MGMT 309 Exam 4 Ch. 15

3 Historical Preferences on Motivation

1. The Traditional Approach 2. The Human Relations Approach 3. The Human Resource Approach

2 Techniques to Empower Employees

1. Use of Work Teams 2. Change teams' overall method of organizing

4 Alternative Forms of Work Arrangements

1. Variable Work Schedules 2. Flexible Work Schedules 3. Job Sharing 4. Telecommuting

Equity Theory Equation

Individual Inputs/Individual Outcomes = Other's Inputs/Other's Outcomes

Perhaps the most common form of individual incentive is __________________ that are paid to people engaged in sales work -person may receive a percentage of the total volume of attained sales

Sales Commissions

4 Areas of Content Perspectives on Motivation

1. The Needs Hierarchy Approach 2. The Two-Factor Theory 3. Individual Human Needs 4. Implications of the Content Perspectives

5 Motivation Factors (satisfaction, no satisfaction)

1. Achievement 2. Recognition 3. The Work Itself 4. Responsibility 5. Advancement and Growth

3 Most Important Individual Needs

1. Achievement 2. Affiliation 3. Power

Other Forms of Incentives (3)

1. Additional Time off 2. Special Perk 3. Sales contest (winner receives extra week of paid vacation)

New Approaches to Performance-Based Rewards

1. Allowing Employees a voice in how rewards are distributed 2. Organizations getting increasingly innovative in their incentive plans 3. Important for managers in an organization effectively communicate what rewards are being distributed and the basis of that distribution.

4 Assumptions of the Expectancy Theory (for motivation to occur these four factors must occur)

1. Assumes that behavior is determined by a combination of forces in the individual and in the environment 2. Assumes that people make decisions about their own behavior in organizations 3. Assumes that different people have different types of needs, desires, and goals 4. It assumes that 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

Standard Forms of Executive Compensation (2)

1. Base Salary 2. Incentive Pay (Bonuses)

2 Areas of Team and Group Incentive Reward Systems

1. Common Team and Group Reward Systems 2. Other Types of Team and Group Rewards

2 Important Differences between Maslow's Hierarchy of Needs

1. ERG Theory suggests that more than one level of need can cause motivation at the same time 2. ERG Theory has what has been called a frustration-regression element (if needs remain unsatisfied, the person will become frustrated, regress to a lower level, and being to pursue those things again)

4 Areas of Expectancy Theory

1. Effort-to-Performance Expectancy 2. Performance-to-Outcome Expectancy 3. Outcomes and Valences 4. The Porter-Lawler Extension

3 Areas of Participation

1. Employees can participate in addressing questions and making decisions about their own jobs 2. Let workers make decisions about administrative matters, such as work schedules 3. Participate in product quality

2 Areas of Popular Motivational Strategies

1. Empowerment and Participation 2. Alternative Forms of Work Arrangements

3 categories of ERG Theory of Motivation

1. Existence 2. Relatedness 3. Growth

4 Areas of Process Perspectives on Motivation

1. Expectancy Theory 2. Equity Theory 3. Goal Setting Theory 4. Implications of the Process Perspectives

4 Schedules for Applying Reinforcement

1. Fixed-Interval Schedule 2. Variable-Interval Schedule 3. Fixed-Ratio Schedule 4. Variable-Ratio Schedule

Flexible Work Schedules have a workday that is broken down into two categories:

1. Flexible Time 2. Core time

Two Commonly used types of Team and Group Reward Systems

1. Gainsharing Programs 2. Scanlon-Type Plan

4 Areas of Goal Setting Theory

1. Goal Difficulty 2. Goal Specificity 3. Goal Acceptance 4. Goal Commitment

3 Areas of Reinforcement Perspectives on Motivation

1. Kinds of Reinforcement in Organizations 2. Providing Reinforcement in Organizations 3. Implications of the Reinforcement Perspectives

Criticisms for Executive Compensation (3)

1. Levels of executive compensation attained by some managers seem simply too large for the average shareholder to understand 2. Little or no relationship between the performance of the organization and the compensation paid to its senior executives. 3. Gap between earnings of the CEO and earnings of the typical employee is enormous

The Needs Hierarchy Approach (2 areas)

1. Maslow's Hierarchy of Needs 2. The ERG Theory

5 Areas of Using Reward Systems to Motivate Performance

1. Merit Reward Systems 2. Incentive Reward Systems 3. Team and Group Incentive Reward Systems 4. Executive Compensation 5. New Approaches to Performance-Based Rewards

Individual performance is generally determined by 3 things:

1. Motivation (desire to do the job) 2. Ability (Capability to do the job) 3. Work Environment (the resources needed to do the job)

The Expectancy Model of Motivation (2)

1. Motivation leads to effort, combined with employee ability and environmental factors, results in performance 2. Performance, in turn, leads to various outcomes, each of which has an associated value, called its valence

The Motivation Framework (5)

1. Need or Deficiency 2. Search for Ways to Satisfy Needs 3. Choice of Behavior to Satisfy Need 4. Evaluation of Need Satisfaction 5. Determination of Future Needs and Search/choice for satsifaction

5 levels of Maslow's Hierarchy of Needs

1. Physiological Needs 2. Security Needs 3. Love/Belonging 4. Self-Esteem 5. Self-Actualization

4 Kinds of Reinforcement

1. Positive Reinforcement (strengthens behavior) 2. Avoidance (strengthens behavior) 3. Punishment (weakens behavior) 4. Extinction (weakens behavior)

Other Types of Team and Group Rewards (4)

1. Prizes 2. Time Off 3. Profit Sharing 4. Employee Stock Ownership Plans

Three Conditions of Comparison of Equity Theory Person Feels equitably:

1. Rewarded 2. Underrewarded 3. Overrewarded

Popular Motivational Strategies (5)

1. Sincere efforts to spread power 2. Commitment to maintaining participation 3. Workers must believe they are working WITH managers 4. Systematic and Patient efforts to empower 5. Increased commitment to training

Special Forms of Executive Compensation (2)

1. Stock Option Plans 2. Executive Perks (gym membership, club access)

5 Hygiene Factors (Dissatisfaction, No Dissatisfaction)

1. Supervisors 2. Working Conditions 3. Interpersonal Relations 4. Pay and Security 5. Company Policies and Administration

2 Areas of the Nature of Motivation

1. The Importance of Employee Motivation in the Workplace 2. Historical Perspectives on Motivation

2 Sections of Empowerment and Participation

Areas of Participation Techniques and Issues for Empowerment

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

Avoidance

Method for applying the basic elements of reinforcement theory in an organizational setting -starts by specifying behaviors that are to be increased (such as producing more units) or decreased (such as coming to work late). These target behaviors are then tied to specific forms or kinds of reinforcement

Behavior Modification (OB Mod)

-relate to social processes -include the need for love and affection and the need to be accepted by one's peers -manager can help satisfy these needs by allowing social interaction and by making employees feel like part of a team or work group

Belongingness

Approach to motivation that tries to answer the question, What factor or factors motivate people? -deal with the first part of the motivation process (needs and need deficiencies)

Content Perspectives

implications of _________________ are that they discuss what motivates people but do not describe how people are motivated

Content Perspectives

the individuals perception of the probability that effort will lead to high performance. When the person believes that effort will lead directly to high performance, expectancy will be quite strong

Effort-to-Performance Expectancy

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

Empowerment

suggests that people are motivated to seek social equity in the rewards they receive for performance (being treated FAIRLY in rewards) -VERY SUBJECTIVE -according to this theory, outcomes include pay, recognition, promotions, social relationships, and intrinsic rewards -to get these rewards, the individual makes inputs to the job, such as time, experience, effort, education, and loyalty

Equity Theory

-comprise two different sets of needs -----the need for a positive self image and self respect ----The need for recognition and respect from others manager can help address these needs by providing a variety of extrinsic symbols of accomplishment, such as job titles, nice offices, and similar rewards, as appropriate

Esteem Needs

correspond to the physiological and security needs

Existence needs

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

Expectancy Theory

Used to weaken undesired behaviors by simply ignoring or not reinforcing them ex: Employee tells an inappropriate joke and the boss laughs, the laughter reinforces the behavior and the employee may continue to tell inappropriate jokes

Extinction

provides reinforcement at fixed intervals of time, regardless of behavior ex: weekly or monthly paycheck -method provides least incentive for good work because employees know that they will be paid regularly regardless of their performance

Fixed-Interval Schedule

gives reinforcement after a fixed number of behaviors, regardless of he time that elapses between behaviors. -results in even higher level of effort -under this arrangement, motivation will be high because each application gets the person closer to the next bonus

Fixed-Ratio Schedule

-sometimes called flextime -Work schedule in which employees have some control over the hours they choose to work

Flexible Work Schedules

this element allows a person to back down the hierarchy when frustrated

Frustration-Regression

Designed to share the cost savings from productivity improvements with employees -underlying assumption is that employees and the employer have the same goals and thus should appropriately share in incremental economic gains

Gainsharing Programs

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

Goal Acceptance

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

Goal Commitment

the extent to which a goal is challenging and require effort

Goal Difficulty

________ theory of motivation assumes that behavior is a result of conscious goals and intentions -by setting goals in an organization, managers hsould be able to influence their behavior

Goal Setting Theory

is the clarity and precision of a goal (more specific goals)

Goal Specificity

the highest level in this schema, include the needs for self-esteem and self-actualization

Growth Needs

-Reinforcement is a powerful force for maintaining employee motivation ----use the correct manner and schedule Managers must avoid motivating undesired or dysfunctional behaviors

Implications of Reinforcement Perspectives

___________________ reward individual performance on a real-time basis. In other words, rather than increasing a person's base salary at the end of the year, the worker instead receives some level of salary increase or financial reward in conjunction with demonstrated outstanding performance in close proximity to when that performance occurred

Individual Incentive Plans

Two part time employees share one full-time job

Job Sharing

-normally the most fundamental forms of performance-based rewards -generally refers to pay awarded to employees on the basis of the relative value of their contributions to the organization -employees who make greater contributions are given higher pay than those who make lesser contributions

Merit Pay

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

Merit Pay Plans

the set of forces that cause people to behave in certain ways -on any given day, an employee may choose to work as hard as possible at a job, work just hard enough to avoid a reprimand, or do as little as possible

Motivation

Consequences of behaviors in an organizational setting, usually rewards

Outcomes

the process of giving employees a voice in making decisions about their own work -empowerment is a broader concept that promotes this in a variety of areas

Participation

the individuals perception that performance will lead to a specific outcome. ex: if a person believes that high performance will result in a pay raise, the _________________ expectancy is high.

Performance-to-Outcome Expectancy

-things like food, sex, and air, which represent basic issues of survival and biological function -these needs are generally satisfied by adequate wages and the work environment itself, which provides restrooms, adquate lighting, comfortable temperatures, and ventilation

Physiological Needs

a method of strengthening behavior, is a reward or positive outcome after a desired behavior is performed ex: pay raises, promotions, rewards

Positive Reinforcement

focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained these goals

Process Perspective

-Managers trying to improve motivation can use steps to achieve the expectancy theory ---determine outcomes that employees will want ---what kinds of performance needed to meet goal ---make sure it is attainable ---analyze for conflicting expectancies and make sure rewards are large enough ---make sure total system is equitable.....fair to all -managers need to consider the nature of other employees compare themselves to -goal setting theory can be used to implement both expectancy and equity theory concepts

Process Perspectives

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

Punishment

________________ explain the role of those reward as they cause behavior to change or remain the same over time

Reinforcement Perspectives

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

Reinforcement Theory

focus on how people relate to heir social environment

Relatedness Needs

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

Reward System

_________________ has the basic strategy as gainsharing programs, in that teams or groups of employees are encouraged to suggest strategies for reducing costs. However, the distribution of these gains is usually tilted much more heavily toward employees, with employees usually receiving between 2/3 to 3/4 of the total cost savings

Scanlon-Type Plan

-for a secure physical and emotional environment -ex: desire for housing and clothing and the need to be free from worry about money and job security

Security Needs

involve realizing one's potential for continued growth and individual development -perhaps the most difficult for manager to address -needs must be met entirely from the individual

Self-Actualization Needs

allowing employees to spend part of their time working offsite, usually at home. -by using email, the internet, and other forms of information technology, many employees can maintain close contact with their organization and still get justs as much (or even more) work done at home as they would if they were in the office

Telecommuting

-emphasized the role of social processes in the workplace Basic assumptions: 1. Employees want to feel useful and important 2. Employees have strong social needs 3. Needs are more important than money in motivating them

The Human Relations Approach

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

The Human Resources Approach

the desire to accomplish a goal or task more effectively than in the past -people with high: ----desire to assume personal responsibility, tendency to set moderately difficult goals, a desire for specific and immediate feedback, and a preoccupation with their task.

The Need for Achievement

a desire for human companionship and acceptance -likely to prefer (and perform better in) a job that entails a lot of social interaction and offers opportunities to make friends

The Need for Affiliation

the desire to be influential in a group and to control one's environment -people with strong need: -----likley to be superior performers, have good attendance records, and occupy supervisory positions

The Need for Power

suggested that there may indeed be a relationship between satisfaction and performance but that it goes in the opposite direction -- that is, high performance may lead to high satisfaction -high performing workers will become motivated

The Porter-Lawler Extension

-best represented by Frederick Taylor -incentive pay system -assumed economic pay was what motivated everyone problem: too narrow of a view of the role of monetary compensation and failed to consider other motivational factors

The Traditional Approach

-developed by Frederick Herzberg -Suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors--- 1. motivation factors (related specifically to the work content) 2. Hygiene factors (related to the work environment)

The Two-Factor Theory

For reinforcement to be truly effective, manager need to use it in a manner consistent with the various types and schedules of reinforcement -Managers must understand that they may be inadvertently motivating undesired or dysfunctional behaviors (T/F)

True

Most general form of merit pay is to provide annual salary increases to employees based on their relative merit (T/F)

True

Some organizations today are beginning to use what they call a "nine-eighty" schedule -under this arrangement, employees work a traditional schedule one week and a compressed schedule the next, getting every other Friday off (T/F)

True

The Porter-Lawler Extension: Performance leads to..... intrinsic rewards & extrinsic rewards..... which leads to perceived quality....which leads to satisfaction (T/F)

True

The single most important idea for managers to remember from equity theory is that if rewards are to motivate employees, they must be perceived as being equitable and fair A second implication is that managers need to consider the nature of the "other" to whom the employee is comparing her- or himself. Goal setting theory can be used to implement both expectancy and equity theory concepts. (T/F)

True

Two-Factor Theory and Herzberg were not not at opposite ends of a continuum, but on different coninuums 1. Motivation factors fell on the satisfaction continuum 2. Hygiene factors fell on the dissatisfaction continuum (T/F)

True

Each outcomes also have an associated value, or ____________. -An index of how much a person wants a particular outcome; the attractiveness of the outcome to the individual -high = high want - low = low want

Valence

To help counter problems from a traditional work schedule, some businesses have adopted a COMPRESSED WORK SCHEDULE (working a full 40 hour week in fewer than the 5 traditional days)

Variable Work Schedules

varies from one reinforcement to the next -appropriate for praise or other rewards based on visits or inspections

Variable-Interval Schedule

-The most powerful schedule in terms of maintaining desired behaviors, varies the number of behaviors needed for each reinforcement -employee is motivated to increase the frequency of the desired behavior because each performance increases the probability of receiving a reward

Variable-Ratio Schedule

Reward system wherein the organization pays an employee a certain amount of money for every unit she or he produces -used in manufacturing a lot

piece-rate incentive plan