Chapter 5 Motivation at Work

Motivation

Willingness to exert high levels of effort toward organizational goals.

Conditioned by the effort’s ability to satisfy some individual need.

The Basic Motivation BehaviorSequence

What Motivates People at Work?

External Incentives Vary by the individual

Self-interestEconomic gainSocialInterpersonal

What Motivates People at Work?

Internal needs Variables within the individual

Enlightened self-interestIndividual interests & benefitsProtestant work ethicHierarchy of needs

Cultural differences affect motivation

Early Motivation Theories

Psychological theories emphasized internal needs; ignored individual diversityEconomic theories emphasized extrinsic incentives; technology was a force multiplierProcess theory emphasized nature of interaction between individual and the environmentExternal theories focused on environmental elements such as, behavioral consequences

Maslow’s Hierarchy of Needs

Physiological

Safety & Security

Love (Social)

Esteem

SA

Motivational Theories X & Y

Physiological

Safety & Security

Love (Social)

Esteem

SA Theory Y - a set of assumptions of how to manage individuals motivated by higher-order needs

Theory X - a set of assumptions of how to manage individuals motivated by lower-order needs

McGregor’s Assumptions About People Based on Theory X

Naturally indolentLack ambition, dislike responsibility, and prefer to be ledInherently self-centered and indifferent to organizational needsNaturally resistant to changeGullible, not bright, ready dupes

Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org.

McGregor’s Assumptions About People Based on Theory Y

Experiences in organizations result in passive and resistant behaviors; they are not inherentMotivation, development potential, capacity for assuming responsibility, readiness to direct behavior toward organizational goals are present in peopleManagement’s task—arrange conditions and operational methods so people can achieve their own goals by directing efforts to organizational goals

Adapted from Table 5.1 which is from “The Human Side of Enterprise” by Douglas M. McGregor reprinted from Management Review, November 1957. Copyright 1957 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org.

Alderfer’s ERG Theory

Physiological

Safety & Security

Love (Social)

Esteem

SA

Existence

Relatedness

Growth

How Financial Rewards Meet Needs

Develop a talent you have always wanted to explore.

A pay raise that recognizes your value to the firm.

Purchase equipment to join a sports team.

Purchase an insurance policy.

Food, clothing, rent.

Self Actualizaton

Esteem

Social

Security

Physiological

Organizational ExamplesSelf Actualization

Esteem

Social

Security

Physiological

Challenging Work - Opportunity to GrowJob Title – Recognition

Friends at Work - Sports TeamsPension Plan - InsuranceSalary to Purchase Basic Needs

Diagnose Employees’ Needs and Find Ways of Motivating Them by Satisfying the Needs

Self-Actualization

Esteem

Belongingnessand Love

Safety and Security

Physiological

Existence

Relatedness

Growth

MASLOW’SHIERARCHY

OF NEEDS

ALDERFER’SHIERARCHY

OF NEEDS

Herzberg’s Two-Factor Theory

Hygiene Factor - work condition related to dissatisfaction caused by discomfort or pain

maintenance factorcontributes to employee’s feeling not dissatisfiedcontributes to absence of complaints

Motivation Factor - work condition related to the satisfaction of the need for psychological growth

job enrichmentleads to superior performance & effort

Motivation-Hygiene Theory of Motivation

Hygiene factors mustbe present to avoid jobdissatisfaction

Hygiene factors avoid

job dissatisfaction

• Company policy & administration

• Supervision• Interpersonal relations• Working conditions• Salary• Status• Security

Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human . (Salt Lake City: Olympus, 1982). Reprinted by permission.

Motivators Worker Satisfaction. Hygiene Factors Worker Dissatisfaction.

HYGIENE FACTORS MOTIVATORS

JobDissatisfaction

No JobDissatisfaction

No JobSatisfaction

Job Satisfaction

•Pay•Status•Security•Working Conditions•Fringe Benefits•Policies and Administrative Practices•Interpersonal Relations

•Meaningful Work•Challenging Work•Recognition for Accomplishments•Feeling of Achievement•Increased Responsibility•Opportunities for Growth and Advancement•The Job Itself

Motivation factors increase job satisfaction

Motivation-Hygiene Theory of Motivation

Hygiene factors mustbe present to avoid jobdissatisfaction

Hygiene factors avoid

job dissatisfaction

• Company policy & administration

• Supervision• Interpersonal relations• Working conditions• Salary• Status• Security

• Achievement• Achievement recognition • Work itself• Responsibility• Advancement• Growth

• Salary?Frederick Herzberg, The Managerial Choice: To be Efficient or to Be Human . (Salt Lake City: Olympus, 1982). Reprinted by permission.

Resultant Job Conditions (Motivation = M, Hygiene = H)

High M Low M

High H high motivationfew complaints

low motivationfew complaints

Low H high motivationmany complaints

low motivationmany complaints

Manifest Need Theory:Need for Achievement

Need for Achievement - a manifest (easily perceived) need that concerns individuals’ issues of excellence, competition, challenging goals, persistence, and overcoming difficulties

Manifest Need Theory:Need for Power

Need for Power - a manifest (easily perceived) need that concerns an individual’s need to make an impact on others, influence others, change people or events, and make a difference in life

Manifest Need Theory:Need for Affiliation

Need for Affiliation - a manifest (easily perceived) need that concerns an individual’s need to establish and maintain warm, close, intimate relationships with other people

3 Motivational Need Theories

[Maslow Alderfer McClelland

HigherOrderneeds

LowerOrderneeds

Self Actualization

Esteem self interpersonal

Safety & security interpersonal physical

Need for Achievement

Need for Power

RelatednessNeed for affiliation

Existence

Growth]

]][

Belongingness

Physiological

Motivational Theory of Social Exchange

Equity Outcomes = Outcomes Inputs Inputs

Negative Outcomes < Outcomes Inequity Inputs Inputs

Positive Outcomes > Outcomes Inequity Inputs Inputs

Person Comparison Other

Strategies for Resolution of Inequity

Alter the person’s outcomesAlter the person’s inputsAlter the comparison other’s outputsAlter the comparison other’s inputsChange who is used as a comparison otherRationalize the inequityLeave the organizational situation

Managers Can Help Employees Perceive Their Work Situation As Equitable

A’s outputsA’s Inputs

B’s outputsB’s Inputs

A’s outputsA’s Inputs

B’s outputsB’s Inputs

Inequity = Problem with Motivation Equity = No Problem with Motivation

Employee Responses to Perceived

Inequities What happens when inequities exist?

If person A believes an inequity exists and her ratio is too small, she may•reduce her inputs•ask for more outputs•change her comparison person•rationalize that equity exists•leave the situation

If person B believes an inequity exists, and his ratio is too large, he may•increase his inputs•ask for reduced outputs•change his comparison person•rationalize that equity exists•leave the situation

Table 4-1

New Perspectives on Equity Theory

Equity Sensitive

I prefer an equity ratio equal to that of my comparison other

New Perspectives on Equity Theory

Benevolent

I am comfortable with an equity ratio less than that of my comparison other

New Perspectives on Equity Theory

Entitled

I am comfortable with an equity ratio greater than that of my comparison other

Expectancy Theory of Motivation:Key ConstructsValence - value or importance

placed on a particular rewardExpectancy - belief that effort leads

to performanceInstrumentality - belief that

performance is related to rewards

Expectancy Model of Motivation

Performance RewardEffortEffort

Perceived effort-Performance probability

Perceived value of reward

Perceived performance- reward probability

“If I work hard,will I get the jobdone?”

“What rewardswill I get when the job is done?”

“What rewardsdo I value?”

Determinants of Performance

IndividualDifferences

Work Effort(Motivation)

Organizational Support

JobPerformance

Reward System

Organization provides inducementspay, benefits, vacation, status

In return for individual contributions

time, effort, knowledge, skills, creativity

Individuals Organization

Inducements

Contributions

What is an effective reward?

A Reward Is Effective When It Is...

available

performance contingent

timely

reversible

valuable

What Types of Rewards Are Available in Organizations?

Types of Rewards

Economic rewardsmoneybenefitsperks

Non-economic rewardsprestigejob content

Multiple Means of Pay

Merit PayCreative Pay Practices

Skill based payGain-sharing planslump-sum pay increasesFlexible benefit plans

Managing pay as an extrinsic reward

Some Rules for Effective Rewards

Differentiate the rewards

Reward promptly

Give feedback

Give positive feedback publiclyGive negative feedback privately

Match consequences and behaviors

Individual & Situation Factors Affect Motivation & Performance

•Ability•Commitment•Feedback•Complexity•Situational Constraints

•Attention•Effort•Persistence

PERFORMANCEDemands Madeon Employee

SpecifiedGoals