MAN Ch 12

Acquired needs theory

-David McClelland -proposes that certain types of needs are acquired during the individual's lifetime. In other words, people are not born with these needs but may learn them through their life experiences. The three needs most frequently studied are these: -need for achievement -need for affiliation -need for power

Two-factor theory of motivation

-Herzberg: The center of the scale is neutral, meaning that workers are neither satisfied nor dissatisfied. Herzberg believed that two entirely separate dimensions contribute to an employee's behavior at work: hygiene factors (dissatisfaction) and motivators (satisfaction)

Why are employees motivated to communicate

-Lincoln attracts motivated individuals -reduce distinctions between management and workers -management advisory board -lack of union

most common methods for reducing a perceived inequity

-change work effort -change outcomes -change perceptions -leave the job

Employee stock option plan

-company established benefit plans in which employees acquire stock -objective is to have employee act as "owner" -provides potential to increase job satisfaction and motivation

How many shares can you own

-depends on the size of the company -smaller the company, the more you own

3 important approaches to motivating employees

-empowerment -engagement -making progress

What problems does lincoln electrics management system create?

-guaranteed employment (limits their ability to expand and contract) -promoting from within and hiring only two entry level positions -strong company culture and values -continual efficiencies reduce value-added

major approaches to job design

-job characteristics model

What are key policies and practices at lincoln electric

-piecework pay: paid based on what you make, fix it on your own time -guaranteed employment: if you know how to do something better than everyone else, bc as the company improves performance you're gonna get a bigger bonus -bonus based on company performance -communication and cooperation between functions

Other factors to lincoln electric success

-policies are clear, transparent and explicit -communicated frequently to all -policies consistently enforces -policies are consistent both with each other and with their product-market strategy -executives live by the same rules -executives work as hard as everyone

What can you expect?

-read the disclosures -expect to vest over 4 years -trigger- expect to be employed for one year -Get the ESOP tied to performance -be willing to negotiate -- if you feel the company is growing

Aspects of Lincoln

-share trade secrets with competitors during WWII -lifetime employment -amount of bonuses proportional to amount of bonus, up to 90%

Almost all aspects of the company's practices reinforce

-shared goals (cost reduction, higher value to customers, higher profits) -shared values (status and reward in proportion to your personal contribution as well as company as a whole) -serve to improve communication and reduce barriers to inefficiency

More factors of Lincoln electric

-shared values between management and workers -lifetime employment allows accumulation of knowledge -focus on customer needs -salesmen know welding -honesty and fairness throughout -minimization of conflict ---shared goal of high profits and high bonuses -promote from within -all are key to Lincoln's key success factors ---not just the bonus structure -being the low cost producer and continually reducing costs

Do you think that the Lincoln system can be introduced into other companies? If so, what parts are transferable?

-yes some things -there are significant obstacles to the lincoln system in most firms -lincoln's corporate culture took decades to build -Parts that could be transferred: 1. advisory board 2. early involvement of engineers in product design -training salesmen to become knowledgable -increase in transparent/open communication

ERG theory

A modification of the needs hierarchy that proposes three categories of needs: existence, relatedness, and growth. -Clayton Alderfer

change work effort

A person may choose to increase or decrease his or her inputs to the organization. Individuals who believe that they are underpaid may reduce their level of effort or increase their absenteeism. Overpaid people may increase their effort on the job.

reinforcement perspective

A theory based on the relationship between a given behavior and its consequences.

social learning theory

A theory that proposes that an individual's motivation can result not just from direct experience of rewards and punishments but also from thoughts, beliefs, and observations of other people's behavior.

change outcomes

An underpaid person may request a salary increase or a bigger office. A union may try to improve wages and working conditions to be consistent with a comparable union whose members make more money.

Reinforcement

Anything that causes a certain behavior to be repeated or inhibited.

law of effect

Asserts that positively reinforced behavior tends to be repeated, and unreinforced or negatively reinforced behavior tends to be inhibited.

Employees have knowledge and skills to contribute to company goals

Companies use training programs and other development tools to help people acquire the knowledge and skills that they need to contribute to organizational performance.

Employees have the power to make substantive decisions

Empowered employees have the authority to influence work procedures and organizational performance directly, such as through quality circles or self-directed work teams.

self-actualization needs

These needs include the need for self-fulfillment, which is the highest need category. They concern developing one's full potential, increasing one's competence, and becoming a better person. These needs can be met in the organization by providing people with opportunities to grow, be creative, and acquire training for challenging assignments and advancement.

Belongingness needs

These needs reflect the desire to be accepted by one's peers, have friendships, be part of a group, and be loved. In the organization, these needs influence the desire for good relationships with coworkers, participation in a work group, and a positive relationship with supervisors.

esteem needs

These needs relate to the desire for a positive self-image and the desire to receive attention, recognition, and appreciation from others. Within organizations, reflect a motivation for recognition, an increase in responsibility, high status, and credit for contributions to the organization.

Task identity

This is the degree to which an employee performs a total job with a recognizable beginning and ending.

Task significance

This is the degree to which the job is perceived as important and having an impact on the company or consumers.

Autonomy

This is the degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks.

Feedback

This is the extent to which doing the job provides feedback to the employee about his or her performance. Jobs vary in their ability to let workers see the outcomes of their efforts.

Skill variety

This is the number of diverse activities that compose a job and the number of skills used to perform it.

Extinction

Withholding positive rewards and essentially ignoring undesirable behavior.

three elements of employee engagement

a sense of meaningfulness, a sense of connection, and a sense of growth

Vicarious learning

aka observational learning -Learning that occurs when an individual sees others perform certain behaviors and get rewarded for them.

trigger

an event that allows you to participate in ESOP

Criteria for motivational goals

challenging, provide feedback, accepted, specific

job enlargement

creates a broader job so that people perform a variety of activities

Job characteristics model

developed by Richard Hackman and Greg Oldham -A model of job design that considers core job dimensions, individuals' critical psychological states, and employee growth-need strength.

Why is Lincoln electric the best company in the world?

encourage individual performance and pay very well for it -sales and profit growth large -consistently earn 10-15% ROE -growth is internally financed -debt free (almost) balance sheet -market share expanding -dominant producer -market leader -they see no trouble ahead -believe their approach to motivation makes them the best

equity

exists whenever the ratio of one person's outcomes to inputs equals the ratio of another's outcomes to inputs.

Critical Psychological States

experienced meaningfulness of the work experienced responsibility for outcomes of the work knowledge of the actual results of the work activities

Process Theories of Motivation

explain how people select behavioral actions to meet their needs and determine whether their choices were successful. Important perspectives in this area include goal setting, equity theory, and expectancy theory.

frustration-regression principle

failure to meet a high-order need may trigger a regression to an already fulfilled lower-order need.

Motivators (Herzberg)

focus on high-level needs and include achievement, recognition, responsibility, and opportunity for growth. Herzberg believed that when motivators are absent, workers are neutral toward work, but when motivators are present, workers are highly motivated and satisfied.

extrinsic rewards

given by another person, typically a manager, and include promotions, praise, and pay increases

goal difficulty

hard goals are more motivating than easy ones. Easy goals provide little challenge for employees and don't require them to increase their output. Highly ambitious but achievable goals ask people to stretch their abilities and provide a basis for greater feelings of accomplishment and personal effectiveness.

Four elements of empowerment

information, knowledge, power, and rewards.

E --> P expectancy

involves determining whether putting effort into a task will lead to high performance. For this expectancy to be high, the individual must have the ability, previous experience, and necessary equipment, tools, and opportunity to perform.

P --> O expectancy

involves determining whether successful performance will lead to the desired outcome or reward. If this expectancy is high, the individual will be more highly motivated. If the expectancy is that high performance will not produce the desired outcome, motivation will be lower.

Hygiene Factors (Herzberg)

involves the presence or absence of job dissatisfiers, such as working conditions, pay, company policies, and interpersonal relationships. When these are poor, work is dissatisfying. However, good ones simply remove the dissatisfaction; they do not in themselves cause people to become highly satisfied and motivated in their work.

making progress principle

is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals.

Personal and work outcomes

leads to the personal and work outcomes of high work motivation, high work performance, high satisfaction, and low absenteeism and turnover.

Work redesign

means altering jobs to increase both the quality of employees' work experience and their productivity.

Goal acceptance

means that employees have to "buy into" the goals and be committed to them.

Employee engagement

means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization.

feedback

means that people get information about how well they are doing in progressing toward goal achievement

employee growth-need strength

means that people have different needs for growth and development.

Job rotation

moves employees systematically from one job to another to provide variety and stimulation

Four Reinforcement Tools

positive reinforcement, avoidance learning, punishment, extinction

Empowerment

power sharing, the delegation of power and authority to subordinates in an organization.

option price

pre-determined price for options set by BOD

Goal-setting theory

process theory described by Edwin Locke and Gary Latham, proposes that managers can increase motivation and enhance performance by setting specific, challenging goals, and then helping people track their progress toward goal achievement by providing timely feedback

Equity theory

process theory that focuses on individuals' perceptions of how fairly they are treated compared with others. Developed by J. Stacy Adams, proposes that people are motivated to seek social equity in the rewards they receive for performance

Expectancy theory

process theory that suggests that motivation depends on individuals' expectations about their ability to perform tasks and receive desired rewards. associated with the work of Victor Vroom -based on the relationship among the individual's effort, the individual's performance, and the desirability of outcomes associated with high performance.

Maslow's Hierarchy of Needs Theory

proposes that people are motivated by multiple needs and that these needs exist in a hierarchical order -physiological needs -safety needs -belongingness needs -esteem needs -self-actualization needs

Goal specificity

refers to the degree to which goals are concrete and unambiguous.

Core Job Dimensions

skill variety, task identity, task significance, autonomy, feedback

motivation

the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action.

vesting period

the period of time over which you receive options

Option

the right to purchase stock at a fixed price over a pre-defined period

intrinsic rewards

the satisfactions that a person receives in the process of performing a particular action.

Valence

the value of outcomes, or attraction to outcomes, for the individual. If the outcomes that are available from great effort and good performance are not valued by employees, motivation will be low. Likewise, if outcomes have a high value, motivation will be higher

The high bonuses at lincoln electric

they are important, but clearly not the only factor to their success

safety needs

These needs include a safe and secure physical and emotional environment and freedom from threats—that is, for freedom from violence and for an orderly society. In the workplace,reflect the needs for safe jobs, fringe benefits, and job security.

Employees receive information about company performance

In companies where employees are fully empowered, all employees have access to all financial and operational information.

job enrichment

Incorporating high-level motivators, such as achievement, recognition, and opportunities for growth, into work.

how does job design influence motivation

Jobs are an important consideration for motivation because performing their components may provide intrinsic rewards that meet employees' needs.

Employees are rewarded based on company performance

Organizations that empower workers often reward them based on the results shown in the company's bottom line. Organizations may also use other motivational compensation programs that tie employee efforts to company performance.

sense of connection

People feel connected to the company, to one another, and to their managers. In a survey asking people what factors contribute to their engagement, 79 percent of people said that "good relationships with coworkers" drove engagement to a high or very high extent.

sense of meaningfulness

People feel that they are working toward something important. When employees have a chance to accomplish something that provides real value, they feel this

A simple model of motivation

People have needs—such as for recognition, achievement, or monetary gain—that translate into an internal tension that motivates specific behaviors with which to fulfill various needs. To the extent that the behavior is successful, the person is rewarded because the need is satisfied. The reward also informs the person that the behavior was appropriate and can be used again in the future.

sense of growth

People have the chance to learn, grow, and advance. To be fully engaged, people need to feel not only that they are competent to handle what is asked of them but also that they have the chance to learn and expand their potential.

Leave the job

People who feel inequitably treated may decide to do this rather than suffer the inequity of being underpaid or overpaid. In their new jobs, they expect to find a more favorable balance of rewards.

Job design

Refers to applying motivational theories to the structure of work to improve motivation, productivity, and satisfaction.

Avoidance learning

Removing an unpleasant consequence once a behavior is improved. Also called negative reinforcement.

change perceptions

Research suggests that people may do this if they are unable to change inputs or outcomes. They may increase the status attached to their jobs artificially or distort others' perceived rewards to bring equity into balance.

Positive reinforcement

The administration of a pleasant and rewarding consequence following a desired behavior.

need for achievement

The desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others

need for affiliation

The desire to form close personal relationships, avoid conflict, and establish warm friendships

need for power

The desire to influence or control others, be responsible for others, and have authority over others

Punishment

The imposition of an unpleasant outcome following an undesirable behavior.

Existence needs

The needs for physical well-being

Relatedness needs

The needs for satisfactory relationships with others

Growth needs

The needs that focus on the development of human potential and the desire for personal growth and increased competence

Behavior modification

The set of techniques by which reinforcement theory is used to modify human behavior.

Four categories of motives managers can use

The vertical dimension contrasts intrinsic versus extrinsic rewards. The horizontal dimension contrasts behaviors that are driven by fear or pain versus those driven by growth or pleasure. -Quadrants 1 and 2 are both negative approaches to motivating. -Quadrant 1 uses negative, extrinsic methods, such as threats or punishments, to get people to perform as desired -Quadrant 2 methods attempt to motivate people by tapping into their self-doubts or anxieties. -Quadrants 3 and 4 are positive motivational approaches. -Quadrant 3 methods attempt to influence behavior by using extrinsic rewards that create pleasure. -Quadrant 4 techniques that tap into deep-seated employee energy and commitment by helping people get intrinsic rewards from their work

content theories of motivation

Theories that emphasize the needs that motivate people. -these needs translate into an internal drive that motivates specific behaviors in an attempt to fulfill the needs -to the extent that managers understand employees' needs, they can design reward systems to meet them -Maslow's Hierarchy of Needs -ERG theory -Two-factor theory -Acquired needs theory

Physiological needs

These most basic human physical needs include food, water, and oxygen. In the organizational setting, they are reflected in the needs for adequate heat, air, and base salary to ensure survival.