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TopConnemara9557

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SFU Beedie School of Business, Segal Graduate School

Melissa McCrae, EdD

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motivation theories business employee engagement management

Summary

This document presents a lecture on motivation theories, including topics such as organizational commitment, employee engagement, and the business case for diversity, as well as equity, justice, and leadership theories. The focus is on business and management practices.

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BUS 272 – E100 Week 3 – Motivation Melissa McCrae, EdD Catch up from last class… Organizational Commitment Degree to which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization Affective commitment is an individual’s emotional...

BUS 272 – E100 Week 3 – Motivation Melissa McCrae, EdD Catch up from last class… Organizational Commitment Degree to which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization Affective commitment is an individual’s emotional attachment to and identification with an organization, and a belief in its values Normative commitment is the obligation an individual feels to stay with an organization Continuance commitment is an individual’s calculation to stay with an organization based on the perceived costs of leaving the organization Job involvement is the degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth Psychological empowerment is employees’ belief in the degree to which they affect their work environment, their competence, the meaningfulness of their job, and their perceived autonomy Perceived organizational support Degree to which employees believe an organization values their contributions and cares about their well-being. Employees perceive their organization as supportive when: rewards are deemed fair employees have voice in decisions employees view their supervisors as supportive Employee engagement Involvement with, satisfaction with, and enthusiasm for the work individuals do Highly engaged employees have a passion for their work and feel a deep connection to the company Higher customer satisfaction More productive employees Higher profits Lower levels of turnover and accidents The Business Case for Diversity Diversity is not enough Business case demotivating for those with diverse identities Societal imperative + moral objective + business case Diversity without inclusion will have the opposite impact Diversity as a measure without the consideration of level, power, impact, inclusion is flawed Now, this class… Motivation Motivation is the intensity, direction, and persistence of effort a person shows in reaching a goal. Intensity: how hard a person tries Direction: where effort is channelled Persistence: how long effort is maintained Theory X and Y Theory X is the assumption that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment to achieve goals. Theory Y is the assumption that employees like work, are creative, seek responsibility, and will exercise self-direction and self-control if they are committed to the objectives … Individual + Situation Motivators Motivators Motivation theories Needs Maslow Hierarchy of Needs and Herzberg Two Factor Theory Process McClelland’s Theory of Needs Maslow’s hierarchy Self-Actualization of needs But …NO evidence!! Herzberg’s Motivation-Hygiene (Two-Factor) Theory Hygiene Motivators factors McClelland’s theory of needs Need for achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for power The need to make others behave in a way that they would not have behaved otherwise Need for affiliation The desire for friendly and close interpersonal relationships Summary of needs theories All the needs theories propose a similar idea: Individuals have needs that, when unsatisfied, have the potential to create motivation Maslow: lower-order needs must be satisfied before higher- order needs Herzberg: Hygiene factors met to avoid dissatisfaction; motivators lead to satisfaction McClelland: People vary in the types of needs they have: achievement, affiliation, or power Summary of impact Maslow: wide recognition among practising managers, no evidence, criticized for data collection/interpretation Herzberg: popular, satisfaction versus engagement, empowerment, questionable research (assumes a link between satisfaction and productivity that was not measured or demonstrated) McClelland: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement Motivation theories Expectancy Goal-setting Needs Self-efficacy and Reinforcement Process Equity Fair Process/Justice Self-determination Expectancy Theory Expectancy Theory Goal setting theory Goals: Direct attention Regulate effort Increase persistence Encourage development of action plans SMART STRETCH MBO Goal Research Specific goals when not too complex Difficult , when attainable Feedback Set together, assigned, or self set = equally effective Goal commitment Financial incentives for difficult goals SMART Goals Specific – What needs to be accomplished? Steps? Do… by… Measurable – By how much or how many? (educated guess) Achievable – Realistic to achieve Relevant – Why does this matter? What is the impact? Time-bound – When will you start and finish? Grow the number of monthly users of Techfirm’s mobile app by 1,000 within Q1 of 2022. This will be accomplished by optimizing our app-store listing and creating targeted social media campaigns, which will begin running in February 2022, on three social media platforms: Facebook, Twitter, and Instagram. Since mobile is our primary point of conversion for paid-customer signups, growing our app usage will ultimately increase sales. MBO Specific goals (tangible, verifiable, and measurable) Participative decision-making Explicit time period Performance feedback Self-efficacy Low High Self-efficacy Enactive mastery Vicarious modeling Verbal persuasion Arousal Reinforcement Theory Behaviour is a function of its consequences Positive reinforcement Following a response with something pleasant Negative reinforcement Following a response by the termination or withdrawal of something unpleasant Punishment Causing an unpleasant condition in an attempt to eliminate an undesirable behaviour Extinction Eliminating any reinforcement that is maintaining a behaviour Reinforcement Theory Reinforcement Type Example Positive reinforcement (+) A manager praises an employee for a job well done. Negative reinforcement (−) An instructor asks a question and a student looks through lecture notes to avoid being called on. This student has learned that looking busily through notes prevents the instructor from calling on the student. Punishment (+) A manager gives an employee a two-day suspension from work without pay for showing up drunk. Extinction (−) An instructor ignores students who raise their hands to ask questions. Hand-raising becomes extinct. Reinforcement Theory Continuous reinforcement reinforces desired behaviour each and every time it is demonstrated Intermittent reinforcement: a desired behaviour is reinforced often enough to make the behaviour worth repeating, but not every time it is demonstrated Reinforcement Reinforcement Theory Schedule Nature of Reinforcement Effect on Behaviour Example Continuous Reward given after each Fast learning of new Compliments desired behaviour behaviour with rapid extinction Fixed-interval Reward given at fixed time Average and irregular Weekly intervals performance with rapid paycheques extinction Variable-interval Reward given at variable Moderately high and stable Pop quizzes time intervals performance with slow extinction Fixed-ratio Reward given at fixed High and stable performance Piece-rate pay amounts of output attained quickly with rapid extinction Variable-ratio Reward given at variable Very high performance with Commissioned amounts of output slow extinction sales Equity Theory Self I am really good at my job Other I am required to work Inside long hours Outside Most people in my role are paid $100,000 My coworkers in different roles are paid $85,000 I am paid $70,000 What should I do? Correcting Inequity Change input Change outcome Adjust perceptions of self Adjust perceptions of others Choose a different referent Leave Justice = Overall perception of what is fair in the workplace Distributive amount and allocation of rewards among individuals Procedural process to determine the distribution of rewards Interactional quality of the interpersonal treatment from manager Informational justice degree to which employees are provided truthful explanations for decisions Interpersonal justice degree to which employees are treated with dignity and respect Justice Self-Determination Theory Self-determination theory is a theory of motivation that is concerned with the beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation If a previously enjoyed task feels more like an obligation than a freely chosen activity, it will undermine motivation People prefer to feel they have control over their actions Much research on self-determination theory in O B has focused on cognitive evaluation theory (the offering extrinsic rewards aka pay for work effort that was previously rewarding intrinsically will tend to decrease motivation Self-Determination Theory Motivation “The science shows that the secret to high performance Intrinsic isn’t our biological drive or our reward-and-punishment drive, but our third drive – or our deep-seated desire to direct our own lives, to Extrinsic? extend and expand our abilities, and to make a contribution” (Pink, 2009, p. 144-145) Motivation Recognize individual differences Employees have different needs Don’t treat them all alike Spend the time necessary to understand what’s important to each employee Use goals and feedback Allow employees to participate in decisions that affect them Link rewards to desired performance Check the system for equity JCM Job Design Job enlargement (horizontal loading) Job rotation Job enrichment (vertical loading) Relational Job Design Alternative Work Arrangements (Flextime, Job Sharing, Telecommuting) Employee Involvement & Participation Participative processes that use the input of employees and are intended to increase employee commitment to an organization’s success Participative management is a process in which subordinates share a significant degree of decision-making power with their immediate superiors Representative participation is a system in which employees participate in organizational decision-making through a small group of representative employees What about $$money$$?? Money can strongly motivate people to achieve specific goals BUT use it carefully! Beware of mismatch between rewards and goals AND motivation theories differ across cultures We hope for But we reward Teamwork and collaboration The best team members Innovative thinking and risk-taking Proven methods and not making mistakes Development of people skills Technical achievements and accomplishments Employee involvement and Tight control over operations and resources empowerment High achievement Another year’s effort Long-term growth; environmental Quarterly earnings responsibility Commitment to total quality Shipping on schedule, even with defects Candour; surfacing bad news early Reporting good news, whether it’s true or not; agreeing with the manager, whether or not they are right Employee Recognition Programs Gifts Awards Frequently, but still special Examples of poor implementation???? D: fairness, those left out Human Resource Management Four Drives Nohria et al 2008 The Power of Small Wins (Amabile & Kramer, 2011) Progress, even small wins, has a huge impact on how people see their day and their work 47 Motivation & Meaningful Progress “The managerial actions that constitute catalysts and nourishers are not particularly mysterious; they may sound like Management 101, if not just common sense and common decency. But our diary study reminded us how often they are ignored or forgotten.” (Amabile & Kramer, 2011, p. 77) Amabile & Kramer, 2011 48 Motivation & Meaningful Progress Catalysts (actions that Inhibitors: support work): Failing to provide Setting clear goals support Allowing autonomy Actively interfering Providing sufficient resources and time with work Helping with the work Openly learning from problems and successes Allowing a free exchange of ideas 49 Motivation & Meaningful Progress Nourishers (acts of Toxins: interpersonal support): Disrespect Respect and recognition Discouragement Encouragement Disregard for emotions Emotional comfort Interpersonal conflict Opportunities for affiliation 50 Motivation & Meaningful Progress Undermining meaningfulness of work: Dismissing importance – Mediocrity signals Reducing sense of ownership – Micromanagers (fail to allow autonomy, ask about work without helping, blame, hoard information) Shifting goals (will we finish?) Not keeping ees up to date 51 Next Class Chapter 6 – Groups & Teamwork Sept 30 – No Class or Tutorials 52 Pay for performance Pay linked to productivity, profitability, performance Top performers paid the most, therefore paid the most Individual incentives (timed or spot) Group incentives Organizational incentives Profit-sharing Gain sharing $ ESOPs $ $ $ $ Human Resource Management Pay structures Piecework A: easy to calculate, paying for outcomes D: cutting corners, incorrect estimates Group incentives Performance of best, worst, average Final output A: encourage others to perform D: can’t control own bonuses Human Resource Management Pay structures Commission only: A: results, costs proportional to sales, attract performers, easy to calculate D: pushy, short-term, less team work, support Merit raise A: rewards performance D: appraisal system, politicking, fairness Human Resource Management Pay structures Profit-sharing (20% Can) A: easy, OCB D: line of sight, actual effect, annual payout, diminishing returns ESOPs (50% Can) A: ownership, focus on quality D: Line of sight Gainsharing A: cost savings if stable, measurable Human Resource Management

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