MGMT 309 - Chapter 15

What is the equity theory equation?

(individual inputs/ individual outputs) = (other's inputs/ other's outcomes)

What are the 5 need levels of Maslow's hierarchy of needs?

- Physiological needs - Security needs - Belongingness needs - Esteem needs - Self-actualization needs

What are the four kinds of basic reinforcement?

- Positive Reinforcement - Avoidance - Punishment - Extinction

What are the three historical perspectives on motivation?

- The traditional approach - The human relations approach - The human resources approach

What are the three useful process perspectives on motivation?

- expectancy - equity - goal-setting theories

What is individual performance generally determined by?

- motivation (the desire to do the job) - ability (the capability to do the job) - work environment (the resourced needed to do the job)

What are the three individual human needs?

- need for achievement - need for affiliation - need for power

What does the Traditional Approach assume?

that economic gain was the primary thing that motivated everyone. Therefore, the money they earn is more important to employees than the nature of the job they are performing.

What do needs hierarchies assume?

that people have different needs that can be arranged in a hierarchy of importance.

What does The Human Resource Approach assume?

that the contributions themselves are valuable to both individuals and organizations. it also assumes that people want to contribute and are able to make genuine contributions.

What is goal specificity?

the clarity and precision of the goal. A goal of "increasing productivity" is not very specific; a goal of "increasing productivity by 3% in the next six months" is quite specific.

What is need for achievement?

the desire to accomplish a goal or task more effectively than in the past (the best known of the three)

What is the need for power?

the desire to be influential in a group and to control one's environment. Research has shown that people with this need are likely to be superior performers, have good attendance records, and occupy supervisory positions.

What does the expanded version of Goal-setting theory argue?

the expanded theory argues that goal-direction effort is a function of four goal attributes: - difficulty - specificity - acceptance - commitment

What is goal difficulty?

the extent to which a goal is challenging and requires effort. But a goal must not be so difficult that it is unattainable

What is goal acceptance?

the extent to which a person accepts a goal as his or her own.

What is goal commitment?

the extent to which she or he is personally interested in reaching the goal.

What do content perspectives on motivation deal with?

the first part of the motivation process -- needs and need deficiencies.

What is an organization reward system?

the formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded

Rewards that are tied specifically to performance, have the greatest impact on what?

the greatest impact of enhancing both motivation and actual performance.

What are the growth needs?

the highest level of this schema, includes the need for self-esteem and self-actualization

What are hygiene factors?

factors presumed to cause dissatisfaction that are related to the work environment such as supervisors, working conditions, interpersonal relations, pay and security, and company policies and administration.

What are motivation factors?

factors that influence the satisfaction continuum that are related specifically to work content such as achievement, recognition, the work itself, responsibility, and advancement and growth.

What are the Relatedness needs?

focus on how people relate to their social environment.

What illusion does the Human Relations Approach give?

gives an illusion of involvement and importance to satisfy workers' basic social needs and result in higher motivation to perform.

In the original version of goal-setting theory, what were the two specific goal characteristics?

goal difficulty and goal specificity -- were expected to shape performance

What are process perspectives concerned with?

how motivation occurs.

What is the frustration-regression element?

if needs remain unsatisfied, the person will become frustrated, regress to a lower level, and begin to pursue those things again.

What is a major advantage of incentives relative to merit systems?

incentives are typically a one-shot reward and do not accumulate by becoming part of the individual's base salary.

What is behavior modification or OB Mod?

method for applying the basic elements of reinforcement theory in an organizational setting

What is a variable-ratio schedule?

provides reinforcement after varying number of behaviors are performed, such as the use of complements by a supervisor on an irregular basis. the most powerful schedule in terms of maintaining desired behaviors.

What is fixed-time schedule?

provides reinforcement at fixed intervals of time, regardless of behavior such as regular weekly paychecks.

What is Merit Pay?

refers to pay awarded to employees on the basis of the relative value of their contributions to the organization.

Belongingness needs:

related to social processes. They include the need for love and affection and the need to be accepted by one's peers

If the individual is indifferent to the outcome, what is the valence?

the valence is zero

What four assumptions does expectancy theory rest on?

1) behavior is determined by a combination of factors in the individual and in the environment 2) people make decisions about their own behavior in organizations 3) different people have different types of needs, desires, and goals. 4) people make choices from among alternative plans of behavior, based on their perceptions of the extent to which a given behavior will lead to desired outcomes.

According to Expectancy theory, what three conditions must be met for motivation behavior to occur?

1) effort-to-performance expectancy must be greater than 0 2) performance-to-outcome expectancy must be greater than 0 3) the sum of the valences for the outcomes must be greater than 0

What are the two difference between Maslow's theory and the ERG theory?

1) the ERG theory suggests that more than one level of need can cause motivation at the same time 2) the ERG theory has what has been called a frustration-regression element.

What percent of of the U.S. population has a high need for achievement?

10% of the U.S. population

Who created the Maslow's hierarchy of needs?

Abraham Maslow

What is an example of avoidance?

An employee may come to work on time to avoid a reprimand

Who developed the two-factor theory of motivation?

Frederick Herzberg after interviewing 200 accountants and engineers.

Who created the traditional approach to motivation?

Fredrick W. Taylor

What are the two best known Need Hierarchy theories?

Maslow's Hierarchy of needs and the ERG Theory

What system are among the most fundamental forms of performance-based rewards?

Merit rewards systems

What needs are the most difficult to address in Maslow's theory?

Self-actualization

What is the need for affiliation?

The desire for human companionship and acceptance. People with this strong need are likely to prefer (and perform better in) a job that entails a lot of social interaction and offers opportunities to make friends.

What is positive reinforcement?

a method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed.

What does the motivation process begin with?

a need deficiency

Security needs:

a secure physical and emotional environment. Examples include job continuity, a grievance system, and an adequate insurance and retirement package.

What are the three most important individual needs?

achievement, affiliation, and power

What is telecommuting?

allowing employees to spend part of their time working offsite, usually at home

What is Valence?

an index of how much a person wants a particular outcome; the attractiveness of the outcome to the individual

What is Equity?

an individual's belief that the treatment he or she is receiving is fair relative to the treatment received by others.

What is the most basic tool for managing employee motivation?

an organization's reward system

Content Perspectives

approach to motivation that tries to answer the question, What factor or factors motivate people?

What are process perspectives?

approaches to motivation that focus on why people choose certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained these goals.

What is the Reinforcement Theory?

argues that behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.

What do people with high need for achievement assume?

assume personal responsibility, tendency to set moderately difficult goals, a desire to specific and immediate feedback, and a preoccupation with their task.

What does Goal-Setting Theory of motivation assume?

assumes that behavior is a result of conscious goals and intentions. Therefore, by setting goals for people in the organization, a manager should be able to influence their behavior.

What is the profit-sharing approach?

at the end of the year some portion of the company's profits is paid into a profit-sharing pool that is then distributed to all employees.

What are the two forms that most senior executives receive their compensation?

base salary and bonuses

Self-actualization needs:

realizing one's potential for continued growth and individual development.

What are Merit Pay Plans?

compensation plans that formally base at least some meaningful portion of compensation on merit.

What are outcomes?

consequences of behaviors in an organizational setting, usually rewards.

What are existence needs?

correspond to the physiological and security needs

What does the Human Relations Approach assume?

employees wants to feel useful and important, that employees have strong social needs, and that these needs are more important than money in motivating them.

What is a stock option plan?

established to give senior managers the option to buy company stock in the future at a predetermined fixed price.

What is The Scanlon Plan?

one specific type of gainsharing plan but the distribution of gains is tilted much more heavily toward employees, with employees usually receiving between two-thirds and three-fourths of the total cost saving that the plan achieves.

What are Gainsharing programs?

programs designed to share the cost savings from the productivity improvements with employees

What is fixed-ratio schedule?

provides reinforcement after a fixed number of behaviors regardless of the time interval involved, such as bonus for every fifth sale. This results in an even higher level of effort.

What is an employee stock ownership plan (ESOPs)?

represent a group-level reward system that some companies use. under the employee stock ownership plan, employees are gradually given a major stake in ownership of a corporation.

What is a piece-rate incentive plan?

reward system wherein the organization pays an employee a certain amount of money for every unit he or she produces. for example, an employee gets $1 for every dozen units sold

What is an individual incentive plan?

rewards individual performance on a real-time basis.

What is the most common form of individual incentives?

sales commission are the most common

What does expectancy theory suggest?

suggests that motivation depends on two things - how much we want something and how likely we think we are to get it.

What does Equity Theory suggest?

suggests that people are motivated to seek social equity in the rewards they receive for performance.

What is the ERG Theory of motivation?

suggests that people's needs are grouped into three possible overlapping categories - existence, relatedness, and growth.

What is the Two-Factor Theory of Motivation?

suggests that people's satisfaction and dissatisfaction are influenced by two independent set of factors -- motivation factors and hygiene factors

What is the Porter-Lawler Extension?

suggests that there may be a relationship between satisfaction and performance but that it goes in the opposite direction - that is, high performance may lead to high satisfaction.

What is effort-to-performance expectancy?

the individual's perception of the probability that effort will lead to high performance.

What is Performance-to-Outcome expectancy?

the individual's perception that performance will lead to a specific outcome

What is empowerment?

the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority.

What is participation?

the process of giving employees a voice in making decisions about their own work.

Motivation

the set of forces that cause people to behave in certain ways.

What is the assumption behind Gainsharing?

the underlying assumption is that employees and the employer have the same goals and thus should appropriately share in incremental economic gains.

If the individual does not want the outcome, what is the valence?

the valence is negative

If the individual wants the outcome, what is the valence?

the valence is positive

Physiological needs:

things like food, sex, and air, which represent basic issues of survival and biological function. In organizations, these needs are generally satisfied by adequate wages and the work environment itself

What is the most general form of a merit pay plan?

to provide annual salary increase to employees based on their relative merit.

Esteem needs:

two different set of needs: the need for a positive self-image and self-respect, and the need for recognition and respect from others.

What is avoidance?

used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed.

How is extinction used?

used to weaken undesired behaviors by simply ignoring or not reinforcing them.

Define Punishment:

used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed.

What is variable-interval schedule?

uses time as the basis of reinforcement, but provides reinforcement at varying intervals of time, such as occasional visits by the supervisor

How are bonuses determined?

usually determined by the performance of the organization.

What is job sharing?

when two part-time employees share one full-time job

What is a flexible work schedule?

work schedule in which employees have some control over the hours they choose to work; also called flextime. Their workday is broken down into two categories: Flexible time and core time.

What is a compressed work schedule?

working a full 40-hour week in fewer than the traditional five days.