MGMT316 - ch.12.1-12.3, 12.5,12.6 - Motivation

Goals should be made up of these (goal-setting theory)

- Goal should be specific - Challenging but achievable - Relevant, linked to action plans - Don't have to be set jointly to be effective: can be set by the manager, employee, or both. Manager should do whatever suits the situation (contingency approach) - High goal commitment - Feedback enhances goal attainment

Ways Employees Try and Reduce Inequity

- They will reduce inputs: do less work, take long breaks, call in sick - Try to change the outputs or rewards they receive: Lobby for the boss for a raise - They will distort the inequity: they will exaggerate how hard they work in order to complain - They will change the object of comparison: compare themselves with another person, not the original one - They will leave the situation: quit, transfer

Popular incentive compensation plans

- pay for performance: merit pay, bases pay on one's results. ex: piece rate (paid based off of how much output they produce) and sales commission - Bonuses - Profit Sharing: the distribution to employees of a percentage of the company's profits - Gainsharing: distribution of saving or "gains" to groups of employees who reduced costs and increased measurable productivity - stock options - pay for knowledge: ties employee pay to the number of job-relevant skills or academic degrees they earn

The 4 major perspectives on motivation

Content Process Job design Reinforcement

McClelland's Acquired Needs Theory

David McClelland proposed the Acquired Needs Theory states three needs -- Achievement, Affiliation, and Power -- are major motives determining people's behavior in the workplace. He says we are not born with these needs, we earn them from culture or life experiences

Self-Determination Theory

Developed by Edward Deci and Richard Ryan, psychologists at the University of Rochester. Self-Determination Theory assumes that people are driven to try to grow and attain fulfillment, with their behavior and well-being influenced by 3 innate needs: competence, autonomy, and relatedness. It focuses on intrinsic motivation and rewards because it is longer lasting than extrinsic and has more positive impact on task performance

Equity theory

Developed by J. Stacey Adams, it focuses on employee perceptions as to how fairly they think they are being treated compared with others. Based on the idea that employees are motivated to see fairness in the rewards they expect for task performance. Inputs, outputs (reward), comparison

Reinforcement Theory

Edward L Thorndike and B.F. Skinner Attempts to explain behavior change by suggesting that behavior with positive consequences tends to repeated, whereas behavior with negative consequences tends not be repeated. It is anything that causes a given behavior to be repeated or inhibited

Goal-Setting Theory

Edwin Locke and Gary Latham Suggests that employees can be motivated by goals that are specific and challenging but achievable. It is natural to set and strive for goals; however, the goal-setting theory is useful only if people understand and accept goals

Herzberg's Two-Factor Theory: satisfaction and dissatisfaction

Frederick Herzberg proposed that work satisfaction and dissatisfaction arise from 2 different factors - work satisfaction from motivating factors and work dissatisfaction from hygiene factors. Basic Lesson: first eliminate hygiene factors then concentrate on spurring motivation by providing employees with motivational factors.

Alderfer's Needs Hierarchy ERG

From top to bottom on pyramid Growth Relatedness Existence (see diagram)

The Elements of Equity Theory:

Inputs: "What do you think you're putting into the job? Their time, effort, training, experience, intelligence, etc. Outputs or rewards: "What do you think you're getting out of the job?" The rewards that people receive from work: pay, benefits, praise, recognition, etc. Comparison: "How do you think your ration of inputs and rewards compares with those of others?"

Using Reinforcement to motivate Employees

Positive Reinforcement: - reward only desirable behavior - give rewards as soon as possible - be clear about what behavior is desired - have different rewards and recognize individual differences Punishment: - punish only undesirable behavior - give reprimands or disciplinary actions as soon as possible - be clear about what behavior is undesirable - administer punishment privately - combine punishment and positive reinforcement.

4 types of Reinforcement

Positive reinforcement: strengthens behavior, will be repeated Negative: Also strengthens behavior by withdrawing something negative Extinction: the weakening of behavior by ignoring it or making sure it is not reinforced Punishment: weakening behavior by presenting something negative or withdrawing something positive

Extrinsic Reward

Satisfaction in the payoff from others. It's the payoff, such as money, a person receives from others for performing a particular task. It's external; comes from pleasing others

Expectancy Theory

Victor Vroom introduced expectancy theory that suggests that people are motivated by 2 things: How much they want something and How likely they think they are to get it. Assuming you have choices, people will make the choice that promises them the greatest reward if they think they can get it. "You will do what you can do when you want to"

Process Perspectives

concerned with the thought processes by which people decide how to act. 3 process perspectives on motivation: Equity theory Expectancy Theory Goal-setting Theory

Intrinsic Reward

satisfaction in performing the task itself. It's the feeling accomplishment a person receives from performing the particular task itself. Internal, pleasing yourself.

Motivation

the psychological processes that arouse and direct goal-directed behavior. Hard to see but we can infer.

Self-Determination Theory's 3 Innate Needs

1. Competence: I want to feel a sense of mastery. People need to feel qualified, knowledgeable and capable of completing a goal or task and to learn different skills. 2. Autonomy: I want to feel independent able to influence my environment. People need to feel that they have freedom and discretion to determine what they want to do and how they want to do it. 3. Relatedness: I want to feel connected to other people. People need to feel a sense of belonging

4 Motivational Mechanisms of Goal-Setting Theory

1. Directs your attention: towards goal-relevant tasks and away from irrelevant ones 2. It regulates the effort expended: effort expended is proportional to the goal's difficulty 3. It Increases your persistence: makes obstacles becomes challenges to be overcome, not a reason to fail 4. It fosters the use of Strategies and Action Plans: this will make it more likely for you to realize success

Three lessons drawn from equity theory:

1. Employee Perceptions are what count: no matter how fair managers are, each employee's perception of those factors is what counts 2. Employee Participation Helps: managers benefit from employees participation on important decisions 3. Having an Appeal Process Helps: promotes employees belief that management treats them fairly. Perception of fair treatment promote job satisfaction, commitment, and reduces turnover

3 Elements to Expectancy Theory

1. Expectancy: The belief that a particular level of effort will lead to a particular level of performance. "Will I be able to perform at the desired level on a task?" 2. Instrumentality: the expectation that successful performance of the task will lead to the outcome desired. "What outcome will I receive if I perform at this level?" The performance-to-reward expectancy 3. Valence: a value, the importance a worker assigns to the possible outcome or reward. "How much do I want the outcome?" F = V x I x E (f is the force of motivation)

You want to Motivate people to: (in order of importance)

1. Join your organization: you need talented prospective workers who desire to come to work for you 2. Stay with your organization: want to be able to retain good people 3. Be engaged while at work: engaged employees produce higher quality work and better customer service 4. Do extra for your organization: hope that your employee will perform extra tasks above and beyond the call of duty (good citizens)

Characteristics of the Best compensation plans

1. Rewards must be linked to performance and be measurable 2. Rewards must satisfy individual needs 3. the rewards must be agreed on by manager and employees 4. the rewards must be believable and achievable by employees

Maslow's hierarchy of needs theory

Abraham Maslow proposed that people are motivated by five levels of needs: 1) physiological: the most basic human need, food, clothing, shelter all covered by wages from work 2) safety: physical and emotional security. health insurance, job security, pension plans 3) Love: friendship, affection. Office parties, company softball teams, retreats 4) Esteem: the need for self-respect, status, recognition. Bonuses, promotions, awards 5) Self-actualization: highest level of need: self-fulfillment, using abilities to the fullest. Sabbatical leave to further personal growth. **This suggests that needs are never fully satisfied

McClelland's 3 needs: Achievement, Affiliation, and Power

Achievement: I need to excel at tasks Affiliation: I need close relationships Power: I need to control others --> 2 forms of power; personal and institutional. Personal power is bad bc it's about dominating/manipulating others. Institutional power is good bc it's about solving problems that will further the company. *A well-balanced person has all 3 of these of equal proportion

Content perspectives and theories

Also known as "need-based perspective" are theories that emphasize the needs that motivate people. Content theorists ask; "what kind of needs motivate employees" Needs are defined as physiological or psychological deficiencies that arouse behavior. 4 theories: Maslow's hierarchy of needs theory McClellands acquired needs theory Alderfer ERG Deci and Ryan's self-determination theory Herzberg's 2-factor theory

Contextual factors that lead to motivation and employee engagement

Organizational culture Cross-cultural values Physical environment Rewards and reinforcement Group norms Communications technology Leader behavior Organizational design

Personal Factors that lead to motivational an employee engagement

Personality, attitude, needs, emotion, core self-evaluations, ability

Using expectancy theory to motivate Employees

The main problem is that Expectancy theory is complex. The underlying logic in understandable but most managers don't follow its principles. If they wanted to use it, managers should ask: - What rewards do your employees value? - What are the job objectives and the performance level you desire? - Are the rewards linked to performance? - Do employees believe you will deliver the right rewards for the right performance

Non-monetary ways of motivating employees

The need for work-life balance: people want a life The need to expand skills The need to matter

hygiene factors vs. motivating factors (Herzberg's Two-Factor Theory)

hygiene factors: Why are my people dissatisfied? The lower-level needs, hygiene factors are associated with job dissatisfaction such as salary, working conditions, interpersonal relationships, and company policy, all of which affect the job context in which people work. Motivating Factors: What will make my people satisfied? They are associated with job satisfaction such as achievement, recognition, responsibility, and advancement, all of which affect the job content or the rewards of work performance. These must be instituted to spur superior work performance.