371MWFMotivation and Performance Management

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Motivation and Performance

Management



Focus on motivation before exam



Goals

• Many different ways to motivate

employees.

• People have preferences for different

types of motivation.

• Link Motivation to leadership style

• Link Motivation to organizational culture.



Performance

• Performance = motivation X ability X situationalfactors (leadership support, resources, peer support, etc).

• Attributions.• Ability is relatively fixed. Ability linked to wages.

• Supervisors can work largely on motivation or situational factors. In this class focus on

leadership support and peer support (teams).Other classes resource (ex. MIS).



Focus on Motivation for now.



Motivation is important in

management

• Basic job motivation. Most firms have

average workers. Exceptional firms

motivate average workers. (note some

firms have high pay and select talentedemployees).

• Change efforts

• Supervision is easier if people are trying.



Think of a time when you were

highly motivated

• Describe the circumstances.



Intrinsic vs. Extrinsic Motivation

• IntrinsicMotivation beingdriven by positivefeelingsassociated withdoing well on atask or job

• ExtrinsicMotivation

motivation causedby the desire toattain specificoutcomes

8-18

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



A Model of Intrinsic Motivation

Sense of

Choice

Sense of

Competence

Sense of

Meaningfulness

Sense of

Progress

OpportunityRewards

AccomplishmentRewards

From Task

Activities

From Task Purpose

8-19Figure 8-6




Models of intrinsic motivation

• Video

• How do they create meaning, choice,

competence, progress?



.

The Job Characteristics Model

High work

effectiveness

High growth

satisfaction

High general job satisfaction

High intrinsic

work motivation

Outcomes

Knowledge of

theactual results of

the work activities

Experienced

responsibilityfor 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

8-15Figure 8-5

McGraw-Hill



Advantages of intrinsic Motivation

• Low cost

• Persistence is high

• Unleash employees for change.• Builds relationships internally and

externally



Disadvantages

• Control freaks nightmare

• Strategic change is difficult.



Intrinsic Motivation

• Often ignored in today’s workenvironment.

• Its what many of the best firms do! Very

few average or below average firms donot.

• Not leadership per se but more

organizational culture.• Leadership style needs to be supportive to

create the culture.



Extrinsic Motivation

• Many different approaches.

• Debate highlighted these issues.



First, What can be used as rewards



Punishments.



Equity approaches

• Discussed earlier.

9 5



Negative and Positive Inequity

A. An Equitable Situation

Self Other

$2

1 hour= $2 per hour

$4

2 hours= $2 per hour

9-5Figure 9-1


9 2



Factors Considered When MakingEquity Comparisons

Challengingassignments

Experience

Fringe benefitsEducation/training

Pay/bonusesTime

OutcomesInputs

Time off withpay/Job security

Recognition

Past Performance Ability and Skill

Effort

9-2Table 9-1

McGraw-Hill .



Pleasant/safeworking

environment

Loyalty to organization

Status symbolsSeniority

Careeradvancement/promotions

Creativity

OutcomesInputs

Opportunity forpersonalgrowth/development

Age

Factors Considered When MakingEquity Comparisons

9-3Table 9-1 cont.

McGraw-Hill

9 9



Since perceptual many ways to

manage

Ask for a raise; ask for a new title;seek outside intervention

3) Person can attempt to increasehis or her outcomes

Don’t work as hard;take longer breaks

2) Person can attempt to increasehis

or her inputs

Work harder; attendschool or aspecialized program

1) Person can increase his or herinputs

ExamplesMethods

Ask for less pay4) Person can decrease his or heroutcomes

9-9Table 9-2

l



Management

• Perceived Justice is important to

employee.

• Some are more equity sensitive than

others.

• Depends.

• Some questions. Debate if pay should be

made public. What would equity theory

suggest?



• Susan is a single parent. She needs to come in

late to drop her kids at school. How do you

manage this? How could equity theory guide

your choices?• Can you be best friends or have intimate

relations with your one subordinate?

• Here is a tough one. Which leadership style is

most equity sensitive? Least equity sensitive?



Expectancy theory is closely linked

to reward theory.

• Assumes People will do what is mostrewarding for them.

• So as students, choice to work and earn

more money or study.• Work for a course where all get As or

course where full range distribution.

• Work in a course where can get an A or work in a course where lucky to get B butunlikely to fail.



Employees make the same

choices.

• What gets you ahead on your job. Playing

golf with your boss or doing a good job.

• Your job is MIS systems. You are the

nerd of all nerds. Love programming and

hate people. Job requires meeting clients

needs. Spend more time programming or

talking to clients?



• Effort Performance Outcomes

9-14



Vroom’s Expectancy Theory

•Expectancy belief that effort leads toa specific level of performance

•Instrumentality a performance

outcome perception• Valence the value of a reward or

outcome

9-14


9-15



Factors that Influence andEmployee’s Expectancy Perceptions

• Self-esteem• Self-efficacy

• Previous success at the task

• Help received from a supervisorand subordinates

• Information necessary to

complete the task

• Good materials and equipment todo work with

9-15





Valences

• Individual differences.



Lets go back to Mary Martin

• Using expectancy theory, what would you

do using expectancy theory.



Managerial implications

• Make reward systems explicit and clear.

• Make job standards explicit and clear.

• Prepare people to succeed at job

standards.• Links to which leadership style.

• Expectancies are supervisory based.

Instrumentalities can be supervisor or organizational culture.

9-20



Prerequisites to Linking Performanceand Rewards

Managers should: Develop and communicate

performance standards

Give valid and accurateperformance ratings

Determine the relative mixof individual vs. teamcontribution to performanceand reward accordingly

Use the performance ratings

to differentially allocaterewards among employees

9 20




video



Problems

• Very general and difficult to implement in

reality.



MBO/Goal Setting

• My favorite extrinsic mode of motivation.

• Effective managers work with

subordinates to set specific, objective

performance standards. All jobs.

• Retails sales easiest.

• Police officer

• Football athletic trainer.

9-22



Locke’s Model of Goal Setting

Encouraging thedevelopment of goal-attainment strategies

or action plans

Increasingone’s persistence

Regulatingone’s effort

Directingone’s attention

Goalsmotivate theindividual

by...

Task performance

Figure 9-3

9-24



Insights from Goal Setting Research

1) Difficult goals lead to higher performance2) Specific, difficult goals lead to higher

performance for simple rather than complextasks

3) Feedback enhances the effect of specific,difficult goals

4) Participative goals, assigned goals, and self-set goals are equally effective

5) Goal commitment and monetary incentivesaffect goal-setting outcomes

Table 9-4

.



MBO

• Starts at the top. Officers set strategic

goals. Target. 5% revenue Growth

through repeat customers -- quality and

choice at a low price.

• Store manager goals

• Dept manager goals

• Floor attendants goals

• Check out goals



Goes beyond goals

• Goals are a tool to both motivate and

identify performance problems

(performance management).

• Goals setting done jointly long time frame.

• Monitor (indirectly) if goals are being

attained.

• Provide feedback daily, weekly, monthly



• Supervisor monitors.

• Gives recognition if goals on target

• Problems solves if goals are not on target.Done in supportive manner. What does

supervisor need to do to help? What does

subordinate need to do to help?

• Bonuses given if goals are met.



Research supports

• But not widely used.



Managerial implications

• Steps to adoption are specific and clear.

• Monitoring and feedback.

• Leadership style.• Organizational culture.



Dark side

• Game playing/Ethical lapses with outcome

measurements.

• Poor goal assessment.



Motivation

Different approaches

Choice based on beliefs about employees,

leadership style and organizational culture.

All can be proven to be effective at

achieving different things.

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371MWFMotivation and Performance Management

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