Chapter 7

Motivation Concepts
 Luke: “I don’t believe it.”
Yoda: “That is why you fail.”

The Empire Strikes Back

 MOTIVATION
Refers to the processes that account for an
individual’s intensity, direction, and persistence of
effort towards attaining a goal.
EARLY THEORIES OF MOTIVATION

 Maslow’s Hierarchy of Needs

 Theory X and Theory Y
 Two-Factor Theory
 McClelland’s Theory of Needs
MASLOW’S HIERARCHY OF NEEDS
THEORY X AND THEORY Y
HERTZBERG’S TWO-FACTOR THEORY
MCCLELLAND’S THEORY OF NEEDS
● Need for achievement is the drive to excel, to
achieve in relationship to a set of standards.
● Need for power is the need to make others
behave in a way they would not have otherwise.
● Need for affiliation is the desire for friendly
and close interpersonal relationships.
 CONTEMPORARY THEORIES
OF MOTIVATION

 Self-determination theory
 Goal-Setting Theory
 Self-Efficacy Theory
 Reinforcement Theory
 Equity Theory/Organizational Justice
 Expectancy Theory
SELF-DETERMINATION THEORY

 A theory of motivation that is concerned with the

beneficial effects of intrinsic motivation and the
harmful effects of extrinsic motivation.
 People prefer to feel they have control over their
actions, so anything that makes a previously
enjoyed task feel more like an obligation than a
freely chosen activity will undermine motivation.
 GOAL-SETTING THEORY

A theory that says that specific and difficult goals,

with feedback, lead to higher performance.
 MBO: A more systematic way to utilize goal-
setting is with management by objectives (MBO),
which emphasizes participatively set goals that are
tangible, verifiable, and measurable.
 SELF-EFFICACY THEORY
An individual’s belief that he or she is capable of performing a
task.
Four ways through which self-efficacy can be increased.
 Enactive mastery
 Gaining relevant experience with the task or job.
 Vicarious modeling
 Becoming more confident because you see someone else
doing the task.
 Verbal persuasion
 Becoming more confident because someone convinces you.
 Arousal
 Energized state.
 REINFORCEMENT THEORY
A theory which says that behavior is a function of its
consequences.
 Positive Reinforcement
 Offering attractive consequences for desirable performance.
 Negative Reinforcement
 The employee displays desirable behavior in order to avoid the
negative consequence.
 Extinction
 Reducing undesirable behavior by withholding reinforcement
when the behavior occurs.
 Punishment
 An undesirable consequence for undesirable behavior.
 EQUITY THEORY

A theory that says that individuals compare their job

inputs and outcomes with those of others and then
respond to eliminate any inequities.
 Inputs include, effort, experience, education, competence.
 Outcomes include, salary levels, raises, recognition.

Employees compare their outcome–input ratio with that

of relevant others.
 Equity
 Underrewarded
 Overrewarded
 ORGANIZATIONAL JUSTICE
An overall perception of what is fair in the workplace,
composed of distributive, procedural, and interactional
justice.
 Distributive justice: Perceived fairness of the amount
and allocation of rewards among individuals.
 Procedural justice: Perceived fairness of the process
used to determine the distribution of rewards.
 Interactional justice: Perceived degree to which an
individual is treated with dignity, concern, and respect.
 EXPECTANCY THEORY
 Effort-performance relationship: When an individual
perceives that exerting a given amount of effort will lead to
performance.
 Performance-reward relationship: Performing at a
particular level will lead to the attainment of a desired outcome.
 Rewards-personal goals relationship: The degree to
which organizational rewards satisfy an individual’s personal
goals or needs.
THE JOB CHARACTERISTICS MODEL
THE JOB CHARACTERISTICS MODEL
 Skill variety is the degree to which a job requires a
variety of different activities so the worker can use a
number of different skills and talent.
 Task identity is the degree to which a job requires
completion of a whole and identifiable piece of work.
 Task significance is the degree to which a job affects
the lives or work of other people.
 Autonomy is the degree to which a job provides the
worker freedom, independence, and discretion in
scheduling work.
 Feedback is the degree to which carrying out work
activities generates direct and clear information about
your own performance.
ALTERNATIVE WORK ARRANGEMENTS
 Flextime
 Flexible work hours.
 Job Sharing
 An arrangement that allows two or more individuals
to split a traditional 40-hour-a-week job.
 Telecommuting
 Workingfrom home at least two days a week on a
computer that is linked to the employer’s office.
 Virtual Office
USING REWARDS TO MOTIVATE
EMPLOYEES
Different types of variable-pay programs can
increase employee motivation.

 What to pay employees.

 How to pay individual employees.

 What benefits and choices to offer.

 How to construct employee recognition programs.

WHAT TO PAY: ESTABLISHING A PAY
STRUCTURE

The process of initially setting pay levels entails

balancing internal equity and external equity.
 Internal Equity
 Job evaluation
 External Equity
 Pay surveys
 HOW TO PAY
 Piece-rate pay plan: Fixed payment per unit production.
 Merit-based pay plan: Payment based on performance
appraisal ratings.
 Bonus: A pay plan that rewards employees for recent
performance rather than historical performance.
Skill-basedpay: Paying on the basis of how many skills
employees have or how many jobs they can do.
Profit-sharing plan: Distributing compensation based on some
established formula designed around company’s profitability.
 Gainsharing: A formula-based group incentive plan giving
rewards on the basis of the group’s productivity.
 Employee stock ownership plan: A company-established
benefits plan in which employees acquire stock as part of their
WHAT BENEFITS AND CHOICES TO
OFFER
Flexible benefits: A benefits plan that allows
each employee to put together a benefits package
individually tailored to his or her own needs and
situation.
EMPLOYEE RECOGNITION PROGRAMS
 Employee recognition programs range from a
spontaneous and private thank-you to widely
publicized formal programs.
 Financial incentives may be more motivating in
the short term, but in the long run it’s nonfinancial
incentives.