Chapter 9- Motivation

most advantageous for distributive, procedural, interpersonal, and informational justice all to be high

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Distributive Justice

refers to an employee's perception of the fairness of the distribution of out- comes (such as promotions, pay, job assignments, and working conditions) in an organization. Employees are more likely to be highly motivated when they perceive distributive justice to be high, rather than low.

Interpersonal Justice

refers to an employee's perception of the fairness of the interpersonal treatment they receive from whoever distributes outcomes to them (typically manager). high when managers treat subordinates with dignity and respect and are polite and courteous. Motivation is high when interpersonal justice is high

Employee stock options

A financial instrument that entitles the bearer to buy shares of an organization's stock at a certain price during a certain period or under certain conditions. -used to attract high level managers Not to reward for past performance but to motivate employees to work in the future for the good of the company as a whole. exercise price: price that bearer can buy the stock -set equal to market price of the stock on date it is granted vesting conditions: specify when the bearer can actually buy the stock at the exercise price -may specify that manager must work x months to exercise the option Used by high tech firms and start ups have led to unethical behavior (seek to artifically inflate the value of co stock to increase value of options)

Learning

A relatively permanent change in knowledge or behavior that results from practice or experience. (training) -people learn to receive desired outcomes (pay)

Equity Theory

A theory of motivation that focuses on people's perceptions of the fairness of their work outcomes relative to their work inputs. motivation is influenced by the comparison of one's own outcome-input ratio with the outcome-input ratio of a referent - the perceptions of outcomes and inputs are key "Distributive Justice theory:" focus on the fair distribution of outcomes in organizations to foster high motivation

Goal Setting Theory

A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects. Key takeaways: 1. Sub participation in goal setting process boosts acceptance of/ commitment to goals 2. Feedback on how subs are doing from performance appraisals or HR is very important 3. Specific/difficult goals

Social learning theory

A theory that takes into account how learning and motivation are influenced by people's thoughts and beliefs and their observations of other people's behavior. explains 1. vicarious learning 2. self reinforcement 3. self efficacy

self-efficacy

An individual's belief that he or she is capable of performing a task. influences motivation both when managers provide reinforcement and when workers themselves provide it. -likely to set for themselves difficult goals that will lead to outstanding accomplishments only if they think they can reach those goals. The greater the self- efficacy, the greater the motivation and per- formance. Can be boosted: 1. through training: increases levels of autonomy/ responsibility 2. managers express confidence in their ability to manage their units 3. past performance/ accomplishments 4. accomplishments of other people

Physiological needs

Basic needs for things such as food, water, and shelter that must be met in order for a person to survive. Managers role: Providing a level of pay that enables a person to buy food and clothing and have adequate housing. Prime motivator for people living in less developed countries with low standards of living

extrinsically motivated behavior

Behavior that is performed to acquire material or social rewards or to avoid punishment

Extinction

Curtailing the performance of dysfunctional behaviors by eliminating whatever is reinforcing them. -cons of extinction: timely process, sometimes can't control whatever is reinforcing the behavior EX: Suppose a manager has a subordinate who frequently stops by his office to chat about various topics ranging from politics to last night's football game. To extinguish this behavior, the manager stops acting interested in these non-work-related conversations and keeps his responses polite and friendly but brief. Eventually, the sub ceases to come in.

Belongingness needs

Needs for social interaction, friendship, affection, and love. Managers role: Promoting good interpersonal relations and organizing social functions such as company picnics and holiday parties.

Motivator-Hygiene Theory

Concerned with: (1) outcomes that lead to high levels of motivation/ job satisfaction (motivator) (2) outcomes that prevent people from being dissatisfied (hygiene) people have two sets of needs or requirements: -motivator needs -hygiene needs To have a highly motivated and satisfied workforce, managers should take steps to ensure that employees' motivator needs are being met.

Motivation

Psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort, and a person's level of persistence. 1. Intrinsic or Extrinsic

self-actualization needs

The needs to realize one's full potential as a human being. Managers role: Giving people the opportunity to use their skills and abilities to the fullest extent possible. Prime motivator for citizens of wealthier countries with higher standards of living

Operant Conditioning Theory (Skinner)

The theory that people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. "all behavior is controlled or determined by its consequences" People avoid performing behaviors that lead to undesirable outcomes By linking performance of SPECIFIC behaviors to the attainment of SPECIFIC outcomes, managers can motivate members. Tools for motivating high performance and prevent absenteeism/ detractions from effectiveness: 1. positive reinforcement 2. negative reinforcement 3. extinction 4. punishment

Learning theories

Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals. 1. operant conditioning theory 2. social learning

Research suggests that when workers have high prosocial motivation, also having high intrinsic motivation can be especially beneficial for job performance

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Merit pay plan

a compensation plan that bases pay on performance -promotes high motivation 1. Base pay on individual, group, or org performance 2. Use salary increases/ bonuses Note: if unable to use merit pay plan in times of economic hardship (lay offs and pay/benefit cuts), managers need to still recognize top performers. -gift cards

Need

a requirement or necessity for survival and well- being

Maslow's Hierarchy of Needs

all people seek to satisfy five basic kinds of needs (basic--> highest): -physiological needs -safety needs -belongingness needs -esteem needs -self-actualization needs Lower level needs (psychiological/ safety) must be met before a person strives to satisfy higher needs (self actualization). The lowest level of unsatisfied needs motivates behavior; once this level of needs is satisfied, a person tries to satisfy the needs at the next level. Prime motivator of behavior= lowest UNMET need.

Informational Justice

an employee's perception of the extent to which their manager provides explanations for decisions and the procedures used to arrive at them. Motivation is high if info justice is high EX: if a manager explains how performance is appraised and how decisions about the distribution of outcomes are made, informational justice (and motivation) are more likely to be high than if the manager does not do this.

Piece rate pay

an individual based merit plan managers base employees' pay on the number of units each employee produces Advances in information technology have dramatically simplified the administration of piece-rate pay in a variety of industries

referent

another person or a group of people who are perceived to be similar to oneself; the referent also might be oneself in a previous job or one's expectations about what outcome-input ratios should be

Self reinforcer ("self-management of behavior')

any desired or attractive outcomes or rewards that people can give to themselves for good performance EX: a feeling of accomplishment, going to a movie, having dinner out, or taking time out for a golf game Managers rely on this behavior if: highly skilled employees that are responsible for creating new goods and services Advantage: 1. managers do not need to spend as much time as they ordinarily would trying to motivate and control behavior through the administration of consequences because subordinates are controlling and motivating themselves. 2. employees are given flexibility and autonomy to experiment, take risks, and sometimes fail as they work on new projects. They are encouraged to learn from their failures and apply what they learn to subsequent projects

input

anything a person contributes to their org (time, effort, education, experience, skills, knowledge, and actual work behaviors) Managers strive to motivate members of an organization to contribute inputs—through their behavior, effort, and persistance -- to help achieve goals

outcome

anything a person gets from their job/ org managers use outcomes to motivate people to contribute their inputs to the org Instrinsic outcome= autonomy, responsibility, feeling of accomplishment, pleasure of doing interesting/ enjoyable work Prosocial outcomes= improving the lives or well-being of other ppl and doing good by helping others external outcomes= pay, job security, benefits, vacation time

Intrinsically Motivated Behavior

behavior performed for its own sake, with no particular goal or explicit reward Many managers are intrinsically motivated; they derive a sense of accomplishment and achievement from helping the organization achieve its goals and gain competitive advantages -interesting / challenging jobs lead to instrinsic motivation

prosocially motivated behavior

behavior that is performed to benefit or help others can be prosocial and intrisinc or extrinsic

Instrumentality (Expectancy Theory)

belief that a given level of performance will lead to specific outcomes instrumentality must be high for motivation to be high, people must perceive that because of their high performance they will receive outcomes

The scanlon plan

bonus incentive focuses on reducing expenses or cutting costs members of an organization are motivated to propose and implement cost-cutting strategies because a percentage of the cost savings achieved during a specified time is distributed to the employees.

Salary increase or bonus?

bonuses tend to have more motivational impact b/c the amount of the bonus can be directly and exclusively based on performance: 1. the absolute level of the salary is based largely on factors unrelated to current performance (levels are typically based on performance levels, cost-of-living increases, etc from day or hire) EX: a 5% merit increase in salary seems small compared to ones total salary 2.a current salary increase may be affected by other factors in addition to performance (such as cost-of-living increases or across-the-board market adjustments) 3. bonuses give managers more flexibility in distributing outcomes: If an organization is doing well, bonuses can be relatively high to reward employees for their contributions. -bonuses can be linked directly to perf and vary year to year, employee to employee

direction of a person's behavior

refers to the many possible behaviors a person can engage in. EX: employees at Enterprise know that they should do what- ever is required to provide high-quality customer service such as giving customers rides to pick up and drop off rental cars.

Persistance

refers to whether, when faced with roadblocks and obstacles, people keep trying or give up

Motivator needs

related to the nature of the work itself and how challenging it is. Satisfied by outcomes: interesting work, autonomy, responsibility, the ability to grow/develop on the job, and a sense of accomplishment and achievement Needs must be met for high motivation/ job satisfaction

Hygiene needs

related to the physical and psychological context in which the work is performed Satisfied by outcomes: pleasant and comfortable working conditions, pay, job security, good relationships with coworkers, and effective supervision. -prevents job dissatisfaction Satisfying hygiene needs does not deal with motivation/ satisfaction

How do stock options motivate employees?

stock options issued at current stock prices have value in the future only if an organization does well and its stock price appreciates giving employees stock options should encourage them to help the organization improve its performance over tim

Need for power

the extent to which an individual desires to control or influence others. -asset for first and middle managers -especially important for upper managers EX; US presidents w high needs for power are more effective in first term

Need for affiliation

the extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him or her get along with each other. - Not desireable in managers/leaders bc they try too hard to be liked by others (subs) rather than focusing on meeting performance objectives EX: India/ New Zealand

esteem needs

the needs to feel good about oneself and one's capabilities, to be respected by others, and to receive recognition and appreciation. managers role: Granting promotions and recognizing accomplishments. Prime motivator for citizens of wealthier countries with higher standards of living

profit sharing

employees receive a share of an organization's profits

the motivation equation (expectancy theory)

high motivation results from high levels of expectancy, instrumentality, and valence motivation is high when workers believe that high levels of effort, lead to high performance, and high performance leads to the attainment of desired outcomes. -if a person thinks it is practically impossible to perform at a high level, motivation to perform at a high level will be low -if a person does not think outcomes are linked to high performance, or if a person does not desire the out- comes that are linked to high performance, motivation to perform at a high level will be low

Valence

how desirable each of the outcomes available from a job or an organization is to a person.

Basing Merit pay on individual, group, or org performance

individual motivation is likely to be highest when pay is based on individual performance -performance must be able to be accurately determined ($ value of sales) When the attainment of organizational goals hinges on members' working closely together and cooperating with each other, group or org based plans are more appropriate than individual based Combining elements of individual & group based plans: 1. motivate each person to perform well 2. motivate people to cooperate/ help as needed EX Pay is based on individual performance and also, each year the size of a bonus fund depends on organizational performance. Money from the bonus fund is distributed to people on the basis of their contributions to the organization, attendance, levels of cooperation, and other indications of performance.

Commission pay

individual-based merit pay plan managers base pay on a percentage of sales.

Inequity

lack of fairness, exists when a person's outcome-input ratio is not perceived to be equal to a referent's. creates tension that motivates people to restore equity (bring ratios back to balance) choosing appropriate referents that are similar to you can bring ratios back Types= 1. underpayment inequity: when a person's own outcome-input ratio is perceived to be less than that of a referent -you think you are not receiving the outcomes you should be, given your inputs. EX: An engineer perceives that he contributes more inputs but receives the same outcomes as his referent. 2. Overpayment inequity: when a person perceives that his or her own outcome-input ratio is greater than that of a referent -you think you are receiving more outcomes than you should be, given your inputs. EX: An engineer perceives that he contributes the same inputs but receives more outcomes than his referent.

How to align interests of individual members with the interests of the org as a whole.

look at what needs employees are trying to satisfy, make sure that individuals receive outcomes that satisfy their needs when they perform well. by performing at a high level, employees receive outcomes that satisfy their needs.

Identifying the right behaviors for reinforcement

managers must carefully identify which behaviors to reinforce- behaviors truly functional for the org. 1. choose behaviors that subs can control -must have freedom/ opportunity to perform behaviors that are being reinforced 2. crucial that behaviors contribute to org effectiveness

When equity exists

motivation is highest when as many people as possible in an org percieve thay are being equitably treated . Top contributors and performers are motivated to continue contributing a high level of inputs because they are receiving the outcomes they deserve. Mediocre contributors and performers realize that if they want to increase their outcomes, they have to increase their inputs.

Procedural justice

refers to an employee's perception of the fairness of the procedures used to determine how to distribute outcomes in an organization. Motivation is high if procedural justice is high EX: if important outcomes such as pay and promotions are distributed based on performance appraisals and an employee perceives that the procedure that is used (i.e., the performance appraisal system) is unfair, procedural justice=low and motivation will suffer

Effort

refers to how hard people work

Punishment

Administering an undesired or negative consequence when dysfunctional behavior occurs. - verbal reprimands, pay cuts, suspensions, demotions, and firings. Managers often rely on punishment when employees are performing dangerous, illegal, or unethical behaviors that need to be eliminated immediately (ie sexual harassment) Should be used only when necessary. side effects= resentment, loss of self respect, a desire for retaliation

Vicarious Learning (Observational Learning)

Learning that occurs when the learner becomes motivated to perform a behavior by watching another person performing it and being reinforced for doing so -useful in sales, med students, law clerks, nonmanager training. people are more likely to imitate the behavior of models who are highly competent, experts to some extent, have high status, receive attractive reinforces, and are friendly/ approachable

Ways to boost expectancy

Managers express confidence in their subordinates capabilities Provide training so people have... - the expertise needed for high performance -increased levels of autonomy/ responsibility

Safety needs

Needs for security, stability, and a safe environment. Managers role: Providing job security, adequate medical benefits, and safe working conditions. Prime motivator for people living in less developed countries with low standards of living

expectancy

In expectancy theory, a perception about the extent to which effort (an input) results in a certain level of performance. expectancy level determines amount of effort people put in. if expectancy=low, overall motivation=low & vice versa managers need to make sure their subordinates believe that if they do try hard, they can actually succeed. EX: Think about how motivated you would be to study for a test if you thought that no matter how hard you tried, you would get a D.

Key takeaways from motivator hygiene theory

theory fails to receive support from research Herzberg helped to focus researchers' and managers' attention on the important distinction between intrinsic motivation (related to motivator needs) and extrinsic motivation (related to hygiene needs) prompted researchers and managers to study how jobs could be designed or redesigned to be intrinsically motivating.

goal

what an individual strives to accomplish through their efforts/ behaviors -prime determinants of employee motivation and subsequent performance goals must be specific and difficult (for high motivation and performance) Specific goals: quantitative -do more than vague goals "do your best" Difficult goals: hard but not impossible to attain Specific, difficult goals: 1. raise effort and persistence levels EX: Salespeople who are told to sell as much as possible might stop trying on a slow day, whereas having a specific, difficult goal to reach causes them to keep trying. 2. helps people focus their inputs in the right direction: - people develop action plans that include strategies to attain goals, timetables, schedules for completion of different activities crucial to goal attainment

When are difficult goals detrimental?

when work is very creative and uncertain or when people are performing complicated/ challenging tasks that require them to focus on a considerable amount of learning

what determines a persons motivation according to the expectancy theory?

expectancy instrumentality valence

Ways to promote instrumentality

- link performance to desired outcomes (promotion and pay) managers must clearly communicate this linkage to subordinates.

Factors that determine motivation type (instrinsic, extrinsic, or both)

(1) workers' own personal characteristics (such as their personalities, abilities, values, attitudes, and needs) (2) the nature of their jobs (such as whether they have been enriched or where they are on the five core characteristics of the job characteristics model) (3) the nature of the organization (such as its structure, its culture, its control systems, its human resource management system, and the ways in which rewards such as pay are distributed to employees).

ways to restore underpayment equity

1. Lower their inputs: reduce working hours, put forth less effort on the job, or being absent 2. Increase their outcomes: ask for a raise/ promotion -if restoration attempts fail: 1. change their perceptions of their own or their referent's inputs or outcomes 2. leave the organization (experienced underpayment inequity when he realized all the other assistant principals of high schools in his school district had received promotions to the position of principal even though they had been in their jobs for a shorter time than he had. Steinberg's performance had always been appraised as being high, so after his repeated requests for a promotion went unheeded, he found a job as a principal in a different school district)

Key conclusions from Heirarchy of needs

1. People try to satisfy different needs at work. 2. identifies what needs are likely to be important sources of motivation 3. Issues w theory- -research does not support that only one level of needs is motivational at a time -global economy (citizens of different countries might differ in the needs they seek to satisfy through work) To have a motivated workforce, mangers must align interests of individual members with the interests of the org as a whole.

When using punishment, a manager should

1. downplay emotional element: Make it clear that you are punishing a person's performance of a dysfunctional behavior, not the person himself or herself. 2. Punish behavior as soon as possible after it occurs 3. Make sure negative consequence is perceived as a punishment, and they know exactly why they are being punished 4. Avoid punishing someone in front of others (hurts a persons self respect and lowers esteem in the eyes of coworkers) -making others aware that a sub has been punished is ok if they commiteed a serious infraction bc it reminds others of what is not tolerated

Ways to restore overpayment equity

1.change their perceptions of their own or their referent's inputs or outcomes (when people realize they are contributing more/less inputs than they originally thought.) -when restored this way, actual input/output are unchanged, but referent perceptions are

Theories and pay

Expectancy theory: Instrumentality, the association between performance and outcomes such as pay, must be high for motivation to be high. In addition, pay is an outcome that has high valence for many people. Need theories: People should be able to satisfy their needs by performing at a high level; pay can be used to satisfy several kinds of needs. Equity theory: Pay should be distributed in proportion to inputs (including performance levels). Goal-setting theory: Pay should be linked to the attainment of goals. Learning theories: Pay should be contingent on the performance of organizationally functional behaviors.

positive reinforcement

Increasing behaviors by presenting positive stimuli. A positive reinforcer = any stimulus that, when presented after a response, strengthens the response. EX: desired outcomes (pay, praise or promotion) Organizationally functional behaviors= behaviors that contribute to effectiveness (producting high quality goods, meeting deadlines) managers should link positive reinforcers to motivate people to perform desired behaviors EX: Teremoana receives her first pay from her new job, student receives praise from showing up early to class

negative reinforcement

Increasing behaviors by stopping or reducing negative stimuli, such as shock. A negative reinforcer =any stimulus that, when removed after a response, strengthens the response. (Note: negative reinforcement is not punishment.) -usually managers remove undesired outcomes when people perform effectively (constant nagging, criticism of assignments, threat of losing one's job) -sometimes causes subordinates to resent managers and try to get back at them. EX: Managers who try to encourage salespeople to sell more by threatening them with being fired are using negative reinforcement. In this case, the negative reinforcer is the threat of job loss, which is removed once the functional behavior is performed.

need theories

People are motivated to obtain outcomes at work that will satisfy their needs 1. Hierarchy of Needs 2. Motivator-Hygiene Theory 3. McClelland's needs for achievement, affiliation, and power

Highly Valent Outcomes

People desire the outcomes that result from high performance. Contributes to high levels of motivation and reduces turnover -pay, autonomy, responsibility, and opportunities for promotions

Need for achievement

The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence. -set clear goals for themselves and like to receive performance feedback -Asset for first/ middle line managers

equity

The justice, impartiality, and fairness to which all organizational members are entitled. exists when a person perceives his or her own outcome-input ratio to be equal to a referent's outcome-input ratio Assumes: if referent outcomes > your outcomes, referent contributes more inputs to the organization --> so their outcome-input ratio= your ratio. An engineer perceives that he contributes more inputs (time and effort) and receives proportionally more outcomes (a higher salary and choice job assignments) than his referent.

To promote vicarious learning, managers should have these conditions

The learner observes the model performing the behavior. The learner accurately perceives the model's behavior. The learner remembers the behavior. The learner has the skills and abilities needed to perform the behavior. The learner sees or knows that the model is positively reinforced for the behavior.81

other needs

need for work-life balance and time to take care of their loved ones while being highly motivated at work. exposed to nature - lack of exposure can impair well-being and performance

Difference between negative reinforcement and punishment

negative reinforcement: 1. promotes the performance of functional behaviors in organizations 2. entails the removal of a negative consequence when functional behaviors are performed punishment: 1. stops the performance of dysfunctional behaviors 2. entails the administration of negative consequences when dysfunctional behaviors are performed