Principles of Management - Motivation

Principles of Management - Motivation

• Employee motivation is crucial for organizational success; recent surveys show a concerning 2-to-1 ratio of disengaged to engaged employees (70% not reaching full potential).
• Motivation involves factors influencing what people do and how much effort they put into it.
• Two primary types of motivation exist:
  • Intrinsic: Internal motivators like interests, beliefs, pride, skill development, personal enjoyment, accomplishment, and power.
  • Extrinsic: External motivators like tangible rewards (commissions, bonuses, raises, promotions, additional time off).

Module Learning Outcomes

• Recognize the importance of employee motivation and how to promote it.
• Explain the importance of employee motivation in an organization.
• Explain needs-based theories of motivation.
• Explain process-based theories of motivation.
• Describe job characteristics that affect motivation.
• Explain goal-setting theory.
• Explain reinforcement theory.
• Explain the manager's role in promoting motivation.
• Differentiate between internal and external motivators.
• Explain the importance of employee motivation in an organization.

Needs-Based Theories of Motivation

• Explain needs-based theories of motivation.
• Differentiate between Maslow's hierarchy of needs and Herzberg's two-factor theory of needs.
• Explain Alderfer's existence-relatedness-growth theory.
• Explain McClelland's acquired-needs theory.

Maslow's Hierarchy of Needs

• Human motivation is based on a hierarchical ranking of needs.
• Physiological: Basic needs like air, food, water.
• Safety: Physical safety, security, and employment security.
• Social: Belonging, love, friendship, family.
• Esteem: Respect, recognition, importance.
• Self-actualization: Becoming the best version of oneself.

ERG Theory (Alderfer)

• Modified Maslow's hierarchy, emphasizing existence, relatedness, and growth needs.
• Needs can be pursued simultaneously.
• Managers must support employees' pursuit of the different levels.

Acquired Needs Theory (McClelland)

• People are motivated by a need for achievement, affiliation (building relationships) or power (influencing and controlling their environment).
• Strengths and weaknesses of different motivations; managers need to be aware of employee's motivational profiles.

Process-Based Theories of Motivation

• Explain process-based theories of motivation.
• Explain equity theory: Motivation depends on perceived fairness; employees compare their inputs/outputs (e.g., work effort/pay) to others. Unequal inputs/outputs lead to demotivation and disruption.
• Differentiate between procedural justice and interactional justice.
• Explain expectancy theory: Motivation depends on the belief that effort leads to performance, performance leads to rewards, and the reward is valued. Key components include expectancy, instrumentality, and valence.

Job Characteristics that Affect Motivation

• Job rotation: Periodically shifting employees between tasks to decrease boredom and the risk of repetitive motion injuries. Example companies: Lincoln Electric and McDonald's.
• Job enlargement: Expanding the number and variety of tasks in a job to motivate employees and prevent employee specialization. Mixed results exist; it can create workload and stressful situations.
• Job enrichment: Increasing the vertical expansion of a job (more responsibility and planning/evaluation control) to give employees a greater sense of ownership and accountability.

Goal-Setting Theory

• Goals must be specific, challenging but achievable, and employees must be committed to them. Employee success requires ongoing feedback and support.

A Manager's Role in Motivating Employees

• Managers' role is in supporting employee motivation.
• Managers have great impact even though they cannot entirely change the company's culture, reward structure.
• Encouraging good work assignments, recognition, and policies are crucial.
• Managers should assess what is most important for each employee rather than just making broad policies.
• Employees must feel a link between work and the common purpose.
• Reinforcement theory and how companies address basic needs, how managers can customize motivation strategies.

Addressing Basic Needs

• Companies must address basic needs (e.g., appropriate wages, sense of belonging).
• Employees should feel that their job aligns with the organization's purpose, and there needs to be social engagement.
• Applying clear rewards and recognition.