Chapter 7

Motivation
 Learning outcomes
You should learn to:
– Define the motivation process
– Describe early motivation theories
– Explain how goals motivate people
– Identify ways to design motivating
jobs
– Explain how goal-setting theory
impacts performance & rewards.
 Learning outcomes
– Describe the motivational
implications of equity theory,
expectancy theory & self-efficacy
theory.
– Describe current motivation issues
facing managers
– Identify management practices that
are likely to lead to more motivated
employees
 What is Motivation?
– the processes that account for an individual's
intensity, direction, and persistence of effort
towards attaining a goal.
• Intensity- how hard a person tries
• direction - efforts should be channeled in a direction
that benefits the organizational goals.
• Persistence- determines how long a person can
maintain effort.
Unsatisfied needs creates tension that stimulates drive
which leads to search behavior.
 The Motivation Process

Unsatisfied Search Satisfied Reduction

Tension Drives
Need Behavior Need of Tension
THREE THEORIES OF
MOTIVATION
• Internal
– Focus on variables within individual that lead to
motivation and behavior.
• Process
– Emphasize nature of interaction between
individual and environment.
• External
– Focus on elements in the environment to
explain motivation and behavior.
 Early Theories Of Motivation
Maslow’s Hierarchy of Needs Theory
•each level in hierarchy must be satisfied
before the next is activated
• once a need is substantially satisfied it
no longer motivates behavior
– theory received wide recognition
– little research support for the validity of
the theory
Maslow’s Hierarchy of Needs Theory
Lower-order needs - largely satisfied externally
• physiological - food, drink, shelter, sexual
satisfaction
• safety - security and protection from physical and
emotional harm
– assurance that physiological needs will be satisfied
Higher-order needs - largely satisfied internally
• social - affection, belongingness, acceptance
• esteem - internal factors like self-respect,
autonomy
– external factors like status, recognition, attention
• self-actualization - achieving one’s potential
Maslow’s Hierarchy of Needs
McGregor’s Theory X and Theory Y
Theory X - assumes that workers have little
ambition, dislike work, want to avoid responsibility,
and need to be closely controlled
• assumed that lower-order needs dominated
Theory Y - assumes that workers can exercise
self-direction, accept and actually seek out
responsibility, and consider work to be a natural
activity
• assumed that higher-order needs dominated
– no evidence that either set of assumptions is
valid
– no evidence that managing on the basis of
Theory Y makes employees more motivated
 Theory X/Y
• Theory X: Workers are costs
• Theory Y: Workers are assets
Herzberg’s Two-Factor Theory

Hygiene factor Motivation factor

Both are work conditions, but

each addresses a different
part of an employee’s
experience
Herzberg’s Motivation-Hygiene Theory

– intrinsic characteristics consistently related to

job satisfaction
• motivator factors energize employees
– extrinsic characteristics consistently related to
job dissatisfaction
• hygiene factors don’t motivate employees
– proposed dual continua for satisfaction and
dissatisfaction
– theory enjoyed wide popularity
• influenced job design
 Motivation–Hygiene Theory of
Motivation

• Company policy and Motivation factors

administration increase job satisfaction
• Supervision
• Interpersonal relations
• Working conditions • Achievement
• Salary • Achievement recognition
• Status • Work itself
• Security • Responsibility
• Advancement
• Growth
Hygiene factors avoid
job dissatisfaction
 Contrasting Views Of Satisfaction-
Dissatisfaction
Traditional View

Satisfaction Dissatisfaction

Herzberg’s View

Motivators Hygienes

Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

 Motivation-Hygiene
Combinations

High M Low M
high motivation low motivation
High H
few complaints few complaints
high motivation low motivation
Low H
many complaints many complaints
(Motivation = M, Hygiene = H)
 Implications…

• You have a RIGHT to be dissatisfied about your work

conditions.
• As an employee, you have a RESPONSIBILITY to
communicate your dissatisfaction and work to help
improve the conditions.
• As a manager, you have a RESPONSIBILITY to
continuously improve the work conditions within your
control. Your best source of information about what to
improve and how to improve it are your employees.
McClelland’s Theory

3 categories of needs

• Achievement
• Power
• Affiliation
Three-Needs Theory - McClelland
– need for achievement (nAch) - drive to
excel, to achieve in relation to a set of
standards, and to strive to succeed
• do not strive for trappings and rewards of success
• prefer jobs that offer personal responsibility
• want rapid and unambiguous feedback
• set moderately challenging goals
– avoid very easy or very difficult tasks
• high achievers don’t necessarily make good
managers
– focus on their own accomplishments
» good managers emphasize helping others to
accomplish their goals
– need for power (nPow)
• Desire to control other persons, to influence their
behavior, or to be responsible for other people.
• Personal power versus social power.

– People high in (nPower) prefer work that:

• Involves control over other persons.
• Has an impact on people and events.
• Brings public recognition and attention.
need for affiliation (nAff): desire for
friendly and close interpersonal
relationships.
People high in (nAff) prefer work that:
•Involves interpersonal relationships.
•Provides for companionship
•Brings social approval.
 Need Theory

What combination of needs are

present in the best managers?

The managers with high in

need of power.
Individual–Organizational Exchange
 CONTEMPORARY
THEORIES OF MOTIVATION
 Self Determination Theory:
Basic principles 1

• People prefer to feel they have control over their

actions, so when a previously enjoyed task feels
more like an obligation it undermines motivation.
• Studies then questioned whether intrinsic
motivation could be undermined by the use of
extrinsic rewards
• Self determination theory proposed that
variations in individuals' feelings of competence
and perceptions of autonomy will produce
variations in intrinsic motivation.
 Self Determination Theory:
Basic principles 2
• Providing individuals with rewards for their participation
in an already interesting activity often leads to a
decrease in intrinsic motivation.
• This is called the ‘over justification effect’
• Goal setting is effective in improving motivation if
rewards are provided for achieving the goals along with
extrinsic rewards like verbal praise and feedback about
competence.
• Rewards and deadlines diminish motivation if people see
it as coercive.
• When goals are pursued because of an intrinsic interest,
rather than extrinsic reasons ( money, status etc.)
individuals will be more satisfied and perform better.
 Self Determination Theory: Controlling
and informational functions of rewards
Cognitive Evaluation Theory states that rewards are likely
to serve two main functions:

•Information function. If the reward provides information

about the individuals' competence then it is quite likely that
intrinsic motivation can be enhanced with rewards.

•Controlling function. If the rewards are seen to be

controlling behaviour (i.e., the goal is to obtain the reward
rather than participate for intrinsic reasons), then
withdrawal of the reward is likely to lead to subsequent
decreases in intrinsic motivation.
Possible links between rewards and
intrinsic motivation in exercise

 REWARDS 
 

Reward seen to be reason for Reward provides information

exercise involvement about competence in exercise
[‘controlling function’] [‘controlling function’]
   
Perceived Perceived Perceived Perceived
success lack of success lack of
success success
   

Intrinsic Intrinsic Intrinsic Intrinsic

motivation motivation motivation motivation
likely to likely to likely to likely to
decline decline increase decline
 Goals: Definition and
Background
• Goal
– what an individual is trying to accomplish
• Management by objectives
– management system incorporating
participation in decision making, goal setting,
and feedback.
Goal Setting

Read an article by Latham

and Locke on :

“Goal Setting-A Motivational

Technique that Works”
 Goal-Setting Theory

– intention to work towards a goal is a major

source of job motivation
– specific goals increase performance
• difficult goal, when accepted, results in higher
performance than does an easy goal
• specific hard goals produce a higher level of output
than does the generalized goal of “do your best”
– participation in goal setting is useful
• reduces resistance to accepting difficult goals
• increases goal acceptance
 Goal-Setting Theory (cont.)

– feedback is useful
• helps identify discrepancies between what has
been accomplished and what needs to be done
• self-generated feedback is a powerful motivator
– contingencies in goal-setting theory
• goal commitment - theory presupposes that
individual is determined to accomplish the goal
– most likely to occur when:
» goals are made public
» individual has an internal locus of control
» goals are self-set rather than assigned
 Goal-Setting Theory (cont.)

– contingencies (cont.)
• self-efficacy - an individual’s belief that s/he is
capable of performing a task
– higher self-efficacy, greater motivation to attain goals
• national culture - theory is culture bound
– main ideas align with North American cultures
– goal setting may not lead to higher performance in other
cultures
 MBO PROGRAMS:
Putting Goal-Setting T. Into Practice
• Converting overall organizational objectives into specific
objectives for organizational units and individual
members.

• Four ingredients common to MBO programs:

– Goal specification.
– Participation in decision making.
– An explicit time period.
– Performance feedback.

• Failures may come from:

– Unrealistic expectations regarding results.
– Lack of commitment by top management.
– Cultural incompatibilities.
Relationship between Goal Difficulty
and Performance
Guidelines for Job Redesign
 Managerial Actions for Enhancing Goal
Commitment

1. Provide valued outcomes for goal

accomplishment.
2. Raise employees’self-efficacy about
meeting goals by:
a) Providing adequate training
b) Role modeling desired behaviors and actions
c) Persuasively communicating confidence in the
employees ability to attain the goal.
 Managerial Actions for
Enhancing Goal Commitment
3. Have employees make a public
commitment to the goal.
4. Communicate an inspiring vision and
explain how individual goals relate to
accomplishing the vision.
5 Allow employees to participate in
setting the goals.
 Managerial Actions for
Enhancing Goal Commitment
6. Behave supportively rather than
punitively.
7. Break a long-term goal (i.e., a yearly
goal) into short-term sub-goals.
8. Ensure that employees have the
resources required to accomplish the
goal.
Self–Efficacy Theory... Bandura

Self–Efficacy
The perception of one’s ability
to perform a task successfully is
really a situation-specific form of
self-confidence.
Self–Efficacy Sources
Expectancy Theory
explains motivation in terms of an

individual’s perception of the

performance process.
Two Basic Notions of Expectancy Theory

People expect certain outcomes

of behavior and performance.

People believe that the effort

they put forth is related to the
performance they achieve and
the outcomes they receive.
Key Constructs of Expectancy Theory

Valence – value or importance placed on a

particular reward

Expectancy – belief that effort leads to

performance

Instrumentality – belief that performance is

related to rewards
 Expectancy Theory
states that an individual tends to act in a certain
way based on the expectation that the act will be
followed by a given outcome and on the
attractiveness of that outcome to the individual
• Expectancy (effort-performance linkage) -
perceived probability that exerting a given amount
of effort will lead to a certain level of performance
• Instrumentality (performance-reward linkage) -
strength of belief that performing at a particular
level is instrumental in attaining an outcome
• Valence - attractiveness or importance of the
potential outcome
 Expectancy Theory (cont.)
– theory emphasizes rewards
• organizational rewards must align with the
individual’s wants
– no universal principle for explaining what
motivates individuals
• managers must understand why employees view
certain outcomes as attractive or unattractive
– most comprehensive and widely accepted
explanation of employee motivation
Expectancy Model of Motivation

E I V
 A General Model of Expectancy Theory

Outcome 1

Performance
High Effort Outcome 2
Goal
Expectancy:
“What are Outcome 3
my chances Instrumentality:
of reaching “What are my
Decision my goal if I chances of getting Valence: “How
To Exert various outcomes if much do I value
work hard?”
Effort
I achieve my goal? these
Expectancy: outcomes?”
“What are my
chances of Outcome 1
reaching my goal
if I slack off?”
Low Effort Outcome 2
Performance
Goal Outcome 3
 Simplified Expectancy Model

Individual Individual Organizational Individual

A B C
Effort Performance Rewards Goals

A = Effort-performance linkage

B = Performance-reward linkage

C = Attractiveness
Adam’s Theory of Inequity

People are motivated when

they find themselves in
situations of inequity or
unfairness.

To look for inequity, people

consider their inputs and
their outcomes.
 Equity Theory
– proposes that employees perceive what they
get from a job (outcomes) in relation to what
they put into it (inputs)
– input/outcome ratio compared with the ratios of
relevant others
• equity - ratio is equal to that of relevant others
• inequity - ratio is unequal to that of relevant others
– referent (relevant other) may be:
• other - individuals with similar jobs
• a system - includes organizational pay policies and
administrative systems
• self - past personal experiences and contacts
Equity Theory (cont.)
– when inequities are perceived, employees act
to correct the situation
• distort either their own or others’ inputs or outputs
• behave in a way to induce others to change their
inputs or outputs
• behave in a way to change their own inputs or
outputs
• choose a different comparison person
• quit their jobs
– theory leaves some issues unclear
Equity and Inequity at Work
Equity theory and the role of social comparison.
 Strategies for Resolution
of Inequity
• Alter the person’s outcomes
• Alter the person’s inputs
• Alter the comparison other’s outputs
• Alter the comparison other’s inputs
• Change who is used as a comparison other
• Rationalize the inequity
• Leave the organizational situation
 Practical Implications of the
Equity Model

• Treat employees fairly.

• People make decisions concerning equity

after comparing themselves with others.

• Procedural justice influences perceptions of

organizational fairness. Be as transparent as

possible.
3 Causes of Motivational Problems
• Belief that effort will not result in
performance
• Belief that performance will not
result in rewards
• The value a person places on, or
the preference a person has for,
certain rewards
An integrated approach to motivational
dynamics.
 From Theory To Practice
Recognize
Match people
individual
to jobs
differences

Don’t ignore
Use goals
money Suggestions
for
Motivating
Ensure that goals
Check the system Employees are perceived as
for equity
attainable

Link rewards Individualize

to performance rewards
Designing Motivating Jobs
– Job Design - the way tasks are combined
to form complete jobs
• historically, concentrated on making jobs more
specialized
– Job Enlargement - horizontal expansion of
job
• job scope - the number of different tasks
required in a job and the frequency with which
these tasks are repeated
• provides few challenges, little meaning to
workers’ activities
• only addresses the lack of variety in specialized
jobs
• Designing Motivating Jobs (cont.)
– Job Enrichment - vertical expansion of
job
• job depth - degree of control
employees have over their work
–empowers employees to do tasks
typically performed by their
managers
• research evidence has been
inconclusive about the effect of job
enrichment on performance
• Designing Motivating Jobs (cont.)
– Job Characteristics Model (JCM) -
conceptual framework for analyzing jobs
• jobs described in terms of five core characteristics
– skill variety - degree to which job requires a variety of
activities
» more variety, greater need to use different skills
– task identity - degree to which job requires completion
of an identifiable piece of work
– task significance - degree to which job has substantial
impact on the lives of other people
– these three characteristics create meaningful work
• Designing Motivating Jobs (cont.)
– JCM (cont.)
• core characteristics (cont.)
– autonomy - degree to which job provides substantial
freedom, independence, and discretion in performing
the work
» give employee a feeling of personal responsibility
– feedback - degree to which carrying out the job results
in receiving clear information about the effectiveness
with which it has been performed
» employee knows how effectively s/he is performing
 Job Characteristics
Critical
Model
Personal and
Core Job
Work Outcomes
Dimensions Psychological States
High Internal Work
Experienced Motivation
Skill Variety
meaningfulness
Task Identity
of the work
Task Significance
High-Quality
Work Performance
Experienced responsibility for
Autonomy
outcomes of work
High Satisfaction
with the Work

Knowledge of the actual Low Absenteeism

Feedback results of the work and Turnover

Strength of Employee Growth

Need
Designing Motivating Jobs (cont.)
– JCM (cont.)
• links between core characteristics and
outcomes are moderated by the
strength of the individual’s growth
need
–growth need - person’s desire for
self-esteem and self-actualization
• model offers specific guidance for job
design
 Current Issues In Motivation
• Motivating a Diverse Workforce
– flexibility is the key to motivating a
diverse workforce
• diverse array of rewards necessary to
satisfy diverse personal needs and
goals
– Flexible Working Schedule
• compressed workweek - employees
work longer hours per day but fewer
days per week
• Motivating a Diverse Workforce (cont.)
– Flexible Working Schedule (cont.)
• flexible work hours (flextime) - employees
required to work a specific number of hours a week
but are free to vary those hours within certain limits
– system entails common core hours when all employees
are required to be on the job
– starting, ending, and lunch-hour times are flexible
• job sharing - two or more people split a full-time
job
• telecommuting - employees work at home and
are linked to the workplace by computer and
modem
• Motivating a Diverse Workforce (cont.)
– Cultural Differences in Motivation
• motivation theories developed in the U.S. and
validated with American workers
• may be some cross-cultural consistencies
• Pay-for-Performance
– instead of paying for time on the job, pay is adjusted
to reflect some performance measure
– compatible with expectancy theory
• imparts strong performance-reward linkage
– programs are gaining in popularity
• research suggests that programs affect
performance
• Open-Book Management
– involve employees in workplace decisions by
opening up the financial statements
– workers treated as business partners
– get workers to think like an owner
– may also provide bonuses based on profit
improvements
• Motivating the “New Workforce”
– Motivating Professionals - professionals
tend to derive intrinsic satisfaction from their
work and receive high pay
• more loyal to their profession than their employer
• value challenging jobs and support for their work
• Motivating the “New Workforce” (cont.)
– Motivating Contingent Workers - part-time,
contract, or temporary workers
• less security and stability than permanent
employees
– receive fewer benefits
• display little identification or commitment to their
employers
• hard to motivate contingent workers
– opportunity to become a permanent employee
– opportunity for training
• repercussions of mixing permanent and contingent
workers when pay differentials are significant
• Motivating the “New Workforce” (cont.)
– Motivating Low-Skilled, Minimum-Wage
Employees
• difficult challenge to keep performance levels high
• employee recognition programs
– highlight employees whose work performance has been good
– encourage others to perform better
– power of praise
• in service industries, empower front-line employees to
address customers’ problems
– tie compensation to customer satisfaction
What are the challenges of motivation in the
new workplace?
 Pay for performance
– Paying people for performance is consistent with:
• Equity theory.
• Expectancy theory.
• Reinforcement theory.
– Merit pay
• Awards a pay increase in proportion to individual
performance contributions.
• Provides performance contingent reinforcement.
• May not succeed due to weakness in performance appraisal
system or lack of consistency in application.
What are the challenges of motivation in
the new workplace?

 Incentive compensation systems:

– Skill-based pay.
• Links pay to the number of job-relevant skills
an employee masters.
– Bonus pay plans.
• One-time or lump-sum payments based on the
accomplishment of specific performance
targets or some extraordinary contribution.
What are the challenges of motivation in the
new workplace?
 Incentive compensation systems:
– Profit-sharing plans.
• Some or all employees receive a proportion of net
profits earned by the organization.
– Gain-sharing plans.
• Groups of employees share in any savings realized through
their efforts to reduce costs and increase productivity.

– Employee stock ownership plans.

• Employees own stock in the company that employs them.