BA105-1: Organizational Behavior

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BA105-1 Organizational Behavior

• Professor Jim Lincoln
• Week 8 Lecture
• Motivation and Job Design

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Agenda

• Today
• Business
• Slides on website
• Readings Robbins, Adler, PEthen Pfeffer,
  Brainard case
• Theories of motivation
• Job design for motivation
• Thursday
• Lecture windup questions
• Discuss NUMMI
• Adler paper
• NUMMI video
• Discuss motivation issues in People Express
• Go over exam

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An experiment
Rank-order (1-8) the following as to their
importance to you as motivators in your job
Benefits Worthwhile Praise Pay
Learning Security Feels good Skills
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An experiment
Now rank-order (1-8) the following as to their
importance for others motivations (imagine you
were being paid for the accuracy of your
predictions)
Learning Security Feels good Skills
Benefits Worthwhile Praise Pay
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The importance of intrinsic extrinsic rewards
Actual rank-order (1-8) of these factors
based on a study by Heath (2000)
Self-Rating
Others Rating

1. Learning
2. Skills
3. Feel Good
4. Pay
5. Worthwhile
6. Praise
7. Benefits
8. Security

1 Pay 2 Skills 3 Security 4
Benefits 5 Feel Good 6 Learning 7
Worthwhile 8 Praise
What are the implications of these differences?
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How important is money?
Predicted who Prefer A Actual who Prefer A Sample Size
United States 68 38 1713
Canada 54 33 2253
Sweden 42 8 1100
Finland 43 24 678
MBAs 62 45 140
Choose Between Job A A moderately
interest- ing and enjoyable job with high
pay Job B An extremely interes- ting and
enjoyable job with only average pay
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Theories of extrinsic motivation(What are the
managerial implications?)

• Homo economicus (Theory X, Taylor,
  principal/agent) Mf(R)
• People are rational but selfish, opportunistic,
  risk- and effort-averse. They need strong
  incentives close monitoring
• Expectancy/path-goal (Vroom) M E(Ri) S(pi)Ri
• People are rational and goal-directed. They map
  paths to the attainment of rewards. Extrinsic
  rewards motivate only when the perceived
  probability of attainment is high
• Learning theory (Skinner)
• People are not rational or goal-directed. Random
  behavior that is rewarded is reinforced. Behavior
  that is punished is extinguished
• Equity theory M f(Rs/Es - Ro/Eo)
• People benchmark the value of their extrinsic
  rewards on those of others. Perceived inequity
  may be motivating or demotivating

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Theory X and Theory YDouglas MacGregor The
Human Side of Enterprise, 1960

• Theory X
• 1. People are motivated only by economic gain
• 2. People resist effort tend to soldier on the
  job
• 3. People need clear, simple tasks and strong
  direction
• 4. People are selfish, individualistic, look out
  for number one

• Theory Y
• 1. People are motivated by many nonfinancial
  rewards
• 2. People need challenge, variety, feedback,
  closure in work
• 3. People attach meaning and value to work and
  worklife
• 4. People are highly social and sensitive to
  group norms
•  
•  

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(No Transcript)
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The pain of inequity
Sitting on his back porch, with a view of a
lake, his black Mercedes parked in the driveway,
John Mariotti ponders the unfairness of life.
"I see people I know couldn't carry my briefcase
walking away with failure packages bigger than my
net worth," says Mr. Mariotti, 57 years old, a
former executive and now a Knoxville, Tenn.,
consultant who made more than 150,000 last
year. Most people don't begrudge Bill Gates
his billions. What seems to be more unnerving to
high-wage earners is the belief that many of the
new super-rich have stumbled into their wealth by
being at the right place at the right time -- or,
even more infuriatingly, have succeeded after
failing at careers in law, medicine or big
corporations. WSJ 8/3/1998
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Theories of intrinsic motivation(What are the
managerial implications?)

• Theory Y (McGregor, Marx)
• People find meaning fulfillment through work
  (intrinsic rewards)
• Motivation/hygiene (Herzberg)
• Extrinsic rewards reduce dissatisfaction
  intrinsic rewards motivate
• Hierarchy of needs (Maslow)
• People have needs that both intrinsic and
  extrinsic rewards fulfill. Intrinsic rewards
  motivate only after a sufficient level of
  extrinsic reward is attained
• Cognitive dissonance (Festinger)
• People as rationalizers need consistency in
  cognitions behavior
• Too much extrinsic reward makes work less
  intrinsically rewarding
• Too little extrinsic reward makes work more
  intrinsically rewarding

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Herzberg motivation - hygiene
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MASLOWS NEEDS HIERARCHY APPLIED TO JOB DESIGN
Challenging work
Recognition, respect
Friends at work
Job security
Pay/benefits
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What exactly is motivating about money?

• Status is of great importance in all human
  relationships. The greatest incentive that money
  has, usually, is that it is a symbol of
  success... The resulting status is the real
  incentive. Money can be an incentive to the miser
  only.
• John F. Lincoln,
• CEO Lincoln Electric

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Dilbert on cognitive dissonance
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What makes a job intrinsically rewarding?

• Leadership
• inspiring vision and charisma
• Culture and community
• identification, commitment, respect
• Job tasks

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What attributes of job tasks are intrinsically
rewarding?

• Variety
• Identity
• Challenge risk
• Significance
• Feedback
• Contextual information (other processes company
  finances)
• Discretion
• Responsibility
• Personal growth
• Social integration

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Classical job design (Taylorism)Efficiency
reliability through standardization and control

• Narrow scope
• Simple, repetitive tasks
• Rigid rules specs
• Close, top-down supervision
• Low autonomy
• Low skill
• Fixed pay (by job or time) or individual
  incentive pay
• Long job ladders
• Efficiency at the expense of motivation!

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Job redesign for motivation

• Classical (Taylorist) job design
• Job rotation
• cross-train pay for job skills
• Job enlargement (horizontal loading). Pull in
• support tasks
• upstream and downstream production tasks
• Job enrichment (vertical loading). Pull down
• Authority, accountability, responsibility
• Switch to teams
• Off-line problem-solving
• On-line self-managing
• Industrial democracy
• European supervisory boards works councils
  Saturn People Express

Low- Scope and Empowerment-High
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What does the NUMMI case say about job redesign?
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Takeaways

• Managers ignore at their peril our tendency to
  seek intrinsic rationales for work activities.
• Human motivation has complex causes that may work
  in contradictory ways
• Managers need to think about those channels in
  designing job and reward systems
• Be clear about your own motivational assumptions
  before you begin designing job and reward
  systems.
• The theories of motivation managers carry in
  their heads can become self-fulfilling prophecies
• Efficiency and motivation are not contradictory
  goals in job design