Fundamentals of

MANAGEMENT
Core Concepts & Applications
Griffin
Third Edition

Chapter 10
Motivating Employee Performance

Copyright © 2003 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook
 Chapter Outline
• The Nature of Motivation
• Content Perspectives on Motivation
– The Need Hierarchy Approach
– The Two-Factor Theory
– Individual Human Needs
• Process Perspectives on Motivation
– Expectancy Theory
– Equity Theory
– Goal-Setting Theory

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 Chapter Outline (cont’d)
• Reinforcement Perspectives on Motivation
– Kinds of Reinforcement in Organizations
– Providing Reinforcement in Organizations
• Popular Motivational Strategies
– Empowerment and Participation
– New Forms of Working Arrangements
• Using Reward Systems to Motivate Performance
– Effects of Organization Rewards
– Designing Effective Reward Systems
– Popular Approaches Made to Client

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 Learning Objectives
After studying this chapter, you should be able to:
– Characterize the nature of motivation, including its
importance and basic historical perspectives.
– Identify and describe the major content perspectives
on motivation.
– Identify and describe the major process perspectives
on motivation.
– Describe reinforcement perspectives on motivation.
– Identify and describe popular motivational strategies.
– Describe the role of organizational reward systems in
motivation.

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 The Nature of Motivation
• Motivation
– The set of forces that cause people to behave in
certain ways.
– The goal of managers is to maximize desired
behaviors and minimize undesirable behaviors.
• The Importance of Motivation in the Workplace
– Determinants of Individual Performance
• Motivation—the desire to do the job.
• Ability—the capability to do the job.
• Work environment—the resources needed to do the job.

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 The Motivation Framework

Choice of
Need or Search for ways
behavior to
deficiency to satisfy need
satisfy need

Determination of
future needs and Evaluation of
search/choice for need satisfaction
satisfaction

The motivation processes through a series of discreet

steps. Content, process, and reinforcement perspectives
on motivation address different parts of this process.
Figure 10.1
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 Content Perspectives on Motivation
• Content Perspectives
– Focus on needs and deficiencies of individuals
– Approaches to motivation that try to answer the
question, “What factors in the workplace motivate
people?”
• Content Perspectives of Motivation
– Maslow’s Hierarchy of Needs
– Herzberg’s Two-Factor Theory
– McClelland’s Achievement,
Power, and Affiliation Needs

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 Content Perspectives on Motivation (cont’d)
• The Need Hierarchy Approach (Maslow)
– People must, in a hierarchical order, satisfy five needs:
• Physiological needs for basic survival and biological function.
• Security needs for a safe physical and emotional environment.
• Belongingness needs for love and affection.
• Esteem needs for positive self-image/self-respect and
recognition and respect from others.
• Self-actualization needs for realizing one’s potential for
personal growth and development.

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 Maslow’s Hierarchy of Needs
NEEDS
General Examples Organizational Examples

Self- Challenging
Achievement actualization job

Job
Status Esteem
title

Friends
Friendship Belongingness
at work

Pension
Stability Security
plan

Base
Food Physiology
salary

Source: Adopted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review, 1943, Vol. 50, pp. 370-396. Figure 10.2
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 Content Perspectives on Motivation (cont’d)
• The Need Hierarchy Approach
– Weaknesses of Maslow’s theory
• Five levels of need are not always present.
• Ordering or importance of needs is not always the same.
• Cultural differences.

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 Content Perspectives on Motivation (cont’d)
• The Two-Factor Theory (Herzberg)
– People’s satisfaction and dissatisfaction are influenced
by two independent sets of factors—motivation factors
and hygiene factors.
– Theory assumes that job satisfaction and job
dissatisfaction are on two distinct continuums:
• Motivational factors (work content) are on a continuum that
ranges from satisfaction to no satisfaction.
• Hygiene factors (work environment) are on a separate
continuum that ranges from dissatisfaction to no
dissatisfaction.

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 Motivation Factors
• Achievement
The Two-
• Recognition Factor
• The work itself
• Responsibility Theory of
• Advancement
and growth
Motivation

Satisfaction No satisfaction

Hygiene Factors
• Supervisors
• Working conditions
• Interpersonal relations
• Pay and security
• Company policies and
administration

Dissatisfaction No dissatisfaction
Figure 10.3
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 Content Perspectives on Motivation (cont’d)
• The Two-Factor Theory (Herzberg)
– Motivation is a two-stage process:
• Ensuring that the hygiene factors are not deficient and not
blocking motivation.
• Providing employees the opportunity to experience increase
motivational factors through the use of job enrichment and the
redesign of jobs.
– Criticisms of the Two-Factor Theory
• Interview findings are subject to different explanations.
• Sample population was not representative.
• Subsequent research has not upheld theory.

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 Content Perspectives on Motivation (cont’d)
• Individual Human Needs (McClelland)
– The need for achievement
• The desire to accomplish a goal or task
more effectively than in the past.
– The need for affiliation
• The desire for human
companionship and
acceptance.
– The need for power
• The desire to be influential
in a group and to be in control
of one’s environment.

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 Process Perspectives on Motivation
• Process Perspectives
– Focus on why people choose certain behavioral
options to satisfy their needs and how they evaluate
their satisfaction after they have attained their goals.
• Process Perspectives of Motivation
– Expectancy Theory
– Porter-Lawler Extension of Expectancy Theory
– Equity Theory
– Goal-Setting Theory

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 Process Perspectives on Motivation
(cont’d)
• Expectancy Theory
– Motivation depends on how much we want something
and how likely we are to get it.
– Assumes that:
• Behavior is determined by a combination of personal and
environmental forces.
• People make decisions about their own behavior in
organizations.
• Different people have different types of needs, desires, and goals.
• People choose among alternatives of behaviors in selecting one
that that leads to a desired outcome.

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 Process Perspectives on Motivation
(cont’d)
• Expectancy Theory (cont’d)
– Model of Motivation
• Suggests that motivation leads to effort, when combined
with ability and environmental factors, that results
in performance which, in turn, leads to
various outcomes that have value
(valence) to employees.

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 Process Perspectives on Motivation (cont’d)

• The Expectancy Model of Motivation

Outcome Valence

Environment Outcome Valence

Motivation Effort Performance Outcome Valence

Ability Outcome Valence

Outcome Valence

Figure 10.4
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 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory
– Effort-to-Performance Expectancy
• The individual’s perception of the probability that effort will
lead to a high level of performance.
– Performance-to-Outcome Expectancy
• The individual’s perception of the probability that
performance will lead to a specific outcome, or consequence
or reward in an organizational setting.

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 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory (cont’d)
– Outcomes (Consequences) and Valences
• Valence is an index of how much an individual values a
particular outcome. It is also the attractiveness of the outcome
to the individual.
• Attractive outcomes have positive valences and unattractive
outcomes have negative valences.
• Outcomes to which an individual is indifferent have zero
valences.

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 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory (cont’d)
– For individual motivated behavior (effort) to occur:
• Effort-to-performance expectancy (the belief that effort will
lead to high performance) must be greater than zero.
• Performance-to-outcome expectancy (performance will result
in certain outcomes) must be greater than zero.
• The sum of the valences must be greater than zero—the
outcome/reward must have value to the individual .

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 Process Perspectives on Motivation
(cont’d)
• Porter-Lawler Extension of Expectancy Theory
– Assumptions:
• If performance in an organization results in equitable and fair
rewards, people will be more satisfied.
• High performance can lead to rewards and high satisfaction.
– Types of rewards:
• Extrinsic rewards—outcomes set and awarded by external
parties (e.g., pay and promotions).
• Intrinsic rewards—outcomes that are internal to the individual
(e.g., self-esteem and feelings of accomplishment).

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 Process Perspectives on Motivation (cont’d)

• Porter-Lawler Extension of Expectancy Theory

Intrinsic
rewards
(outcomes)

Perceived
Performance Satisfaction
equity

Extrinsic
rewards
(outcomes)

Source: Edward E. Lawler III and Lyman W. Porter, “The Effect of Performance on Job Satisfaction,”
Industrial Relations, October 1967, p. 23. Used with permission of the University of California. Figure 10.5
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 Process Perspectives on Motivation
(cont’d)
• Equity Theory
– People are motivated to seek social equity in the
rewards they receive for performance.
– Equity is an individual’s belief that the treatment he or
she receives is fair relative to the treatment received
by others.
– Individuals view the value of rewards (outcomes) and
inputs of effort as ratios and make subjective
comparisons of themselves to other people.
outcomes (self) outcomes (other)
=
inputs (self) inputs (other)
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 The Equity Process

Source: Van Fleet, David D., and Tim

Peterson, Contemporary Management,
Third Edition. Copyright © 1994 by
Houghton Mifflin Company. Used with
permission.

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 Process Perspectives on Motivation
(cont’d)
• Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:
• Feeling equitably rewarded.
– Maintain performance and accept comparison as fair estimate.
• Feeling under-rewarded—try to reduce inequity.
– Change inputs by trying harder or slacking off.
– Change outcomes by demanding a raise.
– Distort the ratios by altering perceptions of self or of others.
– Leave situation by quitting the job.
– Change comparisons by choosing another object person.

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 Process Perspectives on Motivation
(cont’d)
• Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:
• Feeling over-rewarded.
– Increase or decrease inputs.
– Distort ratios by rationalizing.
– Help the object person gain more outcomes.

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 Process Perspectives on Motivation
(cont’d)
• Goal-Setting Theory
– Assumptions
• Behavior is a result of conscious goals and intentions.
• Setting goals influences the behavior of people in
organizations.
• Characteristics of Goals
– Goal difficulty
• Extent to which a goal is challenging and requires effort.
• People work harder to achieve more difficult goals.
• Goals should be difficult but attainable.

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 Process Perspectives on Motivation
(cont’d)
• Characteristics of Goals (cont’d)
– Goal specificity
• Clarity and precision of the goal.
• Goals vary in their ability to be
stated specifically.
– Acceptance
• The extent to which persons
accept a goal as their own.
– Commitment
• The extent to which an individual is
personally interested in reaching a goal.

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 Process Perspectives on Motivation
(cont’d)
• The Expanded Goal-Setting Theory of Motivation

Goal Goal Organizational Intrinsic

difficulty acceptance support Rewards

Goal-Directed Satisfaction
Performance
Effort

Goal Goal Individual Extrinsic

specificity commitment abilities and Rewards
traits

Source: Reprinted by permission of the publisher, from Organizational Dynamics, Autumn/1979,

copyright © 1979 by American Management Association, New York. All rights reserved.
Figure 10.6
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 Reinforcement Perspectives
on Motivation
• Reinforcement Theory
– The role of rewards as they cause behavior to change
or remain the same over time.
– Assumes that:
• Behavior that results in
rewarding consequences
is likely to be repeated,
whereas behavior that
results in punishing
consequences is less likely
to be repeated.

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 Reinforcement Perspectives on Motivation
(cont’d)
• Kinds of Reinforcement in Organizations
– Positive reinforcement
• Strengthens behavior with rewards or positive outcomes after
a desired behavior is performed.
– Avoidance
• Strengthens behavior by avoiding unpleasant consequences
that would result if the behavior is not performed.

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 Reinforcement Perspectives on Motivation
(cont’d)
• Kinds of Reinforcement in Organizations (cont’d)
– Punishment
• Weakens undesired behavior by using negative outcomes or
unpleasant consequences when the behavior is performed.
– Extinction
• Weakens undesired behavior by simply ignoring or not
reinforcing that behavior.

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 Reinforcement Perspectives on Motivation
(cont’d)
• Providing Reinforcement in Organizations
– Reinforcement schedules
• Fixed interval schedule—reinforcement applied at fixed time
intervals, regardless of behavior.
• Variable interval—reinforcement applied at variable time
intervals.
• Fixed ratio—reinforcement applied after a fixed number of
behaviors, regardless of time.
• Variable Ratio—reinforcement applied after a variable
number of behaviors, regardless of time.

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 Schedules of Reinforcement in Organizations

Source: Van Fleet, David D., and Tim Peterson, Contemporary

Management, Third Edition. Copyright © 1994 by Houghton
Mifflin Company. Used with permission.
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 Reinforcement Perspectives on Motivation
(cont’d)
• Providing Reinforcement in Organizations
– Behavior modification
• A method for applying the basic elements of reinforcement
theory in an organizational setting.
• Specific behaviors are tied to specific forms of reinforcement.

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 Popular Motivational Strategies
• Empowerment and Participation
– Empowerment
• The process of enabling workers to set their own work goals,
make decisions, and solve problems within their sphere of
influence.
– Participation
• The process of giving employees a voice in making decisions
about their work.
– Areas of Participation for Employees
• Making decisions about their jobs.
• Making decisions about administrative matters.
• Participating in decision making about broader issues of product
quality.
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 Popular Motivational Strategies (cont’d)
• New Forms of Working Arrangements
– Variable Work Schedules
• Compressed work schedule—Working a full forty-hour week
in less than five days.
• Flexible work schedules (flextime)—Allowing employees to
select, within broad parameters, the hours they will work.
• Job sharing—When two part-time employees share one full-
time job.

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 Popular Motivational Strategies (cont’d)
• New Forms of Working Arrangements (cont’d)
– Variable Work Schedules
• Telecommuting—Allowing employees to spend
part of their time working off-site, usually
at home, by using e-mail, the Internet, and
other forms of information technology.

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 Using Reward Systems to
Motivate Performance
• Effects of Organizational Rewards
– Effect of Rewards on Attitudes
• Satisfaction is influenced by how much is received and how
much the person thinks should have been received.
• Satisfaction is affected by comparison with others.
• The rewards of others are often misperceived.
• Overall job satisfaction is affected by employee satisfaction
with intrinsic and extrinsic rewards.

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 Using Reward Systems to
Motivate Performance (cont’d)
• Effects of Organizational Rewards (cont’d)
– Effect of Rewards on Behaviors
• Extrinsic rewards affect employee satisfaction and reduce
turnover.
• Rewards influence patterns of attendance and absenteeism.
• Employees tend to work harder for rewards based on
performance.

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 Using Reward Systems to
Motivate Performance (cont’d)
• Effects of Organizational Rewards (cont’d)
– Effect of Rewards on Motivation
• Employees will work harder when performance will be
measured.
• Employees will work harder if performance is closely
followed by rewards.

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 Using Reward Systems to
Motivate Performance (cont’d)
• Designing Effective Reward Systems
– Reward system must meet an individual’s needs.
– Rewards should compare favorably with other
organizations.
– Distribution of rewards must be perceived to be
equitable.
– Reward system must recognize different needs.

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 Using Reward Systems to
Motivate Performance (cont’d)

• Popular Approaches to Rewarding Employees

– Traditional systems
• Fixed hourly or monthly rate or an incentive system.
– Merit systems
• Employees get different pay raises at the end of the year
depending on their overall job performance.
– Incentive systems
• Employees get different pay amounts at each pay period in
proportion to what they do (e.g., piece-rate pay plans).

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 Using Reward Systems to
Motivate Performance (cont’d)

• Popular Approaches to Rewarding Employees

(cont’d)
– Profit sharing plans
• Provides an annual bonus based to corporate profits.
– Gainsharing
• All group members get bonuses when performance targets are
exceeded.
– Lump sum bonuses
• One-time reward, not an increase in base salary.
– Pay-for-knowledge
• Pay the individual rather than the job.

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