Organisational Behaviour Topic 4: Motivation: Source

Organisational Behaviour
Topic 4: Motivation
Source:
Organisational Behaviour, Stephen Robbiins & Timothy Judge (Chapter 7, 8)
Copyright © 2017 Pearson Education, Inc.

Motivation Concepts
Source:
Organisational Behaviour, Stephen Robbiins & Timothy Judge (Chapter 7)

Learning Objectives
 Describe the three key elements of motivation.
 Compare the early theories of motivation.
 Contrast the elements of self-determination
theory and goal-setting theory.
 Demonstrate the differences among self-efficacy
theory, reinforcement theory, equity theory, and
expectancy theory.
 Identify the implications of employee job
engagement for managers.
 Describe how the contemporary theories of
motivation complement one another.
Copyright © 2017 Pearson Education, Inc. 7-3
LO 1 Describe the Three
Key Elements of Motivation
Motivation is the processes that account for an
individual’s intensity, direction, and persistence
of effort toward attaining a goal.
The level of motivation varies both between
individuals and within individuals at different
times.

LO 1 Describe the Three
Key Elements of Motivation
The three key elements of motivation are:
1. Intensity: concerned with how hard a
person tries.
2. Direction: the orientation that benefits the
organization.
3. Persistence: a measure of how long a
person can maintain his/her effort.

LO 2 Compare the Early
Theories of Motivation

Maslow’s need theory has received wide
recognition, particularly among practicing
managers.
 It is intuitively logical and easy to understand
and some research has validated it.
 However, most research does, especially
when the theory is applied to diverse
cultures.



Criticisms of Herzberg’s theory:
 Limited because it relies on self-reports.
 Reliability of methodology is questioned.
 No overall measure of satisfaction was
utilized.

LO 2
Compare the Early
 McClelland’s Theory of Needs
 The theory focuses on three needs:
 Need for achievement (nAch): drive to
excel, to achieve in relation to a set of
standards, to strive to succeed.
 Need for power (nPow): need to make
others behave in a way that they would not
have behaved otherwise.
 Need for affiliation (nAfl): desire for friendly
and close interpersonal relationships.
LO 2
Compare the Early
McClelland’s theory has had the best support.
 It has less practical effect than the others.
 Because McClelland argued that the three
needs are subconscious—we may rank high
on them but not know it—measuring them is
not easy.
 It is more common to find situations in which
managers aware of these motivational
drivers label employees based on
observations made over time.
LO 3 Self-Determination Theory
vs. Goal-Setting Theory
Self-Determination Theory
 People prefer to feel they have control over
their actions.
People paid for work feel less like they
want to do it and more like they have to it.
 Proposes that in addition to being driven by
a need for autonomy, people seek ways to
achieve competence and positive
connections to others.

When extrinsic rewards are used as payoffs for
performance, employees feel they are doing a
good job.
 Eliminating extrinsic rewards can also shift an
individual’s perception of why he or she works
on a task from an external to an internal
explanation.
Self-determination theory acknowledges that
extrinsic rewards can improve even intrinsic
motivation under specific circumstances.
What does self-determination theory suggest
for providing rewards?
Self-concordance: considers how strongly
people’s reasons for pursuing goals are
consistent with their interests and core values.

What does all of this mean?
 For individuals:
Choose your job for reasons other than
extrinsic rewards.
 For organizations:
Provide intrinsic as well as extrinsic
incentives.

Goal-Setting Theory
 Goals tell an employee what needs to be
done and how much effort is needed.
Evidence suggests:
 Specific goals increase performance.
 Difficult goals, when accepted, result in
higher performance than do easy goals.
 Feedback leads to higher performance than
does non-feedback.
LO 3
Self-Determination Theory
 Three other factors influencing the goals-
performance relationship:
 Goal commitment
 Task characteristics
 National culture

People differ in the way they regulate their
thoughts and behaviors.
 Those with a promotion focus strive for
advancement and accomplishment and
approach conditions that move them closer
toward desired goals.
 Those with a prevention focus strive to fulfill
duties and obligations and avoid conditions
that pull them away from desired goals.


Goal Setting and Ethics
 The relationship between goal setting and
ethics is quite complex: if we emphasize
the attainment of goals, what is the cost?
 We may forgo mastering tasks and adopt
avoidance techniques so we don’t look
bad, both of which can incline us toward
unethical choices.

LO 4 Self-Efficacy, Reinforcement,
Equity, and Expectancy Theory
Self-efficacy theory is an individual’s belief that he
or she is capable of performing a task.
 Enactive mastery
 Vicarious modeling
 Verbal persuasion
 Arousal
 Also known as social cognitive theory and social
learning theory.


Implications of self-efficacy theory:
 The best way for a manager to use verbal
persuasion is through the Pygmalion effect.
A form of self-fulfilling prophecy – believing
in something can make it true.
 Training programs often make use of
enactive mastery by having people practice
and build their skills.

 Reinforcement theory: behavior is a function
of its consequences.
 Reinforcement conditions behavior.
 Behavior is environmentally caused.
Goal setting is a cognitive approach: an
individual’s purposes direct his or her action.
Operant conditioning theory: people learn to
behave to get something they want or to avoid
something they don’t want.
 B.F. Skinner’s behaviorism.
Social-learning theory: we can learn through
both observation and direct experience.
 Models are central, and four processes
determine their influence on an individual:
Attentional processes
Retention processes
Motor reproduction processes
Reinforcement processes


When employees perceive an inequity, they
can be predicted to make one of six choices:
 Change their inputs.
 Change their outcomes.
 Distort perceptions of self.
 Distort perceptions of others.
 Choose a different referent.
 Leave the field.


Expectancy theory: a tendency to act in a
certain way depends on an expectation that the
act will be followed by a given outcome and on
the attractiveness of that outcome to the
individual.
Three relationships:
 Effort-performance relationship
 Performance-reward relationship
 Rewards-personal goals relationship


Expectancy theory helps explain why a lot of
workers aren’t motivated and do only the
minimum.
Three questions employees need to answer in the
affirmative if their motivation is to be maximized:
 If I give maximum effort, will it be recognized in
my performance appraisal?
 If I get a good performance appraisal, will it
lead to organizational rewards?
 If I’m rewarded, are the rewards attractive to
me?
LO 5 Implications of Job
Engagement for Management
Job engagement: the investment of an
employee’s physical, cognitive, and emotional
energies into job performance.
 Gallup organization: more engaged employees
in successful organizations than in average
organizations.
 Academic studies: job engagement is positively
associated with performance and citizenship
behaviors.

What makes people more engaged in their job?
 The degree to which an employee believes it
is meaningful to engage in work.
 A match between the individual’s values and
the organization’s.
 Leadership behaviors that inspire workers to
a greater sense of mission.

Are highly engaged employees getting “too
much of a good thing?”
 Construct is partially redundant with job
attitudes.
 It may have a “dark side.”
Positive relationships between engagement
and work-family conflict.

LO 6 Compare Contemporary

Implications for Managers
Make sure extrinsic rewards for employees are
not viewed as coercive, but instead provide
information about competence and relatedness.
Consider goal-setting theory, as clear and
difficult goals often lead to higher levels of
employee productivity.

Consider reinforcement theory regarding quality
and quantity of work, persistence of effort,
absenteeism, tardiness, and accident rates.
Consult equity theory to help understand
productivity, satisfaction, absence, and turnover
variables.
Expectancy theory also offers a powerful
explanation of performance variables such as
employee productivity, absenteeism, and
turnover.

Motivation Applied
Source:
Organisational Behaviour, Stephen Robbiins & Timothy Judge (Chapter 8)

Learning Objectives
 Describe how the job characteristics model
motivates by changing the work environment.
 Compare the main ways jobs can be redesigned.
 Explain how specific alternative work
arrangements can motivate employees.
 Describe how employee involvement measures
can motivate employees.
 Demonstrate how the different types of variable-
pay programs can increase employee motivation.
 Show how flexible benefits turn benefits into
motivators.
 Identify the motivational benefits of intrinsic
rewards.
LO 1
The Job Characteristics Model

LO 1
The Job Characteristics Model
The core dimensions of the job characteristics
model (JCM) can be combined into a single
predictive index called the motivating potential
score (MPS).
Evidence supports the JCM concept that the
presence of a set of job characteristics does
generate higher and more satisfying job
performance.
A few studies have tested the JCM in different
cultures, but the results aren’t very consistent.

LO 2 Compare the Main Ways
Jobs Can Be Redesigned
Repetitive jobs provide little variety, autonomy, or
motivation.
Job Rotation
 Referred to as cross-training.
 Periodic shifting from one task to another.
 Strengths: reduces boredom, increases
motivation, and helps employees better
understand their work contributions.
 Weaknesses: creates disruptions, requires extra
time for supervisors addressing questions and
training time, and reduced efficiencies.
LO 2 Compare the Main Ways
Jobs Can Be Redesigned
Relational Job Design
 To make jobs more prosocially motivating:
Connect employees with the
beneficiaries of their work.
Meet beneficiaries firsthand.

LO 3 How Specific Alternative Work
Arrangements Motivate Employees

Job Sharing
 Two or more people split a 40-hour-a-week
job.
 Declining in use.
 Can be difficult to find compatible pairs of
employees who can successfully coordinate
the intricacies of one job.
 Increases flexibility and can increase
motivation and satisfaction when a 40-hour-
a-week job is just not practical.
Telecommuting
 Employees who do their work at home at
least two days a week on a computer that
is linked to their office.
Virtual office
Some well-known organizations actively
discourage telecommuting, but for most
organizations it remains popular.

Telecommuting Advantages
 Larger labor pool
 Higher productivity
 Improved morale
 Reduced office-space costs

Telecommuting Disadvantages
 Employer
Less direct supervision of employees.
Difficult to coordinate teamwork.
Difficult to evaluate non-quantitative
performance.
 Employee
May not be noticed for his or her efforts.


LO 4 Employee Involvement
and Employee Motivation
Employee Involvement: a participative
process that uses employees’ input to increase
their commitment to the organization’s success.
Examples of Employee Involvement Programs
 Participative management
 Representative participation

Participative management
 Joint decision making.
 Acts as a panacea for poor morale and
low productivity.
 Trust and confidence in leaders is
essential.
 Studies of the participation-performance
have yielded mixed results.

Representative participation
 Workers are represented by a small group
of employees who actually participate in
decision making.
Almost every country in Western Europe
requires representative participation.
The two most common forms:
Works councils
Board representatives
LO 5 Variable-Pay Programs
What to Pay:
 Complex process that entails balancing
internal equity and external equity.
 Some organizations prefer to pay leaders by
paying above market.
 Paying more may net better-qualified and
more highly motivated employees who may
stay with the firm longer.

How to Pay:
 Variable pay programs:
Piece-rate plans
Merit-based pay
Bonuses
Profit sharing
Employee stock ownership plans
 Earnings therefore fluctuate up and down.

Piece-Rate Pay
 A pure piece-rate plan provides no base
salary and pays the employee only for
what he or she produces.
 Limitation: not a feasible approach for
many jobs.
 The main concern for both individual and
team piece-rate workers is financial risk.

Merit-Based Pay
 Allows employers to differentiate pay based
on performance.
 Creates perceptions of relationships between
performance and rewards.
 Limitations:
Based on annual performance appraisals.
Merit pool fluctuates.
Union resistance.
Bonuses
 An annual bonus is a significant component
of total compensation for many jobs.
 Increasingly include lower-ranking
employees.
Many companies now routinely reward
production employees with bonuses when
profits improve.
 Downside: employees’ pay is more
vulnerable to cuts.
Profit-Sharing Plans
 Organization-wide programs that distribute
compensation based on some established
formula centered around a company’s
profitability.
 Appear to have positive effects on employee
attitudes at the organizational level.
 Employees have a feeling of psychological
ownership.

Employee Stock Ownership Plan (ESOP)
 A company-established benefit plan in which
employees acquire stock, often at below-
market prices, as part of their benefits.
 Increases employee satisfaction and
innovation.
Employees need to psychologically
experience ownership.
 Can reduce unethical behavior.
Evaluation of Variable Pay
 Do variable-pay programs increase
motivation and productivity?
Generally, yes, but that doesn’t mean
everyone is equally motivated by them.

LO 6 Show How Flexible Benefits
Turn Benefits Into Motivators
Developing a Benefits Package
 Flexible benefits individualize rewards.
 Allow each employee to choose the
compensation package that best satisfies
his or her current needs and situation.
Today, almost all major corporations in
the United States offer flexible benefits.
However, it may be surprising that their
usage is not yet global.

LO 7 Identify the Motivational
Benefits of Intrinsic Rewards
Employee Recognition Programs
 Organizations are increasingly recognizing
that important work rewards can be both
intrinsic and extrinsic.
 Rewards are intrinsic in the form of
employee recognition programs and
extrinsic in the form of compensation
systems.

 Recognize individual differences.
 Spend the time necessary to understand
what’s important to each employee.
 Design jobs to align with individual needs
and maximize their motivation potential.
 Use goals and feedback.
 You should give employees firm, specific
goals, and they should get feedback on how
well they are faring in pursuit of those goals.

 Allow employees to participate in decisions
that affect them.
 Employees can contribute to setting work
goals, choosing their own benefits
packages, and solving productivity and
quality problems.
 Link rewards to performance.
 Rewards should be contingent on
performance, and employees must perceive
the link between the two.

 Check the system for equity.

 Employees should perceive that experience,
skills, abilities, effort, and other obvious
inputs explain differences in performance
and hence in pay, job assignments, and
other obvious rewards.

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 Check the system for equity.

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