Managing Employee Motivation and Performance

1
Chapter 16

• Managing Employee Motivation and Performance

2
Motivation

• Definition
• The set of forces that cause people to behave in
  certain ways.
• What are managers interested in?
• maximizing desired behaviors
• minimizing undesirable behaviors

3
The Performance Process
Behavior
Performance
Motivation
4
A Very Basic Motivation Framework
Need or deficiency
Search for ways to satisfy need
Choice of behavior to satisfy need
Determination of future needs and search/choice
for satisfaction
Evaluation of need satisfaction
5
Motivation at Work A historical perspective

• 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.

6
Motivation at Work A historical perspective

• Human Relations Approach
• Emphasized the role of social processes in the
  workplace.
• Assumptions
• Employees want to feel useful and and important.
• Employees have strong social needs, more
  important than money.
• Maintaining the appearance of employee
  participation is important.

7
Motivation at Work A historical perspective

• 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.
• Managements job is to encourage participation
  and create a work environment that motivates
  employees.

8
Content Perspectives of Motivation

• Focus is on what factor or factors motivate
  people
• Maslows Hierarchy of Needs
• Alderfers ERG Theory
• Herzbergs Two-Factor Theory
• McClellands Needs Theory

9
Hierarchy of Needs Theory

• There is a hierarchy of five needsphysiological,
  safety, social, esteem, and self-actualization
  as each need is substantially satisfied, the next
  need becomes dominant.
• Self-Actualization - The drive to become what one
  is capable of becoming.

10
Herzbergs Two-Factor Theory Views of Job
Satisfaction
Dissatisfaction
Satisfaction
Traditional View
Herzbergs View
NoSatisfaction
Satisfaction
Motivation Factors
Dissatisfaction
NoDissatisfaction
Hygiene Factors
11
Two-Factor Theory

• Motivation factors
• Achievement
• Recognition
• The work itself
• Responsibility
• Advancement and growth

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

12
McClellands Needs Theory

• Need for Achievement
• The desire to accomplish a goal or task more
  effectively than in the past.
• Need for Affiliation
• The desire for human companionship and
  acceptance.
• Need for Power
• The desire to be influential in a group and to
  control ones environment.

13
Process Perspectives

• Focus on why people choose certain behavioral
  options to satisfy their needs and how they
  evaluate their satisfaction after they have
  attained their goals.

14
Process Perspectives of Motivation

• Expectancy Theory
• Porter-Lawler Extension of Expectancy Theory
• Equity Theory
• Goal Setting Theory

15
Expectancy Theory

• Motivation depends on how much we want something
  and how likely we are to get it.
• Elements (all are employee perceptions)
• Effort to Performance
• Probability that effort will lead to high
  performance.
• Performance to Outcome
• Perception that high performance will lead to an
  outcome.
• Outcome
• Consequence.
• Valence
• How much a particular outcome is valued.

16
Expectancy Theory

• For motivated behavior to occur
• Effort-to-performance must be greater than 0
• Performance-to-outcome must be greater than 0
• Sum of valences must be greater than 0

17
Equity Theory

• According to Equity Theory
• Individuals determine value of rewards (outcomes)
  to effort (inputs) and compare it to other
  people, and then respond to eliminate any
  inequities.

18
Equity Theory
Equity
Motivation to maintain current situation
Comparison of self with other

• Ways to reduce inequity
• Change inputs
• Change outcomes
• Alter perceptions of self
• Alter perceptions of other
• Leave situation
• Change comparisons

Inequity
19
Goal-Setting Theory

• Assumes behavior is a result of conscious goals
  and intentions

20
Goal-Setting Theory

• Aspects of goals that are important
• Difficulty
• Extent to which a goal is challenging and
  requires effort.
• Specificity
• Clarity and precision of the goal.
• Acceptance
• Extent to which a person accepts a goal as
  his/her own.
• Commitment
• Extent to which an individual is personally
  interested in reaching a goal.

21
Reinforcement Theory

• Focuses on the role of rewards as they cause
  behavior to change or remain the same over time.

22
Reinforcement Theory

• Reinforcement Contingencies
• Positive Reinforcement
• Strengthens behavior by providing a desirable
  consequence.
• Avoidance
• Strengthens behavior by allowing escape from an
  undesirable consequence.
• Punishment
• Weakens behavior by providing an undesirable
  consequence.
• Extinction
• Weakens behavior by not providing a desirable
  consequence.

23
Job Design Theory

• Job Characteristics Model -Identifies five job
  characteristics and their relationship to
  personal and work outcomes.
• Jobs with skill variety, task identity, task
  significance, autonomy, and for which feedback of
  results is given result in increased motivation,
  performance, and job satisfaction.

24
Other Motivational Strategies

• Empowerment
• Participation
• Variable Work Schedules
• Compressed work schedule
• Flexible Work Schedules
• Flextime
• Job Sharing
• Telecommuting

25
Other Motivational Strategies

• Job Design
• Job Rotation - the periodic shifting of a worker
  from one task to another.
• Job Enlargement - the horizontal expansion of
  jobs.
• Job Enrichment the vertical expansion of jobs.

26
Designing Effective Reward Systems

• General Rules
• Reward system must recognize different needs
• Reward system must meet an individuals needs
• Rewards should compare favorably with other
  organizations
• Distribution must be perceived to be equitable
• New Approaches
• Merit system
• Incentive system