Management Exam Iii Ch. 12

Front 1

Model of motivation

Back 1

unfulfilled need-->motivation--> behaviors-->rewards-->feedback

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Motivation

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the psychological processes that arouse and direct goal directed behavior.

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Extrinsic reward

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-satisfaction in the payoff from others.
-the payoff, such as money, a person receives from others for performing a particular task
-ex. an experiment by GE found that paying employees who were smokers up to $750 to quit and stay off cigarettes was 3 times as successful as a comparison group that got no paid incentives.

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Intrinsic reward

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-satisfaction in performing the task itself.
-the satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself. Comes from pleasing yourself
-ex. someone leaves the office to spend 12 weeks in a foreign country as a volunteer providing free accounting services to a small publishing firm. "It was among the best 3 months of my life"

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Motivation is important for 5 reasons: want to motivate ppl to...

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1.) join your organization
2.) stay with your oranization
3.) show up for work at your organization
4.) be engaged while at your organization
5.) do extra for your organization

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4 major perspectives on motivation:

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1.) content
2.) process
3.) job design
4.) reinforcement

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Content perspectives

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also known as "need based perspectives" are theories that emphasize the needs that motivate people.
-"what kind of needs motivate employees in the workplace?"

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Needs

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defined as physiological or psychological deficiencies that arouse behavior.

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content perspectives include 4 theories:

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1.) maslows hierarchy of needs theory
2.) alderfer's ERG theory
3.) McClellands acquired needs theory
4.) Herzbergs two factor theory

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Maslows hierarchy of needs theory:

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proposes that people are motivated by 5 levels of needs:
1.) physiological
2.) safety
3.) love
4.) esteem
5.) self actualization

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(1) physiological needs

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the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self preservation

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(2) safety needs

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these needs are concerned with physical safety and emotional securtiy, so that a person is concerned with avoiding violence and threats.

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(3) love needs

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once basic needs and security are taken care of, people look for love, friendship, and affection

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(4) esteem needs

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after they meet their social needs, people focus on such matters as self respect, status, reputation, recognition, and self confidence

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(5) self actualization needs

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the highest level of need, self actualization is self fulfillment--the need to develop ones fullest potential, to become the best one is capable of being

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Alderfer's ERG Theory (existence, relatedness, and growth)

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-developed by clayton alderfer
-assumes that three basic needs influence behavior--existence, relatedness, and growth

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Existence needs

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existence needs are the desire for physiological and material well being.

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relatedness needs

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relatedness needs are the desire to have meaningful relationships with people who are significant to us.

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Growth needs

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growth needs are the desire to grow as human beings and to use our abilities to their fullest potential

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Frustration regression component

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if our higher level needs (such as growth needs) are frustrated, we will then seek more intensely to fulfill our lower level needs (such as existence needs)

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McClellands acquired needs theory

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states that three needs--acheivement, affiliation, and power are major motives determining peoples behavior in the workplace
-not born with needs, rather we learn them from the culture from our life experiences

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Need for acheivement

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"I need to excel at tasks"
-this is the desire to excel, to do something better or more efficiently, to solve problems, to acheive excellence in challenging tasks

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Need for affiliation

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"I need close relationships"
-this is the desire for friendly and warm relations with other people

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Need for power

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"I need to control others"
-this is the desire to be responsible for other people, to influence their behavior or to control them.

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2 forms of power according to McClelland:

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Personal and institutional power

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Personal power

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desire to dominate others, and involves manipulating people for ones own gratification

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Institutional power

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the need to solve problems that further organizational goals

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Herzberg's two-factor theory

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proposed that work satisfaction and dissatisfaction arise from two different factors--work satisfaction from motivating factors and work dissatisfaction from hygiene factors

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Hygiene factors

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"why are my people dissatisfied?"
-factors associated with job dissatisfaction--such as salary, working conditions, interpersonal relationships, and company policy--all of which affect the job context in which ppl work
-lower-level needs

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Motivating factors

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"What will make my people satisfied?"
-motivators, are factors associated with job satisfaction--such as acheivement, recognition, responsibility, and advancement--all of which affect the job content or the rewards of work performance.
-higher level needs

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Process perspectives

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are concerned with the thought processes by which people decide how to act.
-how employees choose behavior to meet their needs

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3 process perspectives on motivation:

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1.) equity theory
2.) expectancy theory
3.) goal-setting theory

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Equity theory

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"how fairly do you think youre being treated in relation to others?"
-focuses on employee perception as to how fairly they think they are being treated compared with others.
-developed by psychologist J. Stacy Adams
-based on the idea that employees are motivated to see fairness the rewards they expect for task performance.

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equity theory cont.

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-employees are motivated to resolve feelings of injustice
-ex. might employees respond to knowing that the average pay for CEO's is greater than 180 times the average workers pay?
ex. how about the fact that women make about 20% less than men for comparable work?

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Key elements in equity theory:

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inputs, outputs (rewards), and comparisons

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Inputs

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"What do you think you're putting into the job?"
-the inputs that people perceive they give to an organization are their time, effort, training, experience, intelligence, creativity, seniority, status, and so on

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Outputs or (rewards)

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"What do you think you're getting out of the job?"
-the outputs are the rewards that people receive from an organization: pay, benefits, praise, recognition, bonuses, promotions, status perquisites and so on

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Comparison

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"how do you think your ratio of inputs and rewards compares with those of others?"
-suggest that ppl compare the ratio of their own outcomes to inputs against the ratio of someone elses outcomes to inputs

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perceptions of employees equity and inequity

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equity-they are satisfied with the ratio and so they dont change their behavior
inequity-they feel resentful and act to change the inequity

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some ways employees try to reduce inequity:

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-they will redue their inputs
-they will try to change the outputs or rewards they receive
-they will distort the inequity
-they will change the object of comparison
-they will leave the situation

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3 practical lessons that can be drawn from equity theory:

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1.) employee perceptions are what count
2.) employee participation helps
3.) having an appeal process helps

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Expectancy theory

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"how much do you want and how likely are you to get it?"
-suggests that people are motivated by two things: 1.) how much they want something and 2.) how likely they think they are to get it
-in other words, assuming they have choices, people will make the choice that promises them the greatest reward if they think they can get it.
-Victor Vroom

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Motivation according to the expectancy theory

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involves the relationship between your effort, your performance, and the desirability of the outcomes (such as pay or recognition) of your performance.
-for your motivation to be high, you must have high levels of all three elements-expectancy, instrumentality, and valence

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3 major elements of the expectancy theory:

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1.) expectancy
2.) instrumentality
3.) valence

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Expectancy

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"will I be able to perform at the desired level on a task?"
-the belief that a particular level of effort will lead to a particular level of performance.
-this is called the "effort-to-performance expectancy
-ex. If you believe that putting in more hours working at best buy selling video game machines will result in higher sales, then you have high effort-to-performance expectancy.

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Instrumentality

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"What outcome will I receive if I perform at this level?"
-the expectation that successful performance of the task will lead to the outcome desired. This is called "performance-to-reward expectancy
-ex. if you believe that making higher sales will cause best buy to give you a bonus, then you have high performance-to-reward expectancy.

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Valence

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"how much do I want the outcome?"
-is value, the importance a worker assigns to the possible outcome or reward.
-ex. If you assign a lot of importance or a high value to best buys prospective bonus or pay raise, then your valence is said to be high.

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When attempting to motivate employees, managers should ask the following questions:

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-"What rewards do your employees value?"
-"what are the job objectives and the performance level you desire?"
-"are the rewards linked to performance?"
-"Do employees believe you will deliver the right rewards for the right performance?"

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Goal setting theory

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suggests that employees can be motivated by goals that are specific and challenging but achievable.
-according to Edwin Locke and Gary Latham it is natural for people to set and strive for goals; only useful if people understand and accept the goals

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4 elements of goal setting theory:

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1.) goals should be specific
2.) goals should be challenging
3.) goals should be achievable
4.) goals should be linked to action plans.

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Job design

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is 1.) the division of an organizations work among its employees and
2.) the application of motivational theories to jobs to increase satisfaction and performance.

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2 different approaches to job design:

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traditional, and modern

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traditional way

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is fitting people to jobs

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modern way

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is fitting jobs to people

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Job simplification

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-the process of reducing the number of tasks a worker performs.
-when a job is stripped down to its simplest elements, it enables a worker to focus on doing more of the same task, thus increasing employee efficiency and productivity.
-on technique to make the worker most compatible with work

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Fitting jobs to people (modern)
-two techniques for this job design

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-based on the assumption that people are underutilized at work and that they want more variety, challenges, and responsibility.
-1.) Job enlargement
-2.) Job enrichment

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Job enlargement

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consists of increasing the number of tasks in a job to increase variety and motivation.
-ex. for instance the job of installing flat screens in television sets could be enlarged to include installation of the circuit boards as well.

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Job enrichment

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consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement.
-ex. one department store authorized thousands of its sales clerks to handle functions normally reserved for store managers, such as handling merchandise-return problems and approving customers checks.

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Horizontal loading

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simply giving employees additional tasks of similar difficulty.
-job enlargement technique

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Vertical loading

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employees are given more responsibility
-job enrichment technique

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Job characteristics model

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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 employees motivation, performance, and satisfaction
-developed by J.Richard Hackman and Greg oldham

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5 Job characteristics

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1.) skill variety
2.) task identity
3.) task significance
4.) autonomy
5.) feedback

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skill variety

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"how many different skills does your job require?"
-skill variety describes the extent to which a job requires a person to use a wide range of different skills and abilities.
-ex. The skill variety required by a rocket scientist is higher than that for a short order cook.

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Task identity

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"how many different tasks are required to complete the work?"
-task identity describes the extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end.
-ex. the task identity for a craftsperson who goes through all the steps to build a handmade acoustic guitar is higher than it is for an assembly line worker who just installs windsheilds on cars.

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Task identity

Back 65

"how many different tasks are required to complete the work?"
-task identity describes the extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end.
-ex. the task identity for a craftsperson who goes through all the steps to build a handmade acoustic guitar is higher than it is for an assembly line worker who just installs windsheilds on cars.

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Task significance

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"how many other people are affected by your job?"
-task significance describes the extent to which a job affects the lives of other people whether inside or outside the organization.
-ex. a technician who is responsible for keeping a hospitals electronic equipment in working order has higher task significance than does a person wiping down cars in a carwash.

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Autonomy

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"how much discretion does your job give you?"
-describes the extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them.
-ex. college textbook salespeople have lots of leeway in planning which campuses and professors to call on. Thus, they have higher autonomy than do toll takers on a bridge, whose actions are determined by the flow of vehicles.

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Feedback

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"how much do you find out how well you're doing?"
-describes the extent to which workers receive clear, direct information about how well they are performing the job.
-ex. professional basketball players receive immediate feedback on how many of their shots are going into the basket. Engineers working on new weapons systems may go years before learning how effective their performance has been

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these 5 core characteristics affect a workers motivation because they affect what 3 critical psychological states:

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-meaningfulness of work
-responsibility for results
-knowledge of results

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these positive psycological states fuel:

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-high motivation
-high performance
-high satisfaction
-low absenteeism and turnover

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Contingency factors

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refers to the degree to which a person wants personal and psychological development.

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to be motivated they must have 3 attributes:

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1.) necessary knowledge and skill
2.) desire for personal growth
3.) context satisfactions-the right physical working conditions

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3 major steps to follow when applying the job characteristics model:

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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

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Job diagnostic survey

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indicates whether an individuals so called motivating potential score (MPS)--the amount of internal work motivation associated with a specific job--is high or low

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reinforcement theory

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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.
-pioneered by edward l. thorndike and B.F. Skinner

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behavior modification

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the use of reinforcement theory to change human behavior

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Reinforcement

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anything that causes a given behavior to be repeated or inhibited, whether praising a child for cleaning his or her room or scolding a child for leaving a tricycle in the driveway.

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4 types of reinforcement

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1.) positive reinforcement
2.) negative reinforcement
3.) extinction
4.) punishment

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Positive reinforcement

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the use of positive consequences to encourage desirable behavior.
-ex. a supervisor whos aksed an insurance salesperson to sell more policies might reward successful performance by saying "its great that you exceeded your quota, and youll get a bonus for it. Maybe next time youll sell even more and will become a member of the circle of 100 top sellers and win a trip to Paris as well."

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Negative reinforcement

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the removal of unpleasant consequences following a desired behavior.
-ex. a supervisor who has been nagging a salesperson might say, "well, so you exceeded you quota" and stop the nagging.

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Neutral statement

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there is no praise but also no longer any negative statements. This could cause the sales rep to maintain his or her existing behavior

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Extinction

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is the withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future.
-ex. A supervisor might tell a successful salesperson, "I know you exceeded your quota, but now that our company has been taken over by another firm, were not giving out bonuses anymore."
-presumably this will weaken the salespersons efforts to perform better in the future

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Punishment

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is the application of negative consequences to stop or change undesirable behavior.
-ex. A supervisor might tell an unsuccessful salesperson whos been lazy about making calls to clients and so didnt make quota. "Well, if this keeps up, youll probably be let go.

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Aspects of positive reinforcement which should be part of your toolkit of managerial skills:

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-reward only desirable behavior
-give rewards as soon as possible
-be clear about what behavior is desired
-have different rewards and recognize individual differences.

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Suggestions for using punishment:

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-punish only undesirable behavior
-give reprimands or disciplinary actions as soon as possible
-be clear about what behavior is undesirable
-administer punishment in private
-combine punishment and positive reinforcement

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sometimes combining punishment with positive reinforcement is best:

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ex. while reprimanding someone for being late, say that a perfect attentance record over the next few months will put that employee in line for a raise or promotion.

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criteria are advisable for incentive plans to work:

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1.) rewards must be linked to performance and be measurable
2.) the rewards must satisfy individual needs.
3.) the rewards must be agree on by manager and employees.
4.) the rewards must be believable, and achievable by employees.

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most well known incentive compensation plans:

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-pay for performance
-bonuses
-profit sharing
-gainsharing
-stock options
-pay for knowledge

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Pay for performance

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-also known as "merit pay" bases pay on ones results

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piece rate

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employees are paid according to how much output they produce.
-one standard pay for performance plan

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sales commission

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sales representatives are paid a percentage of the earnings the company made from their sales, so that the more they sell, the more they are paid.
-another pay for performance plan

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bonuses

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are cash rewards given to employees who achieve specific performance objectives

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Profit sharing

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is the distribution to employees of a percentage of the companys profits.
-ex. in ont tshirt and sweatshirt manufacturing company, 10% of pretax profits are distributed to employees every month, and more is given out at the end of the year.

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Gainsharing

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is the distribution of savings or "gains" to groups of employees who reduced costs and increased measurable productivity.
-ex. there are different types of gainsharing plans, but in one known as the Scanlon plan, a portion of any cost savings, usually 75%, is distributed back to employees; the company keeps the other 25%

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stock options

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certain employees are given the right to buy stock at a future date for a discounted price.

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Pay for knowledge

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also known as "skill-based pay, ties employee pay to the number or job relevant skills or academic degrees they earn.
-ex. the teaching profession is a time honored instance of this incentive, in which elementary and secondary teachers are encouraged to increase their salaries by earning further college credit. However, firms such as FedEx also have pay for knowledge plans.

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Nonmonetary ways of motivating employees

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-the need for work life balance
-the need to expand skills
-the need to matter

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nonmonetary incentives to attract, retain, and motivate employees:

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-flexible workplace
-treat employees well

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flexible workplace

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includes part time work, flextime, compressed workweek, job sharing, and telecommuting.

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examples of treating employees well:

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-thoughtfulness: the value of being nice
-Work-life benefits
-surroundings
-skill-building and educational opportunities
-sabbaticals