455 Ch 13 Motivating for Performance

In order to meet employees' higher order needs, organizations should give people a chance to use their skills and abilities: A. only a high profile projects B. In a structured, routine manner c. On rare occasions d. In creative ways

d. In creative ways

____ organizes human needs into a hierarchy of five major types: a. McClelland's achievement theory b. Herzberg's two-factor theory c. Alderfer's ERG theory d. Maslow's need hierarchy

d. Maslow's need hierarchy

The five core job dimensions stated in the Hackman and Oldham model are skill variety, task, identity, task significance, autonomy, and ____: a. description b. growth c. development d. feedback

d. feedback

David has been promoted because of his hard work. Cindy, his colleague, feels that this is unfair and that he does not deserve the promotion. In this case, Cindy illustrates a. negative valence b. negative instrumentality c. low valence d. low instrumentality e. high expectancy

d. low instrumentality

Low need affiliation and moderate to high needs for _____ are associated with managerial success for both higher- and lower-level managers: a. differentiation b. adaptability c. anticipation d. power

d. power

Job ____ involves moving from one task to another to alleviate boredom: a. Analysis b. enrichment c. enlargement d. rotation

d. rotation

the greatest dissatisfaction among lower wage earners and workers:

25 and younger

Which of the following are ways to empower employees (check all that apply)? A. increasing authority at all levels b. providing more access to resources c. increasing managerial supervision d. allowing independent judgement

A. increasing authority at all levels b. providing more access to resources d. allowing independent judgement

Self-actualization is the best-known concept from this theory.

According to Maslow, the average person is only 10 percent self-actualized. In other words, most of us are living our lives and working at our jobs with a large untapped reservoir of potential. The implication is clear: Managers should create work environments that provide training, resources, autonomy, responsibilities, and challenging assignments. This type of environment gives people a Page 383 chance to use their skills and abilities in creative ways and allows them to achieve more of their full potential (see "Multiple Generations at Work") Multiple Generations at Work Millennials Want to Fulfill Higher-Order Needs A recent survey found that 60 percent of Millennials leave their organizations in less than three years. Turnover has both direct (e.g., lost productivity) and indirect (e.g., lower morale) costs. Many companies are trying to attract, motivate, and retain this generation of employees by offering flexible work arrangements, additional vacation time, and relaxed dress codes. For some firms, these measures may not be enough to motivate and retain high performers. David Glickman, CEO of mobile carrier Ultra Mobile, believes that Millennials are motivated by jobs that fulfill their higher-order needs. Eighty percent of Ultra Mobile's 300-plus employees and contractors are Millennials. Over the past four years, the company has grown rapidly to about $120 million in sales revenue with a high level of retention. Glickman believes that many Baby Boomers at younger ages were willing to accept jobs that fulfilled basic needs like a constant paycheck, health care, and a modest home. Glickman states that Millennials are "less interested in job promotion than in becoming an entrepreneur and [they] will quit if they feel they do not have freedom" to grow and develop. A recent survey confirms his observation: 87 percent of Millennials reported that development is an important component in a job.52 He offers the following tips for motivating and retaining Millennials:53 Focus on results, not time in the office. After they have proven themselves, provide Millennial employees with the freedom and trust to do at least some of their work offsite. Make your organization a cool place to work. Do fun things (e.g., invite a pet shelter to bring in kittens and puppies for an hour for possible adoption) for employees so they have something to brag about on social media. Leverage their passions. Get to know what really matters to each employee, and try to design jobs and volunteer opportunities that tap into those passions. Glickman concludes: "Provide the belonging and self-actualization needs they crave, and Millennials will knock your socks off with astounding performance." So, treat people not merely as a cost to be controlled but an asset to be developed. Many companies have programs that provide personal growth experiences for their people. For example, associates at W. L. Gore are encouraged to reach their full potential by developing their talents, enjoying their work, and directing their own work activities.54 Organizations gain by making full use of their human resources, and employees gain by capitalizing on opportunities to meet their higher-order needs on the job. Wegmans Food Markets, known for its high-quality workforce, invests heavily in training and developing its people. It sends staff around the world to become experts in their products, trains cashiers for 40 hours before allowing them to interact with customers, and doesn't lay off employees.55 Employees feel secure in their jobs, enjoy friendships with co-workers and customers, and experience a sense of achievement.

Lavonne believes that if she works hard, her manager will realize she is management material and promote her. Devonte, however, thinks he will not be promoted no matter how hard he works. Lavonne and Devonte's beliefs reflect ____ theory: a. Reinforcement b. Performance c. Expectancy d. Goal Setting

Expectancy

The need for ___ is characterized by a strong orientation toward accomplished: a. Expectation B. Valence C. Achievement D. Instrumentality.

C. Achievement

Goals That Motivate

The most powerful goals are meaningful; important purposes that appeal to people's higher values add extra motivating power. razilian beauty care maker Natura cares deeply about the environment. New Belgium Brewery is dedicated to continuously improving its sustainability initiatives. Whole Foods sells organic and natural food products but also wants to improve people's health and well-being. ServiceMaster, the cleaning and maintenance company, and Chick-fil-A have religious commitments that appeal to their employees, and Huntsman Corporation has goals of paying off corporate debt but also relieving human suffering—it sponsors cancer research and a number of charities. Meaningful goals also can be based on data about competitors; exceeding competitors' performance can stoke people's competitive spirit and desire to succeed in the marketplace.11 This point is not just about the values companies espouse and the lofty goals they pursue; it's also about leadership at a more personal level. Followers of transformational leaders view their work as more important and as highly congruent with their personal goals compared with followers of transactional leaders12 (recall Chapter 12). More specifically, much is known about how to manage goals in ways that motivate high job performance. Goals should be acceptable to employees. This means, among other things, that they should not conflict with people's personal values and that people have reasons to pursue the goals. Allowing people to participate in setting their work goals—as opposed to the boss setting their goals for them—is often a great way to generate goals that people accept and pursue willingly. Acceptable, maximally motivating goals are challenging but attainable. They should be high enough to inspire better performance but not so high that people can never reach them. For instance, setting challenging sales goals for district business units results in higher unit sales performance unless employees don't trust their manager. Ideal goals are not merely general prompts to improve performance, do one's best, increase productivity, or reduce the time customers must wait to receive service. Rather, the goals should be specific regarding target and time frame. At the Quick Lane Tire & Auto Center that serves Olathe Ford near Kansas City, Missouri, each service adviser has a monthly goal for revenues from service orders and receives daily feedback about sales to see what categories of products need extra attention. In addition, whenever a customer chooses to postpone needed repairs, these are assigned a red or yellow code. The service center's receptionist has specific goals of calling each red-code customer within seven days and sending a letter within 90 days to each customer who has a yellow code. Such deadlines and measurable performance goals are specific, Page 374 quantifiable goals that employees are motivated to achieve.

The process of sharing power with employees is called: a. personal power b. constitutionalized power c. empowerment d. socialized power

Empowerment

Procedural Justice PG 392

Inevitably, managers make decisions that have outcomes more favorable for some than for others. Those with favorable outcomes will be pleased; those with worse outcomes, all else equal, will be more displeased. But managers desiring to put salve on the wounds—say, of people they like or respect or want to keep and motivate—still can take actions to reduce the dissatisfaction. The key is for people to believe that managers provide procedural justice—using fair process in decision making. When people perceive procedural fairness, they are more likely to support decisions and decision makers. For example, nurses who perceived their performance evaluations as fair were more likely to remain in their jobs. Even if people believe that their outcome was inequitable and unfair, they are more likely to view justice as having been served if the process was fair. You can increase people's beliefs that the process was fair by making the process open and visible; stating decision criteria in advance rather than after the fact; making sure that the most appropriate people—those who have valid information and are viewed as trustworthy—make the decisions; giving people a chance to participate in the process; and providing an appeal process that allows people to question decisions safely and receive complete answers. **** However, the impact of procedural justice can differ by country and culture—for instance, the impact is strongest among nations characterized by individualism, uncertainty avoidance, and low power distance (recall Chapter 6). At an elevator plant in the United States, an army of consultants arrived one day, unexplained and annoying. The rumor mill kicked in; employees thought the plant was to be shut down or that some of them would be laid off. Three months later, management unveiled its new plan, involving a new method of manufacturing based on teams. As the changes were implemented, management did not adequately answer questions about the purpose of the changes, employees resisted, conflicts arose, and the formerly popular plant manager lost the trust of his people. Costs skyrocketed, and quality plummeted. Concerned, management conducted a survey. Employees were skeptical that the results would lead to any positive changes and were worried that management would be angry that people had voiced their honest opinions. But management reacted by saying, "We were wrong, we screwed up, we didn't use the right process." They went on to share with employees critical business information, the limited options available, and the dire consequences if the company didn't change. Employees saw the dilemma and came to view the business problem as theirs as well as management's, but they were scared that some of them would lose their jobs. Management retained the right to lay people off if business conditions grew worse but also made several promises: no layoffs as a result of changes made; cross-training programs for employees; no replacements of departing people until conditions improved; a chance for employees to serve in new roles as consultants on quality issues; and sharing of sales and cost data on a regular basis. The news was bad, but people understood it and began to accept a greater share of responsibility along with management. Trust and commitment began to return, as did stronger performance.

A set of perceptions of what employees owe their employers, and what their employers owe them is called a(n): a. quid pro quo b. ethical violation c. psychological contract moral violation

Psychological Contracts

Some managers and organizations create environments that quash creativity and motivation

The classic example of a demotivating job is the highly specialized assembly line job; each worker performs one boring operation before passing the work along to the next worker. Such specialization, the mechanistic approach to job design, was the prevailing practice in the United States through most of the 20th century. But jobs that are too simple and routine result in employee dissatisfaction, absenteeism, and turnover.

_____ performance goals can be dysfunctional when people work in a group if the goals create competition among team members. a. integrated b. fixed c. individual d. socialized e. team

c. individual

Onward Management in Action HOW SAS MAKES WORK MOTIVATING

Jennifer Mann, SAS's vice president of human resources, says everyone there "is working toward the same vision and inspiring each other to do their best work." Mann sees this as evidence that the company's culture is yielding great results. Other signs of success include employee turnover below 5 percent (versus the industry average of more than 20 percent), tens of thousands of job applicants for hundreds of open positions, and steadily growing revenues. What convinces employees that SAS values their contributions? We have already talked about employee benefits, but these are mere symbols of company values. The managers rewarded at SAS are those who advocate for and develop their people. CEO James Goodnight (also an owner of the privately held company) puts his time and money on the line for his people. Each month, he presides at a breakfast meeting where any employee may join in and ask questions or share ideas. In 2008, as financial crisis gave way to Great Recession, other software companies announced major layoffs, and SAS employees became nervous. Goodnight spoke to all of them via webcast, saying there would be no layoffs; they just all needed to be more frugal. Not only did the company weather that economic downturn, it continued growing and developed new products to launch as the economy recovered. Another quality of the SAS culture is trust in employees. The company's standard workweek is just 35 hours. "I don't expect people to work 60 to 70 hours a week. It's been my experience, much past 40 hours a week and you're writing pretty worthless code, which you spend the next day unraveling," says Goodnight. The company's on-site facilities and beautiful grounds make it easy for employees to take a break to work out, get a haircut or massage, or go for a hike. Managers don't worry that employees will goof off; they find that trust motivates employees to work hard to please customers and help the company succeed. In fact, great subsidized food (some of it grown on an SAS-owned organic farm) and other services can make staying at work easier than going home. A similar attitude of trust applies to sick days at SAS, which are unlimited. SAS also ensures that work is meaningful. Goodnight reminds employees that SAS software is useful to people all over the world. Programmers' work is designed so they feel ownership of their creations. Even the landscapers at headquarters are assigned to particular plots, so these employees enjoy imparting beauty to that parcel and feel the same identification with the company as any programmer does.128 How does SAS make its jobs motivating? What other principles of job design could enhance motivation at SAS? What elements of SAS's approach to motivation do you think would contribute more to job satisfaction than to performance? Why?

Which of the following statements about outcome in expectancy theory are true (check all that apply) a. A given performance may have more than one outcome b. Outcome is something that follows a person's performance c. Outcome and Instrumentality mean the same thing d. Outcomes are usually negative consequences.

a. A given performance may have more than one outcome b. Outcome is something that follows a person's performance

Which of the following must take place in order for a firm's reward system to support the firms strategy (check all that apply) a. Employees are rewarded for creating value b. employees are rewarded for building new skills that are critical to strength c. Employees are rewarded for developing themselves in strategically important to you d. Employees are rewarded for multitasking

a. Employees are rewarded for creating value b. employees are rewarded for building new skills that are critical to strength c. Employees are rewarded for developing themselves in strategically important to you

According to Herzberg's two factor theory, which of the following are the broad categories of factors that affect people working on their jobs (check all that apply): a. Hygiene factors b. equity factors c. detractors d. motivators

a. Hygiene factors d. motivators

With job enlargement, a person _____ a. Is given additional tasks to perform at the same time that the same level of responsibility. b. does one task at one time and then changes to a different task at a different time c. receives a larger paycheck for taking on additional tasks. d. Is given additional tasks that are exponentially more challenging than initial tasks.

a. Is given additional tasks to perform at the same time that the same level of responsibility.

Quality of work life includes ___: a. a chance for personal growth b. lower pay but more flexible schedule c. high absenteeism d. monetary incentives

a. a chance for personal growth

Alana has been exceeding her targets for the past two months, and therefore her boss decided to give her a bonus. This is an example of _____ reinforcement. a. positive b. authoritative c. cognitive d. negative e. affiliative

a. positive

Alderfer's ERG theory postulates that people have three basic sets of needs: existence, _____, and growth, which can operate simultaneously. a. relatedness b. effectiveness c. ego d. effort e. physiological

a. relatedness

McClelland said people vary in the extent to which they need

achievement, affiliation, and power.

Management in Action Progress Report GETTING EMPLOYEES TO BACK THE sas MISSION

ames Goodnight, a statistician, founded SAS with colleagues from North Carolina State University. Since his first experiences of programming a computer while in college, Goodnight had recognized the joy of creating something that would benefit others. Goodnight expected that his employees too would feel rewarded by their accomplishments. On SAS's website, Goodnight describes SAS's culture as one that "rewards innovation, encourages employees to try new things and yet doesn't penalize them for taking chances." To see how this works, consider how SAS has recently innovated in a couple of important areas of computing. One is the rapid switch of the computer industry to cloud computing. SAS grew up when big organizations invested in large, powerful computers, and its software was written for those systems. With the rise of the Internet, data have streamed in from many sources in real time, and computing systems are being reworked to process the data in parallel on multiple computers that do not necessarily reside at the organization using the data. Some observers wondered whether SAS could rewrite its software for this new era of computing. But because SAS attracts the best people (thanks to its reputation for treating employees well), hires for creativity, and makes it easy to stay on the job (thanks to corporate perks such as subsidized cafeterias and on-site haircuts), SAS has no trouble convincing employees to push hard toward reaching ambitious goals. SAS impressed observers by announcing new, cloud-ready software with graphics that even nonexperts can view on their laptop or tablet computers. Sales revenues from cloud services have grown rapidly. SAS also has smoothly entered the social media era by introducing a networking site for its employees. While managers get a monthly newsletter called "To the Point," company employees, especially the younger ones, were sharing work information with each other on sites such as Facebook. Although some companies were cracking down on social media use, SAS got busy creating software that would be so useful and easy to learn that employees wouldn't be able to resist. The result was the Hub, which enrolled more than 1,400 employees even before its official launch. Jenn Mann, vice president of human resources, calls it "like Facebook for SAS employees." Rather than micromanaging how the Hub would be used, SAS's information systems division showed off some relevant features, gently pointed out advantages to nonusers, and trusted them to behave professionally. Before long, about two-thirds of SAS employees were trading information on the Hub, and 94 percent feel their company has "great communication."49 What kinds of reinforcement and feedback do you think would be most useful and productive with SAS employees? How should SAS's managers apply the implications of expectancy theory to keep the company innovative?

Managers should reinforce

appropriate behaviors, manage mistakes properly, and provide useful feedback.

Becky, a regional sales manager, set a personal target of adding more clients to her territory than any other three regional sales managers combined, even though she has a smaller territory than any of the others. Becky's colleagues tell her she is a dreamer and her target is literally impossible to hit. Becky has set a(n) _____ goal. a. intrinsic b. stretch c. extrinsic d. strategic e. affiliate

b. stretch

People's needs affect their

behaviors at work.

According to Maslow, the average person is ____ self-actualized: a. about 50% b. not interested in c. nearly 90% d. only 10%

d. only 10%

The use of reinforcement or punishment in organizational settings is an integral part of a. employee empowerment programs b. quality of work life programs c. management by objectives d. organizational changes management e. organizational behavior modification.

e. organizational behavior modification.

Expectancy theory states that

employees are motivated when they believe they can perform a job well and their performance will be rewarded with a valued outcome.

In expectancy theory, ++++ refers to a person's perception of whether his efforts will lead to attainment of the performance goal: a. expectancy b. Instrumentality c. outcome d. valence

expectancy

Employees with jobs that have the necessary

information, knowledge, power, and rewards feel empowered.

job enlargement

job enlargement Giving people additional tasks at the same time to alleviate boredom.

Jun is an entry-level employee, but she wants to one day become a director. She knows she must work her way up through many levels, but she also knows she can reach her goal if she works hard and learns as much as she can. Jun is driven by:

motivation

Herzberg two factor theory (2 of 2) motivators factors

motivators Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement.

The worst mistake a boss can make is

not to say well done. — John Ashcroft, business executive

____ is a consequence that people receive for their actions. a. expectancy b. valence c. instrumentality d. outcome

outcome

reinforcers

reinforcers Positive consequences that motivate behavior.

Maslow and Alderfer offered

similar need theories of motivation.

Which of the following jobs is likely to result in the highest degree of employee dissatisfaction: a. A managerial job with intrinsic rewards. b. a food service job with daily rotation of tasks c. an assembly line job with routine tasks d. a corporate job with extensive travel

c. an assembly line job with routine tasks

Match the category of factors of Herzberg's two factor theory (on the left) with appropriate examples on the right

Hygiene Factors: Working conditions, co-workers, salary Motivators: Job satisfaction, opportunity for personal growth & job responsibilities.

Motivation

Motivation refers to forces that energize, direct, and sustain a person's efforts. All behavior, except involuntary reflexes such as eye blinks (which have little to do with management), is motivated. A highly motivated person will work hard toward achieving performance goals. With adequate ability, understanding of the job, and access to necessary resources, someone who is motivated will be a strong performer.

___ tries to influence people's behavior and improve performance by systematically managing work conditions and the consequences of people's actions: a. organizational behavior modification b. the law of effect c. Stretch goal modification d. negative reinforcement modification

Organizational Behavior Modification

Which of the followoing is an exmaple of extrintic reward: An interesting project b. a pay raise mastering a new sill c. Completing a challenging progrect on time.

A Pay Raise

Which of the following are contributions that Maslow made in understanding human motivation (check all that apply) A. He alerted managers to the importance of personal growth and self--actualization b. He noted that individuals could work to satisfy all levels of needs at the same time. c. He identified helpful general levels of needs where lower levels must be satisfied before higher levels d. He identified important need categories

A. He alerted managers to the importance of personal growth and self--actualization c. He identified helpful general levels of needs where lower levels must be satisfied before higher levels d. He identified important need categories

_____ is a human needs theory postulating that people have 3 basic sets of needs that can operate simultaneously: a Maslow's hierarchy b. ARG theory c. Herzberg's Motivator Hygiene Theory d. Alderfer's ERG theory

Alderfer's ERG theory: existence, relatedness, and growth

This chapter tackles an age-old question: How can a manager motivate people to work hard and perform at their best levels?

SAS demonstrates that treating employees as valued contributors to the organization can be a key part of motivating them. A sales manager in one company had a different approach to this question. Each month, the person with the worst sales performance took home a live goat for the weekend. The manager hoped the goat-of-the-month employee would be so embarrassed that he or she would work harder the next month to increase sales.2 This sales manager may get high marks for creativity. But if he is graded by results, as he grades his salespeople, he will fail. He may succeed in motivating a few of his people to increase sales, but some good people will be motivated to quit the company.

True or false: People who fell inequitably treated can restore equity by behaviorally or perceptually changing inputs and outcomes

TRUE

Achieving Fairness

Ultimately, one of the most important issues in motivation is how people view their contributions to the organization and what they receive from the organization. Ideally, they will view their relationship with their employer as a well-balanced, mutually beneficial exchange. People assess (1) the contributions they make in their work, and (2) the positive and negative outcomes they receive—overall, how fairly the organization treats them

Motivating for Performance

Understanding why people do the things they do on the job can be a difficult task. Predicting their response to management's latest productivity program is harder yet. Fortunately, enough is known about motivation to give the thoughtful manager practical, effective techniques for increasing people's effort and performance.

Which of the following is true of empowerment in the short term (check all that apply) a. Employees don't necessarily like the added accountability b. Employees may demand higher wages c. People may make mistakes at first d. Costs may be lower because employees take on additional responsibilities.

a. Employees don't necessarily like the added accountability b. Employees may demand higher wages c. People may make mistakes at first

which of the following is a constructive way to deal with an employee who made an unsuccessful but good faith effort. a. Give the employee a second chance b. reward the employee c. ignore the failure d Punish the employee's team

a. Give the employee a second chance

THe law of effect laid the foundation for countless investigations into the effects of positive consequences, called ____ a. Reinforces b. motivators c. rewards d. incentives

a. Reinforces

Identify the impacts of empowerment on employees (check all that apply) a. They perceive meaning in their work b. they have less influence over strategic decisions c. they have a sense of self-determination d. they feel capable of performing their jobs with skill

a. They perceive meaning in their work c. they have a sense of self-determination d. they feel capable of performing their jobs with skill

A psychological contract is described as a. a set of perceptions of what employees owe their employers and what their employers owe them. b. a set of conditions of nondisclosure signed by an employee upon joining the organization c. the legal concept that an employee may be terminated for any reason. d. a set of conditions to ensure the fairness of decisions made by employers. e. an agreement implying fair treatment of employees, without any discrimination in terms of race or gender

a. a set of perceptions of what employees owe their employers and what their employers owe them.

Which of the following would not be considered an innovative way for managers to reward emplyees: a. forced overtime b. monetary rewards c. intellectual challenges d. flexible benefits

a. forced overtime

Which of the following are contributions that Herzberg made to understanding motivations: a. he highlighted the distinction between extrinsic and intrinsic rewards b. he developed a scientific model for effective and motivating job design c. He set the stage for Hackman and Oldham model d. He reminded managers not to count solely on extrinsic rewards to motivate workers.

a. he highlighted the distinction between extrinsic and intrinsic rewards c. He set the stage for Hackman and Oldham model d. He reminded managers not to count solely on extrinsic rewards to motivate workers.

According to the expectancy theory, _____ is the link between performance and outcome. a. instrumentality b. equity c. reinforcement d. expectancy e. relatedness

a. instrumentality

Motivation for employees can come from an interesting project, a completed sale, or the discovery of a perfect solution, all of which are examples of a. intrinsic rewards b. hygiene factors c. negative reinforcers d. extrinsic rewards e. positive reinforcers

a. intrinsic rewards

From an international perspective, which of the following statements is correct about need theories: a. managers in japan are more motivated by security. b. managers in the US are more interested in group performance than individual performance. c. All international employers are required to know the English language d need theories and the needs emphasized by them are universal

a. managers in japan are more motivated by security.

Which of the following are implications of the expectancy theory (check all that apply) a. managers need to increase expectancies b. managers need to positively identify valent outcomes c. managers need to pay employees more d. managers need to make performance instrumental toward positive outcomes

a. managers need to increase expectancies b. managers need to positively identify valent outcomes d. managers need to make performance instrumental toward positive outcomes

The most powerful goals are: a. purposes that appeal to people's higher values b. highly specific but extremely difficult to quantify. c. a little challenging but easy to quantify d. Attainable and somewhat acceptable

a. purposes that appeal to people's higher values

Assessments of equity are ___ or beliefs. a. subjective perceptions b. scientifically calculated ratios c. managerial determinations d. objective determinations

a. subjective perceptions

Which of the following are positive, effective ways people can restore equity when they feel they are being treated inequitably (check all that apply) a. work harder for put forth more effort b. allow the situation to work itself out c. perform at lower levels or quit. d. change perceptions of inputs or outcomes e. reduce their inputs by giving less efforts

a. work harder for put forth more effort d. change perceptions of inputs or outcomes

What should you do regarding feedback: a. you should try not be afraid of criticism b. you should give it but not take it c. you chould avoid receiving feedback in case it is negative d. you should ignore feedback you received if you do not agree with it

a. you should try not be afraid of criticism

Acceptable, maximally motivating goals are challenging and ____ a. attainable b. unethical c. personal d. unrealistic

attainable

using a fair process in decision making and making sure others know that the process was as fair as possible is called: a. utilitarianism b. Procedural Justice c. Administrative Justice d. Quid Pro Quo Harrasssment

b. Procedural Justice

___ programs create a workplace that enhances employee well-being and satisfaction: a. Constitutionalism b. Quality of Work Life (QWL) c. Psychological Contract d. Employee Assistance

b. Quality of Work Life (QWL)

Which of the following is one of the eight categories of quality of work life programs? a. an on-site wellness center b. a safe environment c. sales incentives d. family medical leave of absence e. profit sharing

b. a safe environment

Which of the following statements about McClelland's needs theory is true: a. the need for power is the dominant need for most managers b. different needs predominate for different people c. the more effective managers focus on one need d. Sussessfull managers balance the three needs equality.

b. different needs predominate for different people

Job ____ involves giving people additional tasks at the same time to alleviate boredom: a. enrichment b. enlargement c. satisfaction d. rotation

b. enlargement

A person can restore a sense of how fairly they are treated, or _____, in a number of ways by behaviorally or perceptually changing inputs and outcomes. a. power b. equity c. valence d. loyalty e. autonomy

b. equity

Phil is confident that if he studies the procedural manual he can list every single step in his company's manufacturing process. Phil's belief that his effort to study the manufacturing steps will result in successfully naming the steps is an example of a. relatedness b. expectancy c. affiliation d. inputs e. outputs

b. expectancy

According to the Hackman and Oldham model of job design, well designed jobs lead to which of the following results (check all that apply) a. high turnover b. high motivation c. high absenteeism d. high quality performance e. high satisfaction.

b. high motivation d. high quality performance e. high satisfaction.

According to expectancy theory, a person will be highly motivated if which of the following conditions exist (check one) a. low valence + high instrumentality + high expectancy b. high valence+ high instrumentality + high expectancy c. high valence+ low instrumentality+ high expectancy d. low valence + low instrumentality + low expectancy

b. high valence+ high instrumentality + high expectancy All must be high to have highly motivated people.

Herzberg's two-factor theory highlights the distinction between a. positive and negative reinforcement b. intrinsic and extrinsic rewards c. valence and instrumentality d. job enlargement and job enrichment e. socialized power and personalized power

b. intrinsic and extrinsic rewards

What is the practice of giving people not only more tasks but also higher level ones, such as when decisions are delegated downward and authority is decentralized: a. job motivation b. job enrichment c. job enlargement d. job rotation

b. job enrichment

The first two consequences, positive and negative reinforcement, are positive for the person receiving them, and the last two consequences, punishment and extinction are: a. motivating b. negative c. rewarding d. fear inducing.

b. negative

The motivational theory that builds on the but differs from Maslow's hierarchy is called: A. Taylor's scientific management b. Herzberg's two factory theory c. Alderfer's ERG theory d. McClelland's need theory

c. Alderfer's ERG theory ERG theory is also a needs theory but has more complex analysis of the needs.

The value than an outcome holds for the person contemplating an action is called ____ in expectancy theory. a. Goal setting b. Payment c. Valence d. Instrumentality

c. Valence

Jamal is the director of two teams of associates. Jamal has had several chances to move to a position overseeing eight teams, but he turned them down because he would have to make decisions that would anger many of the workers. He would rather earn less money and be a popular manager with the workers. Jamal has a strong need for a. socialized power b. association c. affiliation d. achievement e. personalized power

c. affiliation

Louie manages a group of groundskeepers. Louie incorporates a variety of techniques to lead his crew. Which of Louie's actions is a form of extinction? a. promptly firing an employee who sexually harassed another worker b. personally thanking Alejandro for point out a dangerous condition c. forgetting to announce the employee of the month winner d. yelling at Anya for leaving the tool shop unlocked e. making sure he fulfills his promises to provide incentives for excellent work

c. forgetting to announce the employee of the month winner

Which of the following provide intrinsic motivation: a. a mechanistic approach to job design b. routine, habitual tasks c. freedom to pursue interesting tasks d. a challenging problem e. a chance to create something new

c. freedom to pursue interesting tasks d. a challenging problem e. a chance to create something new

Which of the following statements about goal setting is true: a. most employees tend to set goals that are unrealistically difficult, b. individuals often sacrifice personal goals for the goals of the team c. it can generate manipulative or unethical behavior d. there is no incentive to set goals

c. it can generate manipulative or unethical behavior

According to Maslow's hierarchy of needs, which of the following types of needs does a person seek to satisfy first? a. Self-Actualization b. social c. physiological d. safety e. ego

c. physiological

The need for ____ is demonstrated when a person is concerned with establishing and maintaining good interpersonal relations and being liked: a. Achievement b. Recognition c. Power d. Affiliation

d. Affiliation

Job enrichment would be more successful for people with a. low growth need strength b. negative instrumentality c. positive instrumentality d. high growth need strength e. low valence

d. high growth need strength

Which of the following statements about setting your own goals is true: a. you should pick goals that are quickly and easily attainable to boost your confidence. b. it is more important to work hard and hope for the best than to set specific goals. Setting your own goals should be done in collaboration with a manager who will hold you accountable d. it is a powerful tool for self-management

d. it is a powerful tool for self-management

____ is the need to desire to influence or control other people a. affiliation b. realism c. achievement d. power

d. power

Following Herzberg's model, Hackman and Oldham proposed a more complete model of a. empowerment b. reinforcement c. self-actualization d. expectancy e. job design

e. job design

The goal-setting theory states that a. behavior that is followed by positive consequences will likely be repeated. b. people will behave based on the likelihood that their effort will enable them to attain their performance goals c. people assess how fairly they have been treated according to two key factors, outcomes and inputs d. people will behave based on their perceived likelihood that performance will be followed by a particular outcome e. people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end

e. people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end

_____ theory states that people have conscious goals that energize them and direct their thoughts and behaviors toward an end

goal-setting theory

Motivation theory suggests that job enrichment will be more successful for people with growth need strength. a. Moderate b. low c. high d. no

high

Herzberg two factor theory (1 of 2) hygiene factors

hygiene factors Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied.

Managers can create motivating jobs by

making them intrinsically rewarding.

A psychological contract is a set of

perceptions of what employees think they owe their employer and what they think their employer owes them.

when employees violate the law, ethical standards, important safety rules or standards of interpersonal treatment, ___ is sometimes appropriate: a. punishment b. extinction c. instrumentality d. valence

punishment

Microsoft and others use the acronym SMART (see Exhibit 13.2) to create motivating goals:

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

In expectancy theory, each outcome has an assoiciated ))) which is the value the person places on the outcome. a. reinforcement b. valence c. instrumentality d. expectancy

valence

Retaining What You Learned In Chapter 13 Page 396

you learned that managers can motivate employees in a variety of ways. Goals that are specific, quantifiable, and challenging are powerful tools for motivating individuals and teams. Organizations develop programs that use different types of reinforcement to influence employees' behaviors. Managers should reinforce appropriate behaviors, manage mistakes properly, and provide useful feedback. Expectancy theory states that employees are motivated when they believe they can perform a job well and their performance will be rewarded with a valued outcome. People's needs affect their behaviors at work. Maslow and Alderfer offered similar need theories of motivation. McClelland said people vary in the extent to which they need achievement, affiliation, and power. Managers can create motivating jobs by making them intrinsically rewarding. Jobs can be enriched by building in skill variety, task identity, task significance, autonomy, and feedback. Employees with jobs that have the necessary information, knowledge, power, and rewards feel empowered. Equity theory explores how an individual's perceptions of fairness can lead to either feeling satisfied or dissatisfied at work. A satisfied workforce has many advantages for the firm, including lower absenteeism and turnover; fewer grievances, lawsuits, and strikes; lower health costs; and higher-quality work. A psychological contract is a set of perceptions of what employees think they owe their employer and what they think their employer owes them. LO 1 Identify the kinds of behaviors managers need to motivate in people. 1. All important work behaviors are motivated. 2. Managers need to motivate employees to join and remain in the organization and to exhibit high attendance, job performance, and citizenship. LO 2 List principles for setting goals that motivate employees. 1. Goal setting is a powerful motivator. Specific, quantifiable, and challenging but attainable goals motivate high effort and performance. 2. Goal setting can be used for teams as well as for individuals. 3. Care should be taken to avoid setting single goals to the exclusion of other important dimensions of performance. 4. Managers also should keep sight of the other potential downsides of goals. LO 3 Summarize how to reward good performance effectively. 1. Organizational behavior modification programs influence work behavior by arranging consequences for people's actions. 2. Most programs use positive reinforcement as a consequence, but other important consequences are negative reinforcement, punishment, and extinction. 3. Care must be taken to reinforce appropriate, not inappropriate, behavior. 4. Innovative managers use a wide variety of rewards for good performance. 5. They also understand how to manage mistakes and provide useful feedback. LO 4 Describe the key beliefs that affect people's motivation. 1. Expectancy theory describes three important work-related beliefs. 2. Motivation is a function of people's: (a) expectancies, or effort-to-performance links; (b) instrumentalities, or performance-to-outcome links; (c) valences that they attach to the outcomes of performance. LO 5 Discuss ways in which people's individual needs affect their behavior. 1. According to Maslow, important needs arise at five levels of a hierarchy: physiological, safety, social, ego, and self-actualization needs. 2. Focusing more on the context of work, Alderfer's ERG theory described three sets of needs: existence, relatedness, and growth. 3. McClelland stated that people vary in their needs for achievement, affiliation, and power. 4. Because people are inclined to satisfy their own needs, these theories tell managers the kinds of rewards that motivate people. LO 6 Define ways to create jobs that motivate. 1. One approach to motivating people is to create intrinsic motivation through redesigning jobs. 2. Jobs can be enriched by building in more skill variety, task identity, task significance, autonomy, and feedback. 3. Empowerment includes perceived meaning, competence, self-determination, and impact. These qualities come from an environment in which people have necessary information, knowledge, power, and rewards. LO 7 Summarize how people assess fairness and how to achieve fairness: 1. Equity theory states that people compare their inputs and outcomes to the inputs and outcomes of others. 2. Perceptions of equity (fairness) are satisfying; feelings of inequity (unfairness) are dissatisfying and motivate people to change their behavior or their perceptions to restore equity. 3. In addition to fairness of outcomes, as described in equity theory, fairness is also appraised and managed through procedural justice. LO 8 Identify causes and consequences of a (dis)satisfied workforce: 1. A satisfied workforce has many advantages for the firm, including: lower absenteeism and turnover; fewer grievances, lawsuits, and strikes; lower health costs; and higher-quality work. 2. One general approach to generating higher satisfaction for people is to implement a quality of work life program. QWL seeks to provide a safe and healthy environment, opportunity for personal growth, a positive social environment, fair treatment, and other improvements in people's work lives. 3. These and other benefits from the organization, exchanged for contributions from employees, create a psychological contract. 4. Over time, how the psychological contract is upheld or violated will influence people's satisfaction and motivation.

ob dissatisfaction, aggregated across many individuals, creates a workforce that is more likely to exhibit

1) Higher turnover 2) Higher absenteeism 3) Less good citizenship 4) More grievances and lawsuits 5) Strikes 6) Stealing, sabotage, and vandalism 7) Poorer mental and physical health (which can mean higher job stress, higher insurance costs, and more lawsuits) 8) More injuries 9) Poor customer service 10) Lower productivity and profits. All of these consequences of dissatisfaction, either directly or indirectly, are costly to organizations.

Quality of work life (QWL) eight categories

1. Adequate and fair compensation 2. A safe and healthy environment 3. Jobs that develop human capacities 4. A chance for personal growth and security 5. A social environment that fosters personal identity, freedom from prejudice, a sense of community, and upward mobility 6. Constitutionalism, or the rights of personal privacy, dissent, and due process 7. A work role that minimizes infringement on personal leisure and family needs 8. Socially responsible organizational actions

Psychological Contracts

A set of perceptions of what employees owe their employers, and what their employers owe them.

Each outcome has a

Each outcome has an associated valence. Valence is the value the person places on the outcome. Valences can be positive, as a Hawaiian vacation would be for most people, or negative, as in the case of the other salespeople's resentment. __________ valence The value an outcome holds for the person contemplating it.

The Hackman and Oldham Model of Job Design Page 388

Following Herzberg's work, Hackman and Oldham proposed a more complete model of job design.76 Exhibit 13.7 illustrates their model. As you can see, well-designed jobs lead to: high motivation, high-quality performance, high satisfaction, and low absenteeism and turnover. These outcomes occur when people experience three critical psychological states shown in the middle column of the figure: 1. They believe they are doing something meaningful because their work is important to other people. 2. They feel personally responsible for how the work turns out. 3. They learn how well they perform their jobs Exhibit 13.7 The Hackman and Oldham Model of Job Enrichment SOURCE: Hackman, J. Richard et al., "A New Strategy for Job Enrichment," California Management Review 17, no. 4 (Summer 1975), pp.57-71.

Concluding Case BIG BISON RESORTS: FINDING THE KEY TO WHAT EMPLOYEES VALUE

Frank Schuman, vice president of human resources for Big Bison Resorts, heard laughter as he approached the chief executive's office door. As he stepped into the room, he saw CEO Janette Briggs seated behind her desk, regaling two other executives with a story that the three were obviously enjoying immensely. "Oh, Frank! Good!" exclaimed Janette when she saw him enter. "I was just telling Pedro and Marlys about my great adventure in TV land." Janette had been away from the office for the past two weeks, taping the popular reality TV show Executive in Disguise instead of running her company, a regional chain of indoor water parks. "How did it go?" asked Frank. "From the laughter I heard outside your door, it must have been hilarious." "Well, funny, yes," replied Janette. "But mainly it was eye-opening. After spending all that time in our kitchens and cleaning the guest rooms and pools, I see our people and their jobs in a totally new way." "Is that why you called me here? I was expecting you wanted to review our plans for the Employee of the Month program we're unrolling next month. That is, until I saw—" He waved his hand toward the other two people seated in the room, Pedro Gutierrez, head of operations, and finance chief Marlys Higgenbotham. "Or at least I was guessing they're not here to nominate the first employee of the month." "No, see, that's the issue. After working directly with our frontline staff, I'm having my doubts about putting resources into Employee of the Month," replied the CEO. Frank swallowed. Employee of the Month had been a pet idea of Janette's, so he had poured most of his time into developing the program. Each month, a manager at each resort was Page 400 going to nominate a top-performing employee to be the Employee of the Month and enjoy the glory, not to mention a premium parking space and a framed photo posted in the lobby of the resort where he or she worked. Now it appeared that Janette shared what, he had to admit, were his own doubts about whether the program would really do much to improve performance or lower turnover. Janette continued, "Have a seat, Frank, and let me tell you about what I saw the past two weeks." Frank settled into a chair next to Marlys. Janette brought Frank up to date: "I've been telling Marlys and Pedro what it was like to work in one of our kitchens. The pace is unbelievable. The workload is unbelievable. And the teamwork is out of this world. Frank, I was amazed, and you would be, too. I know how to make a grilled cheese sandwich, but these folks do a lot more than cook. They're planning and controlling on the fly: How many salads? How many pancakes? How can we make all that without any waste? There's no supervisor on the line; they're all thinking like managers—how to please customers, control costs. Honestly, our managers could take lessons from them on teamwork and quality control." "It sounds like we have a lot of Employees of the Month," Frank said hopefully. Maybe the program wouldn't be canceled after all, and his group's efforts wouldn't have been wasted. "No, no, no!" broke in Marlys. "The point is, we've tried so many programs to boost productivity. As you know, we were looking at bonuses last year, till the economy got so bad. We simply couldn't justify paying more when occupancy rates were diving. But we have to do something. Now that business is picking up in our market area, other hotels and resorts are going to start recruiting away our best people. The question is, what can we do that will keep employees working as hard as they are now without burning out and leaving us? We thought people would just like a little recognition, but Janette is saying she doubts it now." "Exactly," said Janette. "And that's why I called you in. We need your expertise about human relations. What do people want? I thought it would be pay, prizes, that sort of thing. And you went along with me. But really, Frank, can that be it? The people I worked with the past two weeks—they have so much skill at what they do, and they're constantly thinking up ways to make our guests happy. They already take pride in what they accomplish. We need to decide what will make their jobs better so they can accomplish more without us getting in their way with, well, Employee of the Month ceremonies." "OK," replied Frank, "now that you've put it that way, I have to ask if maybe what we don't want to do is decide what will make their jobs better." As Janette and Marlys gazed at Frank quizzically, Pedro spoke up. "That's great, Frank. You're saying we shouldn't make their jobs better? I came up through the ranks at Big Bison, and I can recall that those hourly jobs aren't exactly perfect the way they are." "What I mean," replied Frank, "is that we need to listen before we decide." DISCUSSION QUESTIONS 1. What kinds of behavior would an Employee of the Month program, as described here, reinforce at Big Bison Resorts? How might the company apply the principles of reinforcement more effectively? 2. How might Big Bison Resorts get input from employees to make the company's jobs more motivating? What impact would this effort have on the company's performance? 3. How would Big Bison's employees perceive the equity of the Employee of the Month program? Compare their reactions to that program with the response you would expect from an effort to involve employees in improving their jobs. 4. Think about a previous job you have held or hold currently. If you had the power to make such decisions, what would you do to make the job more motivating for employees? Design elements: Lightbulb icon that indicates innovation: ©McGraw-Hill Education; Money icon that indicates cost: ©McGraw-Hill Education; Recycle icon that indicate sustainability: ©McGraw-Hill Education; Human head with headset that indicate service: ©McGraw-Hill Education; Letter Q icon that indicates quality: ©McGraw-Hill Education; Sand dial that indicates speed: ©McGraw-Hill Education

Bottom Line

Job enrichment and empowerment don't work magic overnight; people may resist the new approaches and make mistakes along the way. But done right, their potential to achieve real results is undeniable. What might be some differences between empowerment "done right" and "done wrong"?

Organizations develop programs that use different types of reinforcement to

Organizations develop programs that use different types of reinforcement to influence employees' behaviors.

Procedural Justice

Using fair processes in decision making and making sure others know that the process was as fair as possible.

When reinforcement theory is applied in an organizational setting it is called: a. Organizational behavior modification b. Organizational hierarchy of needs c. The law of effect d. Operant reinforcement

a. Organizational behavior modification (OBM)

The impact of procedural justice can differ by culture. The impact is strongest among nations characterized by which of the following (check all that apply): a. Femininity b. Individualism c. High Power Distance d. Uncertainty Avoidance

b. Individualism d. Uncertainty Avoidance

To foster empowerment, management should provide clear strategic direction but leave room for : a. managerial control of decision making b. reassigning work without employee input c. intense supervision d. calculated risk taking

d. calculated risk taking

____ is a consequence that people receive for their actions. a. valence b. instrumentality c. expectancy d. outcome

d. outcome

____ Theory states that people assess how fairly they have been treated according to two key factors: Outcomes and inputs: a. Valence b. Expectancy C. Instrumentality D. Equity

D. Equity

True or False: Assessment of equity are made objectively

FALSE

Performance-Related Beliefs Page 379

In contrast to reinforcement theory, which describes the processes by which factors in the work environment affect people's behavior, expectancy theory considers some of the cognitive processes that go on in people's heads. According to expectancy theory, the person's work efforts lead to some level of performance. Then, performance leads to one or more outcomes for the person. This process is shown in Exhibit 13.5. People develop two important beliefs linking these events: expectancy, which links effort to performance, and instrumentality, which links performance to outcomes.

Match the type of stretch goal to its definition: Vertical HorizontalA pay rai Involve professional development, including learning new difficult things Aligned with current activities, including productivity and financial result

Vertical- Aligned with current activities, including productivity and financial result Horizontal- Involve professional development, including learning new difficult things

(Mis)Managing Rewards and Punishments

You've learned about the positive effects of a transformational leadership style, but giving rewards (a transaction) to high-performing people also is essential.35 Unfortunately, sometimes organizations and managers reinforce the wrong behaviors.36 As discussed in Chapter 10, stock options are intended to reinforce behaviors that add to the company's value, but stock options also can motivate decisions that artificially deliver short-term gains in stock prices but hurt the company in the long run. Likewise, programs that punish employees for absenteeism beyond a certain limit may actually encourage them to be absent. People may use up all their allowable absences and fail to come to work regularly until they reach the point at which their next absence will result in punishment. Page 377 Sometimes employees are reinforced with admiration for multitasking. This behavior may look efficient and send a signal that the employee is busy and valuable, but multitasking slows down the brain's efficiency and causes mistakes.37 Scans of brain activity show that the brain is not able to concentrate on two tasks at once; it needs time to switch among the multitasker's activities. As a result, managers who praise the hard work of multitaskers may be unintentionally reinforcing inefficiency and failure to think deeply about problems.

A satisfied workforce has many advantages for the

firm, including lower absenteeism and turnover; fewer grievances, lawsuits, and strikes; lower health costs; and higher-quality work.

punishment

punishment Administering an aversive consequence. — administering an aversive consequence. Examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay. Managers use punishment when they think it is warranted or when they believe others expect them to, and they usually concern themselves with following company policy and procedure.32 Managers who catch employees behaving badly punish more severely when the managers have a lot of power and have strong opinions about right and wrong.33 Whereas negative reinforcement can involve the threat of punishment and then not delivering the punishment when employees perform satisfactorily, punishment is the actual delivery of the aversive consequence.

Which of the following are behaviors exhibited by dissatisfied workers in a workplace (check all that apply): a. absenteeism b. fewer grievances c. lower productivity d. high turnover

a. absenteeism c. lower productivity d. high turnover

Maslow's hierarchy, however, is a simplistic and not altogether accurate theory of human motivation.

For example, not everyone progresses through the five needs in hierarchical order. But Maslow made three important contributions. First, he identified important need categories, which can help managers create effective positive outcomes. Second, it is helpful to think of two general levels of needs, in which lower-level needs must be satisfied before higher-level needs become important. Third, Maslow alerted managers to the importance of personal growth and self-actualization

The Performance-to-Outcome Link Page 380

The example of the sales contest illustrates how performance results in some kind of outcome, or consequence, for the person. Actually, it often results in several outcomes. For example, turning in the best sales performance could lead to (1) a competitive victory, (2) the free trip to Hawaii, (3) feelings of achievement, (4) recognition from the boss, (5) status throughout the company, and (6) resentment from other salespeople. But how certain is it that performance will result in all of those outcomes? Will winning the contest really lead to resentment? Will it really lead to increased status? These questions address the second key belief described by expectancy theory: instrumentality.47 Instrumentality is the perceived likelihood that performance will be followed by a particular outcome. Like expectancies, instrumentalities can be high (up to 100 percent (100%)) or low (approaching 0 percent (0%)). For example, you can be fully confident that if you do a good job, you'll get a promotion; or you can feel that no matter how well you do, the promotion will go to someone else.

Which of the following are effective ways to offer feedback to employees on their performance (check all). a. by providing statistics on work that the employee has directly influenced b. by conducting performance reviews regularly c. by incorporating social responsibility d. by giving customers feedback on their purchases.

a. by providing statistics on work that the employee has directly influenced b. by conducting performance reviews regularly

Managers Brief: Management in Action WHAT MAKES SAS A GREAT PLACE TO WORK? SAS (named after its first product, Statistical Analysis Software) has grown since its 1976 founding into the world's leader in data analytics software—a $3.1 billion company with more than 14,000 employees in 45 countries. Along the way, SAS has ranked as one of the 100 Best Companies to Work For in America every year since the Great Place to Work Institute began handing out that recognition in Fortune magazine—and in the top five every year since 2010. In 2012, the institute created its first list of the World's Best Multinational Workplaces, and SAS took the number one spot that year. It has been second only to Google ever since. Both rankings are based on a combination of employee surveys and an analysis by the institute.

What does SAS do to earn such prestigious recognition? The company is famous for the perks it offers its employees. Along with medical insurance, vacation time, profit sharing, and retirement savings accounts, SAS employees have access to adoption assistance, parental leave, and a college scholarship program for their children. At the Cary, North Carolina, headquarters, employees can use the on-site fitness center, health clinic, and day care center. Stress management programs include yoga, massage, and exercise programs. Those seeking to juggle home and work responsibilities can seek flexibility through options such as telecommuting, job sharing, or unpaid sabbaticals. An employee summed up his appreciation of the company this way: "SAS does so much for the employees. I always feel this is my second home. I want to give my best to this company and would like to help in any way possible to make this company more successful." However, if you talk to SAS's leaders, you hear less about benefits and more about the company's values, which shape its work environment. As Jack Poll, SAS's director of recreation and employee services, told a reporter for Fast Company, "When people are treated as if they're important and truly make a difference, their loyalty and engagement soar." The kind of treatment Poll is referring to emphasizes appreciating what workers contribute, building their trust, and empowering them to make decisions in their area of responsibility. Poll and SAS's founder and chief executive, James Goodnight, believe this treatment is the primary way SAS unleashes creativity. "Ninety-five percent of my assets drive out of the gate every evening," says Goodnight. "It's my job to maintain a work environment that keeps those people coming back every morning." That SAS gets it right is evident in the company's sales, which have risen every year of the company's existence. In 2015 it celebrated its 40th year of record revenue.1 SAS stands out as a company that offers generous benefits to its workers. As you read this chapter, consider whether generosity is enough to bring out employees' best work, aimed at the company's goals and priorities. If not, what other efforts should managers make?

The employment relationship has over time become: a. less focused on employee and employer loyalty b. more focused on job security c. more focused on employee loyalty d. more stable and predictable

a. less focused on employee and employer loyalty

With job enlargement, a person : a. is given additional tasks that are exponentially more challenging than initial tasks b. does one task at one time and then changes to a different task at a different time c. receives a larger paycheck for taking on additional tasks d. is given additional tasks to perform at the same time that are at the same level of responsibility

d. is given additional tasks to perform at the same time that are at the same level of responsibility

Which of the following are consequence of quality of work life program (check all that apply) a. better health b. better wages c. better business performance d. better attitudes

a. better health c. better business performance d. better attitudes

Which of the following best describes motivation? a. forces that energize, direct, and sustain a person's efforts b. a consequence of a person's performance c. a person's work efforts that lead to some level of performance d. the perceived likelihood that performance will be followed by a particular outcome e. withdrawing or failing to provide a reinforcing consequence

a. forces that energize, direct, and sustain a person's efforts

Designing Motivating Jobs

Here's an example of a reward that didn't motivate. One of Mary Kay Ash's former employers gave her a sales award: a flounder-fishing light. Unfortunately, she didn't fish. Fortunately, she later was able to design her own organization, Mary Kay Cosmetics, around intrinsic as well as extrinsic motivators that mattered to her people.63 Jobs can be rewarding both extrinsically and intrinsically. Extrinsic rewards are given to people by the boss, the company, or some other person. In contrast, a person derives an intrinsic reward directly from performing the job itself. An interesting project, an intriguing subject that is fun to study, a completed sale, helping a co-worker achieve a difficult task, and the discovery of the perfect solution to a difficult problem all can give people the feeling that they have done something meaningful and well. As an example, the nearby "Social Enterprise" box discusses how one organization is providing intrinsic rewards to veterans in the form of a renewed sense of purpose. If you have read elsewhere that extrinsic rewards are bad things because they decrease intrinsic motivation, be aware that those findings come from laboratory research done primarily with students. In the world of working adults, the two types of rewards together65 can motivate powerfully. People expect extrinsic rewards for their work; they will be all the more motivated if their jobs are intrinsically rewarding as well.

Quality of Work Life (QWL)

Quality of work life is a decades-old but still highly useful concept. Quality of work life (QWL) programs create a workplace that enhances employee job satisfaction and overall physical and mental well-being. The general goal of QWL programs is to satisfy the full range of employee needs. Promoting QWL is a social and political cause that sprang originally from the establishment of democratic societies and basic human rights.113 A good example is Plante Moran, an accounting firm with offices in 18 Midwestern cities. Co-founder Frank Moran's goal was for the business to be a "people firm disguised as an accounting firm," and he brought that vision to life by allowing any flexible work arrangement that is satisfactory to the employee's clients. The firm's website, which promises a "jerk-free" workplace, describes challenging jobs with varied assignments and buddies assigned to new employees so they can more wisely navigate their careers. Employees say they appreciate most the interesting assignments that bring them into direct contact with key people at client companies.

Managers must know what behaviors they want people to exhibit. Although productive people appear to do a seemingly limitless number of things, most of the important activities can be grouped into five general categories. Managers Must Motivate People to Engage in Key Behaviors Page 373

As shown in Exhibit 13.1, managers must motivate people to 1) join the organization 2) remain in the organization 3) come to work regularly. ***On these points, you should reject the common notion that loyalty is dead and accept the challenge of creating an environment that will attract and energize people so that they commit to the organization**** Of course, companies also want people to 4) perform—that is, once employees are at work, they should work hard to contribute high output and high quality. Finally, managers want employees to 5) exhibit good citizenship. Good citizens contribute above and beyond the call of duty by doing extra things that help the company. The importance of citizenship behaviors may be less obvious than sheer productive output, but these behaviors help the organization function smoothly. They also make managers' lives easier

In expectancy theory, ___ is the perceived likelihood that performance will be followed by a particular outcome. a. instrumentality b. effort c. achievement d. valence

instrumentality

A single satisfied person doesn't necessarily produce well on every performance dimension. But an organization full of people with high job satisfaction will likely perform well in many ways.

In a company with a strategy focused on low cost, how is employee satisfaction important?

Goal setting is an extraordinarily powerful management technique. But even specific, challenging, attainable goals work better

under some conditions than others. If people lack relevant ability and knowledge, a better course might be simply to urge them to do their best or to set a goal to learn rather than a goal to achieve a specific performance level. In addition, people who aren't on track to meet their goals are more likely to act unethically than are people who are trying to do their best but have no specific performance goals.23 This is true regardless of whether they have financial incentives, and it is particularly true when people fall just short of reaching their goals. Another familiar example comes from the pages of financial reports. Some executives have mastered the art of earnings management—precisely meeting Wall Street analysts' earnings estimates or beating them by a single penny.25 The media trumpet, and investors reward, the company that meets or beats the estimates. People sometimes meet this goal by either manipulating the numbers or initiating whispering campaigns to persuade analysts to lower their estimates, making them more attainable. The marketplace wants short-term, quarterly performance, but long-term viability is ultimately more important to a company's success. It is important not to establish a single productivity goal if there are other important dimensions of performance.26 If acquiring knowledge and skills is important, you can add a specific and challenging learning goal such as "identify 10 ways to develop relationships with end users of our products." Productivity goals will likely enhance productivity, but they may also cause employees to neglect other areas, such as learning, tackling new projects, or developing creative solutions to job-related problems. A manager who wants to motivate creativity can establish creativity goals along with productivity goals for individuals or for brainstorming teams.27

When speaking of times when they felt disempowered, people mentioned the following

* I had no input into a hiring decision of someone who was to report directly to me. I didn't even get to speak to the candidate. * They treated us like mushrooms. They fed us and kept us in the dark. * I worked extremely hard—long hours and late nights—on an urgent project, and then my manager took full credit for it. * My suggestions, whether good or bad, were either not solicited or, worse, ignored. * The project was reassigned without my knowledge or input.

In contrast, people felt empowered in the following examples:

* I was able to make a large financial decision on my own. I got to write a large check without being questioned. * After having received a memo that said, "Cut travel," I made my case about why it was necessary to travel for business reasons, and I was told to go ahead. * I was five years old, and my dad said, "You'll make a great mechanic one day." He planted the seed. Now I'm an engineer. * My president supported my idea without question. * All the financial data were shared with me

Equity Theory ( Exhibit 13.8 )

1. Comparing Your Ratio to Other's Ratio (Outcomes/Inputs) A. MyO/MyI = Other'sO/Other'sInputs B. Your Likely Perception: Equitably treated. C. Actions You May Take to Restore Equity: No action necessary. 2. Comparing Your Ratio to Other's Ratio A. MyO/MyI = Other'sO/Other'sInputs B. Your Likely Perception: Inequitably treated. Feel underrewarded. C. Actions You May Take to Restore Equity: Reduce your inputs (e.g., exert less effort). Try to increase your outcomes (e.g., ask for a raise). Change your perception of inputs or outcomes (e.g., maybe so-and-so really did deserve the bonus). 3. Comparing Your Ratio to Other's Ratio A. MyO/MyI = Other'sO/Other'sInputs B. Your Likely Perception: Inequitably treated. Feel overrewarded. C. Actions You May Take to Restore Equity: Increase your inputs by putting in extra effort. Help other person increase her outcomes (e.g., urge her to ask for a larger bonus).

These psychological states occur when people are working on enriched jobs—that is, jobs that offer the following five core job dimensions: The Hackman and Oldham Model of Job Design

1. Skill variety—different job activities involving several skills and talents. When cleaning employees in hospitals were given some freedom in how they carried out their work, they added skill variety through extra efforts such as engaging patients in small talk and figuring out ways they could make nurses' jobs easier. After adding this skill variety, the employees were more satisfied with their jobs. 2. Task identity—the completion of a whole, identifiable piece of work. At State Farm Insurance, agents are independent contractors who sell and provide service for State Farm products exclusively. They have built and invested in their own businesses. As a result, agent retention and productivity are far better than industry norms.78 3. Task significance—an important, positive impact on the lives of others. A study of lifeguards found dramatic improvements in their performance if they were taught about how lifeguards make a difference by preventing deaths. Lifeguards who were told simply that the job can be personally enriching showed no such improvements.79 Similarly, James Perry, an expert on motivation of government employees, says public sector employees generally have a strong commitment to serving the public good, including public welfare and stewardship of public resources.80 4. Autonomy—independence and discretion in making decisions. In China, a GE Healthcare team was given freedom to develop an inexpensive ultrasound device to serve poorly funded health clinics. The device was successful and inspired the development of other innovative products throughout the division.81 5. Feedback—information about job performance. Many companies provide information on productivity, number of rejects, and other performance indicators. The Parasole restaurant group in Minnesota, as just one example, uses customer feedback on social media—hundreds of comments every day—as a powerful source of motivation.82 ***The most effective job enrichment increases all five core dimensions. A person's growth need strength will help determine how effective a job enrichment program might be. Growth need strength is the degree to which an individual wants personal and psychological development. Job enrichment would be more successful for people with high growth need strength. But very few people respond negatively to job enrichment.

The Greatest Management Principle in the World- Exhibit 13.4 LeBoeuf, Michael, The Greatest Management Principle in the World, 1985. "The things that get rewarded get done" is what Michael LeBoeuf called The Greatest Management Principle in the World. Companies, and individual managers, should reward the following:

1. Solid solutions instead of quick fixes. 2. Risk taking instead of risk avoiding. 3. Applied creativity instead of mindless conformity. 4. Decisive action instead of paralysis by analysis. 5. Smart work instead of busywork. 6. Simplification instead of needless complication. 7. Quietly effective behavior instead of squeaky wheels. 8. Quality work instead of fast work. 9. Loyalty instead of turnover. 10. Working together instead of working against.

The digital world

A low-cost way to motivate employees is to recognize them on social media sites. Often companies will acknowledge accomplishments on corporate intranets (or internal company-only web portals) so that people are celebrated for successful projects or work milestones. External articles about employees at the company provide recognition, while also building relationships with stakeholders who can view articles posted on the company website.

Maslow's Need Hierarchy

Abraham Maslow organized five major types of human needs into a hierarchy, as shown in Exhibit 13.6.50 Maslow's need hierarchy illustrates his conception of people satisfying their needs in a specified order, from bottom to top. The needs are Page 382 1. Physiological (food, water, sex, and shelter). 2. Safety or security (protection against threat and deprivation). 3. Social (friendship, affection, belonging, and love). 4. Ego (independence, achievement, freedom, status, recognition, and self-esteem). 5. Self-actualization (realizing one's full potential, becoming everything one is capable of being). Exhibit 13.6 Maslow's Need Hierarchy SOURCE: Organ D., and Bateman, T., Organizational Behavior, 4th ed., New York: McGraw-Hill, 1991. According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs. In the modern workplace, physiological and safety needs generally are well satisfied, making social, ego, and self-actualization needs important. But safety issues are still very important in manufacturing, mining, health care, and other work environments. To deal with such safety issues, managers can show what the employer does to improve security and manage employee risk. Safety issues are still very important in manufacturing, mining, health care, and other work environments.

To be effective, managers must motivate people to (check all that apply) a. Come to work regularly b. Join the organization c. Remain in the organization d. Work for an inexpensive wage

Come to work regularly Join the organization Remain in the organization

McClelland's Needs

David McClelland also identified a number of basic needs that motivate people. The most important needs for managers, according to McClelland, are the needs for achievement, affiliation, and power. Different needs predominate for different people. As you read about these needs, think about yourself—which ones are most and least important to you? The need for achievement is characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment. Most managers and entrepreneurs in the United States have high levels of this need and like to see it in their employees. The need for affiliation reflects a strong desire to interact with and be liked by other people. Individuals who have high levels of this need are oriented toward getting along with others and may be less concerned with achieving at high levels. The need for power is a desire to influence or control other people. This need can be a negative force—termed personalized power—if it is expressed by aggressively manipulating and exploitating others. People high on the personalized power need want power purely for the pursuit of their own goals. But the need for power also can be a positive motive—called socialized power—because it can be channeled toward constructively helping people, organizations, and societies. Low need for affiliation and moderate to high need for power are associated with managerial success for both higher- and lower-level managers.59 One reason the need for affiliation is not necessary for leadership success is that people high on this need have difficulty making tough but necessary decisions that will make some people unhappy.

The starting point for understanding how people interpret their contributions and outcomes is equity theory

Equity theory A theory stating that people assess how fairly they have been treated according to two key factors: outcomes and inputs. __________________________________________________ Equity theory proposes that when people assess how fairly they are treated, they consider two key factors: outcomes and inputs. 1. Outcomes, as in expectancy theory, refer to the various things the person receives on the job: recognition, pay, benefits, satisfaction, security, job assignments, punishments, and so forth. 2. Inputs refer to the contributions the person makes to their employer: effort, time, talent, performance, extra commitment, good citizenship, and so forth. People have a general expectation that the outcomes they receive will reflect, or be proportionate to, the inputs they provide—a fair day's pay (and other outcomes) for a fair day's work (broadly defined by how people view all their contributions). Equity theory suggests that people compare the ratio of their outcomes to inputs against the outcome-to-input ratio of some comparison person. How would you deal with someone you perceive to be a slacker who gets promoted over you? But this comparison of outcomes to inputs is not the whole story. People also pay attention to the outcomes and inputs others receive. At salary review time, for example, most people—from executives on down—try to pick up clues that will tell them who got the highest raises. As described in the following section, they compare ratios, try to restore equity if necessary, and derive more or less satisfaction based on how fairly they believe they have been treated.

Assessing Equity PG 390

Equity theory states that people compare the ratio of their own outcomes to inputs against the outcome-to-input ratio of some comparison person. The comparison person can be a fellow student, a co-worker, a boss, or an average industry pay scale. Stated more succinctly, people compare their own outcomes and inputs to those of a comparison person (see Exhibit 13.8). If the ratios are equivalent, people believe the relationship is equitable, or fair. Equity causes people to be satisfied with their treatment. But the person who believes his or her ratio is lower than another's will feel inequitably treated. Inequity causes dissatisfaction and leads to an attempt to restore balance to the relationship. Inequity and the negative feelings it creates can appear anywhere. As a student, perhaps you have been in the following situation. You stay up all night and get a C on the exam. Meanwhile another student studies a couple of hours, goes out for the rest of the evening, gets a good night's sleep, and gets a B on the exam. You perceive your inputs (time spent studying) as much greater than the other student's, but your outcomes (exam grade) are lower. It doesn't feel fair, and you are not happy. In business, the same thing can happen with pay raises. One manager puts in long weeks, has a degree from a prestigious university, and believes she is destined for the top. When her archrival—whom she perceives as less deserving ("she never comes into the office on weekends, and all she does when she is here is butter up the boss")—gets the higher raise or the promotion, she feels serious inequity. Many people feel inequity when they learn about the huge sums paid to high-profile CEOs. Fair pay became a more public issue for U.S. companies because the Dodd-Frank Wall Street Reform and Consumer Protection Act required greater disclosure of performance-based pay details. Page 391 Assessments of equity are not made objectively. They are subjective perceptions or beliefs. In the preceding examples, the person who got the higher raise probably felt she deserved it. Even if she admits she doesn't put in long workweeks, she may convince herself she doesn't need to because she's so talented. The student who got the higher grade may believe it was a fair, equitable result because: 1) she kept up all semester, while the other student did not (2) she's extra-smart. (Ability and experience, not just time and effort, can be seen as inputs.)

Managerial Implications of Expectancy Theory

Expectancy theory helps the manager zero in on key leverage points for influencing motivation. Three implications are crucial: Increase expectancies. Provide a work environment that facilitates good performance and set realistically attainable performance goals. Provide training, support, required resources, and encouragement so that people are confident they can perform at the levels expected of them. Recall from Chapter 12 that some leaders excel at boosting their followers' confidence. Identify positively valent outcomes. Understand what people want to get out of work. Think about what their jobs provide them and what is not, but could be, provided. Consider how people may differ in the valences they assign to outcomes. Know the need theories of motivation, described in the next section, and their implications for identifying important outcomes. Make performance instrumental toward positive outcomes. Make sure that good performance is followed by personal recognition and praise, favorable performance reviews, pay increases, and other positive results. Also, make sure that working hard and doing things well will have as few negative results as possible. It is useful to realize, too, that bosses usually control rewards and punishments, but others do so as well. Peers, direct reports, customers, and others tend to provide outcomes in the form of compliments, help, criticism, and other social punishments. Organizations set up formal reward systems as well. Founded in 2012, Austin-based YouEarnedIt created an app designed to increase employee happiness and engagement at work. The app empowers employees to recognize one another's contributions and hard work. The idea of having employees provide one another with real-time, meaningful recognition on a daily basis is catching on. YouEarnedIt's clients include Conde Nast, Tempur-Pedic, and Rent-2-Own.48 As you read "Management in Action: Progress Report," consider whether similar ideas would motivate employees at SAS.

Impact on Motivation

For motivation to be high, expectancy, instrumentalities, and total valence of all outcomes must all be high. A person will not be highly motivated if any of the following conditions exist: He believes he can't perform well enough to achieve the positive outcomes that he knows the company provides to good performers (high valence and high instrumentality but low expectancy). He knows he can do the job and is fairly certain what the ultimate outcomes will be (say, a promotion and a transfer). However, he doesn't want those outcomes or believes other, negative outcomes outweigh the positive (high expectancy and high instrumentality but low valence). He knows he can do the job and wants several important outcomes (a favorable performance review, a raise, and a promotion). But he believes that no matter how well he performs, the outcomes will not be forthcoming (high expectancy and positive valences but low instrumentality).

Herzberg's Two-Factor Theory

Frederick Herzberg's two-factor theory distinguished between two broad categories of factors that affect people in their jobs.75 The first category, hygiene factors, are characteristics of the workplace: company policies, working conditions, pay, co-workers, supervision, and so forth. These factors can make people unhappy if they are poorly managed. If they are well managed and viewed as positive by employees, the employees will no longer be dissatisfied. However, no matter how good these factors are, they will not make people truly satisfied or motivated to do a good job. According to Herzberg, the key to true job satisfaction and motivation to perform lies in the second category: the motivators. The motivators describe the job itself—that is, what people do at work. Motivators are the nature of the work itself, the actual job responsibilities, opportunity for personal growth and recognition, and the feelings of achievement the job provides when people perform well. When these factors are present, jobs are both satisfying and motivating for most people. Herzberg's theory has been criticized by many scholars, and for that reason we will not go into more detail about the theory. But Herzberg was a pioneer in the area of job design and still is a respected name. Furthermore, even if the specifics of his theory do not hold up to scientific scrutiny, he made several important contributions. First, Herzberg's theory highlights the important distinction between extrinsic rewards (hygiene factors) and intrinsic rewards (motivators). Second, it reminds managers not to count solely on extrinsic factors to motivate workers, but to focus on intrinsic rewards as well. Third, it set the stage for later theories, such as the Hackman and Oldham model, that explain more precisely how managers can enrich people's jobs.

Set Your Own Goals

Goal setting works for yourself as well—it's a powerful tool for self-management. Set goals for yourself; don't just try hard or hope for the best. Create a statement of purpose for yourself comprising three elements: an inspiring distant vision, a mid-distant goal along the way (worthy in its own right), and near-term objectives to start working on immediately. So if you are going into business, you might articulate your goal for the type of businessperson you want to be in five years, the types of jobs that could create the opportunities and teach you what you need to know to become that businessperson, and the specific schoolwork and job search activities that can get you moving in those directions. On the job, apply SMART and other goal-setting advice for yourself.

Reinforcing Performance

Goals are universal motivators. So are the processes of reinforcement described in this section. In 1911, psychologist Edward Thorndike formulated the law of effect: behavior that is followed by positive consequences probably will be repeated.This powerful law of behavior laid the foundation for countless investigations into the effects of the positive consequences, called reinforcers, that motivate behavior. Organizational behavior modification (or OB mod) attempts to influence people's behavior, and improve performance, by systematically managing work conditions and the consequences of people's actions. Four key consequences of behavior either encourage or discourage people's behavior (see Exhibit 13.3):

Goals that are

Goals that are specific, quantifiable, and challenging are powerful tools for motivating individuals and teams

Managing Mistakes

How a manager reacts to people's mistakes has a big impact on motivation. Punishment is sometimes appropriate, as when people violate the law, ethical standards, safety rules, or standards of interpersonal treatment, or when they perform like a slacker. But sometimes managers punish people when they shouldn't—when poor performance isn't the person's fault or when managers take out their frustrations on the wrong people. Managers who overuse punishment or use it inappropriately create a climate of fear in the workplace.41 Fear causes people to focus on the short term, sometimes creating problems in the longer run. Fear also creates a focus on oneself rather than on the group and the organization. B. Joseph White, president emeritus of the University of Illinois, recalls consulting for a high-tech entrepreneur who heard a manager present a proposal and responded with brutal criticism: "That's the ... stupidest idea I ever heard in my life. I'm disappointed in you." According to White, this talented manager was so upset she never again felt fully able to contribute.42 To avoid such damage, managers should think about how they handle mistakes. Recognize that everyone makes mistakes, and that mistakes can be dealt with constructively by discussing and learning from them. Don't punish, but appreciate, people for honestly delivering bad news to their bosses. Treat failure to act responsibly as a failure but don't punish unsuccessful, good-faith efforts. If you're a leader, talk about your mistakes with your people and show how you learned from them. Give people second chances and maybe third chances. Encourage people to try new things and don't punish them if what they try in good faith just doesn't work out. Managers who inappropriately yell at their staff or overuse punishment often create a climate of fear and anxiety in the workplace. How would you deal with a situation like this? ©Image Source RF

Need Theories: International Perspectives Page 385

How do the need theories apply abroad? Whereas managers in the United States care most strongly about achievement, esteem, and self-actualization, managers in Greece and Japan are motivated more by security. Social needs are most important in Sweden, Norway, and Denmark. "Doing your own thing"—the phrase from the 1960s that describes an American culture oriented toward self-actualization—is not even translatable into Chinese. "Achievement," too, is difficult to translate into most other languages. Researchers in France, Japan, and Sweden would have been unlikely even to conceive of McClelland's achievement motive because people of those countries traditionally tend to be more group-oriented (collectivist) than individually oriented. Clearly, achievement, growth, and self-actualization are profoundly important in the United States, Canada, and Great Britain. But these needs are not universally important. People the world over have some similar basic needs, but what engages people most can vary from culture to culture.61 Employees in Canada were attracted by competitive pay, work-life balance, and opportunities for advancement; workers in Germany by autonomy in Japan by high-quality co-workers; in the Netherlands by a collaborative work environment; and in the United States by competitive health benefits. Generally, no single way is best, and managers can customize their approaches by considering how individuals differ.

Employee Satisfaction and Well-Being Page 393

If people feel fairly treated from the outcomes they receive and the processes used, they will be satisfied. A satisfied worker is not necessarily more productive than a dissatisfied one; sometimes people are happy with their jobs because they don't have to work hard! But job dissatisfaction, aggregated across many individuals, creates a workforce that is more likely to exhibit (1) higher turnover; (2) higher absenteeism; (3) less good citizenship;105 (4) more grievances and lawsuits; (5) strikes; (6) stealing, sabotage, and vandalism; (7) poorer mental and physical health (which can mean higher job stress, higher insurance costs, and more lawsuits);106 (8) more injuries;107 (9) poor customer service;108 and (10) lower productivity and profits.109 All of these consequences of dissatisfaction, either directly or indirectly, are costly to organizations. Sadly, most people are dissatisfied with their jobs, with the greatest dissatisfaction among lower wage earners and workers aged 25 and younger. Regarding how it affects job performance, job satisfaction is especially important for relationship-oriented service employees such as realtors, hair stylists, and stockbrokers. Customers develop (or don't develop) a commitment to a specific service provider. Satisfied service providers are less likely to quit the company and more likely to provide an enjoyable customer experience.

Limitations of Goal Setting

Individual performance goals can be dysfunctional if people work in a group and cooperation among team members is essential to group performance.19 Goals aimed at maximizing individual performance can create competition and reduce cooperation, thereby hurting group performance. On the other hand, groupcentric goals aimed at maximizing the individual's contributions to the group's performance have a positive effect.20 If cooperation is important, performance goals should be established for the team. Goals can generate manipulative game-playing and unethical behavior. For example, people can sometimes find ingenious ways to set easy goals and convince their bosses that they are difficult.21 Or they may find ways to meet goals simply to receive a reward, without necessarily performing in other desirable ways. In big law firms it's common for lawyers to keep detailed records of their time and to be rewarded for billing, say, 2,000 hours per year. This system invites inefficient work and creates a dismal, demotivating environment for any lawyer who chose the profession out of concern for clients or love of the law

Alderfer's ERG Theory

Maslow's theory has general applicability, but Alderfer aimed his ERG theory expressly at understanding people's needs at work.56 Alderfer's ERG theory postulates three sets of needs: existence, relatedness, and growth. Existence needs are all material and physiological desires. Relatedness needs involve relationships with other people and are satisfied through the process of mutually sharing Page 384 thoughts and feelings. Growth needs motivate people to change themselves or their environment productively or creatively. Satisfaction of the growth needs comes from fully using personal capacities and developing new capacities. What similarities do you see between Alderfer's and Maslow's needs? Roughly speaking, existence needs subsume physiological and security needs, relatedness needs are similar to social and esteem needs, and growth needs correspond to self-actualization. ERG theory proposes that several needs can operate at once. Whereas Maslow said that self-actualization is important to people only after other sets of needs are satisfied, for Alderfer employees can be motivated on the job to satisfy existence, relatedness, and growth needs at the same time. Maslow's theory is better known to American managers than Alderfer's, but ERG theory has more research support.57 Both have practical value in that they remind managers of the types of reinforcers or outcomes that can be used to motivate people. Regardless of whether a manager prefers the Maslow or the Alderfer theory, she can motivate people by helping them satisfy their needs, particularly by offering opportunities for self-actualization and growth.

Providing Feedback

Most managers don't provide enough useful feedback, and most people don't ask for feedback enough.43 As a manager, you should consider all potential causes of poor performance, pay full attention when employees ask for feedback or want to discuss performance issues, and provide constructive feedback. Feedback can be offered in many ways.44 Customers sometimes give feedback directly; you also can request customer feedback and give it to the employee. You can provide statistics on work that the person has directly influenced. A manufacturing firm—high tech or otherwise—can put the phone number or website of the production team on the product so customers can contact the team directly. Performance reviews should be conducted regularly, as discussed in Chapter 10. And bosses should give more regular, ongoing feedback—it helps correct problems immediately, provides immediate reinforcement for good work, and prevents surprises when the formal review comes. For yourself, try not to be afraid of receiving feedback; in fact, you should actively seek it. But whether or not you seek the feedback, when you get it, don't ignore it. Try to avoid negative emotions such as anger, hurt, defensiveness, or resignation. Think, It's up to me to get the feedback I need; I need to know these things about my performance and my behavior; learning what I need to know about myself will help me identify needs and create new opportunities; it serves my interest best to know rather than not know; taking initiative on this gives me more power and influence over my career.45 Try not to be afraid of receiving feedback; in fact, you should actively seek it. Bottom Line: Make sure that you reward the right things, not the wrong things. Sound obvious? You'd be surprised how often this principle is violated! What is rewarding, and not rewarding, about feedback from your manager?

Restoring Equity

People who feel inequitably treated and dissatisfied are motivated to do something to restore equity. They have a number of options to change the ratios, or reevaluate the situation and decide it is equitable after all. The equity equation shown earlier indicates a person's options for restoring equity. People who feel inequitably treated can reduce their inputs by giving less effort, performing at lower levels, or quitting. ("Well, if that's the way things work around here, there's no way I'm going to work that hard [or stick around].") Or they can attempt to increase their outcomes. ("My boss [or teacher] is going to hear about this. I deserve more; there must be some way I can get more.") On the positive side, employees can also put forth extra effort to keep a situation equitable for the group. When employees see their colleagues working hard to meet an important deadline, they may be inclined to work harder themselves. Other ways of restoring equity focus on changing the other person's ratio. A person can decrease others' outcomes. An employee may sabotage work to create problems for his company or his boss.99 A person can change her perceptions of inputs or outcomes. ("That promotion isn't as great a deal as he thinks. The pay is not that much better, and the headaches will be unbelievable.") It is also possible to increase others' inputs, particularly by changing perceptions. ("The more I think about it, the more I see he deserved it. He's worked hard all year, he's competent, and it's about time he got a break.") Thus a person can restore equity in a number of ways by behaviorally or perceptually changing inputs and outcomes.

Social Enterprise Giving Veterans a Renewed Sense of Purpose

Shortly after returning from his deployments in Iraq and Afghanistan, Marine veteran Jake Wood cofounded Team Rubicon. Staffed by veterans, his organization bridges the gap between the moment a natural disaster happens and the time at which conventional aid organizations respond. Wood seeks to solve two problems. The first is that many aid organizations are not equipped or trained to respond rapidly during the "crucial window" of time immediately following a disaster. The second is the inadequate way that many veterans are reintegrated into society after serving in the military. Veterans have a unique set of skills and experiences that are ideal for disaster relief situations. Team Rubicon provides veterans with three things they lose after leaving the military: 1. Purpose: Doing work with a higher purpose, in this case helping survivors of natural disasters, appeals to veterans. 2. Community: Veterans are accustomed to serving with and protecting their team members. 3. Self-worth: Helping others in crisis provides veterans with a sense of self-worth and accomplishment. Since its founding in 2011, Team Rubicon has made a positive impact on survivors immediately following many disasters around the world, including the contaminated water emergency in Flint, Michigan, the surge of refugees in Greece, an outbreak of Ebola in Sierra Leone, a dam failure in Nevada, the devastating wildfire in Gatlinburg, Tennessee, and Hurricane Matthew in Virginia, Georgia, and Florida. Disaster relief missions are highly motivating for veterans, and their skills bring victims badly needed assistance, medical supplies, and other forms of relief until organizations like the Red Cross arrive. Team Rubicon staff and volunteers know how to get the work done: "When we arrive on site after a disaster in a foreign country, all eyes and hope have turned to us, expecting immediate action and results. Disasters are no-excuse, results-only zones." Questions - Of those veterans who would like to work for Team Rubicon, what types of rewards are likely to keep them motivated: extrinsic, intrinsic, or both? - How and to what degree do you think Team Rubicon will make a positive impact on natural disaster victims? Explain.

Psychological Contracts Explained

The relationship between individuals and employing organizations typically is formalized by a written contract. But in employees' minds, there also exists a psychological contract—a set of perceptions of what they owe their employers and what their employers owe them.120 This contract, whether it is seen as being upheld or violated—and whether the parties trust one another or not—has important implications for employee satisfaction and motivation and the effectiveness of the organization. Experiencing significant breach of psychological contract also can adversely affect physical and mental health.121 Historically, in big companies, the employment relationship was stable and predictable. But mergers, layoffs, and other disruptions tore apart the old deal.122 As one executive put it, "The 'used-to-be's' must give way to the realities of 'What is and what will be.'"123 The fundamental used-to-be of traditionally managed organizations was that employees were expected to be loyal, and employers would provide secure employment. But now the Page 395 implicit contract goes something like this:124 If people stay, do their own jobs plus someone else's (who has been downsized), and do additional things such as participating in task forces, the company will try to provide a job (if it can), provide gestures that it cares, and keep providing more or less the same pay (with periodic small increases). The likely result of this not-very-satisfying arrangement: uninspired people and a business trying to survive. Career advisors tell disillusioned employees to think of themselves as free agents and to change jobs when a new option beckons. But a better deal is possible, for both employers and employees.125 Ideally, your employer will provide continuous skill updating and an invigorating work environment in which you can use your skills and are motivated to stay even if you have other job options.126 The employer says, in essence, "If you make us more valuable, we'll make you more valuable," and the employee says, "If you help me grow, I'll help the company grow." The company benefits from your contributions, and you thrive in your work while you also become more marketable if and when you decide to look elsewhere. Employment is an alliance—perhaps temporary, perhaps long term—aimed at helping both employer and employee succeed.127 The results of such a contract are much more likely to be a mutually beneficial and satisfying relationship and a high-performing, successful organization. Finally, consider how these ideas for motivation apply at SAS. Read the "Management in Action: Onward" feature and ask yourself whether old-fashioned stable employment relationships can—or should—be the norm.

To foster empowerment,

To foster empowerment, management must create an environment in which all the employees feel they have real influence over performance standards and business effectiveness within their areas of responsibility. An empowering work environment provides people with information necessary for them to perform at their best, knowledge about how to use the information and how to do their work, power to make decisions that give them control over their work, and the rewards they deserve for the contributions they make Such an environment reduces costs because fewer people are needed to supervise, monitor, and coordinate. It improves quality and service because high performance is inspired at the source—the people who do the work. It also allows quick action because people on the spot see problems, solutions, and opportunities for innovation on which they are empowered to act. More specific empowering actions include increasing signature authority at all levels; reducing the number of rules and approval steps; assigning non-routine jobs; allowing independent judgment, flexibility, and creativity; defining jobs more broadly as projects rather than tasks; and providing more access to resources and people throughout the organization.94 You should not be surprised when empowerment causes some problems, at least in the short term. This occurs with virtually any change, including changes for the better. It's important to remember that with empowerment comes responsibility, and employees don't necessarily like the extra accountability at first. People may make mistakes at first, especially until they receive training. And because more training is needed, costs are higher. Furthermore, because people acquire new skills and make greater contributions, they may demand higher wages. But if they are well-trained and truly empowered, they will deserve them—and both they and the company will benefit

Sometimes organizations and managers reinforce the wrong behaviors.

To use reinforcement effectively, managers must identify which kinds of behaviors they reinforce and which they discourage (see Exhibit 13.4). The reward system should support the firm's strategy, defining people's performance in ways that pursue strategic objectives.38 Reward employees for developing themselves in strategically important ways—for building new skills that are critical to strengthening core competencies and creating value. Managers can be creative in their use of reinforcers. Ryan LLC, an international tax services company, took several steps to reward its employees. The firm is flexible about when and where employees do their work. Ryan also offers 12 weeks of paid pregnancy leave, paid 4-week sabbaticals every five years, and subsidies for employee health club memberships.39 Innovative managers use nonmonetary rewards, including intellectual challenge, meaningful responsibilities, autonomy, recognition, and greater influence over decisions. These and other rewards for high-performing employees, when creatively devised and applied, can continue to motivate when pay and promotions are scarce. Employees at Menlo Innovations, a custom software design firm, are empowered to call for companywide meetings by shouting, "Hey, Menlo!" All employees (who work in the same large room) stop what they're doing, listen to their colleague, respond (if needed), and then get back to work. These impromptu meetings are effective and may last only about one or two minutes. Another reward of working at Menlo is the ability to work in pairs. CEO Richard Sheridan believes strongly that paired employees who can ask one another, "Hey, what about this?" while writing software can increase quality and creativity. By creating such a rewarding organizational culture, Sheridan hopes that all of Menlo's employees will experience joy. At 10:30 every morning, when Richard Sheridan, CEO, passes the Viking helmet, Menlo Innovations employees must talk about their day.

Job Rotation, Enlargement, and Enrichment

With job rotation, workers who otherwise would spend all their time in one routine task can instead move from one task to another. Rather than working in a single section of a department store for an entire month, an employee might be rotated through housewares, shoes, and toys. Job rotation is intended to alleviate boredom by giving people different things to do at different times. Page 386 As you may guess, however, the person may just be changing from one boring job to another. But job rotation can benefit everyone when done properly, with people's input and career interests in mind. Starbucks hires MBAs straight out of school to join its Rotational Development Program, a full-time, two-year program that focuses on developing future leaders.73 Job enlargement is similar to job rotation in that people are given different tasks to do. But whereas job rotation involves doing one task at one time and changing to a different task at a different time, job enlargement means that the worker has multiple tasks at the same time. Thus an assembly worker's job is enlarged if he or she is given two tasks rather than one to perform. At a financial services firm, enlarged jobs led to higher job satisfaction, better error detection by clerks, and improved customer service.74 With job enlargement, the person's additional tasks are at the same level of responsibility. *** Job enrichment, however, creates more profound changes by adding higher levels of responsibility. This practice includes giving people not only more tasks but higher-level ones, such as making more important decisions. The first approach to job enrichment was Herzberg's two-factor theory, followed by the Hackman and Oldham model.

Jobs can be enriched by

building in skill variety, task identity, task significance, autonomy, and feedback.

Intrinsic rewards

are essential to the motivation that drives creativity. A challenging problem, a chance to create something new, and work that is exciting in and of itself can provide intrinsic motivation that inspires people to devote time and energy to the task. So do managers who allow people some freedom to pursue the tasks that interest them most. The opposite situations result in routine, habitual behaviors that interfere with creativity. In manufacturing facilities, researchers found that employees initiated more applications for patents, made more novel and useful suggestions, and were rated by their managers as more creative when their jobs were challenging and their managers did not control their activities closely. ____________ Intrinsic rewards are essential to the motivation underlying creativity. Especially in industries that depend on highly motivated knowledge workers, keeping talented employees may require letting them design their own jobs so their work is more interesting than it would be elsewhere.72 Designing jobs in the following ways can make them more intrinsically motivating Bottom Line: Intrinsic rewards and the freedom to be creative are keys to creativity. Why might an employee be more creative when a job is intrinsically rewarding?

Empowerment

empowerment The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. _______________________________________________ We frequently hear managers talk about empowering their people. Individuals may—or may not—feel empowered, and groups can have a culture of empowerment that predicts work unit performance.84 Empowerment is the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. Unfortunately, empowerment doesn't always live up to its hype. One problem is that managers undermine it by sending mixed messages such as "Do your own thing—the way we tell you."85 But empowerment can be profoundly motivating when done properly.86 Empowerment changes employees' beliefs—from feeling powerless to believing strongly in their own personal effectiveness.87 When the job fits their values, empowered employees Page 389 perceive meaning in their work. They feel competent, or capable of performing their jobs with skill. They have a sense of self-determination, of having some choice in regard to the tasks, methods, and pace of their work. And they know they have an impact because they have some influence over important strategic, administrative, or operating decisions or outcomes on the job. The result is that people are more fully invested and engaged in their work—physically, cognitively, and emotionally.88 They take more initiative and persevere in achieving their goals and their leader's vision even in the face of obstacles.89 Ultimately, managed well, they and their units perform at higher levels

The Effort-to-Performance Link

expectancy Employees' perception of the likelihood that their efforts will enable them to attain their performance goals. _____ The first belief, expectancy, is people's perceived likelihood that their efforts will enable them to attain their performance goals. An expectancy can be high (up to 100 percent), such as when a student is confident that if she studies hard, she will get a good grade on the final. An expectancy can also be low (down to a 0 percent likelihood), such as when a suitor is convinced that his dream date will never go out with him. All else equal, high expectancies create higher motivation than do low expectancies. In the preceding examples, the student is more likely to study hard for the exam than the suitor is to pursue the dream date, even though both want their respective outcomes. Expectancies can vary among individuals, even in the same situation. For example, a sales manager might initiate a competition in which the top salesperson wins a free trip to Hawaii. In such cases, the few top people, who have performed well in the past, will be more motivated by the contest than will the historically average and below-average performers. The top people will have higher expectancies—stronger beliefs that their efforts can help them win the competition.

extinction

extinction Withdrawing or failing to provide a reinforcing consequence. — When this occurs, motivation is reduced and the behavior is extinguished, or eliminated. Ways that managers may unintentionally extinguish desired behaviors include not giving a compliment for a job well done, forgetting to say thanks for a favor, and setting impossible performance goals so a person never experiences success. Extinction can be used intentionally on undesirable behaviors, too. The manager might ignore long-winded opining during a meeting or fail to acknowledge unimportant e-mails in the hope that they will discourage the employee from continuing. The first two consequences, positive and negative reinforcement, are positive for the person receiving them—the person either gains something or avoids something negative. Therefore, the person who experiences them will be motivated to behave in the ways that led to the reinforcement. The last two consequences, punishment and extinction, are negative for the person receiving them: motivation to repeat the behavior that led to the undesirable results will drop. Managers should be careful to match consequences to what employees will actually find desirable or undesirable. When a supervisor punished an employee for tardiness by suspending him for three days, the employee was delighted. It was fishing season ***withdrawing or failing to provide a reinforcing consequence. When this occurs, motivation is reduced and the behavior is extinguished, or eliminated. Ways that managers may unintentionally extinguish desired behaviors include not giving a compliment for a job well done, forgetting to say thanks for a favor, and setting impossible performance goals so a person never experiences success

extrinsic reward

extrinsic reward Reward given to a person by the boss, the company, or some other person.

Equity theory explores how an individual's perceptions of

fairness can lead to either feeling satisfied or dissatisfied at work.

Once a need is satisfied,

it is no longer a powerful motivator. For example, labor unions negotiate for higher wages, benefits, safety standards, and job security. These bargaining issues relate directly to the satisfaction of Maslow's lower-level needs. After these needs are reasonably satisfied, the higher-level needs—social, ego, and self-actualization—become dominant concerns.

job enrichment

job enrichment Changing a task to make it inherently more rewarding, motivating, and satisfying

job rotation

job rotation Changing from one task to another to alleviate boredom.

law of effect

law of effect A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated.

____ involves removing or withholding an undesirable consequence a. positive reinforcement b. the law of effect c. extinction d. negative reinforcement

negative reinforcement

negative reinforcement

negative reinforcement Removing or withholding an undesirable consequence. — Examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay. For example, a manager takes an employee (or a school takes a student) off probation because of improved performance.

organizational behavior modification (OB mod)

organizational behavior modification (OB mod) The application of reinforcement theory in organizational settings.

Organizations differ drastically in their attention to PG 394

organizations differ drastically in their attention to QWL. Critics claim that QWL programs don't necessarily inspire employees to work harder if the company does not tie rewards directly to individual performance. Advocates of QWL claim that it improves organizational effectiveness and productivity overall. The term productivity, as applied by QWL programs, means much more than each person's quantity of work output. It also includes turnover, absenteeism, accidents, theft, sabotage, creativity, innovation, and the quality of work. All in all, people's satisfaction and well-being have many important consequences, beneficial to both employees and employers.117 These range from better attitudes and health to work behaviors and performance, and ultimately include firm value and other business outcomes.119 In a well-managed workplace, win-win solutions are indeed possible.

positive reinforcement

positive reinforcement Applying consequences that increase the likelihood that a person will repeat the behavior that led to it. — applying a positive consequence that increases the likelihood that the person will repeat the behavior that led to it. Examples of positive reinforcers include a boss thanking an employee, letters of commendation, favorable performance evaluations, and pay raises

Setting Goals goal-setting theory

states that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end. * Keeping in mind the principle that goals motivate, managers set goals for employees or collaborate with employees to set goals together. ** For example, in order to keep the United States safe, the Department of Homeland Security (DHS) sets goals to prevent cyber and all other types of terrorist attacks. * Goal setting works for any job in which people have control over their performance. * You can set goals for performance quality and quantity, and behavioral goals such as cooperation or teamwork. * In fact, you can set goals for whatever is important.

Stretch Goals

stretch goals Targets that are particularly demanding, sometimes even thought to be impossible. Some firms and bosses set stretch goals—targets that are exceptionally demanding and that some people would never even think of. There are two types of stretch goals: vertical stretch goals, aligned with current activities including productivity and financial results, and horizontal stretch goals, which involve people's professional development such as attempting and learning new, difficult things.16 Impossible though stretch goals may seem to some, they sometimes are in fact attainable. Stretch goals can generate a major shift away from mediocrity and toward tremendous achievement. But if someone tries in good faith but doesn't meet their stretch goals, don't punish them—remember how difficult their goals are! Base your assessment on how much performance has improved, how the performance compares with others, and how much progress has been made. ****Goals can generate manipulative game-playing and unethical behavior.******