HAS 3260

1
HAS 3260

• Motivation
• Dr. Burton

2
Chapter 14Motivation and Rewards

• Planning Ahead
• Why is motivation important?
• What are the different types of individual needs?
• What are the insights of process theories of
  motivation?
• What role does reinforcement play in motivation?
• What are the trends in motivation and
  compensation?

3
Motivational Process
Employee searches for ways to satisfy
these needs.
Employee Receives Either Rewards or Punishments
Employee Identifies Need
Employee Performs
Employee Selects Goal-directed Behaviors
Employee Reassess Need Deficiencies
4
Importance of Motivation

• Reward
• work outcome of positive value to the individual
• motivational work settings are rich in rewards
  for productive workers

5
Importance of Motivation

• Motivation and Rewards
• Extrinsic Rewards
• value outcomes given by someone to another
• examples include
• bonuses
• promotions
• special assignments
• awards

6
Importance of Motivation

• Motivation and Rewards
• Intrinsic Rewards
• self-administered
• occur as part of the job itself
• examples include
• feelings of competency
• personal development
• self-control

7
Importance of Motivation

• Rewards and Performance
• respect diversity
• clearly understand what people want from work
• allocate rewards to satisfy the interests of both
  individuals and organization

8
Content Theories of Motivation

• Hierarchy of Needs Theory
• lower order and higher order needs affect
  behavior
• deficit principle
• satisfied need is not a motivator of behavior
• progression principle
• need at one level does not become activated until
  the next lower need is satisfied

9
Maslows Needs Hierarchy
Self- Actualization
10
Maslow

• Did not believe any given behavior is motivated
  by a single need.
• Described another set of needs, (COGNITIVE)
• need to analyze
• need to experiment
• need to construct a personal theory

11
Content Theories of Motivation

• ERG Theory
• Alderfers three needs
• existence - physiological and material well-being
• relatedness - satisfying interpersonal
  relationships
• growth - continued psychological growth and
  development
• any/all needs can influence behavior at one time
• frustration-regression principle
• already satisfied need can influence behavior
  when a higher need cannot be satisfied

12
ERG Model
Growth needs Relatedness needs Existence needs
13
Content Theories of Motivation

• Two-Factor Theory
• Herzberg
• satisfier factors (job content)
• things related to the nature of the job itself
• source of job satisfaction and motivation
• hygiene factors (job context)
• things related more to the work setting
• source of job dissatisfaction

14
Results of Herzbergs Original Study on Job
Satisfaction

• Factors
• That Caused
• Job Satisfaction
• Achievement
• Recognition
• The work itself
• Responsibility
• Advancement

15
Ways to use motivators on the job

• Delegate more authority to workers
• When you have an important project to complete or
  are facing difficult problems, call your workers
  in and get their ideas.
• Cross-train your employees so that they become
  more broadly experienced.
• Compliment and recognize employees for good work.
• Assign workers to special projects
• Ask the more experienced workers to assist in
  training new employees.
• Send employees to training courses for skill
  upgrading.

16
Content Theories of Motivation

• Acquired Needs Theory
• McClelland
• Need for Achievement (nAch)
• desire to do something better, solve problems,
  master complex tasks
• Need for Power (nPower)
• desire to control, influence or be responsible
  for others
• Need for Affiliation (nAff)
• desire to establish and maintain friendly
  relations with others

17
Content Theories of Motivation

• Acquired Needs Theory (cont)
• People develop these needs over time
• Each need is associated with a distinct set of
  work preferences
• managers are encouraged to recognize the strength
  of each need in themselves and others
• create work environments responsive to the
  strength of each need

18
Presidents needs for Power, Achievement, and
Affiliation

• NEEDS
• President Power Achievement Affiliation
• Clinton, B. Moderate High High
• Bush, G. Moderate Moderate Low
• Reagan, R. High Moderate Low
• Kennedy, J. High Low High
• Roosevelt,F. High Low Moderate
• Lincoln, A. Moderate Low Moderate
• Washington, G. Low Low Moderate

19
Content Theories of Motivation

• Acquired Needs Theory (cont)
• Workers high in (nAch) prefer
• individual responsibility for results
• achievable but challenging goals
• feedback on performance

20
Content Theories of Motivation

• Acquired Needs Theory (cont)
• Workers high in (nPower) prefer
• control over other people
• have an impact on people and events
• brings public recognition and attention

21
Content Theories of Motivation

• Acquired Needs Theory (cont)
• Two types of power
• personal
• manipulation for personal gratification
• social
• directed towards group or organizational
  objectives

22
Process Theories of Motivation

• Equity Theory
• Adams
• perceived inequity is a motivating state
• people are motivated to restore equity
• change
• work inputs
• rewards received
• comparison points
• situation

23
Process Theories of Motivation

• Equity Theory (cont)
• Pay is common source of equity controversy
• gender equity
• women earn an average of 75 of what men earn
• comparable worth
• jobs of similar value based on required
  education, training, skills should receive
  similar pay

24
Equity Model
I 1
I2
O 1
O 2
Outcomes Challenging job assignments Fringe
benefits Job perquisites (parking space or office
location) Job security Monotony Promotion Recognit
ion Responsibility Salary Seniority
benefits Status symbols Working conditions
Inputs Age Attendance Interpersonal
skills Communication skills Job effort (long
hours) Past experience Performance Personal
appearance Seniority Social status Technical
skills Training
25
Process Theories of Motivation

• Expectancy Theory
• Vroom
• expectancy - working hard will result in desired
  level of performance
• instrumentality - successful performance will be
  followed by rewards
• valence - value of rewards and other work related
  outcomes

26
Process Theories of Motivation

• Expectancy Theory (cont)
• Motivation (M), expectancy (E), instrumentality
  (I) and valence (V) are related to another in a
  multiplicative fashion
• M E x I x V
• If either E, I or V is low, motivation will be
  low!

27
Expectancy Theory
Worker Expectancies
A Good Effort
Rewards
Effective Performance
Basic Premise is that employees are rational
people
28
Five key variables of the expectancy model

• First level outcomes
• results of doing the job itself, e.g. performance
• Second level outcomes
• rewards / - produced by 1st level outcomes
• Expectancy Belief that a level of effort will
  be followed by a level of performance.
• Instrumentality Relationship between 1st and 2d
  level outcomes.
• Valence Preference for 2d level outcomes.

29
Process Theories of Motivation

• Goal-Setting Theory
• Locke
• task goals can be motivating if
• properly set
• well managed
• goals clarify role expectations

30
Process Theories of Motivation

• Goal-Setting Theory (cont)
• Management by Objectives (MBO)
• joint goal setting by managers and employees
• participation option
• how to achieve goals instead of what the goals are

31
Matching Content Models
Achievement Motivation Model
Motivator-Hygiene Model
Needs Models
Needs Hierarchy
ERG Theory
Self-Actualization

• Motivators
• advancement
• growth
• achievement

Growth
Need for Achievement
Esteem
Need for Power
Relatedness
Affiliation

• Hygienes
• job security
• salary
• working conditions

Need for Affiliation
Security
Existence
Physiological
32
Reinforcement Theory of Motivation

• Reinforcement Strategies
• Skinner
• Operant Conditioning
• applying law of effect to control behavior by
  manipulating its consequences

33
Reinforcement Theory of Motivation

• Reinforcement Strategies
• positive reinforcement
• negative reinforcement
• punishment
• extinction

34
Reinforcement Theory of Motivation

• Positive Reinforcement
• increase the frequency of desirable behavior by
  making a pleasant consequence contingent on its
  occurrence

35
Reinforcement Theory of Motivation

• Positive Reinforcement (cont)
• Successful implementations is based on
• law of contingent reinforcement
• reward delivered only if desired behavior is
  exhibited
• law of immediate reinforcement
• more immediate the delivery of a reward, the more
  reinforcement value it has

36
Reinforcement Theory of Motivation

• Negative Reinforcement
• increases the frequency of desirable behavior by
  making the avoidance of unpleasant consequence
• example nagging until a task is completed

37
Reinforcement Theory of Motivation

• Punishment
• eliminating undesired behavior by administering
  an unpleasant consequence upon the occurrence of
  that behavior
• example docking pay for being late

38
Reinforcement Theory of Motivation

• Extinction
• decreases the frequency of an undesirable
  behavior by making the removal of a pleasant
  consequence contingent on its occurrence
• example stop giving social approval when someone
  is disruptive

39
Reinforcement Theory of Motivation

• Ethical Issues
• Criticisms of reinforcement theory
• ignores individuality
• restricts freedom of choice
• ignores the possibility of other types of
  motivation

40
Reinforcement Theory of Motivation

• Ethical Issues
• Advocates state
• improved safety
• decreased absenteeism and tardiness
• increased productivity
• behavior control is necessary part of management

41
Motivation and Compensation

• Pay for Performance
• Merit pay
• awards pay increase in proportion to individual
  performance contributions
• consistent with equity, expectancy, reinforcement
  theories

42
Motivation and Compensation

• Incentive Compensation Systems
• Bonus pay
• lump-sum payments based on the accomplishment of
  specific performance targets
• one-time payment based on extraordinary
  contribution

43
Motivation and Compensation

• Incentive Compensation Systems
• Profit-sharing
• employees receive a proportion of net profits
  earned by the organization during a stated
  performance period
• Gain Sharing
• groups of employees to share in any savings
  realized through their efforts to reduce costs
  and increase productivity

44
Motivation and Compensation

• Incentive Compensation Systems
• Employee stock ownership
• employees own stock in company that employ them
• often used as way to save jobs and prevent
  business closings

45
Motivation and Compensation

• Incentive Compensation Systems
• Stock options
• right to buy shares at a future date at a fixed
  price
• when price has risen one can exercise the option
  to buy the stock at a discount and realize
  financial gain
• most common at senior executive level

46
Motivation and Compensation

• Incentive Compensation Systems
• Pay for knowledge
• skills-based pay
• pay based on number of job-relevant skills
  mastered
• entrepreneurial pay
• workers put part of their compensation at risk in
  return for opportunity to pursue ideas and
  participate in any resulting profits

47
Case Study 5 Lessons Where you Find Them Page
763
48

• Fact 1 As each bird flaps its wings, it creates
  an uplift draft for the bird following, By
  flying in a V formation, the whole flock adds a
  greater flying range than if one bird flew alone.
• Lesson 1 People who share a common direction
  and sense of community can get where theyre
  going quicker and more easily because they are
  traveling on the strength of one another.

49

• Fact 2 Whenever a goose falls out of formation,
  it suddenly feels the drag and resistance of
  trying to fly alone and quickly gets back into
  formation to take advantage of the lifting power
  of the bird immediately in front.
• Lesson 2 If we have as much sense as geese, we
  will stay in formation and be willing to accept
  help when we need it and give help when it is
  needed.

50

• Fact 3 When the lead goose gets tired, it
  rotates back into the formation, and another
  goose flies in the point position.
• Lesson 3 Geese instinctively share the task of
  leadership and do not resent the leader.

51

• Fact 4 The geese in formation honk from behind
  to encourage those up front to keep up their
  speed.
• Lesson 4 We need to make sure our honking from
  behind is encouraging and not something else.

52

• Fact 5 When a goose is sick, is wounded or is
  shot down, two geese drop out of formation and
  follow it down to earth to help and protect it.
  They stay with their disabled companion until it
  is able to fly again or dies. They then launch
  out on their own or with another formation and
  catch up with the flock.
• Lesson 5 If we have as much sense as geese, we,
  too, will stand by one another in difficult times
  and help the one who has dropped out to regain
  his place in the formation.