Employee Motivation: Intrinsic & Extrinsic Outcomes

Motivation Defined

• Motivation is the energetic forces that originate from within and outside an employee.
• It starts work-related effort, determining direction, intensity, and persistence.
• It involves choices about what to do, how hard to do it, and how long to do it.
• Engagement level is also a factor.

Engagement Assessment

• Individuals were asked to consider their approach to their classes and rate their agreement with statements such as giving assignments their utmost attention, concentrating on class demands, and feeling absorbed in the content.
• The average score from a sample was 24.

Extrinsic and Intrinsic Outcomes

• Extrinsic outcomes include pay, bonuses, and promotions.
• Extrinsic outcomes also include benefits, perks, spot awards, and praise.
• Job security, support, free time, disciplinary actions, demotions, and terminations can also be extrinsic outcomes.
• Intrinsic outcomes include enjoyment, interestingness, and accomplishment.
• Intrinsic outcomes include knowledge gain and skill development.
• Intrinsic outcomes can also include personal expression, lack of boredom, lack of anxiety and lack of frustration.

Meaning of Money

• Pay can signify achievement, respect, and freedom.

Expectancy Theory

• Motivation is high when an employee believes that effort leads to performance.
• Motivation is high when an employee believes that performance leads to outcomes.
• Motivation is high when an employee believes those outcomes are valuable.

Effort to Performance Expectancy

• High levels of effort will lead to successful task performance.
• Factors shaping expectancy include supportive leadership, access to resources, and self-efficacy.

Sources of Self-Efficacy

• Self-efficacy sources include past accomplishments, vicarious experience, and verbal persuasion.
• Self-efficacy sources also include emotional cues, analysis of task requirements, and assessment of personal and situational resources.

Self-Efficacy Assessment

• Individuals rated their agreement with statements about their ability to succeed, perform well, overcome challenges, and achieve goals.
• The average score showed a strong belief in their self-efficacy, with an average score of 31.

Instrumentality

• Instrumentality is the belief that successful performance results in specific outcomes.
• Hindering factors include inadequate budgets, poor performance measurement, and policies rewarding attendance over performance.
• Time delays in rewarding good performance reduces instrumentality.

Valence

• Valence is the anticipated value of outcomes.
• Positive valence means preferring to have the outcome.
• Salary increases and bonuses are indicators of positive Valence.
• Outcomes satisfying needs are more positively valenced.
• Negative Valence means preferring not to have the outcome.
• Disciplinary action and termination are indicators of negative valence.
• Zero Valence means no interest in the outcome either way.

Needs

• Maslow's Hierarchy of Needs-Prepotency includes physiological, safety & security, belongingness, esteem, and self-actualization.
• Alderfer's ERG theory includes existence, relatedness, and growth.
• McClelland's Acquired Needs Theory includes achievement, power, and affiliation.

Goal Setting Theory

• Motivation is high when employees are given specific and difficult goals.
• SMART goals are needed which are specific, measurable, achievable, results-based and time-sensitive.

Goal Commitment Strategies

• Tying goal achievement to monetary or nonmonetary rewards promotes commitment.
• Publicizing goals to significant others and coworkers creates social pressure to attain them.
• Providing supportive supervision aids employees in struggling to attain goals.
• Collaboration in setting proficiency levels and due dates fosters ownership.
• Supplying necessary resources removes constraints on task efforts.

Equity Theory

• Motivation is maximized when an employee's ratio of outcomes to inputs matches that of a comparison.
• Motivation is affected by outcomes received by other employees.

Outcomes and Inputs

• Outcomes include pay, seniority benefits, fringe benefits, status symbols, and satisfying supervision.
• Workplace perks and intrinsic rewards are also outcomes.
• Inputs include effort, performance, skills & abilities, education and experience.
• Training and seniority are also inputs.

Comparison Others

• Comparison points include job equity, company equity, and occupational equity.
• Other points for comparison include educational equity and age equity.

Responses to Inequity

• Responses to inequity may involve altering outcomes, inputs, or the comparison other's inputs.
• Can include changing the comparison other and rationalization.
• Leaving the situation is also a response to inequity.

Equity Sensitivity

• Categories based on equity sensitivity include sensitives, entitleds, and benevolents.

Psychological Empowerment

• Psychological empowerment is an intrinsic form of motivation.
• It is derived from the belief that one's work tasks contribute to a larger purpose.
• Psychological Empowerment is fostered by four beliefs: meaningfulness, self-determination, competence and impact.

Motivation Effects

• Motivation has a strong positive effect on Job Performance.
• People with higher motivation have higher Task Performance.
• Effects are strong for competence, goal difficulty, the valence-instrumentality-expectancy combination, and equity.
• Equity has a moderate positive effect on Citizenship and a negative effect on Counterproductive Behavior.
• Equity has a moderate positive effect on Organizational Commitment.
• People with higher equity tend to feel higher levels of Affective and Normative Commitment.

Compensation Plan Elements

• Piece-rate involves a specified rate is paid for each unit produced and sold.
• Merit pay means an increase to base salary is made based on performance evaluations.
• Lump-sum bonuses refers to the reception of a bonus for meeting individual goals without changing the base salary.
• Recognition awards are tangible (gift cards) or intangible (praise) which recognizes acheivement.
• Gainsharing is a bonus received for meeting unit goals for criteria controllable by employees without a base salary change.
• Profit Sharing offers a bonus when company earnings exceed a minimum level, without a base salary change.