managing employee motivation and performence

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Principles of ManagementLecture-7

Managing Employee Motivation and Performance

Nigar Sultana LecturerFaculty of Business Studies

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Learning ObjectivesAfter studying this chapter, you should be able to:

Characterize the nature of motivation, including its importance and basic historical perspectives.

Identify and describe the major content perspectives on motivation.

Identify and describe the major process perspectives on motivation.

Describe reinforcement perspectives on motivation. Identify and describe popular motivational strategies. Describe the role of organizational reward systems in

motivation.

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Chapter Outline The Nature of Motivation

The Importance of Motivation in the Workplace

Historical Perspectives on Motivation

Content Perspectives on Motivation

The Need Hierarchy Approach

The Two-Factor Theory Individual Human Needs

Process Perspectives on Motivation

Expectancy Theory Equity Theory Goal-Setting Theory

Reinforcement Perspectives on Motivation

Kinds of Reinforcement in Organizations

Providing Reinforcement in Organizations

Popular Motivational Strategies

Empowerment and Participation

New Forms of Working Arrangements

Using Reward Systems to Motivate Performance

Effects of Organization Rewards

Designing Effective Reward Systems

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The Nature of Motivation Motivation

The set of forces that cause people to behave in certain ways.

The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Motivation

The Importance of Motivation in the Workplace

Determinants of Individual Performance Motivation—the desire to do the job. Ability—the capability to do the job. Work environment—the resources

needed to do the job.

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The Motivation Framework

Search for waysto satisfy need

Choice ofbehavior to

satisfy need

Determination offuture needs andsearch/choice for

satisfaction

Evaluation ofneed satisfaction

Need ordeficiency

The motivation processes through a series of discreet steps. Content, process, and reinforcement perspectives on motivation address different parts of this process.

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The Traditional Approach Frederick Taylor (Scientific Management) Assumptions:

Managers know more than workers.Economic gain (money) is the primary motivation for performance.

Work is inherently unpleasant.


The Human Relations Approach Emphasized the role of social processes in the

workplace. Assumptions:

Employees want to feel useful and important.Employees have strong social needs, more

important than money.Maintaining the appearance of employee

participation is important.

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Historical Perspectives on Motivation (cont’d)

The Human Resource Approach Assumptions:

Employee contributions are important and valuable to the employee and the organization.

Employees want to and are able to make genuine contributions.

Management’s job is to encourage participation and create a work environment that motivates employees.

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Content Perspectives on MotivationContent Perspectives

Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?”

Content Perspectives of Motivation Maslow’s Hierarchy of Needs Aldefer’s ERG Theory Herzberg’s Two-Factor Theory McClelland’s Achievement,

Power, and Affiliation Needs

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Content Perspectives on Motivation (cont’d)

Maslow’s Hierarchy of NeedsPeople must, in a hierarchical order, satisfy five groups of needs:Physiological needs for basic survival and biological function.

Security needs for a safe physical and emotional environment.

Belongingness needs for love and affection.Esteem needs for positive self-image/self-respect and recognition and respect from others.

Self-actualization needs for realizing one’s potential for personal growth and development.

Maslow’s Hierarchy of Needs

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Self-actualization

Esteem

Belongingness

Security

PhysiologyFood

Achievement

Status

Friendship

Stability

Job

Friends

Pension

Base

NEEDS

General Examples Organizational Examples

jobChallenging

title

at work

plan

salary


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Weakness of Maslow’s theory

1. Five levels of need are not always present.2. Ordering or importance of needs is not always the same.

3. Cultural differences.

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The ERG Theory (Alderfer) People’s needs are grouped into three overlapping

categories—existence, relatedness, and growth. Maslow’s hierarchy is collapsed into three levels:

Existence needs related to physiological and security needs.

Relatedness needs that are similar to belongingness and esteem by others.

Growth needs encompass needs for self-esteem and self-actualization.


ERG theory assumes that:Multiple needs can be operative at one time (there is no absolute hierarchy of needs).

If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).

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Content Perspectives on Motivation (cont’d) The Two-Factor Theory (Herzberg)

People’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors.

Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums:Motivational factors (work content) are on a continuum that ranges from satisfaction to no satisfaction.

Hygiene factors (work environment) are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.

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The Two-Factor Theory of Motivation

Satisfaction No satisfaction

Motivation Factors• Achievement• Recognition• The work itself• Responsibility• Advancement

and growth

Dissatisfaction No dissatisfaction

Hygiene Factors• Supervisors• Working conditions• Interpersonal relations• Pay and security• Company policies and

administration

© 2005 Prentice Hall Inc. All rights reserved. 6–21

Two-Factor Theory (Frederick Herzberg)

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Belongingness Innovative thinking Health & wellness Performance target Job security Training & development Reward and recognition Promotion Work autonomy Co-operation of colleagues Challenging work Participation in decision making Work and personal life balance Leadership of superior Salary package Performance bonus or commission Retirement benefit or Pension Interpersonal relationship with manager

The Two-Factor Theory (Herzberg)

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Motivation is a two-step process: Ensuring that the hygiene factors are not

deficient and not blocking motivation. Giving employees the opportunity to

experience motivational factors through job enrichment.

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Individual Human Needs (McClelland) The need for achievement

The desire to accomplish a goal or task more effectively than in the past.

The need for affiliationThe desire for human companionship and acceptance.

The need for powerThe desire to be influential in a group and to be in control of one’s environment.

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Process Perspectives on Motivation Process Perspectives

Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.

Process Perspectives of Motivation Expectancy Theory Equity Theory Goal-Setting Theory

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Expectancy Theory Motivation depends on how much we want something and how

likely we are to get it. Assumes that:

Behavior is determined by a combination of personal and environmental forces.

People make decisions about their own behavior in organizations.

Different people have different types of needs, desires, and goals.

People choose among alternatives of behaviors in selecting one that leads to a desired outcome.

Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.

Elements of Expectancy Theory

Effort-to-Performance Expectancy The employee’s perception of the probability that effort will lead

to a high level of performance.

Performance-to-Outcome Expectancy The employee’s perception of the probability that performance

will lead to a specific outcome—the consequence or reward for behaviors in an organizational setting.

Valence An index of how much an individual values a particular

outcome. It is the attractiveness of the outcome to the individual.

Attractive outcomes have positive valences and unattractive outcomes have negative valences.

Outcomes to which an individual is indifferent have zero valences.

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Process Perspectives on Motivation (cont’d)

For motivated behavior to occur:

Both effort-to-performance expectancy and performance-to-outcome expectancy probabilities must be greater than zero.

The sum of the valences must be greater than zero.

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The Expectancy Model of Motivation

Environment

Motivation Effort Performance

Ability

Outcome

Outcome

Outcome

Valence

Outcome Valence

Outcome Valence

Valence

Valence


Equity Theory

Referent Comparisons:

Self-inside

Self-outside

Other-inside

Other-outside

Referent Comparisons:

Self-inside

Self-outside

Other-inside

Other-outside

Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.


Equity Theory (cont’d)

Choices for dealing with inequity:

1. Change inputs (slack off)

2. Change outcomes (increase output)

3. Distort/change perceptions of self

4. Distort/change perceptions of others

5. Choose a different referent person

6. Leave the field (quit the job)

Choices for dealing with inequity:

1. Change inputs (slack off)

2. Change outcomes (increase output)

3. Distort/change perceptions of self

4. Distort/change perceptions of others

5. Choose a different referent person

6. Leave the field (quit the job)


Equity Theory (cont’d)

Propositions relating to inequitable pay:

1. Over rewarded hourly employees produce more than equitably rewarded employees.

2. Over rewarded piece-work employees produce less, but do higher quality piece work.

3. Under rewarded hourly employees produce lower quality work.

4. Under rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees

Propositions relating to inequitable pay:

1. Over rewarded hourly employees produce more than equitably rewarded employees.

2. Over rewarded piece-work employees produce less, but do higher quality piece work.

3. Under rewarded hourly employees produce lower quality work.

4. Under rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees

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Goal-Setting Theory

Assumptions Behavior is a result of conscious goals and intentions. Setting goals influence the behavior of people in

organizations.

Characteristics of Goals Goal difficulty

Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals. Goals should be difficult but attainable.

Goal specificity Clarity and precision of the goal. Goals vary in their ability to be

stated specifically.

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Reinforcement Perspectives on Motivation

Kinds of Reinforcement in Organizations Positive reinforcement

Strengthens behavior with rewards or positive outcomes after a desired behavior is performed.

Avoidance Strengthens behavior by avoiding unpleasant consequences

that would result if the behavior is not performed. Punishment

Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed.

Extinction Weakens undesired behavior by simply ignoring or not

reinforcing that behavior.

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Popular Motivational StrategiesEmpowerment and Participation

Empowerment The process of enabling workers to set their own work

goals, make decisions, and solve problems within their sphere of influence.

Participation The process of giving employees a voice in making

decisions about their work. Areas of Participation for Employees

Making decisions about their jobs. Decisions about administrative matters (e.g., work

schedules). Participating in decision making about broader issues of

product quality.

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Using Reward Systems to Motivate Performance

Reward System The formal and informal mechanisms by which employee

performance is defined, evaluated, and rewarded.

Effects of Organizational Rewards Effect of Rewards on Attitudes

Satisfaction is influenced by how much is received and how much the person thinks should have been received.

Satisfaction is affected by comparison with others. The rewards of others are often misperceived. Overall job satisfaction is affected by employee

satisfaction with intrinsic and extrinsic rewards.

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Effects of Organizational Rewards (cont’d)

Effect of Rewards on Behaviors Extrinsic rewards affect employee satisfaction and

reduce turnover. Rewards influence patterns of attendance and

absenteeism. Employees tend to work harder for rewards based on

performance.

Effect of Rewards on Motivation Employees will work harder when performance will be

measured. Employees will work harder if

performance is closely followed by rewards.

managing employee motivation and performence

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