814 Org Behavior Chapter 6

Motivation and task performance = strong relationship (2)

-Difficult goals are the second most powerful motivating force; people who receive such goals outperform the recipients of easy goals

Commonly Studied Needs in OB

-Existence -Relatedness -Control -Esteem -Meaning

SMART Goals

specific, measurable, achievable, results-based, and time-sensitive

When employees consider efficacy levels for a given task, they consider

-Past accomplishments: the degree to which they have succeeded or failed in similar sorts of tasks in the past -Vicarious experiences: taking into account observations and discussions with others who have performed tasks

Compensation Plan Elements: Individual-Focused (1)

-Piece-rate - a specified rate is paid for each unit produced, each unit sold, or each service provided -Merit Pay - an increase to base salary is made in accordance with performance evaluation ratings

Equity Theory: Details

-Suggests that employees create a "mental ledger" of the outcomes (or rewards) they get from their job duties -Employees create a mental ledger of inputs (contributions and investments) they put into their job duties

Goal setting theory in more detail

-The assignment of a specific and difficult goal shapes people's own "self-set goals": the internalized goals that people use to monitor their own task progress -As a self-set goal becomes more difficult, the intensity of effort increases, and the persistence of effort gets extended

Motivation and task performance = strong relationship (1)

-The motivating force with the strongest performance effect is self-efficacy/competence, because people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities

Motivation and task performance = strong relationship (3)

-The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance -Perceptions of equity have a somewhat weaker effect on task performance

Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other - 3 Results: (1)

1. Ratio of outcomes to inputs is balanced between you and your comparison other -You feel a sense of equity and you're likely to maintain the intensity and persistence of your effort

Attractiveness of rewards to employees

1. The attractiveness of many rewards varies across cultures 2. Employees underestimate how powerful a motivator pay is to them

Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other - 3 Results: (2)

2. Ratio outcomes to inputs is less than your comparison other's ratio -Any imbalance in ratios triggers equity distress: an internal tension that can only be alleviated by restoring balance to the ratios Can restore balance through 2 ways: 1. Be constructive and proactive 2. Shrink your inputs by lowering the intensity and persistence of effort

Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other - 3 Results: (3)

3. Your ratio of outcomes to inputs is greater than your comparison other's ratio -Cognitive distortion: restore balance mentally, without altering your behavior in any way -Cognitive distortion: restore balance mentally, without altering your behavior in any way

Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other - 3 Results: (4)

4. Change your comparison other -Internal comparisons: refer to someone in the same company -External comparisons: refer to someone in a different company

Motivational Force

According to Expectancy Theory, the direction of effort is dictated by 3 beliefs: expectancy (E->P), instrumentality (P->O), and Valence (V) Total motivational force = (E->P) x ( Σ[(P->O)xV]) Σ = signifies that instrumentalities and valences are judged with various outcomes in mind, and motivation increases as successful performance is linked to more and more attractive outcomes

Expectancy Theory - Valence: Details

Can be positive (I would prefer having outcome X to not having it), negative (I would prefer not having outcome X to having it), or zero (Are we still talking about outcome X?) -Positively valenced - salary increases, bonuses, informal rewards -Negatively valenced - disciplinary actions, demotions, and terminations

Expectancy Theory - Our choices depend on 3 specific beliefs that are based in our past learning and experience

Expectancy Instrumentality Valence

Merit-pay is the most common (for individual-focused)

Factors that constrain instrumentality and equity in most applications of merit pay: -Budgetary constraints -Accuracy of the actual performance evaluation -Once-a-year schedule

3 variables (moderators) that specify when assigned goals will have stronger or weaker effects on task performance (affect the strength of the relationships between variables):

Feedback Task Complexity Goal Commitment

Compensation Plan Elements: Unit-Focused

Gainsharing - a bonus is received for meeting unit goals for criteria controllable by employees. No change is made to base salary. The potential bonus represents "at risk" pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses many be large.

Motivation - Forces

Internal forces - sense of purpose or confidence External forces - goals or incentives an employee is given

Four concepts of importance: Competence

captures a person's belief in their capability to perform work tasks successfully

Compensation Plan Elements: Individual-Focused (2)

Lump-sum bonuses - a bonus is received for meeting individual goals but no change is made to base salary. The potential bonus represents "at risk" pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large

Four concepts of importance

Meaningfulness Self-Determination Competence Impact

Motivation - Facets

Motivation determines what employees do at a given moment - the direction in which their effort is channeled Once direction of effort has been decided, motivation goes on to determine how hard an employee works - the intensity of effort - and for how long - the persistence of effort

Compensation Plan Elements: Organization-Focused

Profit Sharing - a bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits. No change is made to base salary. The potential bonus represents "at risk" pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.

Compensation Plan Elements: Individual-Focused (3)

Recognition awards - tangible awards or intangible awards are given on an impromptu basis to recognize achievement

Goal Commitment

The degree to which a person accepts a goal and is determined to try and reach it

Engagement

a contemporary synonym for high levels of intensity and persistence in work effort

Four concepts of importance: Self-Determination

a sense of choice in the initiation and continuation of work tasks

Motivation

a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence

Equity Theory

acknowledges that motivation doesn't just depend on your own beliefs and circumstances but also on what happens to other people

Self Efficacy is dictated by "Verbal Persuasion"

because friends, coworkers, and leaders can persuade employees that they can "get the job done"

Needs

cognitive groupings or clusters of outcomes that are viewed as having critical psychological or physiological consequences

Expectancy theory

describes the cognitive process that employees go through to make choices among different voluntary responses -Argues that employee behavior is directed toward pleasure and away from pain or, toward certain outcomes and away from others

Engagement - Outwardly

engaged employees devote a lot of energy to their jobs, striving as hard as they can to take initiative and get the job done

Engagement - Inwardly

engaged employees focus a great deal of attention and concentration on their work, sometimes becoming so absorbed, involved, and interested in their tasks that they lose track of time

Intrinsic Outcomes

enjoyment, interestingness, accomplishment, knowledge gain, skill development, personal expression, (lack of) boredom, (lack of) anxiety, (lack of) frustration

Efficacy is dictated by emotional cues

feelings of fear or anxiety can create doubts about ask accomplishment, whereas pride and enthusiasm can holster confidence levels

Goal Setting Theory

goals are the primary drivers of the intensity and persistence of effort -argues that assigning employees specific and difficult goals will result in higher levels of performance than assigning no goals, easy goals, or do your best goals

Task Strategies

learning plans and problem-solving approaches used to achieve successful performance

Extrinsic Motivation

motivation that is controlled by some contingency that depends on task performance

Intrinsic Motivation

motivation that is felt when task performance serves as its own reward *together - total motivation level for an employee

Goals

objective of aim of an action and typically refer to attaining a specific standard of proficiency, often within a specified time limit

Extrinsic Outcomes

pay, bonuses, promotions, benefits and perks, spot awards, praise, job security, support, free time, (lack of) disciplinary actions, (lack of) demotions, (lack of) terminations

Psychological Empowerment

reflects an energy rooted in the belief that work tasks contribute to some larger purpose

Task Complexity

reflects how complicated the info and actions involved in a task are, as well as how much the task changes

Expectancy Theory - Valence

reflects the anticipated value of the outcomes associated with performance

Expectancy Theory - Instrumentality

represents the belief that successful performance will result in some outcome(s) -Set of subjective probabilities, each ranging from 0 (no chance) to 1 (mortal lock( that successful performance will bring a set of outcomes (PO)

Comparison Other

some person who seems to provide an intuitive frame of reference for judging equity

Self Efficacy

the belief that a person has the capabilities needed to execute the behaviors required for task success

Expectancy Theory - Expectancy

the belief that exerting a high level of effort will result in the successful performance of some task -0 (no chance) to 1 (a mortal lock) scale that indicates that a specific amount of effort will result in a specific level of performance (E->P)

People differ in how they view the "meaning of money"

the degree to which they view money as having symbolic, not just economic, value The symbolic value of money can be summarized in at least 3 dimensions: achievement (money symbolizes success), respect (money brings respect in one's community), freedom (money provides opportunity)

Four concepts of importance: Impact

the sense that a person's actions "make a difference" - that progress is being made toward fulfilling some important purpose

Four concepts of importance: Meaningfulness

the value of a work goal or purpose, relative to a person's own ideals and passions -When a task is relevant to a meaningful purpose, it becomes easier to concentrate on the task and get excited about it -When a task is meaningless, brings a sense of emptiness and detachment

Feedback

updates on employee progress toward goal attainment