Employee Motivation

1
Employee Motivation

• Definition of Motivation Factors which
  energize, direct and sustain employee behavior.
• Motivation is goal directed behavior.
• Motivation is NOT the same as Performance.
• Performance Motivation X Ability
• Dimensions of Motivation
• Form - Duration
• Direction - Intensity

2
Theories of Motivation

• Cognitive Theories POV The Employee
• Expectancy Theory
• Equity Theory
• Behavior Theory POV The Manager
• Reinforcement theory
• Financial Theory POV The Business Owner
• Agency Theory

3
Expectancy Theory (Vroom, 1964)

• Peoples Behavior results from conscious choices
  among alternatives.
• Valence - A persons preference among various
  outcomes or rewards. Ex. Do I prefer to achieve
  a higher performance goal or more leisure time?
• Instrumentality - A persons belief that a
  certain level of performance will lead to certain
  desirable consequences. Ex. If I study 2 hours
  every day for my finance class, will I earn an A
  grade?

4
Expectancy Theory (Contd)

• Expectancy - A persons belief about whether a
  certain performance outcome is possible. Ex. Can
  I sell 12 houses this year? Will my team achieve
  excellence in the customer satisfaction survey?
• Assumption - People select to pursue the level of
  performance they believe will maximize their
  utility (happiness).
• Motivation f (V, I, E)
• where V, I, E gt 0

5
Expectancy Theory Applications for Managers

• Managing Valence
• Rewards must be attractive to each employee
• Managing Instrumentality
• High performance levels must result in attractive
  rewards (do I want to become a partner in the
  accounting firm?)
• Performance levels must be set at a reasonable
  level of difficulty (ex. Sales incentives)
• Managing Expectancy
• Coaching and frequent feedback increase
  expectancies.
• Train employees for skill gaps so abilities are
  good.