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Motivation 13 and Performance
Chapter Chapter
The Nature of Motivation
Motivation
The psychological forces acting on an individual that determine:
Directionpossible
behaviors the individual could engage
in Efforthow hard the individual will work Persistencewhether the individual will keep trying or give up
Explains why people behave the way they do in organizations
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The Nature of Motivation (contd)
Intrinsically
The
Motivated Behavior
Behavior that is performed for its own sake.
source of the motivation that comes from actually engaging in the behavior. The sense of accomplishment and achievement derived from doing the work itself
Extrinsically
Motivated Behavior
Behavior that is performed to acquire material or social rewards or to avoid punishment.
The
source of the motivation is the consequences of the behavior and not the behavior itself.
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Outcomes and Inputs
Outcome
Anything a person gets from a job or an organization
Pay,
job security, autonomy, accomplishment
Input
Anything a person contributes to his or her job or organization
Time,
effort, skills, knowledge, work behaviors
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The Motivation Equation
Figure 13.1
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Expectancy Theory
Motivation will be high when workers believe:
High levels of effort will lead to high performance. High performance will lead to the attainment of desired outcomes.
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Expectancy Theory
Major Factors of Motivation
Expectancythe belief that effort (input) will result in a certain level of performance Instrumentalitythe belief that performance results in the attainment of outcomes Valencehow desirable each of the available outcomes from the job is to a person
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Expectancy, Instrumentality, and Valence
Figure 13.2
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Expectancy Theory in Practice
Expectancy: Effort will result in a level of performance.
Employees
will work work hard if they believe they can attain high performanceorganizations must provide the resources that support performance. are only motivated if they think performance leads to an outcomemanagers must link performance to outcomes. have preferences for outcomesmanagers must determine which outcomes are valued.
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Instrumentality: Performance leads to outcomes.
Workers
Valence: How desirable an outcome is to a person.
Workers
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Expectancy and Motivation
Motivation is highest when expectancy, instrumentality, and valence levels are high.
If one of the values is low, motivation will be low.
Workers
do not believe they can perform well. Workers do not believe that performance and rewards are closely linked. Workers do not value the rewards offered for performance.
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Expectancy Theory
Figure 13.3
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Need Theories
Need
A requirement for survival and well-being.
Need
Theories
Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs. Basic premise is that people are motivated to obtain outcomes at work to satisfy their needs.
Managers
must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well.
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Maslows Hierarchy of Needs
Needs
Highest-level Highest-level needs needs Selfactualization Esteem
Description
Realize ones full potential full Feel good Feel about oneself about Social Social interaction, love interaction, Security, stability Food, water, Food, shelter shelter
Examples
Use abilities Use to the fullest to Promotions and recognition and Interpersonal Interpersonal relations, parties relations, Job security, Job health insurance health Basic pay level Basic to buy items to
Belongingness
Safety
Lowest-level Lowest-level needs needs
Table 13.1
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Physiological
Lower-level needs must be satisfied before Lower-level higher-level needs are addressed. higher-level
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Alderfers ERG Theory
Needs
Highest-level Highest-level needs needs
Description
Self-development, creative work Interpersonal Interpersonal relations, feelings relations, Food, water, Food, clothing, and shelter clothing,
Examples
Continually improve skills Good relations, accurate feedback Adequate pay for necessities
Growth
Relatedness
Lowest-level Lowest-level needs needs
Existence
After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised.
Table 13.2
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Herzbergs Motivation-Hygiene Theory
Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.
Motivator needs relate to the nature of the work itselfautonomy, responsibility, interesting work. Hygiene needs are related to the physical and psychological context of the workcomfortable work environment, pay, job security.
Unsatisfied
hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.
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McClellands Needs for Achievement, Affiliation, and Power
Need for Achievement
A strong need to perform challenging tasks well and meet personal standards for excellence
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McClellands Needs for Achievement, Affiliation, and Power
Need
for Affiliation
A concern for good interpersonal relations, being liked, and getting along
Need
for Power
A desire to control or influence others
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Equity Theory
Focuses on peoples perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.
A relative outcome to input ratio comparison to oneself or to another person (referent) perceived as similar to oneself. Equity exists when a person perceives that their outcome/input ratio to be equal to the referents ratio.
If
the referent receives more outcomes, they should also give more inputs to achieve equity.
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Equity Theory
Condition Person Referent Example
Worker contributes more inputs but gets also more outputs than referent
Equity
Outcomes Inputs
= Outcomes Outcomes Inputs
Underpayment Equity
Outcomes Inputs
< Outcomes Inputs
Worker contributes more inputs but also gets the same outputs as referent
Overpayment Equity
Outcomes Inputs
> Outcomes Outcomes Inputs
Worker contributes same inputs but also gets more outputs than referent
Table 13.3
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Equity Theory
Inequity exists when workers outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent.
Workers
feel they are not getting the outcomes they should for their inputs.
Overpayment inequity: ratio is higher than the referent.
Workers
feel they are getting more outcomes than they should for their inputs.
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Equity Theory
Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity.
In underpayment, workers may reduce input levels to correct (rebalance) the ratio or seek a raise. In overpayment, workers may change the referent person and readjust their ratio perception. If inequity persists, workers will often choose to leave the organization.
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Goal Setting Theory
Focuses
on identifying the types of goals that are effective in producing high levels of motivation and explaining why goals have these effects. Considers how managers can ensure that workers focus their inputs in the direction of high performance and the achievement of organizational goals.
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Goal Setting Theory
Goal
What a person is trying to accomplish.
Characteristics
of Motivating Goals
Specific and not vague in providing direction Difficult but not impossible to attain Accepted and committed to by workers Feedback on goal attainment is important.
Goals
point out what is important to the firm.
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Workers should be encouraged to develop action plans to attain goals.
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Learning Theories
Theories that focus on increasing motivation and performance by linking outcomes to performance and the attainment of goals.
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Learning Theories
Learning
A relatively permanent change in persons knowledge or behavior that results from practice or experience.
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Operant Conditioning Theory
Operant Conditioning
People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. Linking specific behaviors to the attainment of specific outcomes can motivate high performance and prevent behaviors that detract from organizational effectiveness.
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Operant Conditioning Tools
Positive
Reinforcement
reinforcers: Pay, praises, or promotions
Getting desired outcomes for performing needed work behaviors
Positive
Negative
Reinforcement
Eliminating undesired outcomes once the desired behavior occurs
Negative
reinforcers: criticisms, pay cuts, suspension
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Operant Conditioning Tools
Extinction
Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.
Behavior
is not rewarded and over time, the worker stops performing it.
Punishment
Administering an undesired/negative consequence to immediately stop a dysfunctional behavior.
Manager
administers an undesired consequence to worker (verbal reprimand, demotion, pay cut).
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Social Learning Theory
Self-Reinforcement
Any desired or attractive outcome or award that a person can give himself or herself for good performance.
The
self-management of behavior
Self-efficacy
A persons belief about his or her ability to perform a behavior successfully.
Influences
motivation both when managers provide reinforcement and when workers themselves provide it.
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Pay and Motivation
Pay as a Motivator
Expectancy: Instrumentality, the association between performance and outcomes, must be high for motivation to be high. Need Theory: pay is used to satisfy many needs. Equity Theory: pay is given in relation to inputs. Goal Setting Theory: pay is linked to attainment of goals. Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.
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Merit Pay and Performance
Merit Pay Plan
A compensation plan that bases pay on based on individual, group and/or organization performance. Individual plan: when individual performance (sales) can accurately measured. Group plan: when group that works closely together is measured and rewarded as a group. Organization plan: when group or individual outcomes not easily measured.
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Salary Increase or Bonus?
Motivational
When:
Value of a Bonus Is Higher
Salary levels are unrelated to current performance. Changes in other compensation items (cost of living, seniority) are not having a large effect in increasing compensation. Salaries rarely change and performance does.
Benefits
of Using Bonuses
Do not become permanent part of compensation Are more directly tied to current performance Provide more flexibility in distributing rewards 13-32
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Salary Increase or Bonus?
Employee Stock Option
A financial instrument that entitles the bearer to buy shares of an organizations stock at a certain price during a certain period of time or under certain conditions. Uses
To
attract high-level managers To motivate employee performance through ownership in the firm
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Examples of Merit Pay Plans
Piece-rate
Pay Pay Merit Plans
Employees pay is based on the number of units that the employee produces. Employees pay is based on a percentage of sales that the employee makes. Scanlon planfocuses on reduced expenses or cutting costs Profit sharingemployees receive a share of an organizations profits 13-34
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Commission
Organization-based
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Pay - Accounting
Why
do accountants worry about pay increases?
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Fixed Cost
Pay Pay
as a fixed cost as a variable
cost
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