals.- Goal based incentives can lead to negative outcomes foremployees in complex, interdependent jobs requiringcooperation.

* Employees may not help each other. * Quality may suffer as employees pursue quantity goals.* Commitment to difficult goals may suffer.

Insights from Goal-Setting Research(continued)

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SpecificMeasurableAttainableResults orientedTime bound

Guidelines for Writing SMARTGoals

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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.

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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

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Reinforcers Which Strength Behaviormanagers do to increase prob. of behavior in the future

a. Positive reinforcementrewards contingent on exhibiting the correct behavior.

b. Avoidance Learningwithholding 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

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Reinforcers Which Weaken Behaviormanagers do to decrease prob. of behavior in the future

a. Punishmentadministering unpleasant consequencesfollowing an undesirable behavior.

b. Extinctionwhen there are no rewards for a behavior which was previously rewarded.

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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

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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 new contract landed.

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Schedules of Reinforcement

Spacing or Timing of Reinforcer

Fixed Variable

Number of Fixed Ratio Variable RatioBehaviors piece rate door to door

(ratio) salesBasis fordeterminingfrequency Fixed Interval Variable Interval of reinforcer weekly Occasional

Passage paycheck praise by bossof time(interval)

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The predictive power of motivation theories

Needs theories: explain and predict job satisfaction Equity theory: most strongly predicts absence and turnover,

weakly predicts differences in employee productivity Expectancy theory: Powerful explanation of employee

productivity, absenteeism and turnover Goalsetting theory: Powerful explanation of employee

productivity

Robbins (1991)

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Motivation Theories and Workplace Outcomes: A Contingency Approach

Outcome of Interest

Need Reinforce-ment

Equity Expectancy Goal setting

Job Characteristics

Choice

X

Effort X X X X X X

Performance X X X X

Satisfaction X X X

Absenteeism X X X

Turnover X X X X

Motivation Theories

8-4Table 8-1

Integrating Contemporary

Theories of Motivation

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Motivation is Culture Bound

How Can We Motivate Employees?

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Motivation Through Rewards

Extrinsic Rewards Payoffs (external) granted to the individual by

others Money, employee benefits, promotions, recognition,

status symbols, and praise.

Intrinsic Rewards Selfgranted and internally experienced payoffs

Sense of accomplishment, selfesteem, and selfactualization.

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Motivation Through Rewards

Improving Performance with Extrinsic Rewards Rewards must satisfy individual needs.

Cafeteria compensation: a plan that allows employees to select their own mix of benefits.

Employees must believe that effort will lead to an attainable reward.

Rewards must be personally and socially equitable.

Rewards must be linked to performance (results) such that desired behaviors are encouraged.

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Types of Reward

Financial, eg Pay Bonuses, incentives, commission Competency based Employee benefits and allowances

Non financial, eg Awards Praise Treats Extra holiday

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Does reward always produce the desired outcomes?

Money not the overriding motivator (intrinsic rewards Hertzberg, 1966)

Performance linked to pay can be demotivating if seen as an attempt to control (Deci et al, 1999)

Competition for rewards can disrupt work relationships (Torrington & Hall, 1991)

Incentive schemes can discourage risk taking, experimentation and creative exploration

Rewards that are contingent on performance can undermine interest in the job (Deci & Ryan, 1980), but not if reward is providing feedback on performance

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Motivating Employees Through Job Design

Job Design Changing the content and/or process of a specific job to increase job satisfaction and performance

Motivational Approaches Job Enlargement putting more variety into a

job Job Rotation moving employees from one

specialized job to another Job Enrichment practical application of

Herzbergs motivator-hygiene theory of job satisfaction

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Job Design Theories

Hygiene factors & motivatorsHerzberg, 1966

Job CharacteristicsHackman & Oldham, 1976

Sociotechnical systems theoryTrist & Emery; Cherns,1987

Autonomous work groups90

Motivating Employees Through Job Design

Job Enrichment Theory Redesigning jobs should increase their

motivational potential A better fit between persons and their jobs should

foster both high work productivity and a highquality experience for the people who do the work.

Vertical loading (introducing planning and decisionmaking responsibility) increases the challenge of work (complexity and job depth) and reverses the effects of overspecialization.

Job enrichment works best for individuals who have a desire for personal growth.

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Principles of Vertically Loading a Job

Responsibility, achievement, and recognition

C. Giving a person a complete natural unit of work (module, division, area, and so on)

Responsibility and recognition

B. Increasing the accountability of individuals for their own work

Responsibility and personal achievement

A. Removing some controls while retaining accountability

Motivators InvolvedPrinciple

8-13Table 8-1

McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Principles of Vertically Loading a Job

Growth and learningF. Introducing new and more difficult tasks not previously handled

Internal recognitionE. Making periodic reports directly available to the worker himself rather than the supervisor

Responsibility, achievement, and recognition

D. Granting additional authority to an employee in his activity; job reform

Motivators InvolvedPrinciple

Responsibility, growth, and advancement

G. Assigning individuals specific or specialized tasks, enabling them to become experts

8-14Table 8-1 cont.

McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Motivating Employees Through Job Design: The Job Characteristics Model

High work effectiveness

High growth satisfaction High general jobsatisfaction

High intrinsic work motivation

Outcomes

Knowledge of the actual results of the work activities

Experienced responsibility for outcomes of the work

Experienced meaningfulness of work

Criticalpsychological

state

Feedback from job

Autonomy

Skill variety Task identity Task significance

Core job

characteristics

Moderators1. Knowledge and skill2. Growth need strength3. Context satisfaction

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Diagnosing and Measuring Task Scope

Hackman and Oldham developed a questionnaire to assess the motivating potential of a job Job Diagnostic Survey (JDS) to analyse the jobs. The questions on this survey yield a quantitative score that can be used to calculate an overall measure of job enrichment, or what is called job scope so as to differentiate from Herzberg-type job enrichment. The formula for this motivating potential score (MPS) is the following:

Note, if either autonomy or feedback are not included in job, the job would offer no potential (MPS = 0) because of the multiplicative relationships.

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Steps for Applying the Job Characteristics Model

1) Diagnose the work environment to determine if a performance problem is due to low motivation and de-motivating job characteristics

2) Determine whether job redesign is appropriate for a given group of employees

3) Determine how to best redesign the job

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Steps for Applying the Job Characteristics Model

Perceptual-Motor Approach emphasizes the reliability of work outcome by examining error rates, accidents, and workers feedback about facilities and equipment

8-17

Biological Approach focuses on designing the work environment to reduce employeesphysical strain, effort, fatigue, and health complaints

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Research Evidence

Moderately strong relationship between job characteristics and job satisfaction Can decrease performance

Model is able to predict absenteeism and turnover better than performance

Critical psychological states not necessarily full mediators between job characteristics and outcomes

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Motivation Through QualityofWork life Programs

Flexible Work Schedules Flextime: a work schedule that allow employees

to choose their own arrival and departure times within specified limits (core time).

Benefits Better employeesupervisor relations. Reduced absenteeism. Selective positive impact on job performance (improves

productivity for some jobs, but not for others).

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Motivation Through QualityofWork life Programs (contd)

Alternative Work Schedules Compressed workweeks: 40 or more hours in less

than five days.

Permanent parttime: work weeks with fewer than 40 hours.

Job sharing: complementary scheduling that allows two or more parttimers to share a single fulltime job.

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Family Support Services Onsite child and elder care facilities Emergency child care

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Wellness Programs Employerprovided programs to help employees

cope with stress and burnout. Stress reduction, healthy eating and living clinics, diet

and quitsmoking programs, exercise facilities Sabbaticals

Giving longterm employees extended periods of paid time off to refresh themselves and bolster their motivation and loyalty.

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What is MBO?

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

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Why MBOs Fail

Unrealistic expectations about MBO results

Lack of commitment by top management

Failure to allocate reward properly

Cultural incompatibilities

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Cascading of Objectives

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Linking MBO with GoalSetting Theory

Goal setting theory demonstrates that hard goals

result in a higher level of individual performance

than do easy goals, that specific hard goals result in

higher levels of performance than do no goals at all

or the generalized goal of do your best, and that

feedback on ones performance leads to higher

performance.

Compare these findings with MBO

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Employee Recognition Programs Types of programs

Personal attention Expressing interest Approval Appreciation for a job well done

Benefits of programs Fulfills employees desire for recognition. Encourages repetition of desired behaviors. Enhances group/team cohesiveness and motivation. Encourages employee suggestions for improving processes

and cutting costs.

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Linking Employee Recognition Programs and Reinforcement Theory

1. Consistent with reinforcement theory, rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition.

2. Recognition ma take place many forms.

3. You may personally congratulate an employee in private for a good job.

4. You can send a handwritten note or an email message acknowledging something positive that employee has done.

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What is Employee Involvement?

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Employee Involvement Programs

1. Participative Management

2. Representative Participation

3. Work Councils

4. Board Representatives

5. Quality Circles

6. Employee Stock Ownership Plans

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Examples of Employee Involvement Programs

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Examples of Employee Involvement Programs (contd)

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How a Typical Quality Circle

Operates

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Linking Employee Involvement Programs and Motivation

theoriesTheory Y is consistent with Participative management, while Theory X aligns with the more traditional autocratic style of managing people.

In Two-Factor Theory, employee involvement programs could provide employees with intrinsic motivation by increasing opportunities for growth, responsibility, and involvement in the work itself.

Employee involvement with compatible with ERG theory and efforts to stimulate the achievement need.

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Variable Pay Programs

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Types of Variable Pay Programs

1. Piece-rate pay plans

2. Profit-sharing plans

3. Gain sharing

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Variable Pay Programs

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Variable Pay Programs (contd)

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SkillBased Pay Plans

Benefits of Skill-based Pay Plans:

1. Provides staffing flexibility.

2. Facilitates communication across the organization.

3. Lessens protection of territory behaviors.

4. Meets the needs of employees for advancement (without promotion).

5. Leads to performance improvements.

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SkillBased Pay Plans (contd)

Drawbacks of Skill-based Pay Plans:

1. Lack of additional learning opportunities that will increase employee pay.

2. Continuing to pay employees for skills that have become obsolete.

3. Paying for skills which are of no immediate use to the organization.

4. Paying for a skill, not for the level of employee performance for the particular skill.

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Flexible Benefits

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Modular Plans: predesigned benefits packages for specific groups of employees.

Core-plus Plans:a core of essential benefits and a menu-like selection of other benefit options.

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Special Issues in Motivation Motivating Professionals

Provide challenging projects. Allow them the autonomy to be productive. Reward with educational opportunities. Reward with recognition. Express interest in what they are doing. Create alternative career paths.

Motivating Contingent Workers Provide opportunity for permanent status. Provide opportunities for training. Provide equitable pay.

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Special Issues in Motivation (contd) Motivating the Diversified Workforce

Provide flexible work, leave, and pay schedules.

Provide child and elder care benefits. Structure working relationships to account for

cultural differences and similarities.

Motivating LowSkilled Service Workers Recruit widely. Increase pay and benefits. Make jobs more appealing.

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Special Issues in Motivation (contd)

Motivating People Doing Highly Repetitive Tasks Recruit and select employees that fit the job. Create a pleasant work environment. Mechanize the most distasteful aspects of the job.

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How to Analyze PerformanceMotivation Problems

Source: Copyright Gary Dessler, Ph.D. Suggested in part by Performance Diagnosis Model, David Whetton and Kim Cameron, Developing Management Skills (Upper Saddle River, NJ: Prentice Hall, 2001), p. 339.

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Conclusions

Theories of work motivation inform our understanding of how to design work environments and reward systems that encourage employees to maximise effort

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OB- Lecture 3 - 2011- Motivation

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Transcript of OB- Lecture 3 - 2011- Motivation