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Chapter

9 Motivation

Essentials of

ContemporaryManagement

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92

Learning Objectives

After studying the chapter, you should be able to:

Explain what motivation is and why managersneed to be concerned about it.

Describe from the perspectives ofexpectancytheory and equity theorywhat managers shoulddo to have a highly motivated workforce.

Explain how goals and needs motivate people

and what kinds of goals are especially likely toresult in high performance.

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93

Learning Objectives (contd)

Identify the motivation lessons that managers canlearn from operant conditioning theory andsocial learning theory.

Explain why and how managers can use pay as a

major motivation tool.

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The Nature of Motivation

Motivation

The psychological forces acting on an individual

that determine: Directionpossible behaviors the individual

could engage in.

Efforthow hard the individual will work.

Persistencewhether the individual will keeptrying or give up.

Explains why people behave the way they do inorganizations.

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The Nature of Motivation (contd)

Intrinsically Motivated Behavior

Behavior that is performed for its own sake.

The source of the motivation that comes from

actually engaging in the behavior.

The sense of accomplishment and achievement

derived from doing the work itself

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The Nature of Motivation (contd)

Extrinsically Motivated Behavior

Behavior that is performed to acquire material orsocial rewards or to avoid punishment.

The source of the motivation is the consequences of

the behavior and not the behavior itself.

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Sources of Motivation

Nature of the

Organization

Personal

Characteristics

Nature of the

Job

Individual

Motivation

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Outcomes and Inputs

Outcome

Anything a person gets from a job or anorganization:

Pay, job security, autonomy, accomplishment.

Input

Anything a person contributes to his or her job ororganization:

Time, effort, skills, knowledge, work behaviors.

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The Motivation Equation

Figure 9.1

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Expectancy Theory

Motivation will be high when workers believe:High levels of effort will lead to high performance.

High performance will lead to the attainment of desiredoutcomes.

Major Factors of Motivation

Expectancythe belief that effort (input) will resultin a certain level of performance.

Instrumentalitythe belief that performance resultsin the attainment of outcomes.

Valencehow desirable each of the available outcomes

from the job is to a person.

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Expectancy, Instrumentality, and Valence

Figure 9.2

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Expectancy Theory in Practice

Expectancy: Effort will result in a level ofperformance.

Employees will work work hard if they believe

they can attain high performanceorganizations

must provide the resources that supportperformance.

Instrumentality: Performance leads to outcomes.

Workers are only motivated if they think

performance leads to an outcomemanagersmust link performance to outcomes.

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915

Expectancy Theory in Practice

Valence: How desirable an outcome is to a person. Workers have preferences for outcomes

managers must determine which outcomes are

valued.

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Expectancy and Motivation

Motivation is highest when expectancy,instrumentality, and valence levels are high.

If one of the values is low, motivation will be low:

Workers do not believe they can perform well.

Workers do not believe that performance and

rewards are closely linked.

Workers do not value the rewards offered for

performance.

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Expectancy Theory

Figure 9.3

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Need Theories

Need

A requirement for survival and well-being.

Need Theories

Theories of motivation that focus on what needs people are

trying to satisfy at work and what outcomes will satisfy thoseneeds.

Basis premise is that people are motivated to obtain outcomes

at work to satisfy their needs.

Managers must determine what needs a worker wants

satisfied and ensure that a person receives the outcomes

when performing well.

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920

Maslows Hierarchy of Needs

Table 9.1

Self-

actualization

Realize ones

full potential

Use abilities

to the fullest

EsteemFeel good

about oneself

Promotions

and recognition

BelongingnessSocial

interaction, love

Interpersonal

relations, parties

Safety Security, stabilityJob security,

health insurance

PhysiologicalFood, water,

shelter

Basic pay level

to buy items

Needs Description Examples

Lower-level needs must be satisfied

before higher-level needs are addressed.

Highest-level

needs

Lowest-level

needs

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Herzbergs Motivation-Hygiene Theory

()()

Focuses on outcomes that lead to higher motivation

and job satisfaction, and those outcomes that canprevent dissatisfaction.

Motivator needs relate to the nature of the work itselfautonomy, responsibility, interesting work.

Hygiene needs are related to the physical and psychological

context of the workcomfortable work environment, pay, jobsecurity.

Unsatisfied hygiene needs create dissatisfaction;satisfaction of hygiene needs does not lead to motivation or

job satisfaction.

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McClellands Needs for Achievement,Affiliation, and Power

Need for Achievement

A strong need to perform challenging tasks welland meet personal standards for excellence.

Need for Affiliation

A concern for good interpersonal relations, beingliked, and getting along.

Need for PowerA desire to control or influence others.

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Adams Equity Theory

Focuses on peoples perceptions of the fairness (or

lack of fairness) of their work outcomes in proportion

to their work inputs.

A relative outcome to input ratio comparison to oneself or toanother person (referent) perceived as similar to oneself.

Equity exists when a person perceives that their

outcome/input ratio to be equal to the referents ratio.

If the referent receives more outcomes, they should also

give more inputs to achieve equity.

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Equity Theory

Table 9.2

Condition Person Referent Example

EquityOutcomes = Outcomes

Inputs Inputs

Worker contributes

more inputs but also

gets more outputs

than referent

Underpayment

Equity

Outcomes < Outcomes

Inputs Inputs

Worker contributes

more inputs but also

gets the same outputs

as referent

Overpayment

Equity

Outcomes > Outcomes

Inputs Inputs

Worker contributessame inputs but also

gets more outputs

than referent

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Equity Theory (contd)

Inequity exists when workers outcome/inputratio is not equal to referent.

Underpayment inequity: ratio is less than thereferent.

Workers feel they are not getting the outcomesthey should for their inputs.

Overpayment inequity: ratio is higher than thereferent.

Workers feel they are getting more outcomes

than they should for their inputs.

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Equity Theory (contd)

Restoring Equity: Inequity creates tension inworkers causing them to attempt to restore

equity.

In underpayment, workers may reduce input levels

to correct (rebalance) the ratio or seek a raise.

In overpayment, workers may change the referentperson and readjust their ratio perception.

If inequity persists, workers will often choose leave

the organization.

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Goal Setting Theory

Focuses on identifying the types of goals that

are effective in producing high levels ofmotivation and explaining why goals havethese effects.

Considers how managers can ensure that

workers focus their inputs (efforts) in thedirection of high performance and theachievement of organizational goals.

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Goal Setting Theory (contd)

GoalWhat a person is trying to accomplish.

Characteristics of Motivating Goals

Specific and not vague in providing directionDifficult but not impossible to attain

Accepted and committed to by workers

Feedback on goal attainment is important.

Goals point out what is important to the firm.

Workers should be encouraged to develop actionplans to attain goals.

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Learning Theories

Theories that focus on increasing motivation

and performance by linking outcomes toperformance and the attainment of goals.

Learning

A relatively permanent change in persons

knowledge or behavior that results from practice orexperience.

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Operant Conditioning Theory

Operant Conditioning

People learn to perform behaviors that lead to

desired consequences and learn not to performbehaviors that lead to undesired consequences.

Linking specific behaviors to the attainment ofspecific outcomes can motivate high performance

and prevent behaviors that detract fromorganizational effectiveness.

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Operant Conditioning Tools

Positive Reinforcement

Getting desired outcomes for performing needed workbehaviors.

Positive reinforcers: pay, praises, or promotions.

Negative Reinforcement

Eliminating undesired outcomes once the desired behavior

occurs.

Negative reinforcers: criticisms, pay cuts, suspension.

Is not the same as punishment.

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Operant Conditioning Tools (contd)

Extinction

Curtailing the performance of a dysfunctional behavior byeliminating whatever is reinforcing it.

Behavior is not rewarded and over time, the worker stops

performing it.

Punishment

Administering an undesired/negative consequence toimmediately stop a dysfunctional behavior.

Manager administers an undesired consequence to worker

(verbal reprimand, demotion, pay cut).

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Guidelines for Administering Punishment

Downplay the emotional element involved inpunishment.

Punish the behavior, not the person.

Punish behaviors as soon as possible after

they occur.

Swift punishment increases the connection betweenpunishment and behavior.

Avoid punishing someone in front of others.Punish the behavior, not the person.

People learn for punishment of others.

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Social Learning Theory

A theory that takes into account how learning andmotivation are influenced by peoples thoughts andbeliefs and their observations of other peoples

behavior. Vicarious Learning (Observational Learning)

When a learner is motivated to perform a behavior bywatching another person perform and be rewarded.

People are motivated to imitate models who are highlycompetent, expert, receive attractive reinforcers, and arefriendly or approachable.

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Social Learning Theory (contd)

Conditions for Social LearningThe learner observes the model performing the

behavior.

The learner accurately perceives the models

behavior.The learner remembers the behavior.

The learner has the skills and abilities needed toperform the behavior.

The learner sees or knows that the model ispositively reinforced for the behavior.

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Social Learning Theory (contd)

Self-Reinforcement

Any desired or attractive outcome or award that a person cangive himself or herself for good performance.

The self-management of behavior

Self-efficacy

A persons belief about his or her ability to perform a behaviorsuccessfully.

Influences motivation both when managers provide

reinforcement and when workers themselves provide it.

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Pay and Motivation

Pay as a MotivatorExpectancy

Pay is an instrumentality (and outcome)

Expectancy must be high for motivation to be

high.

Need Theory

Pay is used to satisfy many needs.

Equity Theory Pay is given in proportion to inputs.

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Pay and Motivation

Pay as a Motivator (contd)Goal Setting Theory

Pay is linked to attainment of goals.

Learning Theory

The distribution of outcomes (pay) is contingent

upon the performance of functional behaviors.

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Merit Pay and Performance

Merit Pay Plan

A compensation plan that bases pay on individual,group and/or organization performance.

Individual plan: when individual performance(sales) can accurately measured.

Group plan: when group that works closely

together is measured and rewarded as a group.

Organization plan: when group or individual

outcomes are not easily measured.

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Salary Increase or Bonus?

Motivational Value of a Bonus Is Higher When:Salary levels are unrelated to current performance.

Changes in other compensation items (cost ofliving, seniority) are not having a large effect in

increasing compensation.Salaries rarely change and performance does.

Benefits of Using Bonuses

Do not become permanent part of compensation.Are more directly tied to current performance.

Provide more flexibility in distributing rewards.

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Salary Increase or Bonus? (contd)

Employee Stock OptionA financial instrument that entitles the bearer to

buy shares of an organizations stock at a certainprice during a certain period of time or under

certain conditions.Uses:

To attract high-level managers.

To motivate employee performance through

ownership in the firm.

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Examples of Merit Pay Plans

Piece-rate Pay

Employees pay is based on the number of units that theemployee produces.

Commission Pay

Employees pay is based on a percentage of sales that anemployee makes personally.

Organization-based Merit Plans

Scanlon plan focuses on reduced expenses or

cutting costs.

Profit sharing employees receive a share of an