MGMT 309: Managing Employee Motivation and Performance

Weakness of Maslow's theory

five levels of need are not always present ordering or importance of needs is not always the same people form different cultures are likely to have different need categories and hierarchies

Valence

(value) The stronger the valence the harder im willing to work to achieve it; if my outcome is high, it's going to be asseesed in terms of a very high valence (in terms of -1 to 1) valence of -1 (you're going to work to avoid it) 0 you don't care 1 you're going to work hard to achieve it

Executive Compensation

*Standard Forms of Executive Compensation Jimbo Fisher is an example of an executive (more companies offering small base and big incentives for something to dangle out there) -Base salary- gauranteed amount of money -Incentive pay (bonuses) Special Forms of Executive -Compensation -Stock option plans -Executive perks- country club memberships, cars, etc. Criticism of Executive Compensation -Excessively large compensation amounts -Compensation not tied to overall and long-term performance of the organization -Earnings gap between executive pay and typical employee pay

Popular Motivational Strategies

Alternative Forms of Working Arrangements Variable Work schedules compressed work schedule- working a full forty- hour week in less than five days ex. in 9 days you work 80 hours like in the oil field (people miss less wokr with this type of schedule) flexible work schedule (flextime)- allowing employees to select, within broad parameters, the hours they will work (you pick when you work) job sharing- when two part time employees share one full time job telecommuting- allowing employees to spend part of their time working off- site, usually at home, by using e- mail, the internet, and other forms of information technology - (working remotely/ working from home)

equity theory

An individual's belief that the treatment the individual receives is fair relative to the treatment received by others Theory assumptions: people view their outcomes and inputs as a ratio and then compare it to someone else's ratio people are motivated to seek social equity in the rewards they receive process of comparison: (self) Individual inputs/ individual outcomes = other's inputs/ other's outcomes (others)

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

Motivation Process Perspectives: Process Perspectives

Approaches to motivation that focus on: search for behavioral options and alternatives choice of behaioral options to satisfy needs rewards and evaluation of satisfaction after goals are attained Process Prospective Theories Expectancy theory- based on 4 different things: effort, performance, outcome, and valence The more you want something the harder you're willing to work to achieve it: expectancy theory dependent on these two things Porter Lawler

Goal Setting Theory ( 2nd strongest driver from a motivations perspective)

Assumptions: Behavior is a result of conscious goals and intentions Setting goals influences behavior in orgs Characteristics of Goals Goal difficulty: Extent to which a goal is challenging and requires effort: people work harder to achieve more difficult goals Goals should be difficult but attainable (if goal is unattainable they will become disillusionsed) - 2nd strongest driver of goal motivation #1 is self efficacy Goal Specificity clairty and precision of the goal goals vary in their ability to be stated specifically Goal acceptance- if you accept it, you'll take on that obstacle Goal Commitment- the extent to which an individual is personally interested in reaching a goal

Historical Perspective on Motivation: The Human Resource Approach

Assumptions: Employee contributions are important and valuable to the employee and the organization Employees want to and are able to make genuine contributions Management's job is to encourage participation and create a work environment that motivations employees people are difference makers (rule of 1/8th)

Historical Perspectives on Motivation: The Traditional Approach

Classical Management Perspective (Fredcrick Taylor) Aka scientific management: said people didn't like to work they work because they have to people were tools and they were replaceable the view was that money was the primary motivator Assumptions: managers know more than workers, economic gain is primary motivator, and work is unpleasant

The Importance of Motivation in the Workplace

Determinants of Individual Performance: --Motivation—the desire to do the job. --Ability—the capability to do the job. --Work environment—the resources to do the job. to yield maximum performance you have to have motivative behaviror, ability to succeed, and resources to achieve

ERG theory assumes that:

ERG theory states that multiple needs can be focused on at the same time, no specific way in which you have to do things If one need isn't met you will reorder and focus on something else( if a need is unsatisfied, a person will regress to a lower level need and pursue that need - frustration regression)

Historical Perspectives on Motivation: The Human Relations Approach

Emphasized role of social processes in workplace Hawthrone studies: people didn't want to over or under produce employees have strong social needs, and that these needs are more important than money the illusion of concern for the workers drug up performance people have a need to feel valued employees want to feel useful and important, employees have strong social needs, more important than money, maintaing the appearance of employee participation is important

Equity theory continued (key with this theory is that you are trying to balance between ratios)

Equity Comparisons of Individuals to each other: feeling equitably rewarded maintain performance and accept comaprison as fair estimate (a feeling of equity will result when the two ratios are equal) ex. Mark feels equitably treated; he gets 40k a year w/ a college degree but Susan get 60k but she has a degree and more work experience *grow inputs to reflect an increase in outputs Feeling under- rewarded- try to reduce inequity (have to figure out how to impact outcome) change inputs by trying harder or slacking off change outcomes by demanding a raise Distort the ratios by alterting perceptions of self or of others Leave situation by quitting the job Change comparisons by choosing another object person Feeling over- rewarded give back some outcome Increase or decrease inputs Distort ratios by rationalizing help the object person gain more outcomes

Using Reward Systems to Motivate Performance

Incentive Reward Systems Incentive pay plans peice rate systems- payed based on what you produce sales commissions- paid to people engaged in sales work ex. person might receive a percentage of the total volume of attained sales as her commission for a time period Non monetary incentives (perks) Team and Group Incentive Reward Systems Gain sharing- is group based, and all members get bonus when pre- determined levels are exceeded. Aligns employee and corporate interests where the group exceeds a predetermined level and everybody in that unit receives reinforcement Profit Sharing- provides a varying annual bonus to employees based on corporate profits the org exceeds a predetermined level everybody in the company receives a bonus employee stock ownership programs (ESOPs)- gradually grant stock ownership of the firm to employees as a reward Employees, in turn, receive a claim on ownership of some portion of the stock held by the company, based on their seniority and perhaps on their performance stock option- you own nothing but have option to buy stock @ certain price The basic idea underlying stock option plans is that if the executives contribute to higher levels of organizational performance, then the company stock should increase in value

Using Reward Systems to Motivate Performance

Merit Reward System Base a meaningful portion of individual compensation on merit- the relative value of an individual's contirbutions to the org ex. increase compensation based on performance Incentive Reward Systems C- baseoncept employee pay is based on employee output Assume that: performance is under control of individual worker employee works at a single task continually pay is tightly tied to performance (i.e., pay vaires w/ output)

Reinforcement Perspectives on Motivation

Providing Reinforcement in Organizations Reinforcement schedules fixed interval schedule- reinforcement applied at fixed time intervals, regardless of behavior ex. you will see reward after fixed amount off time (salary you will get a fixed amount of income at a fixed time) yields moderate performance vairable interval (time between reinforcement changes)- reinforcement applied at variabl time intervals- yields higher performance ex. on the spot bonus for doing something right fixed ratio- reinforcement applied after a fixed number of behaviors, regardless of time ex. after a certain amount of items are produced you get the reinforcement - yileds higher level of performance variable ratio- reinforcement applied after a variable number of behaviors, regardless of time *time changes* - yields highest level of performance A supervisor who praises an employee for her second order, the seventh order after that, the ninth after that, then the fifth, and then the third is using a variable-ratio schedule. The employee is motivated to increase the frequency of the desired behavior because each performance increases the probability of receiving a reward.

Content Perspectives on Motivation: The Need Hiearchy Approach

The Need Hiearchy Approach Maslow's Hiearchy of Needs People must, in a hiearchical order, satisfy five groups of needs: maslow said every person has the same 5 needs (base) -physiological- needs for basic survival and biological function (ex. a base salary) -Security- needs seeking a safe physical and emotional environment ( a safe environment ex. a 401k, a retirement account, a pension plan) -Belongingness- needs for love and affection (affiliation with other people; you don't care about friends in the work place until you have your other needs met) -Esteem needs for positive self image/ self respect and recognition and respect from others (you're a worthwhile person, I am important, prestige) before you meet self acutalization you have to have all other 4 needs met -Self actualization needs- realizing one's potential for continued growth and individual development (would be like a challenging job that utilizes your skills) contributions of Maslow's Theory Identifited and categorized invidual needs Emphasized importance of needs to motivation

The Nature of Motivation: Motivation

The set of forces that cause people to behave in certain ways the goal of managers is to maximize desired behaviors and minimize undesirable behaviors not enough just to have motivation and ability

What is required for motivated behavior to occur:

both effort to performance expectancy and performance to outcome expectancy probabilities must be grater than 0 the sum of valences must be greater than 0

effort-to-performance (expectancy)

do I believe that this effort will be reflected in my performance; if so expectancy will be quite high (close to 1.0); when a person feels that effort is unrelated to performance, effort to performance expectancy is very weak (close to 0) scale (-1 to 1)

theory posits

ensuring that the hygiene factors are not deficient and not blocking motivation giving employees the opportunity to experience motivational factors through job enrichment

Performance to outcome expectancy (instrumentality)

ex. If I get an A or B will it affect my outcome (high GPA, good job, big house, etc. whatever is important to you) Employee's perception of the probablity that performance will lead to a specific outcome- the consequence or reward for behaviors in an org setting

expectancy theory

motivation depends on how much we want something and how likely we are to get it Assumes that personal environment forces determine behavior people make decisions about their behavior in organizations people have different types of needs, desires, and goals people choose among alternatives of behaviors in selecting one that leads to a desired outcome motivation leads to effort that, when combined with ability and environmental factors, results in performance which leads to outcomes having value (valence) to employees

Reinforcement Perspectives

reinforcement theory: the role of rewards as they cause behavior to change or remain the same over time assumes that behavior that results in rewarding consequences is likely to be repeated, and behavior that results in punishing consequences is less likely to be repeated Kinds of reinforcement in Organizations: Positive reinforcement (if you wnat behavior to maintain or increase) strengthens behavior w/ rewards or positive outcomes after a desired behavior is performed ex. Dog sits b/c he knows he'll get a treat Avoidance (If you want behavior to maintain or increase) strenghtens behavior by avoiding unpleasant consequences that would result if the behavior is performed you demonstrate behavior to avoid something you don't want ex. you show up to class on time so you don't miss anything Punishment (if you want behavior to stop) Weakens undesired behavior by using negaitve outcomes or unpleasant consequences when the behavior is performed ex. if someone continually comes into work late, the manager might result to discipline Extinction (if you want behvior to stop) weakens undersired behavior by simply ignoring or not reinforcing that behavior you withhold a desired outcome and it will weaken behavior ex. not laughing at kids dirty jokes so they know it is not ok continuous reinforcement- yields high level of performance early on but eventually tapers off

Two Factor Theory (Helzberg)

says that you can be satisfied and dissatisfied at the same time - these are two separate factors for motivation to occur you have to have satisfaction and no dissatisfaction satisfaction is derived from motivational factors: the work content, does job challenge you , does it provide autonomy etc. (job characteristics theory) influences satisfaction or no satisfaction motivational factors (work environment) are on a continuum that ranges from satisfaction to no satisfaction Hygiene factors (work environment)- based on the environment (safe work environment) you are operating in they either yield dissatisfaction or no dissatisfaction for motivation to occur you have to have motivational and hygiene factors present we have to make sure hygiene factors are present for motivational factors to influence behavior (ex. toilet paper is a hygiene factor, nobody gets excited when they see toilet paper but if you don't have toilet paper you'll be upset- you're going to be either satisfied or dissatisfied)

Porter Lawler Extension of Expectancy Theory

suggest that there may be a relationship between satisfaction and perfomance but that it goes in the opposite direction- that is, high performance may lead to high satisfaction another assumption is that if performance results in equitbale and fair rewards, people will be more satisfied Types of Rewards: Extrinisc rewards are outcomes set and awarded by external parties ( somthing sombody else controls) such as pay and promotions Intrinsic rewards are outcomes internal to the individual (expression of personality and helps you feel better) such as self esteem and accomplishment

ERG Theory of motivation (Aldefer)

suggests that people's needs are grouped into three overlapping took what maslow said, condensed it, and changed the order of things categories - existence, relatedness, and growth existence needs- corerspond to te physiological and security needs (pysicological and security) relatedness needs- foucs on how people relate to their social environment (belongingness and esteem) growth needs- self esteem (self actualization)

Individual Human Needs (McClelland)

three things that motivate people: The need for achievement the desire to accomplish a goal or task more effectively that in the past (these people have a high need for achievement, have a desire to assume responsiblility, and set difficult goals) The need for Power the desire to be influential in a group and to be in control of one's environment (likely to be superior performers, have good attendance records, and occupy supervisory positions) The need for Affiliation a strong need of acceptance from other people (people like this perform better in a job that entails a lot of social interaction and offers opportunities to make friends)