Ch. 5: Theories of Motivation

Learning Objectives

1) Understand the role of motivation in determining employee performance 2) Classify the basic needs of employees 3) Describe how fairness perceptions are determined and consequences of these perceptions 4) Understand the importance of rewards and punishments 5) Apply motivation theories to analyze performance problems

NEED-BASED THEORIES OF MOTIVATION

5.2 Learning Objectives: 1) Explain how employees are motivated according to Maslow's hierarchy of needs 2) Explain how the ERG (existence, relatedness, growth) theory addresses the limitations of Maslow's hierarchy 3) Describe the differences among factors contributing to employee motivation and how these differ from factors contributing to dissatisfaction 4) Describe need for achievement, power, and affiliation, and identify how these acquired needs affect work behavior

PROCESS-BASED THEORIES OF MOTIVATION

5.3 Learning Objectives: 1) Explain how employees evaluate the fairness of reward distributions 2) Describe the three types of fairness that affect employee attitudes and behaviors 3) List the three questions individuals consider when deciding whether to put forth effort at work 4) Describe how managers can use learning and reinforcement principles to motivate employees

THE ROLE OF ETHICS AND NATIONAL CULTURE

5.4 Learning Objectives: 1) Consider the role of motivation for ethical behavior 2) Consider the role of national culture on motivation theories

Job performance

Function of three factors/forces expressed with the following equation: Performance = Motivation x Ability x Environment

Need-based theories

describe motivated behavior as individual's efforts to meet their needs

Environmental factors

external factors that affect performance Ex) resources, information, support one needs to perform well

Motivators

factors intrinsic to the job; factors that truly motivate employees Ex) achievement, recognition, interesting work, increased responsibilities, advancement, growth opportunities

Hygiene factors

factors that are extrinsic to the job; they are part of the context in which the job is performed, not the job itself; factors that cause worker dissastisfaction Ex) company policies, supervision, working conditions, salary, safety and security on the job

Love and belonging (social) needs

friendship, family, sexual intimacy, sense of connection Ex) having a friendly environment and providing a workplace conducive to collaboration and communication with other; company picnics and other social get-togethers

ERG Theory

Clayton Alderfer grouped together basic human needs under three categories: 1) Existence 2) Relatedness 3) Growth •a modification of Maslow's hierarchy of needs; a relaxation of Maslow's assumptions •DOES NOT RANK NEEDS IN ANY PARTICULAR ORDER •explicitly recognizes that MORE THAN ONE MAY OPERATE AT A GIVEN TIME •also has a "frustration-aggression" hypothesis suggesting that when people are frustrated in their attempts to satisfy one need they may regress to another •implications in business: we need to recognize the multiple needs that may be driving individuals at a given point to understand their behavior and properly motivate them

Reactions to inequity

Distorting perceptions: altering our perceptions of our own or the referents inputs and outcomes Ex) justifying the situation by downplaying our own inputs; valuing our outcomes more highly; distorting the other person's inputs; distorting the other person's outcomes Increase referent's inputs: Ex) if other person brings more to the situation, then them getting more out of the situation would be fair; if that person can be made to work harder or work more complicated tasks, equity would be achieved Reduce one's inputs: Ex) if the lower paid person puts forth less effort, the perceived inequity would be reduced; people who perceive inequity reduce their work performance or quality of their inputs Increasing one's outcomes: Ex) legitimate means such as negotiating a pay raise Ex) stealing to balance the scales Changing the comparison person Leaving the situation by quitting Legal action: Ex) if the main reason behind the pay gap is gender related, then the person may react to the situation by taking legal action because sex discrimination in pay is illegal in the US

Physiological needs

breathing, food, sex, sleep, homeostasis

Two-Factor Theory

Herzberg approached the question of motivation by asking individuals what satisfied them on the job a what dissatisfies them; he came to the conclusion that aspects of the work environment that satisfy employees are very different from aspects that dissatisfy them •labeled factors causing dissatisfaction as "hygiene" factors •labeled factors that motivate employees "motivators" •limitations: methodology in determining hygiene versus motivators •implications in workplace: valuable aid to managers because it points out that improving the environment in which the job is performed goes only so far in motivating employees; solely focusing on hygiene factors will not be enough and managers should also enrich jobs by giving employees opportunities for challenging work, greater responsibilities, advancement opportunities, and a job in which their subordinates can feel successful

Acquired-Needs Theory

McClelland's theory that proposes that certain types of needs (achievement, affiliation, power) are acquired during an individual's lifetime and life experiences (this need-based theory has received the greatest amount of support) •all individuals possess a combination of these needs, and the dominant needs are thought to drive employee behavior •important implications for the motivations of employees: managers need to understand the dominant needs of their employees to be able to motivate them!

Three factors of job performance

Motivation Ability Environment •at different times, one of these three factors may be the key to high performance Ex) motivation- an employee sweeping the floor Ex) ability- designing a house; necessary training is needed to build quality homes

2 categories of motivation theories

Need-based theories Process theories

Existence

need corresponding to Maslow's physiological and safety needs

Reinforcement schedules

The timing (often referred to as a schedule) with which reinforcement is delivered has a bearing on the ensuing behavior 1) Continuous schedule 2) Fixed ratio schedule 3) Fixed interval schedule 4) Variable ratio schedule

Relatedness

need corresponding to Maslow's social needs

Referent other

a person we compare ourselves to in equity theory •may be a specific person as well as a category of people •should be comparable to us--otherwise the comparison is not meaningful Ex) student worker comparing self to someone performing similar tasks within the same organization or a different organization (not the CEO of the company!)

Equity sensitivity

a personality trait that explains different reactions to inequity; inequity does not disturb everyone equally •equity-sensitive individuals expect to maintain equitable relationships, and they experience distress when they feel they are over-rewarded or under-rewarded

Organizational Behavior Modification (OB Mod)

a systematic application of reinforcement theory to modify employee behaviors in the workplace model consists of 5 stages: 1) Identifying behavior to behavior to be modified 2) Measure the baseline level of the behavior 3) Analyze its antecedents and outcomes 4) Intervene 5) Evaluate and maintain •OB Mod interventions resulted in 17% improvement in performance

Equity Theory

a theory that states that individuals are motivated by a sense of fairness in their interactions •our sense of fairness is a result of the social comparisons we make •we compare our inputs and outputs with other people's inputs and outputs •we perceive fairness if we believe that the input-to-outcome ratio we are bringing to the situation is similar to the input-to-outcome ratio of a comparison person (referent) •perceptions of inequity create tension within us and drive us to action that will reduce perceived inequity •evidence that individuals react negatively to equal distribution of outcomes that disregards differences in individual contributions; our brains react in a way that shows discomfort when rewards are distributed in a way that violates equity theory •should acknowledge that equity perceptions develop as a result of a subjective process! •different people may look at the same situation and perceive different levels of equity

High need for achievement

have a strong need to be successful •as children, they may be praised for their hard work, which form the foundations of their persistence •as adults, they are preoccupied with doing things better than they did in the past •constantly striving to improve their performance •relentlessly focus on goals, particularly stretch goals that are challenging in nature •particularly suited to positions in sales: explicit goals, immediate feedback, effort leads to success •more attracted to organizations that are merit-based and reward performance rather than seniority •often promoted to higher level positions •problems in managerial positions: may view managerial activities as a waste of time and may neglect these aspects of their jobs; enjoy doing things themselves and may find it difficult to delegate authority to subordinates; often micromanage, expecting others to do a task a particular way and may become overbearing bosses by expecting everyone to display high levels of dedication

Ability

having the skills and knowledge required to perform the job

Inputs

in equity theory, the contributions employees feel that they are making to the environment Ex) hard work, loyalty to the organization, amount of time within the organization, level of education/training/skills

Outputs

in equity theory, what rewards employees perceive that they are receiving from the situation Ex) an hourly wage, acknowledgement of preferential treatment from a manager

Entitleds

individuals who expect to receive a lot without giving much in return

Benevolents

individuals who give without waiting to receive much in return

Fixed interval schedule

involve providing a reward after a specified period of time Ex) Estee Lauder was the first company to provide a "gift with purchase" certain times of the year to increase cosmetic sales Ex) employers giving end-of-the-year bonuses to align with the holiday season

Fixed ratio schedule

involve providing rewards every nth time the right behavior is demonstrated Ex) some hair salons hoping to keep regular customers often give away a free haircut every 10th haircut Ex) an employee receiving a bonus for every 10th sale he makes

Variable ratio

involves providing the reinforcement on a random pattern •provide the most durable results! Ex) praising the employee occasionally when the person shows up on time Ex) casino slot machines pay out on a variable ratio schedule to provide an element of chance to their patrons Ex) firms that provide a sales bonus every time the manager is in a good mood use this schedule at their own risk

Positive reinforcement

making sure that behavior is met with positive consequences; used to increase the desired behavior Ex) praising an employee for treating a customer respectfully; this will make the employee see a link between the behavior and positive consequence and they will be motivated to repeat similar behaviors

Thematic Apperception Test (TAT)

method used by McClelland to asses the dominant need •present research subjects with an ambiguous picture and have them write a story based on it •the story one writes would be analyzed by trained experts •the stories the photo evokes would reflect how the mind works and what motivates the person •need for achievement: story contains themes of success, meeting deadlines, coming up with brilliant ideas •need for affiliation: story contains elements of making plans to be with friends or family •need for power: story contains elements of getting work done by influencing other people or desiring to make an impact on the organization

Self-actualization needs

morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts Ex) development and growth opportunities on or off the job; work that is interesting and challenging

Growth

need corresponding to Maslow's esteem and self-actualization

Punishment

presenting negative consequences following unwanted behaviors; used to reduce the frequency of undesirable behaviors Ex) giving an employee a warning for consistently being late to work

Negative reinforcement

removal of unpleasant outcomes once desired behavior is demonstrated; used to increase desired behavior •the negative stimulus will remain in the environment until positive behavior is demonstrated •problem: negative stimulus may lead to unexpected behaviors and fail to stimulate the desired behavior Ex) nagging an employee to complete a report; the negative nagging will persist until the employee completes their task

Safety and security needs

security of body, employment, resources, morality, family, health, property Ex) providing generous benefits that include health insurance and company-sponsored retirement plans; offering a measure of job-security

Esteem needs

self-esteem, confidence, achievement, respect of others, respect by others Ex) providing promotion opportunities at work, recognizing a person's accomplishments verbally or through more formal reward systems, and conferring job titles that communicate to the employee that one has achieved high status within the organization

Procedural justice

the degree to which fair decision-making procedures are used to arrive at a decision •individuals expect decision-making processes to be fair •employees care about the procedural justice of many organizational decisions such as layoffs, employee selection, surveillance of employees, performance appraisals, and pay decisions •when people do not get the rewards they want, they tend to hold management responsible if procedures are not fair Whey employees care: 1) people tend to believe that fairness is an end in itself and it is the right thing to do 2) fair processes guarantee future rewards 3) fairness communicates that the organization values its employees and cares about their well-being Ways to achieve: Ex) giving employees advance notice before laying off, firing, or disciplining them is perceived as fair Ex) allowing employees voice in decision-making increases perceptions of fairness Ex) providing explanation to employees when they are not able to participate is helpful in fostering fairness Ex) consistency in treatment

Interactional justice

the degree to which people are treated with respect, kindness, and dignity in interpersonal interactions •we expect to be treated with dignity by our peers, supervisors, and customers •when the opposite happens, we feel angry •even when faced with negative outcomes such as pay cut, being treated with dignity and respect softens the blow and alleviates our stress

Distributive justice

the degree to which the outcomes received from the organization are fair

Instrumentality

the degree to which the person believes that performance is related to secondary outcomes such as rewards Ways managers can influence instrumentality perceptions: •showing employees that their performance is rewarded •connect pay an other rewards to performance using bonuses, award systems, and merit pay •publicizing any contests or award programs is needed to bring rewards to the awareness of employees •highlight that performance, not something else, is being rewarded

Motivation

the desire to achieve a goal or a certain performance level, leading to goal-oriented behavior •being "motivated" = trying hard to accomplish a certain task •being motivated is not the same thing as being a high performer; not the sole reason why people perform well!

Extinction

the removal of rewards following negative behavior; used to decrease the frequency of negative behaviors •sometimes negative behaviors are demonstrated because they are being inadvertently rewarded •when people are rewarded for their unethical behaviors, they tend to demonstrate higher levels of unethical behaviors •when rewards for unwanted behaviors are removed, the frequency of those future negative behaviors may be reduced Ex) ignoring a friend's posts online by not liking them anymore

Valence

the value of the rewards awaiting the person as a result of performance Ways managers can influence valence: •employees are more likely to be motivated if they find the reward to be attractive, so managers must find what their employees value •desirable rewards that are fair and satisfy different employees' diverging needs •ensuring high valence involves getting to know a company's employees by talking to them and surveying them about what rewards they find valuable •giving employees a choice between multiple rewards

Fairness Beyond Equity: Procedural and Interactional Justice

the way equity theory defines fairness is limited to fairness of rewards! •since equity theory deals with outcomes fairness, it is considered to be a distributive justice theory •two other types of fairness: procedural justice and interactional justice •benefits of paying attention to all 3 types of justice perceptions: in addition to being the right thing to do, paying attention to justice perceptions leads to outcomes companies care about! •injustice is directly harmful to employees' psychological health and well-being and contributes to stress and depressions; low levels of justice lead to retaliation and support of unionization •high levels of justice create higher levels of employee commitment to organizations, and they are related to higher job performance, higher levels of organizational citizenship, and higher levels of customer satisfaction

Maslow's Hierarchy of Needs

theory based on a simple premise: human beings have needs that are hierarchically ranked •the pyramid represents how human needs are ranked •as we satisfy basic needs, we start looking to satisfy higher-order needs •once as lower-level needs is satisfied, it no longer serves as a motivator! •problems: no research supporting that once a need is satisfied it no longer serves as a motivator and that only one need is dominant at a given time •applications to business settings: understanding what people need gives us clues to understanding them; this hierarchy is a systematic way of thinking about the different needs employees may have at any given point and explains different reactions they may have to similar treatment

Expectancy Theory

theory that argues that individual motivation to put forth more or less effort is determined by a rational calculation in which individuals evaluate their situation according to this theory, individuals ask themselves 3 questions: 1) Will my effort lead to high performance (expectancy) 2) Will performance lead to outcomes? (instrumentality) 3) Do I find the outcomes desirable? (valence) Expectancy x Instrumentality x Valence •a well-accepted theory that is simple and intuitive •managers can influence all three perceptions

Reinforcement Theory

theory that behavior is a function of its outcomes; positive and negative reinforcement motivate a person to behave in certain ways •people learn to repeat their behaviors based on the consequences following their prior activities •when the consequence immediately follows the behavior, the employee will link the behavior with the consequence 4 interventions to modify employee behavior: 1) Positive reinforcement 2) Negative reinforcement 3) Punishment 4) Extinction

Process-based theories

use the mental processes of employees as the key to understanding employee motivation

High need for affiliation

want to be liked and accepted by others •prefer to interact with others and be with friends •emphasis on harmonious interpersonal relationships may be an advantage in jobs and occupations reqiuring frequent interpersonal interaction, such as social worker or teach •disadvantages in managerial positions: tend to be overly concerned about how they are perceived by others; may find it difficult to perform some aspects of a manager's job such as giving employees critical feedback or disciplining poor performers

High need for power

want to influence others and control their environment •may in fact be a destructive element in relationships with colleagues if it takes the form of seeking and using power for one's own good and prestige •manifested in more altruistic forms such as changing the way things are done so that the work environment is more positive, or negotiating more resources for one's department, it tends to lead to positive outcomes •the need for power is view as an important trait for effectiveness in managerial and leadership positions!

Continuous schedule

when reinforcers follow all instances of positive behavior •impractical in many instances Ex) parents who stock up on stickers etc. to reward their children when potty training them Ex) giving an employee a sales commission every time he makes a sale

Expectancy

whether the person believes that high levels of effort will lead to outcomes of interest such as performance or success Ways managers can influence expectancy perceptions: •training employees to have the skills, knowledge, and abilities to successfully perform their jobs •hiring people who are qualified for the jobs in question •clearing the path to performance and creating an environment in which employees do not feel restricted if they perceive that resources are lacking or roles or unclear •providing positive feedback and encouragement to help employees perceive a connection between their effort and performance level, if they have an external locus of control, low self-esteem, etc.

Motivation and Ethics

•employees may engage in unethical behaviors to satisfy particular needs •based on reinforcement theory, people will demonstrate higher unethical behaviors if their unethical behaviors are followed by rewards or go unpunished •according to expectancy theory, if people believe that their unethical actions will be rewarded with desirable outcomes, they are more likely to demonstrate unethical behaviors •rewards and punishments motivate unethical behaviors •to minimize the occurrence of unethical behavior it is important to examine the rewards and punishments that follow unethical behavior and remove rewards following unethical behavior, while increasing the severity and likelihood of punishment

Motivation Around the Globe

•factors that motivate employees in different cultures may not be equivalent •Maslow's hierarchy of needs may require modification because the ranking of needs may differ across cultures •culture plays a role in the development of the need for achievement, affiliation, and power •people around the world value justice and fairness •however, what is perceived as fair may be culturally dependent; people in different cultures may react differently to perceived unfairness •the positive effects of justice perceptions are strongest in individualistic, feminine, high uncertainty avoidant, and low power distant cultures