Motivation

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Motivation
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Chapter Overview

• Employee performance depends on motivation to
  perform.
  
• Motivation leads to good performance when it is
  accompanied by
  
• ability,
• skills,
• equipment,
• supplies, and
• time.

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• The chapter includes many theories of motivation.
  
  
• Content theories of motivation attempt to
  identify what things motivate people.
  
• Maslows hierarchy of needs,
• McClellands theory of achievement, power, and
  affiliation needs, and
  
• Herzbergs two-factor theory of motivation are
  explained.

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• Process theories look at the process of
  motivation rather than specific motivators.
  
• Included are
• Vrooms expectancy-valence theory, and
• Skinners reinforcement theory.

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• All of the theories depend on the individuals
  perception of what is a valued motivator.
  
• What will be perceived as a motivator depends on
  the individuals needs.

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• Some supervisors and other managers assume that
  the main thing employees want out of a job is
  money.
  
• While money can be a motivator, it is not the
  only motivator, and for some people it is not the
  most important motivator.
  
• For money to motivate, it must meet employee
  needs, and employees must believe they are able
  to achieve the financial rewards the organization
  offers.

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• Several financial incentives are discussed,
  including
  
• piecework systems,
• production bonus systems,
• commissions,
• suggestion plans,
• group incentive plans,
• profit-sharing, and
• gainsharing.

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• Supervisors will likely have limits on the types
  of motivators they can use.
  
• But they can motivate their employees by making
  work interesting through such means as
  
• job rotation,
• job enlargement,
• job enrichment, and
• contact with users of the product or service.

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• Other ways to motivate include
• having high expectations of employees,
• providing rewards that are valued,
• relating rewards to performance,
• treating employees as individuals,
• encouraging employee participation, and
• providing feedback, including praise.

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Relationship between Motivation and Performance

• Motivation Giving people incentives that cause
  them to act in desired ways.
  
• The objective of motivating employees is to lead
  them to perform in ways that meet the goals of
  the department and the organization.
  
• Because supervisors are largely evaluated on the
  basis of how well their group as a whole
  performs, motivation is an important skill for
  supervisors to acquire.

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• Employees ultimately decide how they are going to
  perform or not perform.
  
• A supervisor can influence employees behavior
  through the use of rewards and other incentives.
  
  
• Supervisors are a significant factor in creating
  the environment in which employees work.
  

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• Flextime a policy that grants employees some
  leeway in choosing which eight hours a day or
  which 40 hours a week to work.
  
• Job sharing an arrangement in which two
  part-time employees share the duties of one
  full-time job.
  

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• Content theories of motivation focus on the
  content of the motivator.
  
• Three researchers whose content theories of
  motivation are widely used are
  
• Abraham Maslow,
• David McClelland, and
• Frederick Herzberg.

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Maslow s Hierarchy of Needs

• Maslow assumes that what motivates people is
  unmet needs.
  
• According to Maslow, the needs that motivate
  people fall into five basic categories
  
• physiological needs (the most basic need),
• security needs,
• social needs,
• esteem needs, and
• self-actualization needs (the highest-level
  need).

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• Physiological needs are the ones required for
  survival.
  
• Security needs involve keeping oneself free from
  harm.
  
• Social needs are the desire for love, friendship,
  and companionship.
  
• Esteem needs are the need for self-esteem and the
  respect of others.
  
• Self-actualization needs describe the desire to
  live up to ones full potential.
  
• People may be seeking to meet more than one
  category of needs at a time.
  

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McClellands Achievement-Power-Affiliation Theory

• This motivation theory is based on the assumption
  that through life experiences, people develop
  various needs.
  
• The three needs include
• (1) The need for achievement
• the desire to do something better than it has
  been done before.
  
• (2) The need for power
• the desire to control, influence, or be
  responsible for other people.
  
• (3) The need for affiliation
• the desire to maintain close and friendly
  personal relationships.

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• People have all of these needs to some extent.
• The relative strength of the needs influences
  what will motivate a person.

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Hertzbergs Two-Factor Theory

• Employees satisfaction and dissatisfaction stem
  from different sources.
  
• Dissatisfaction results from the absence of what
  Hertzberg calls hygiene factors.
  
• salary
• relationship with others
• Satisfaction results from the presence of
  motivating factors.
  
• opportunities

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• The supervisor has control of many of the
  motivating factors, including
  
• recognition,
• responsibility,
• advancement, and
• personal growth.

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Process Theories of Motivation

• Another way to explain motivation is to look at
  it as a process.
  
• Two major process theories are expectancy-valence
  theory and reinforcement theory.
  

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Vroom s Expectancy- Valence Theory

• Victor Vroom assumes that people act as they do
  to satisfy needs they feel.
  
• He sets out to explain what determines the
  intensity of peoples motivation.

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• He explains that motivation depends on two
  things
  
• (1) Valence
• the value a person places on the outcome of a
  particular behavior.
  
• (2) Expectancy
• the perceived probability that the behavior will
  lead to the outcome.
  

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• The strength of motivation equals the perceived
  value of the outcome times the perceived
  probability of the behavior resulting in the
  outcome.
• In other words, people are most motivated to seek
  results they value highly and think they can
  achieve.

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• This theory is based on employees perceptions of
  rewards and whether they are able to achieve
  those rewards.
  
• It is important to note that employees may place
  different values on rewards and their ability to
  achieve the outcome than does the supervisor.
  
• Supervisors need to determine from the employees
  what is rewarding and what is possible to
  achieve.

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Skinners Reinforcement Theory

• B. F. Skinner says that people behave as they do
  because of the kind of consequences they
  experience as a result of their behavior.
  
• Broadly speaking, people keep doing things that
  lead to consequences they like, and avoid doing
  things that have undesirable consequences.
  
• For example, praise feels good, so people tend to
  do things that get them praised.
  

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• Supervisors can encourage or discourage a
  particular kind of behavior by the way they
  respond to the behavior.
  
• Consequences can be thought of as
• (1) Reinforcement
• the desired consequence for behavior.
• This term is used to indicate positive
  consequences for desired behavior.
  
• This is also used to indicate the outcome for
  ceasing negative behavior.

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• (2) Punishment
• an unpleasant consequence of a behavior a
  supervisor wants to end.
  
• This is sometimes described as negative
  reinforcement
  

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• Behavior Modification The use of reinforcement
  and punishment to motivate people to behave in
  certain way.
  
• For long term results, positive reinforcement is
  more effective than punishment.
  
• Punishment can lead to what is called learned
  helplessness.
  
• Employees who are repeatedly punished will
  eventually believe that they are unable to
  succeed.

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• Supervisors must consider individual differences
  in designing rewards.
  
• What motivates one person may not motivate
  another.
  
• Likewise, not all rewards are under the control
  of the supervisor.
  
• Organizational policy, labor contracts, and laws
  may dictate what an employee may receive.

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Financial Incentives

• Some supervisors and other managers assume that
  the main thing employees want out of a job is
  money.
  
• Based on the content theories of motivation, it
  makes sense to say that money motivates people
  when it meets their needs.
  
• When a person has high financial demands and
  relatively low income, money may be a motivator.
  
  
• If an individual is financially comfortable,
  nonfinancial rewards, such as a sense of
  accomplishment, are increasingly important.
  

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Laffer Curver

Time at Work
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Incentive Pay Plans

• Financial Incentives Payments for meeting or
  exceeding objectives.

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• There are a variety of pay systems that include
  additional incentives for productivity of
  employees.
  
• Included are
• Piecework system.
• Production bonus system
• Commissions
• Payments for suggestions
• Group incentive plans
• Gainsharing

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Piecework system

• Piecework System Payment according to the amount
  produced.
  
• This system pays people according to how much
  they produce.
  
• Piecework pay systems are usually
• based on an individuals performance, but
• may be based on the departments overall
  performance.
  
• It is often used to pay independent contractors,
  for example, farm workers and independent writers.

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Production bonus system

• Employees in a production department may receive
  a basic wage or salary plus a bonus that consists
  of a payment for units produced.
  
• This method has been used extensively in
  manufacturing.
  
• It is less common today.
• inconsistent with producing quality because it
  emphasizes quantity
  
• often includes a quality factor where a bonus is
  paid on good units produced

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Commissions

• In a sales department, employees may earn
  commissions.
  
• the payment linked to the amount of sales
  completed
  
• Most organizations that pay a commission also pay
  a basic wage or salary.
  

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Payments for suggestions

• In companies with suggestion programs, employees
  are paid for suggestions for improvements.
  
• Typically, for the employee to receive payment,
  the suggestion must be adopted or save some
  minimum amount of money.
  
• A common practice is for payment to be linked to
  the saving realized.

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Group incentive plans

• The group incentive plan pays a bonus when the
  group as a whole exceeds some objective.
  
• For example, a company may pay a bonus when a
  department, sales region, or other work unit
  meets sales goals.
  
• The bonus may also depend on meeting
  organizational goals either by itself or in
  combination with work unit goals.

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Gainsharing

• An extension of the group incentive plan.
• The company encourages employees to participate
  in making suggestions and decisions on how to
  improve the way the company or work group
  operates.
• As performance improves, employees receive a
  share of the greater earnings.
  
• Seeks to motivate through financial rewards and
  psychological rewards.

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Pay Information

• In our society money is considered a private
  matter, and most people dont talk about what
  they earn.
  
• Does secrecy help or hurt?
• To motivate employees, the organization must let
  them know what they hope to earn.
  
• Organizations often publish pay ranges.

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• Making work interesting increases the likelihood
  of employees giving work their full attention and
  enthusiasm.
  
• Some ways to make work more interesting are
• job rotation,
• job enlargement, and
• job enrichment

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Job rotation

• Job rotation involves moving employees from job
  to job so as to give them more variety.
  
• Job rotation requires that employees have
  relatively broad skills.
  
• This means the supervisor and organization must
  provide for cross-training or training in the
  skills required to perform more than one job.
  
• The opportunity to learn new skills can in itself
  motivate employees.
  

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Job enlargement

• Job enlargement means that duties are added to a
  job.
  
• For example, in a factory a machine operator may
  be given the added task of setting up the
  machine.
  

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Job enrichment

• Job enrichment is the incorporation of motivating
  factors into a job.
  
• The kinds of factors that are considered to
  enrich a job are the ones Herzberg called
  motivators.
  
• Specific factors include
• giving employees more responsibility to make
  decisions,
  
• more recognition for good performance, and
• making jobs more challenging.

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• When jobs are modified to make them more
  interesting, it is important for the organization
  and supervisor to remember that not all employees
  are motivated by the same things or at the same
  time.
• Some employees will see job modification as a way
  to get them to do more for the same amount of
  money.
  
• This may also be true of job rotation and job
  enlargement.
  

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• Another way to make work meaningful is to give
  employees some contact with the people who
  receive and use their products or services.
  
• Sometimes the supervisor can arrange to have
  workers visit the users of the products or
  services.
  

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• For example, when a user of manufactured products
  is having trouble, a visit from employees may
  serve two purposes.
  
• First, employees may be able to help the user of
  the product.
  
• Second, employees will learn and understand more
  about the product from the users point of view.
  

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The Pygmalion Effect

• The Pygmalion effect is the direct relationship
  between expectations and performance.
  
• This is similar to the well-used phrase of
  self-fulfilling prophesy.
  
• When a supervisor relates the message that he or
  she does not expect employees to be able to
  accomplish a task, it is likely they wont.
  
• However, if the supervisor conveys high
  expectations, employees are likely to succeed.

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• Providing rewards that are valued is very
  important.
  
• The content theories of motivation indicate that
  a variety of rewards may motivate and that not
  all employees will value the same rewards at the
  same time.

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• The supervisors challenge is to determine what
  rewards will work for particular employees at
  particular times.
  
• Although supervisors may not be able to control
  some rewards such as wages or benefits,
  
• they have great freedom to administer rewards
  such as praise and recognition.
  
• Supervisors may have discretion in job
  assignments and additional training
  opportunities.
  

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• Whatever rewards the supervisor uses, they should
  be recognized by the employee as linked to
  performance.
  
• If there is a connection, employees should be
  aware of it and understand it.
  
• Linking rewards to the achievement of realistic
  objectives is a way to help employees believe
  they can attain desired rewards.

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• If a supervisor is to succeed at motivating, he
  or she has to remember that employees will
  respond in varying ways.
  
• As much as possible the supervisor should respond
  to individual differences.
  
• Communication with employees is a necessary
  ingredient in learning about employees.
  
• Encouraging employees to participate will help
  the supervisor learn more about the employee.
  
• People also want to know how they are doing.

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• Feedback will provide the employee with
  information to help them move closer to
  accomplishing personal, department, and company
  goals.
• This will also provide the supervisor with an
  opportunity to praise an employee.
  
• The attention of the supervisor may also be
  motivating to the employee whether the feedback
  is positive or a corrective action.
  

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• Commissions Payment linked to the amount of
  sales completed.
  
• Commissions may be the only source of pay, such
  as for sales personnel who sell real estate, or
  it may be a portion of an employees pay, such as
  in a department store where a small commission is
  added to wages.