AEM2200 Introduction to Business Management Motivation PDF

AEM2200, Introduction to Business Management. Friday 11/1 Motivation Definition Theories of motivation Abraham Maslow and the hierarchy of needs Frederick Herzberg and motivating factors Expectancy Theory Equity Theory Which is the be...

AEM2200, Introduction to Business Management. Friday 11/1 Motivation Definition Theories of motivation Abraham Maslow and the hierarchy of needs Frederick Herzberg and motivating factors Expectancy Theory Equity Theory Which is the best motivator? a) Care b) Force c) Money  Scientific Management and the Hawthorne Studies Time motion studies Belonging Industrial engineering Empowerment Piecework payrates Caring X, Y and Z  Motivation The set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal; Initiation of effort is concerned with the choices that people make about how much effort to put into their jobs; Direction of efforts is concerned with the choices that people make in deciding where to put forth effort in their jobs; Persistence of efforts is concerned with the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts.  Job Performance = Motivation X Ability X Situational Constraints  Studies of Motivation Abraham Maslow and the hierarchy of needs; Frederick Herzberg and motivating factors; Victor Vroom and expectancy theory; J.Stacy Adams and Equity Theory. Maslow’s Hierarchy of Needs  At what level of the Maslow hierarchy of needs does the hierarchical / bureaucratic paradigm work best? a) Self-actualization needs b) Esteem needs c) Social needs d) Safety needs e) Physiological needs Herzberg’s Two Factor Theory Comparing Maslow and Herzberg  So… If we want an engaged workforce, money is clearly not the answer. In fact, if we want employees to be happy with their pay, money is not the answer. In a nutshell: money does not buy engagement… The fact that there is little evidence to show that money motivates us, and a great deal of evidence to suggest that it actually demotivates us, supports the idea that that there may be hidden costs associated with rewards. Of course, that doesn’t mean that we should work for free. We all need to pay our bills and provide for our families — but once these basic needs are covered the psychological benefits of money are questionable. In a widely cited paper, Daniel Kahneman and Angus Deaton reported that, in the U.S., emotional well-being levels increase with salary levels up to a salary of $75,000 — but that they plateau afterwards. Does Money Really Affect Motivation? A Review of the Research, Tomas Chamorro-Premuzic, April 10, 2013 "There is a lot of work that shows non-monetary incentives (e.g., recognition, respect, autonomy, etc.) can be powerful motivators of behaviors in the workplace. The key is to understand you are dealing with human beings who work hard not simply because of financial incentives, but because of a whole host of other factors.“ Deepak Malhotra, HBS  Money buys happiness but euphoria comes dear, The Economist, 2/5/2021 In 2010 Daniel Kahneman and Angus Deaton, of Princeton University, found that happiness, as measured by people’s own perception of their emotional well-being, levelled off when annual incomes reached around $75,000 (or $90,000 today). Mr Killingsworth’s subjects mostly get happier as they earn more (see chart). The catch is that the next dollar a person makes will cheer them slightly less than the last one did. The average difference in life satisfaction between two people earning $40,000 and $80,000 is about the same as that between two earning $80,000 and $160,000. Mr Killingsworth finds that only a small percentage of the overall variation in happiness is explained by differences in income. Previous research has found that health, religion, employment and family are all important. In other words—for those who need to be told—there’s more to life than money. The research offers two lessons for politicians who want to improve people’s moods. First, helping the poorest is a bargain. In happiness terms, a dollar goes further for someone earning $20,000 a year than for someone on $40,000. Second, economic growth is important as long as it doesn’t come at the expense of other measures of well- being.  Expectancy Theory – Victor Vroom Expectancy The belief that effort will lead to good performance Instrumentality The belief that good performance will be rewarded Valence The rewards offered are ones the individual in question really wants Effort = E x I x V If either expectancy, instrumentality, or valence are low, effort will be low  Expectancy Theory 1) Determine Rewards Valued 2) Determine Standards 3) Ensure Standards Attainable 4) Tie Rewards To Performance 5) Are Rewards Considered Adequate?  Equity Theory Equity theory suggests that individuals evaluate the ratio of their inputs to outcomes for a given job in relation to other, referent employees. (1) perceived inequity creates tension in the individual (2) the amount of tension is proportional to the magnitude of the perceived inequity (3) the tension created in the individual will motivate him or her to reduce it (4) the strength of the motivation to reduce inequity is proportional to the perceived inequity Equity theory suggests that overrewarded individuals might be motivated to increase their performance and underrewarded individuals to decrease their performance in an effort to restore equity. very often,overrewarded employees will find ways to rationalize their overreward; they assume they "deserve" it.  Dealing with a sense of Inequity (from How an Effort Reward Imbalance Can Make Work Miserable NYT Online, 10/19/23) Get a “reality check” Compare compensation Take a hard look at non-monetary, non-contractual rewards Take action Evaluate, as objectively as possible, the value that you contribute to the firm Share perceptions and expectations with your manager Stop overcommitting Don’t put more work “because you can”  Take-Aways The energy of an organization and its ability to achieve its goals depends on its members ability to initiate, direct, and persist on behaviors oriented towards achieving organizational goals. This is called motivation. The most effective way to motivate members of an organization is to provide rewards they personally value Rewards have expectancy, instrumentality, and valence; Some rewards do not increase motivation, but their absence does reduce motivation decisively; Rewards can be associated with the stages of the life of an individual, as well as the level of development of a society; Perceived equity is important Motivation is not enough!!! An individual has to be prepared, competent, and has to have available appropriate resources. AEM2200, Business Management and Organizations Friday 11/01 Leadership and Teamwork Leadership Teamwork Intrinsic motivation Is leadership important?  “Don’t think” The Hitchhikers Guide to the Galaxy, 2005 You cannot help having thoughts However, having thoughts is not the same as thinking When you follow unconsidered thoughts you are slapped by life; Leadership by default “Run!!!!!!!”  Bach/Gounod “Ave “ Maria”, Bobby McFerrin and audience, Leipzig, 2000 Clarity of objective Inverting the vocal/instrumental parts in a very well known classical composition; Mastery Bobby McFerrin is an extraordinary vocalist (scat), conductor (classical music) and musician… Ability to motivate Trust in mastery Trust in vision Trust in guidance and communication Trust in each other  Leadership is a real and vastly consequential phenomenon, perhaps the single most important issue in the human sciences... Good leadership promotes effective team and group performance, which in turn enhances the well-being of the incumbents; bad leadership degrades the quality of life for everyone associated with it… personality predicts leadership--who we are is how we lead—and this information can be used to select future leaders or improve the performance of current incumbents. What We Know About Leadership. by Hogan, Robert; Kaiser, Robert B. from Review of General Psychology. 2005 Jun Vol 9(2) 169-180  Leadership The process of influencing others to achieve group or organizational goals Two Fundamental Leadership Behaviors Initiating Structure The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks; Consideration The extent to which a leader is friendly, approachable, and supportive and shows concern for employees. The Leadership Grid Tom Wujec – Build a Tower, Build a Team - TED  https://www.wrike.com/blog/3-lessons-on- high-performing-teams-from-ted-talks/ Three major factors were common among the wildly successful teams: 1. They took an iterative approach. The did not pick one plan and stick it out to the end, hoping their spaghetti would hold. They modified their build as they went along by periodically testing out the weight of the marshmallow against whatever structure they currently had. 2. They had diverse skill sets in the group. Surprisingly, CEOs + Executive Admins worked better together than groups made up solely of CEOs. Some team members were good at managing (we’ll let you guess who) and others were good at executing next steps. A good mix of skills and personalities make a stronger, more effective team. 3. They had prior experience with the task. Four months after the first exercise, the worst performers were given the marshmallow construction problem again. They were all successful, blowing previous height records out of the water. Being able to learn from their past failure, these teams enjoyed success the second time around.  A small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes. Work team  The Advantages of Teams Teams improve customer satisfaction Customer centered teams Teams improve product and service quality Process-centered teams Teams improve job satisfaction Cross-training Empowerment Teams can improve decision making Diversity of viewpoints Creativity Commitment  The Disadvantages of Teams Initially high turnover Social loafing Group decision making pitfalls Groupthink Minority domination  When to use teams There is a clear, engaging reason or purpose; The job can’t be done unless people work together; Rewards can be provided for teamwork and team performance; Ample resources are available.  Empowering Employees Empowerment Giving employees the authority and responsibility to make decisions. Enabling Giving workers the education tools needed to make decisions.  Work team variables Dependent variables Norms Informally agreed-upon standards that regulate team behavior; Cohesiveness Extent to which team members are attracted to a team and motivated to remain in it. Independent variables Size Conflict  Managing Conflict Cognitive conflict Managing conflict Conflict that results from Make available as problem-related difference of much information as opinion; possible Positive conflict Develop multiple Associated with improvements in alternative solutions team performance and harmony. Establish common Affective conflict goals Use humor Conflict that results from personal rather than professional Try to involve disagreements; everybody Negative conflicts Do not force consensus Associated with reductions in team performance.  Stages of team development Forming Norming First meeting Roles Initial impressions Cohesion Establishment of initial team “Final” norms evolve norms Storming Performing Who should do what? How should it be done? Situational Leadership Directing Leaders define the roles and tasks of the 'follower', and supervise them closely. Decisions are made by the leader and announced, so communication is largely one-way. Coaching Leaders still define roles and tasks, but seeks ideas and suggestions from the follower. Decisions remain the leader's prerogative, but communication is much more two-way. Supporting Leaders pass day-to-day decisions, such as task allocation and processes, to the follower. The leader facilitates and takes part in decisions, but control is with the follower. Delegating Leaders are still involved in decisions and problem-solving, but control is with the follower. The follower decides when and how the leader will be involved. Enhancing work team effectiveness (I) Specific, challenging team goals Stretch goals Autonomy Empowerment Structural accommodation Bureaucratic immunity Selecting people for teamwork Collectivism rather than individualism Diversity Team level Team continuity Enhancing work team effectiveness (II) Team training Organizations that create work teams often underestimate the amount of training required to make teams successful; Interpersonal skills Decision making and problem solving skills Technical training Training for team leaders Team compensation and recognition Financial rewards (skills-based pay, gainsharing) Non-financial rewards (based on team identity) Where is leadership more important? a) In an organization that counts on systems and hierarchies for control; b) In an organization that counts on vision, mission and culture for control.  Transformational Leadership The transformational leader is the leader who is able to energize, align, and excite followers by providing a compelling vision of the future. Significant characteristics (NOTE: from Howell and Avolio, Journal of Applied Psychology, 1993) High on individual consideration; High on intellectual stimulation; High on charisma; Low on management by exception; Low on contingent rewards;  Intrinsic motivation and beyond Intrinsic motivation The stimulation or drive stemming from within oneself Abraham Maslow’s “peak experience” Flow (Mihaly Csikszentmihalyi) Flow is that state we enter when the challenges we face and our skill level match "just right." We're not so overly skilled we become anxious, nor are we so totally under challenged that we lose interest and disengage. When one is in a state of flow, one looses track of time. Wisdom and third-loop learning  Applying Flow to Organizations An ideal organization is one in which each worker’s potentialities find room for expression; Conditions for building flow in organizations Make organizational goals very clear; Make performance goals very clear; Feedback both from others and from the job itself; Matching challenges with skills. Advise to leaders: “Lose your selves”  Takeaways In order for a group or an organization to achieve its objectives, it needs leadership. This leadership may be self-generated, or (more frequently) imparted by a motivated, selfless, leader of the group or organization; Organization in work teams is a way to deal with complex, interdependent, and dynamic workplaces and conditions; Successful teams develop appropriate norms and cohesion, are not too large, rely on cognitive conflict, and enjoy specialized goals, training, and rewards; If the focus of your organization is clear, and there is a match between organizational processes and that focus, employees will be satisfied and loyal, and will become better human beings. Mina O’Reilly at Logan Airport’s TSA Breach in security: 45’ terminal closure during peak hours Threat to traveller safety Travel delays across the U.S. OPTIONS: Termination Demotion Verbal warning Performance improvement plan Counseling and retraining  Mina O’Reilly at Logan’s Airport TSA O’Reilly has two decisions to make: To what level of accountability should Ludo Sanchez be held with regard to the security lapse? If Ludo Sanchez is kept as a TSA employee, are there actions regarding Sanchez that will satisfy Logan’s TSA stakeholders O’Reilly’s responsibility to uphold TSA’s mission and performance