chapter 12
Nonmonetary incentives: need for a positive work environment
- begins with well-being: combined impact of five elements: positive emotions, engagement, relationships, meaning and achievement (PERMA) - flourishing: the extent to which our lives contain PERMA
positive physical settings and thoughtful bosses
- key to successful workspaces is to empower individuals by giving them choices that allow control over the work environment
McClelland's Acquired Needs Theory: the three needs
- need for achievement: "i need to excel at tasks"; this is the desire to excel, to do something better/more efficiently, to solve problems, to achieve excellence in challenging tasks - need for affiliation: "i need close relationships"; the desire for friendly and warm relations with other people - need for power: "i need to control others"; desire to be responsible for other people, to influence their behavior or to control them
using reinforcement to motivate employees: positive reinforcement
- reward only desirable behavior - give rewards asap - be clear about what behavior is desired - have different rewards an recognize individual differences
Popular Incentive Compensation Plans
-pay for performance -piece rate -sales commission -bonuses -profit-sharing -gainsharing -stock options -pay for knowledge
Deci and Ryan's self-determination theory: the three innate needs
1) competence: "i want to feel a sense of mastery" 2) autonomy: "i want to feel independent and able to influence by environment" 3) relatedness: "i want to feel connected to other people"
two types of goal orientations
1) learning goal orientation: see goals as a way of developing competence through the acquisition of new skills 2) performance goal orientation: sees them as a way of demonstrating and validating a competence we already have by seeking the approval of others
Nonmonetary incentives
1) need for work-life balance 2) need to expand their skills 3) need for a positive work environment 5) need to matter: finding meaning in work
content perspectives
Also known as need-based perspectives; theories that emphasize the needs that motivate people
voice
Employees' upward expression of challenging but constructive opinions, concerns, or ideas on work-related issues to their managers
Is money the best motivator?
Most workers rate having a caring boss higher than they value monetary benefits
work-life benefits: flex-time
a characteristic of the flexible workplace- including part time work, flex time, a compressed work week, job sharing, and telecommuting
operant conditioning
a process of controlling behavior by manipulating its consequences - Skinner father of operant conditioning
Popular Incentive Compensation Plans: pay for performance
bases pay on one's results - also known as merit pay
Using Two-Factor Theory to Motivate Employees
basic lesson: you should first eliminate dissatisfaction (hygiene factors) making sure that working conditions, pay levels and company policies are reasonable - then concentrate on spurring motivation by providing opportunities for achievement
Popular Incentive Compensation Plans: bonuses
cash awards given to employees who achieve specific performance objectives
Nonmonetary incentives: work-life benefits
employer-sponsored benefit programs or initiatives designed to help all employees balance work life with home life
work-life benefits: vacations and sabbaticals
enable employees to reenergize themselves but also to cement loyalty to organization
Job Characteristics Model: how the model works
five core characteristics affect worker's motivation b/c they affect 3 critical psychological states: 1) meaningfulness of work 2) responsibility for results 3) knowledge of results in return, these positive states fuel: - high motivation - high performance - high satisfaction - low absenteeism and turnover
Four Major Perspectives on Motivation: job design theories
focus on designing jobs that lead to employee satisfaction and performance - scientific management theory - job enlargement and job enrichment - the job characteristics model
Four Major Perspectives on Motivation: process theories
focus on the thoughts and perceptions that motivate behavior - equity/justice theory - expectancy theory - goal-setting theory
stretch goals
goals beyond what they actually expect to achieve
Herzberg two factor theory: hygiene factors vs motivating factors
hygiene: lower level needs/associated with job dissatisfaction - "why are my people dissatisfied" - pay and security - working conditions - interpersonal relationships - company policy - supervisors motivating: higher level needs/motivators and factors associated with job satisfaction - "what will make my people satisfied?" - achievement - recognition - the work itself - responsibility - advancement and growth
Job Characteristics Model: contingency factors
refers to the degree to which a person wants personal and psychological development
using the hierarchy of needs theory to motivate employees
research does not clearly support Maslow's theory, although it remains popular among managers
Using Acquired Needs Theory to Motivate Employees: need for affiliation
tending to seek social approval and satisfying personal relationships - may not be the most efficient manager b/c have to make decisions that make people resent you - prefer work such as sales, that provides for personal relationships and social approval
Popular Incentive Compensation Plans: gainsharing
the distribution of savings or "gains" to groups of employees who reduced costs and increased measurable productivity
Popular Incentive Compensation Plans: profit sharing
the distribution to employees of a percentage of the company's profits
Scientific Management
the process of reducing the number of tasks a worker performs
motivation
the psychological processes that arouse and direct goal-directed behavior - can't see it, must be inferred from one's behavior
how motivation works
the results of multiple personal and contextual factors
why do people do the things they do?
they are mainly motivated to fulfill their wants and needs
Job Characteristics Model: five core job characteristics
1) skill variety: the extent to which a job requires person to use wide range of different skills/abilities 2) task identity: the extent to which a job requires a worker to perform all tasks needed to complete the job from beginning to end 3) task significance: the extent to which a job affects the lives of other people, whether inside or outside the organization 4) autonomy: the extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them 5) feedback: the extent to which workers receive clear, direct information about how well they are performing the job
job design
1) the division of an organization's work among its employees and 2) the application of motivational theories to jobs to increase satisfaction and performance
two different approaches to job design
1) traditional: fitting people to jobs 2) modern way: fitting jobs to people
Four Major Perspectives on Motivation
1. content 2. process 3. job design 4. reinforcement
Applying the Job Characteristics Model
1. diagnose the work environment to see whether a problem exists 2. determine whether job redesign is appropriate 3. consider how to redesign the job
how motivation works: contextual factors
- organizational culture - cross-cultural values - physical environment - rewards and reinforcement - group norms - communication technology - leader behavior - organizational design - organizational climate - job design
how motivation works: personal factors
- personality - ability - core self evaluations - emotions - attitudes - needs - values - work attitudes
using reinforcement to motivate employees: punishment
- punish only undesirable behavior - give reprimands/disciplinary actions asap - be clear about what behavior is undesirable - administer punishment in private - combine punishment and positive reinforcement
Elements of Justice Theory
-Distributive justice: how fairly are rewards being given out? -Procedural justice: how fair is the process for handing out rewards? -interactional justice: how fairly am I being treated when rewards are given out?; relates to the quality of interpersonal treatment people receive when procedures are implemented
Using self-determination theory to motivate employees
1) competence: providing tangible resources, time, contact, and coaching to improve employee competence 2) autonomy: managers can develop trust with employees and empower them by delegating meaningful tasks to them 3) relatedness: many companies use camaraderie to foster relatedness
Five Practical Lessons from Equity and Justice Theories
1) employee perceptions are what count 2) employees want a voice in decisions that affect them 3) employees should be given appeals process 4) leader behavior matters 5) a climate for justice makes a difference
three suggestions for building meaning into your life
1) identify activities you love doing 2) find a way to build your natural strengths into your personal and work life 3) go out and help someone
career readiness competency of self-motivation
1) identify your wildly important long-term goal 2) break your wildly important goal into short term goals 3) create a to-do list for accomplishing short term goals 4) prioritize the tasks 5) create time schedule 6) work the plan, reward yourself and adjust as needed
four motivational mechanisms of goal-setting theory
1) it directs your attention 2) regulates the effort expended 3) increases your persistence 4) fosters use of strategies and action plans
fitting jobs to people: 2 techniques
1) job enlargement: consists of increasing the number of tasks in a job to increase variety and motivation 2) job enrichment: consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work and advancement
in order of importance, you as manager want to motivate people to:
1) join your organization 2) stay with your organization 3) show up for work at your organization 4) be engaged while at your organization 5) do extra for your organization
Job characteristics model: three attributes to be motivated
1) necessary knowledge and skill 2) desire for personal growth 3) context satisfaction: the right physical working conditions, pay and supervision
McClelland's Theory of Needs: two forms of the need for power
1) personal: the negative kind for personal power; expressed in desire to dominate others, and involves manipulating people for one's own gratification 2) institutional: positive kind, characteristic of top managers and leaders, is desire to solve problems that further organizational goals
characteristics of best incentive compensation plans
1) rewards must be linked to performance and be measurable 2) the rewards must satisfy individual needs 3) rewards must be agreed on by manager and employees 4) rewards must be believable and achievable by employees
three elements of expectancy theory
1. Expectancy: the belief that a particular level of effort will lead to a particular level of performance (effort-to-performance expectancy); "will i be able to perform at the desired level on a task?" 2. Instrumentality: expectation that successful performance of the task will lead to the outcome desired (performance-to-reward expectancy); "what outcome will i receive if i perform at this level?" 3. Valence: value, the importance a worker assign to the possible outcome or reward; "how much do i want the outcome?"
practical results of goal-setting theory
1. goals should be specific 2. certain conditions are necessary for goal setting to work 3. goals should be linked to action plans 4. performance feedback and participation in deciding how to achieve goals are necessary but not sufficient for goal setting to work
Maslow's Hierarchy of Needs
1. physiological need: the most basic human physical need i.e. need for food, clothing, shelter, comfort, self-preservation (workplace example: covered by wages) 2. safety need: need for physical safety, emotional security, avoidance of violence (workplace example: health insurance, job security, pension plans) 3. love need: need for love, friendship, affection (workplace example: office parties, company softball teams, management retreats) 4. esteem need: need for self-respect, status, reputation, recognition, self confidence (workplace example: bonuses, promotions, awards) 5. self-actualization: the highest level need; need for self-fulfillment: increasing competence, using abilities to the fullest (workplace example: sabbatical leave to further personal growth)
Four types of reinforcement
1. positive reinforcement 2. negative reinforcement 3. extinction 4. punishment
process perspectives: equity/justice theory
a model of motivation that explains how people strive for fairness and justice in social exchanges or give and take relationships - based on cognitive dissonance - key elements: inputs, outputs (rewards), and comparison
job design theories: the job characteristics model
an outgrowth of job enrichment that traces the effect of five job characteristics on employees' psychological states and work outcomes
Reinforcement
anything that causes a given behavior to be repeated or inhibited
content theories: Deci and Ryan's self-determination theory
assumes that people are driven to try to grow and attain fulfillment with their behavior and well-being influenced by 3 innate needs: competence, autonomy, and relatedness - focuses on intrinsic motivation and rewards rather than extrinsic motivation and rewards
job design theories: scientific management theory
attempted to fit people to jobs by reducing the number of tasks workers had to perform to achieve a goal
Reinforcement Theory
attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated - use of reinforcement theory is called behavior modification
fitting jobs to people
based on the assumption that people are underutilized at work and that they want more variety, challenges, and responsibility - outgrowth of herzberg's theory - one of the reasons for popularity of work teams
fitting people to jobs
based on the assumption that people will gradually adapt to any work situation
Four Major Perspectives on Motivation: reinforcement theory
based on the notion that motivation is a function of behavioral consequences and not unmet needs
law of effect
behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear - thorndike - operant conditioning rests on this
process perspectives: expectancy theory
boils down to deciding how much effort to exert in a specific task situation - based on two stage sequence of expectations: moving from effort to performance and then from performance to outcomes
Popular Incentive Compensation Plans: stock options
certain employees are given the right to buy stock at a future date for a discounted price
process perspectives
concerned with the thought processes by which people decide how to act - how employees choose behavior to meet their needs
Job Characteristics Model
consists of: (a) five core job characteristics that affect (b) three critical psychological states of an employee that in turn affect (c) work outcomes—the employee's motivation, performance, and satisfaction
Nonmonetary incentives: need to expand skills
developing human capital; learning opportunities can take 3 forms: 1) studying co-workers 2) tuition reimbursement 3) learning and developing
Four Major Perspectives on Motivation: content theories
emphasize needs as motivators - Maslow's hierarchy of needs - McClelland's acquired needs theory - Deci and Ryan's self-determination theory - Herzberg's two-factor theory
Popular Incentive Compensation Plans: piece rate
employees are paid according to how much output they produce
key elements of equity/justice theory
inputs: what you think youre putting into the job - time and effort - training, experience - intelligence, creativity - seniority and status outputs (rewards): what you think youre getting out of the job - pay, benefits - praise and recognition - bonuses, promotions, status perquisites (corner office w/view, parking spot) comparisons: how you think your ratio of inputs and rewards compares with others - help make judgement of fairness - either perceive equity: satisfied with ratio and don't change behavior - or perceive inequity: feel resentful and act to change inequity
Using Acquired Needs Theory to Motivate Employees: need for achievement
people motivated by achievement prefer working on challenging, but not impossible, tasks or project - like situations in which good performance relies on effort and ability rather than luck, and like to be rewarded - high achievers want to receive fair and balanced amount of positive and negative feedback; enables them to improve their performance
Using Acquired Needs Theory to Motivate Employees: need for power
people with high need for power enjoy being in control of people and events and being recognized for this responsibility - preference would be for work that allows you to control or have an effect on people and be publicly recognized for your accomplishments
needs
physiological or psychological deficiencies that arouse behavior
Four types of reinforcement: negative reinforcement
process of strengthening a behavior by withdrawing something negative - note the neutral statement: no praise but also no longer any negative statements - cause for person to maintain his/her behavior - also strengthens behavior
Four types of reinforcement: punishment
process of weakening behavior by presenting something negative or withdrawing something positive
content theories: Herzberg's two-factor theory
proposed that work satisfaction and dissatisfaction arise from two difference factors: motivating factors and hygiene factors - differentiates hygiene and motivators that determine work satisfaction and dissatisfaction
content theories: maslow's hierarchy of needs
proposes that people are motivated by 5 levels of needs - has five levels to be met in order: 1) physiological (most basic need) 2) safety 3) love 4) esteem 5) self-actualization (highest level)
process theories: equity/justice theory
proposes that people seek fairness and justice in their interactions and relationships
Popular Incentive Compensation Plans: sales commission
sales representatives are paid a percentage of the earnings the company made from their sales
process theories: goal-setting theory
says goals that are specific, challenging, and achievable will motivate behavior
process theories: expectancy theory
says people are motivated by how much they want something and how likely they think it is they will get it
content theories: McClelland's acquired needs theory
states that three needs: achievement, affiliation and power are major motives determining people's behavior in the workplace - david mcclelland believes that we not born with our needs, but rather we learn them from culture and life experiences
process perspectives: goal setting theory
suggests that employees can be motivated by goals that are specific and challenging but achievable
extrinsic reward
the payoff, such as money, a person receives from others for performing a particular task - a reward given by others
intrinsic reward
the satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself - a reward given to yourself
Nonmonetary incentives: the need to matter: meaningfulness
the sense of belonging to and serving something that you believe is bigger than the self
Four types of reinforcement positive reinforcement
the use of positive consequences to strengthen a particular behavior - note the rewards: praise, more money, recognition, awards - strengthens behavior
Popular Incentive Compensation Plans: pay for knowledge
ties employee pay to the number of job-relevant skills or academic degrees they earn - also known as skill-based pay
simple model of motivation
unfulfilled need -> motivation -> behaviors -> rewards (extrinsic or intrinsic) -> feedback
job design theories: job enlargement and job enrichment
ways to fit jobs to people by offering more variety, challenges, and responsibility
Four types of reinforcement extinction
weakening of behavior by ignoring it or making sure it is not reinforced - weakens behavior