Chapter4a-Motivation and Rewards

8/22/2019 Chapter4a-Motivation and Rewards

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Psychology Department


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Environment Opportunity

Needs &drives Tension Effort Performance Rewards

Goals and

incentives

Ability

Need

satisfaction

Model of Motivation


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Motivation

It is the term used to

describe the forces

within the individualthat account for the

level, direction, and

persistence of effort

expended at work

Direction

Persistence

Intensity


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Motivation and Rewards

It is a work outcome of positive value to theindividual

EXTRINSIC REWARDS are externallyadministered (e.g., pay and verbal praise); themotivational stimulus originates outside the person.

INTRINSIC REWARDS are self-administered;

they occur "naturally" as a person performs a task.The feelings of competency, personal development,and self-control people experience in their work.


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Rewards and Performance

Both Intrinsic and Extrinsic rewards can helpthe manager to lead effectively through

motivation, and to achieve maximummotivational impact, it is necessary to:

Respect diversity and individual differences

Clearly understand what people want from work

Allocate rewards to satisfy the interests of bothindividuals and the organization


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Work Motivation

Is the set of internal and external forces that

cause an employee to choose a course of

action and engage in certain behaviors.Ideally, these behaviors will be directed at

the achievement of an organizational goal.


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McClel land's Acquired-Needs Theory

David McClelland proposes that people

acquire needs through their life experiences

Reflect elements of the culture in which they

grow up; affect the way people view their jobs

and approach their lives

He uses a Thematic Apperception Test (TAT)

to measure the strengths of three acquired

needs:

Achievement - Power - Affiliation


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Need for Achievement (nAch)

The desire to do something better or more

efficiently, to solve problems, or to mastercomplex tasks

Need for Affiliation (nAff)The desire to establish and maintain

friendly and warm relations with other

persons


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Need for Power (nPower)

The desire to control other persons, to influence

their behavior, or to be responsible for otherpeople. A finer distinction can be made between:

The need for Personal Power and,

The need for Social PowerInstitutional power

It is the need to influence others behavior for

the good of the whole organization


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The Need Profi le of Successful Executives

The most important need for executivesuccess is the need for social power

Persons with a high need for affiliation maynot make the best managers

While nPower is often accompanied by ahigh need for achievement the later need initself is not consistently associated withexecutive success


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Types of Needs

Primary needs

Physical needs include food, water, sex, sleep,

air, and reasonably comfortable temperature;arise from the basic requirements of life and are

important for survival of the human race; they

are universal but they vary in intensity from

one person to another


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Types of Needs

Secondary needs

Are more vague because they represent needs

of the mind and spirit rather than of thephysical body; many of these needs are

developed as people mature


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7 Conclusions about secondary needs

1. Conditioned by experience

2. Vary in type and intensity among people

3. Are subject to change across time within anyindividual

4. Cannot usually be isolated, but rather work in

combination and influence one another

5. Are often hidden from conscious recognition

6. Are vague feelings as opposed to specific

physical needs

7. Influence behavior in powerful ways


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Three Types of Motivation Theory

Content Theory

Needs are physiological and psychologicaldeficiencies that an individual feels somecompulsion to eliminate

Process Theory

People give meaning to rewards and the work

opportunities available to them

Reinforcement Theory

People's behavior is influenced by its

environmental consequences


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Content Theories of Motivation

Maslow's Hierarchy of Needs TheoryLower Order Needs

1. Physiological survival needs

2. Safety and security - Freedom from

dangerous work environment, economic security

Higher Order Needs

3. Belonging and Social

Friendships and compatible associates

4. Esteem and status

Ones feelings of competence and self-worth

5. Self-actualization and fulfillment

- Becoming all that one is capable of becoming, using ones skills to

the fullest, and stretching talents to the maximum


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H ierarchy of Needs Theory

Deficit Principle

Holds that a satisfied need is not a motivator of

behavior; people act to satisfy needs in which adeficit exists

Progression Principle

Holds that the five needs exist in a stricthierarchy of prepotency such that a need at one

level doesn't become activated until the next

lower-level need is satisfied


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Limitations

1. Research has not supported the presence of

all 5 need levels as unique

2. The 5-step progression from lowest to

highest need levels has not been

established

3. Not easy to provide opportunities for self-

actualization


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Herzberg's Two-Factor Theory

Maintenance/Hygiene Factors

Working Conditions

Interpersonal Relations

Organizational Policies

Quality of Supervision

Base Wage or Salary, Fringe benefits

Improvements in Hygiene Factors can prevent and/or

eliminate job dissatisfaction; they will not improve

job satisfaction


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Maintenance/Hygiene Factors

Their absence can cause dissatisfaction

among employees but their presence

generally brings employees only to a neutralstate; they are necessary for building a

foundation on which to create a reasonable

level of motivation in employees; related tojob context


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Herzberg's Two-Factor Theory

Satisfier Factors

Sense of Achievement

Feeling of Recognition

Sense of Responsibility

Opportunity for Advancement

Feelings of Personal Growth

Improvements in Satisfier Factors can increase job

satisfaction; they will not prevent job

dissatisfaction


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Motivational/Motivators/Satisf iers

Are mostly job-centeredthey relate to job

content

Are based on an individual's need for personal

growth. When they exist, motivator factors

actively createjob satisfaction. If they are

effective, then they can motivate an individualto achieve above-average performance and

effort


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Motivators

Intrinsic motivators

Internal rewards that a person feels when

performing a job so there is a direct and often

immediate connection between work and

rewards

Extrinsic motivators

External rewards that occur apart from thenature of work, providing no direct satisfaction

at the time the work is performed (ex.

Retirement plans, health insurance, and

vacations)


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Dissatisfaction

and

demotivation

Not dissatisfied

but

not motivated

Positive

satisfaction

and motivation

Hygiene Factors

Company policies

Quality of supervisionRelations with others

Personal life

Rate of pay

Job security

Working conditions

Motivational Factors

Achievement

Career advancement

Personal growth

Job interest

Recognition

Responsibility

Herzbergs Two-Factor Theory


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Criticisms

1. Not universally applicable

2. Appears to reduce the importance of pay, status,

and relations to others3. The model seems to be method-bound, meaning

only Herzbergs approach produces the two-factor

model. In short, there may be an appearance of

two factors when in reality there is only one factor

4. The model only outlines general tendencies;

maintenance factors may be motivators to some

people


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Alderfer ' s E-R-G Theory

Clayton Alderfer proposed a modified need

hierarchy with just three levels

Does not assume as rigorous a progression fromlevel to level

It accepts the likelihood that that all three levels

might be active at any time or even that just one of

the higher levels might be active


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An extension of Maslow's theory that proposes

the existence of three needs as opposed to five.

Existence Needs: Desires for physiologicaland security needs

Relatedness Needs: Desires for satisfying

interpersonal relationships Growth Needs: Desires for both self-esteem

and self-actualization


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Does not assume that lower-level needs mustbe satisfied before higher-level needs becomeactivated and,

This theory includes a unique "frustration-regression" principle whereby an alreadysatisfied lower-level need becomes reactivated

when a higher-level need is frustrated


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Equity Theory

Asserts that when people believe that they have

been treated inequitably in comparison to others,

they eliminate the discomfort and restore equity

Perceived Equity - occurs whenever a person

perceives that their personal rewards/inputs ratio is

equivalent to the rewards/inputs ratio of acomparison other

Perceived Inequity - occurs whenever one's

rewards/input ratio is perceived to be unequal

Process Theories of Motivation


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Expectancy Theory

People will do what they can do whenthey want to do it. The question is what

makes them want to do it?

Vroom suggests that the motivation to workdepends on the relationships between the

following three expectancy factors:



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Expectancy Theory

Expectancy: A person's belief that workinghard will result in a desired level of task

performance

Instrumentality: A person's belief thatsuccessful task performance will be followed

by rewards and other potential outcomesValence: The value a person assigns to

possible rewards and other work-relatedoutcomes



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Expectancy Theory Mul tipl ier Effect

Implies that for motivation to be high,Expectancy, Instrumentality and Valence

must be high.Motivation =

Expectancy x Instrumentality x Valence

A zero at any location on the right side of theequation will result in zero motivation



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Expectancy Theory

To Maximize Expectancy

Select workers with ability

Train workers to use ability

Support work effort

Clarify performance goals



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Expectancy Theory

To Maximize Instrumentality

Clarify psychological contracts

Communicate performance-outcomepossibilities

Demonstrate what rewards are

contingent on performanceTo Maximize Valence

ID needs and adjust rewards to match



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Goal-Setting Theory

The basic premise is that well-set and well-managed task goals are important sourcesfor motivation

Task goals, in the form of clear anddesirable performance targets,Provide direction,

Energize persistent long-term work efforts,

Clarify performance expectations, and

Serve as a basis for feedback



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Goal-Setting Theory

Set Specific Goals

Set Challenging Goals

Build Goal Acceptance and Commitment

Clarify Goal Priorities

Reward Goal AccomplishmentManagement-by-Objectives ( MBO ) is one

example of a goal-setting system which

promotes participation.



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Expectancy Theory (Victor Vroom)

3. Rewards-Personal goals relationship = Valence

1. Effort-Performance relationship = Expectancy

2. Performance-Rewards relationship = Instrumentality

Individual

Effort

Individual

Performance

PersonalGoals

Organizational

Rewards

1 2

3


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Unlike the prior motivation theories which relyon cognitive explanations of behavior,

reinforcement theory focuses instead on theimpact which external environmentalconsequences have on behavior

The law of effects states that behavior followed

by pleasant consequences is likely to berepeated; behavior followed by unpleasantconsequences is not likely to be repeated


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Operant Conditioning

A term popularized by B. F. Skinner, isthe process of controlling behavior by

manipulating its consequences; i.e.,

learning by reinforcement


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Organizational Behavior Modif ication

Involves the application of operant

conditioning techniques to influence

human behavior in work settings.

(Reinforcing desirable behaviors while

denying reinforcement for unwanted

behaviors)


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Organizational Behavior Modif ication

Application in organizations of the principles of behavior

modification, which evolved from the work of B.F. Skinner

OB Mod is based on the idea that behavior depends on itsconsequences; therefore managers can control, or at least

affect, a number of employee behaviors by manipulating

their consequences

OB Mod relies heavily on the law of effect, which statesthat a person tends to repeat behavior that is accompanied

by favorable consequences

OB Mod states that external consequences tend to determine

behavior


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2 Types of Reinforcement

Positive Reinforcement

Increases the frequency of a behavior throughthe contingent presentation of a desirable

consequence

Negative ReinforcementIncreases the frequency of a behavior through

the contingent removal of an undesirable

consequence


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Punishment

Decreases the frequency of a behavior through

the contingent presentation of an unpleasantconsequence

Extinction

decreases the frequency of a behavior throughthe contingent removal of a pleasantconsequence


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Law ofContingent Reinforcement

In order for a reward to have maximumreinforcing value, it must be delivered only ifthe desired behavior is exhibited

Law ofImmediate Reinforcement

The more immediate the delivery of a rewardafter the occurrence of a desirable behavior, thegreater the reinforcing value of the reward


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Shaping

The creation of a new behavior by the

positive reinforcement of successiveapproximations of the desired

behavior

Intermittent reinforcement only rewards

behavior periodically

Continuous reinforcement administers areward each time a desired behavior occurs


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Guidel ines forPositive

Reinforcementand Punishment

Clearly identify desired work behaviors

Maintain diverse inventory of rewards

Inform everyone what must be done to getrewards

Recognize individual differences whenallocating rewards

Follow the laws of immediate and contingentreinforcements


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Guidel ines for Positive

Reinforcement andPunishment

Tell the person what is being done wrong.

Tell the person what is right

Make sure the punishment matches thebehavior

Administer the punishment in private

Follow the laws of immediate and contingentreinforcement


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Ethics of Operant Behavior Modif ication

There is considerable debate over the ethics ofusing OB MOD to influence behavior

But as the text notes, "the real question may be

not whether it is ethical to control behavior,but whether it is ethical not to control behavior

well enough that the goals of both theorganization and the individual are wellserved."


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An I ntegrated Model of I ndividual

Motivation

Motivation leads to Effort which, along withappropriate Abilities and Organizational

Support, lead to PerformanceThis model illustrates how Rewards for

performance, when they are perceived as

Equitable and possess Reinforcement Value,can produce satisfaction.


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Motivation and Compen$ation

Incentive Compensation Systems

Bonus systems in which employees at all levels

participate

Bonus Pay Plans

Profit-Sharing Plans

Gain-Sharing PlansEmployee Stock Ownership Plans


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Motivation and Compen$ation

Pay for Knowledge

Skill-based pay ties pay to the number ofjob-relevant skills an employee masters

Entrepreneurial pay

Requires individuals to put part of their pay at

risk, in return for the right to pursue

entrepreneurial ideas, and share in any resulting

profits

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Chapter4a-Motivation and Rewards

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