Chapter 5 Management
Theory X
A set of assumptions managers might apply to individuals who are motivated by lower-order needs People work as little as possible People lack ambition, dislike responsibility, and prefer to be led People are inherently self-centered and indifferent to organizational needs People are by nature resistant to change Peopel are gullible and not very bright
Maslow's Need Hierarchy
Abraham Maslow, a pychologist, proposed a theory of motivation that went beyond just physical and economic needs to emphasize pyschological and interpersonal needs as well The core of Maslow's theory is a hierarchy of five categories -although he recognized that factors other than one's need determine behavior, his theory focused on specifying people's internal needs Maslow labeled the five levels of his need hierarchy as physiological needs, safety and security needs, love (social) needs, esteem needs, and the need for self-actualization One distinguishing feature of Maslow's need hiearchy is the progression hypothesis, which suggests that as one level of need is met, a person progresses to the next higher level of need as a source of motivation people progress up the hierarchy as they successively gratify each level of need -maslow understood the lowest level of ungratified needs to motivate behavior Manager's can tkae the most of Maslow's need hierarchy for success in their teams by recognizing that each indivdiual has a unique set of needs and therefore gearing incentives to meet various needs The physiological need for sleep is instrumentally important for employee performance, safety, health, and even employee attitudes the need for security might be filled by a good retirement plan Some employees have a high need for social interaction, and opportunities for after-work tennis or racquetball may fill those needs needs for status and self-acutalization can be filled by opportunities to work with higher-ups or to work on projects that particularly suit the individual's skills and interests
Motivation factors that contribute to job satisfaction when they are present
Achievement Recognition of achievement Work itself Responsibility Advancement Growth Salaru
Demands and Contributions
Calculated involvements are based on the notion of social exchange in which each party in the relationship demands certain things of the other and contributes accordingly to the exchange Business partnerships and commercial deals are both calculated involvements When both parties to the exchange benefit, the relationship has a positive oreitnation -when losses occur or conflicts arise, the relationship has a negative orientation
Hygiene factors that contribute to job dissatsifaction when they are absent
Company policy and administration Supervision Interpersonal relations Working conditions Salary Status Security
Hygiene Factors
Completely distinct from the motivation factors and are unrelated to the drive to achieve and do excelletn work Absent or insufficient hygiene factors result in job dissatisfaction Good hygiene factors cannot stimulate pyschological growth or human development, but they are necessary to prevent job dissatisfaction When these hygiene factors are poor or absent, the dissatisfied employee complains about poor supervision, poor medical benefits, or whatever hygiene factor is porr -one method that employees use to determine the quality of supervision they recieve is by the level of fairness they perceive the supervisor uses when enacting company polcies -supervisor's motives may have a greater impct on employee perceptions of workplace fairness -even in unfair work environments, employees and managers can still enact fairness for the good of the workplace Even in the absence of good hygiene factors, employees may still be very motviated to perform their jobs well if the motivation factors are present Two conclusiosn can be drawn - First, hygiene factors are important to a certain elvel but unimportant beyond that threshold -second, the presence of motivation factors is essential to enhancing employee motivation to excel at work
Demands
Each party to the exchange makes demands on the other The organization expresses its demands on the individual in the form of goal or mission statements, job expectations, performance objectives, and performance feedback The individual expresses demands, or needs, in the form of expectations of the organization Employee need fufuillment and the feeling of belonging are both important to a healthy exchange and to organizational membership -these needs may be viewed from the perspective of Maslow, Alderfer, Herzberg, or McClelland When emplyoees are well taken care of by the company, they take care of the busienss even in very difficult times
new Perspectives on equity theory
Equity theory has been revised in light of new theories and research One important theoretical revision propsoes three types of indivdiuals based on preferences for equity Equity sensitives prefer equity based on the originally formed theory -in other words, they want the relationship betwen their own input and output to be equal to that of their comparion other Equity sensitivity contributes to the extent to which employees feel obligated to help in the owrkplace Equity sensitive employees who monitor resources they recieve from their supervisors may feel less obliated to engage in helping behaviors if they perceive they have been provided with fewer resources Benevolents are comforatble with an equity ratio less than that of their comparsion other -these people may be thought of as givers Entitleds are comfortable only with an equity ratio grater than that of their comparsion other -these people may be thought of as takers Equity in pay is an important factor in motivation because pay if often thought to relate to a person's self-imposed performance expectations -a person's organizationl position also influences self-imposed performance expectations and may be a more important factor than pay Inequity and organizational injustice can also generate dysfuctional behavior -workplace injustice can trigger aggressive reactions that harm both individuals and the organization Increasing, decreasing, or constant experiences of inequity over time may have very different consequences for people -Equity theory can help companies implement two-tiered wage strucutures Research suggests that unions and management may want to consider both work location and employment status prior to implementing a two-tiered system
Social Exchange and Equity Theory
Equity theory is a social exchange process approach to motivation that focuses on the interaction between an individual and the environment In constrat to needs theories based on internal motivation, equity theory is concerned with the social processes that influence motivation and behavior Power and exchange are important considerations in understanding human behavior Accounting for such external factors, Amitai Etzioni developed three categories of exchange relationships that people ahve with organizations: committed, calculated, and alienated involvements Committed relations have high positive intensity, calculated relationships have low positive or low negative intensity, and alienated relationships have high negative intensity Committed relationships may chracterize a person;s involvement with a religious group, and alienated relationships may characterize a person's incarcertaion in a prison
Eustress, strength, and hope
Eustress (for euophoria and stress) is healthy normal stress Stress is the energy we experience when confronted with a challenging or difficult situation -such situations can produce distress, a negative response such as frustration or fear, which leads to unhealthy and unproductive results, or eustress, a positive resposne to challenges that generates energy and motivates an indivdiual to achieve Eustress leads us to invest in stregnths, find meaning in work, display courage and principled action, and draw on positive emotions at owrk -this positive perspective on organizational life encourages optimism, hope, and health for people at work instead of focusing on the individual's needs or the rewards or punishment meted out in the work environment, the idea of encouraging eustress is to focus on the individual's interpreation of or response to events an assumption underlying eustress is that although things happen that are out of our control, we can control our response to a situation -thus, we can control distress by reframing our perspecitve on a situation Eustress is a healthy and positive motivational force for individuals who harness its energy for productive work and organizational contributions
Motivational Problems
Expectancy theory attributes motivational problems to three basic causes: disbelief in a relationship betwen effort and performance, disbelief in a realtionship between performance and rewards, and lack of desire for the rewards offered If the motivational problem stems from the person's belief that effort will not improve performance, the solution lies in altering this belief -the person can be shown how an increase in effort or an alteration in the kind of effort put forth can be converted into improved performance If the motivational problem stems from the person's belief that effort will not improve performance, the solution lies in altering this belief -the person can be shown how an increase in effort or an alteration in the kind of effort put forth can be converted into improved performance If the motivational problem is related to the person's beleif that performance will not result in rewards, the solution also lies in altering that belief -the person can be shown how an increase in performance or a some-what altered form of performance will be converted into rewards -if the motivational problem is related to the value placed on certain rewards, there are two possible solutions: to alter the value placed on the rewards or to alter the rewards themselves Research results on expectancy theory have been mixed -the theory predicts job satisfaction accurately, but its complexity makes it difficult to test the full model, and the measures of instrumentality, valence, and expectancy have only weak validity in addition, measuring expectancy constucts is time consuming, and the values for each construct change over time for an individual finally, the theory assumes that the individual is totally rational and acts as a minicomputer, calculating probabilities and values -in reality, the theory may be more complex than the way people typically function
Motivation and Moral Maturity
Expectancy theory predicts that people will work to maximize their personal outcomes -consistent with Adam Smith's idea of workign for one's own self-interest -both suggest people work to benefit themselves alone expectancy theory cannot explain altruistic behavior -therefore, it may be necessary to consider an individual's moral maturity in order to understand altruistic, fair, and equiatable behavior Moral maturity is the measure of a person's cognitive moral developmen -morally mature people behave based on universal ethical principles, while morally immature people behave based on egocentric motivations
McClelland's Need Theory
Focuses on personality and learned needs Henry Murray developed a long list of motives and manifest needs in his early studies of personality INspired by Murray's work, David McClelland identified three learned, or acquired, needs, called manifest needs because they are easily perceived -these are the needs for achievement, power, and affiliation Some individuals have a high need for achievement, while others have a moderate or low need for achievement -the same is true for the other two needs a manager may have a strong need for power, a moderate need for achievement, and a weak need for affiliation Different needs are dominant in different people, and each need has different implications for people's beahvior
Adam's Theory of Inequity
Ideas about social processes an exchange advocated by Etzioni and others provide context for understanding fairness, equity, and inequity in work relationships Stacy Adams developed the idea that inequity in the soical exchange process is a particularly important motivator Adam's theory of inequity suggests that people are motivated when they find themselves in situations of inequity, or unfairness Inequity occurs when a person recieves more or less than she believes she deserves based on her effort and/or contribution Inequity creates tension, which in turn motivates a person to take action to resolve the inequity A perception of inequity arises when people consider their inputs (their contributions to the relationship), and their outcomes (the organization's contributions to the relationship) according to an input/outcome ration, which they compare to that of a generalized "tother" or comparsion other Pay inequity has been a thorny issue for women in some companies -globalization also presents a challenge for pay equity -as organizations grow internationally, they may have trouble determining pay and benefit equity/inequity across national borders Adams considers a situation in which there is inequity in only one vairable to be a first level of inequity -a more severe, second level of inequity would occur in a siuation where the inputs of a person experiencing negativ inequit are also greater than those of the comparison other inequalities in one (inputs or outcomes) coupled with equality in the other (inputs or outcomes) are experienced as a less severe inequity than inequalities in both inputs and outcomes One drawback of Adam's theory is that it does not provide a way of determining whether some inputs or some outcomes are more impotant than others
Motivation Factors
Job enrinchment involves building motivation factors into a job and, according to Herzberg, creates job satisfaction In his original research, Herzberg identified motivation factors as responisibility, achievement, recognition, advancement, and the work itself When these factors are present, they improve a worker's effort and performance Motivation factors lead to positive mental health -they challenge people to grow, contribute to the work environment, and invest themselves in the organization -the absence of these factors does not lead to dissatisfaction, but rather to feelings of neutrality Motivation factors are the more important of the two sets of factors because they directly affect a person's dirve to do a good job -when they are absent, a person lacks the motivation to perform well and achieve excellence
Contributions
Just as each party to the exchange makes demands on the other, each also contributes to the relationship These contributions are the basis for satisfying the demands exprssed by the other aprty Employees satisfy organizational demands through a range of contributions, including their skills, abilities, knowledge, energy, professional contacts, and native talents As people grow and develop over time, they are able to increasingly satisfy the range of demands and expectations placed on them by the organization In a similar fashion, organizations contribute to the exchange relationship to meet individual needs -these contributions include salary, benefits, advancement opportunities, security, status, and social affliations Some organizations are richer in resources and better able to meet employee neeeds than other organizations One of the concerns that both individuals and organizations have is wehther the relationship is a fair deal or an equitable arrangement for both members of the relationship -social exchange relationship perceptions are influenced by exectuive leadership style, organizational culture, and employment approach, which in turn have an effect on commitment and performance, though not OCB
Theory X and Theory Y
Maslow's need hierarchy has been applied to organization behavior in two key ways -Douglas mcGregor strove to explain motivation by grouping the physiological and safety needs as lower-order needs and the social, esteem, and self-actualization needs as upper-order needs According to McGregor's theory, maangers can make one of two sets of assumptions about an individual depending on the facts that motivate his or her behavior -developed Theory X and Theory Y McGregor understood the responsibility of management ot be the same under both sets of assumptions Trust in top level leaders has been found to trickle-up from trust in direct supervisors, hence making these relationships a key to benefits of having employees' trust Employees are more likely to identify with and motivated to achieve organizational outcomes when leaders formulate messages appropriately
Internal Needs
Max Weber, an early German sociologist, argued that the meaning of work lies not in the work itself but in its deeper potential for contributing to a person's ultimate salvation Weber, and later Milton Bloood, understood this Protestant ethic, with its foundations in Calvinist though, as the fuel for human industirousness -the Protestsant ethic encouraged hard work on the grounds that prosperous workers were more likely to find a place in heaven Sigmund Freud proposed a more complex motivational theory, suggesting that a person's organizational life was founded on the compulsion to work and the power of love -he emphasized the unconcious mind's influence on human motviation Psychoanalysis is Frued's method fro delving into the unconcious mind to better understand a person's needs and motives -the pyschoanalytic approach can help explain irrational and self-destructive behaviors usch as suicide or workplace violence Analyzing a person's unconcious needs and motives can help us understand such traumatic work events -the pyschoanalytic approach also helps explain deviant behavior in the workplace Freud's thought served as the basis for subequent need theories of motivation -research suggests that people's deeper feelings transcend culture, with most people caring deeply about the same few things Factors that make employees motivated and loyal to the organization include fair compesnation and the trust and respect of their supervisors -instrinsic motaiton varies by the individual and has a positive effect on individual personality traits Managers who are more supportive and less controlling appear to elicit more instrinsic motivation from their emloyees
External Incentives
Most economic assumptions about human motivation emphasize financial incentives Adam Smith argued that a person's self-interest was determined by God, not the government -he laid the cornerstone for the free enterprise system of economics when he formulated the so-called invisible hand and the free market to explain the motivation for individual behavior The "invisible hand" refers to the unseen forces of a free market system that shape the most efficient use of people, money, and resources for productive ends -Smith assumed that people are motivated by self-interest for economic gain to provide the necessities and convenienecs of life -thus, employees are most productive when motivated by self-interest the more collective wealth an economy can produce, the better individuals can fulfill their self-interest -technology and labor efficiency are two ways or promoting greter collective wealth Technology is crucial to Smith's view because he believed that the productivity of a nation's labor force determines its wealth -therfore, a more efficient and effective labor force yields greater abundance for the nation technology acts as a force multiplier for the prodcutivity of labor Frederick Taylor, the founder of scientific managment, also examined labor efficiency and effectiveness -his goal was to change the relationship between management and labor from one of conflict to one of coorperation -taylor believed the basis of the conflict was the division of the profits. instead of continuing this conflict, labor and management should work together to enlarge total profits Early organizational schlars assumed that people were motivated by self-interest and economic gain -consequently, they developed differential piece-rate systems of pay emphasizing external incentives modern management practices, such as employee recognition programs, flexible benefit packages, and stock ownership plans, stem from Smith's and Taylor's original theories -they emphasize external incentives, which may take either strictly economic form or more material form, such as outstanding employee plaques Some approaches suggest that economic motives alone are not sufficient and need to be combined with other external motives The Hawthorne Studies also studied what motivates people to be productive -they confirmed the positive effects of pay incentives on productivity but also demonstrated the importance of social and interpersonal motives -other people constitute yet another external motive -executives have recently championed so-called enlgihtened self-interest self-interest is concern for one's own needs; enlightenend self-interest recognizes others' interests as well in still other approaches, external and internal motivations are combined -pyschological ownership considers both pyschological needs and external incentives to motivate workers
Cultural Differences in Motivation
Most motivations theories in use today have been developed by and about americans -When researchers have examined the universality of these theories, they have found cultural differenecs, at least with regard to Maslow's, McClelland's, and Herzberg's theories The two-factor theory has been tested in other countries as well -results in New Zealand did not replicate the resuls found in the US; supervision and intenrpersonal relationships were important motivators in New Zealand, as opposed to the importance of hygenic factors as in America Researchers examining equity theory in cros-cultural contexts have suggested reexamining equity preferences selection of referent others, and reactions to inequity Finally, expectancy theory may hold up well in cultures that value individualism but break down in more collectivist cultures that value cooperative efforts in collectivist cultures, rewards are more closely tied to group and team efforts, and expectancy theory is ill equipped to deal with such differnces
Expectancy Theory of Motivation
Motivation can also be explained in terms of an individual's perception of the performance process Victor Vroom's expectancy theory of motivation is a cognitive process theory founded on two basic notions -First, Vroom assumes that people expect certain outcomes of behavior and performance, which may be thought of as rewards or consequeneces of behavior - Second,people believe there is correlation between the effort they put forth, the performance they achieve, and the outcomes they receive The key constructs in the expectancy theory of motivation are the value of an outcome, expectancy, and instrumentality Valence- the value, or importance, one places on a particular reward Expectancy- the belief that effort leads to performance Instrumentality-belief that performance is related to rewards The perceived relationship between effort and performance varies from person to person and from activity to activity -in a similar fashion, people's beliefs about the link between performance and reward vary - from a motivation perspective, it is the person's belief about the relationships between these constructs that is important, not the actual nature of the relationship managers can use expectancy theory to design motivation programs -sometimes called performance planning or evaluation systems, these motivation programs are meant to enhance a person's belief that effort will improve performance and therefore lead to better pay -valence and expectancy are particularly important in establishing priorities for people pursuing multiple goals Valence is the third key idea within the expectancy theory of motivation -different people value different rewards - employees vary greatly with respect to the link between work and pay, as well as how much they value money
Motivation and Work Behavior
Motivation is the process of arousing and sustaining goal-directed behavior Motivation theories attempt to explain and predict observable behavior -they may be broadly classified into internal, process, and external theories Internal theories of motivation give primary consideration to variables within the individual that lead to motivation and behavior Maslow's hierarchy of needs is a good example of an internal theory Process theories of motivation, such as expectancy theory, emphasize the nature of the interaction between the individual and the environment External theories of motivation focus on the elements in the environment, including the consequences of behavior, as the basis for understanding and explaining people's behavior at work A review of motivation related to work over the past century categorized the theories, findings, and advances according to their primary focus on (a) motives and traits (content), (b) features of the job, work role, and work environment (context); and (c) the mechanisms and processes involved in choice and striving (processes)
The Resolution of Inequity
Once a person establishes the existence of an inequity, she might use a number of strategies to restore equity Adam's thoery provides seven basic strategies for restoring equity: (1) alter the person's outcomes, (2) alter the person's inputs, (3) alter the comparison other's outcome, (4) alter the comparison other's inputs, (5) change who is used as a comparison other, (6) rationalize the inequity, and (7) leave the organizational situation The selection of a strategy and a set of tactics is a sensitive issue with possible long-term consequences -in this example, a strategy aimed at reducing the comparsion other's outcomes may have the desired short-term effect of restoring equity but reduce morale and prodcutivity in the long term The equity theory does not incldue a hierarchy predicting which inequity-reductio nstrategy a person will or should choose, but it is neverthless a reminder of the importance of fairness Pay dispersion (the amount of allowable differences between employee pay) has the ability to enhance or diminsih employee motivation Employees will generally be motivated when pay dispersion strategies are based on performance
Two New IDeas in Motivation
One centers on eustress, strength, and hope -this idea comes from the new discipline of positive organizational behavior A second new idea centers on positive energy and full engagement, translating what was learned from high-performance athletes for the use of Fortune 500 executives and managers In addition, supportign a family (family motivation) provides a powerful source of motivation that can boost peformance in the workplace, even when a person's instrinsic motivation is low, by providing energy -however, family motivation does not reduce work stress
Critique of the Two-Factor Theory
One critique of the theory surrounded the classifcation of the two factors -some data have shown that a factor may not fit exclusively into either category a second critique of the theory does not account for individual differences -differnces in age, sex, social status, education, or occupational level may influence the classification of factors a third concern is that instrinsic job factors like the workflow process may be more important in determining satisfaction or dissatisfaction on the job finally, much of the supporting data for the theory is based on the critical-incident techinque -dspite the critiques, Hezberg's was teh first motivation theory developed specifically to predict motivation in work settings, thus having important implications for the design of work
Positive Energy and Full Engagement
Uses lessons learned from professional athlets The central tenets are that an indivdiual should manage energy rather than time and should strategicaly disengage from certain activities to balance the power of full engagement -this approach suggests that individuals do not need to be activated by unmet needs but are already activated by their own physical, emotional, mental, and spiritual energy -managers should help individuals learn to manage their energy so that they can build positive energy and capacity for work Loehr's concept stresses the role of energy reovery in overall performance -some individuals work best by putting forth productive energy for short periods and then taking time to rest and reengerize (this mimics the human body's potential to build or enhance its capacity, enabling the individual to sustain a high level of performance in the face of increasing work demands) Organizations with high levels of employee engagement have strong financial performance, even in volatile economic conditions
Theory Y
a set of assumptions managers might apply to individuals who are motivated by higher order needs People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations The motivation, the potential for development, the capacity for assuming responsibility, and the readiness to direct behavior toward organizational goals are all present in people. Management does not put them there. It is a responsibility of maanagement to make it possible for people to recognize and develop these human characteristics for themselves. The essential task of management is to arrange conditions and methods of operation so that people can achieve their own goals best by directing their own efforts toward organizational objectives
Need for Afflitiation
an urge to establish and maintain warm, close, intimate relationships with others People with a high need for afffiliation are motivated to express their emotions to others and expect them to do the same in return -they find conflicts disturbing and are strongly motvivated to work through any such barriers to closeness Over and above these three needs for achievement, power, and affiliation, Murray's manifest needs theory also included the need for autonomy -this is the desire for independence and freedom from constraints People with a high need for autonomy prefer to work alone and to control the pace of their work -they dislike bureaucratic rules, regulations, and proceudres
Herzberg's Two Factory Theory
departed from need-based theories and examined the critical incident experiences of people at work Original study incldued 200 engineers and accountants in western PA during the 1950s -he asked them to describe two important inciddents at their jobs: one that was very satisyign andmade them fel exceptionally good at work and another that was very dissatsifying and amde them feel exceptionally bad Herzberg and his colleaguses believed that people had two sets of needs: one based on avoiding pain and one stemming from the desire for psychological growth -conditions in the work environment would affect one or the other of these two needs Work conditions related to satisfaction of the need for pyschological growth were labeled motivation factors Work conditions related to dissatisfaction caused by discomfort or pain were labeled hygiene factors Motivation factors relate to job satisfaction, and hygiene factors relate to job dissatisfaction
Need for Achievement
encompasses excellence, competition, challenging goals, persistence, and overcoming difficulties People with a high need for achievement thus seek performance excellence, enjoy difficult and challenging goals, perservere, and are competitive The Murray Thematic Appercetion Test (TAT), a projective test was used as an early measure of the achievement motive -further developed by McClelland and his associates McClelland found that people with a high need for achievement perform better than those lacking such a need -such individuals share these three characteristics: first, they set goals that are moderately difficult yet achievable; second, they like to receive feedback on their progress towards their goals; third, they do not like having external events or other people interfere with their progress towards their goals In addition, high achievers (1) often hope and plan for success, (2) may be quite content to work along or with other people, whichever is more appropriate to their task; and (3) like being very god at what they do so and, accordingly, tend to develop expertise and competence in their chosen endeavors Groups consisting of high-achieving members may experience conflict over how to get work tasks accomplished as members attempt to demosntrate their indviidual taks-related contributions The need for achievement is consistent across countries for adults who are employed full-time, but researchers have found international differences in the tendency for achievement Achievement tendencies are highest in the US, an individualistic culture, and lowest in collectivist societies such as Japan and Hungary
Need for power
includes the desire to influence others, the urge to change people or events, and the wish to make a difference in life The need for power is interpersonal because it involves influence over people -McClelland distinguishes between socialized power, which is used for the benefit of many, and personalized pwoer, which is used for indivdiual gain (the former is a constructive force, while the latter may be a very disruptive or even destructive foce) According to McClelland's reserach, the best managers have a very high need for socialized power as opposed to personalized power -they are concerned for others; have an interest in organizational goals; and want to be useful to the larger group, organization, and society
ERG Theory
proposed by Clayton Alderfer grouped human needs into only three basic categories: existence, relatedness, and growth Alderfer classified Maslow's physiological and physical safety needs in an existence need category The interpersonal safety, love, and intterperosnal esteem needs were reclassified in a relatedness need category A growth need category encompassed Maslow's self-actualizatin and self-esteem needs ERG theory also supplemented Maslow's orginal progression hypothesis with a regresion hypothesis Alderfer's regression hypothesis suggests that when people are frustrated by their inability to meet needs at the next higher level in the hierarchy, they regress to the next lower category of needs and intensify their desire to gratify thosen eeds ERG theory explains how progressive need gatification and regression when people face frustration
