BUS260 Chapter 9 Motivation Applications Notes PDF

**[BUS260 Introduction to Organizational Behaviour]** **Chapter 9: Motivation: Applications** **9.1 Reinforcement Theory** **9.2 Social Learning Theory** **9.3 Intrinsic Versus Extrinsic Rewards** **9.4 Performance Management** **9.5 Problems with Performance Reviews** **9.6 Feedback Seeking*...

**[BUS260 Introduction to Organizational Behaviour]** **Chapter 9: Motivation: Applications** **9.1 Reinforcement Theory** **9.2 Social Learning Theory** **9.3 Intrinsic Versus Extrinsic Rewards** **9.4 Performance Management** **9.5 Problems with Performance Reviews** **9.6 Feedback Seeking** **Definitions:** Law of Effect -- the phenomenon of past actions leading to positive outcomes that tend to be repeated, whereas past actions that led to negative outcomes will diminish Operant Conditioning -- a theory that proposes that behaviour is a function of consequences Reinforcement Theory -- another term for operant conditioning Reinforcers -- things that increase or decrease a certain behaviour Schedules of Reinforcement -- various ways in which reinforcers can be administered Interval -- provision of reinforcement based on time Ratio -- provision of reinforcement based on the number of responses (attempts) Fixed -- a specified amount of time or number of responses Variable -- variation in the timing of reinforcement Organizational Behaviour Modification (OB mod) -- programs that apply reinforcement theory in organizations ABC Analysis -- systematic planning in OB mod, examining antecedents, behaviours, and consequences Social Learning Theory -- extends operant conditioning to consider the fact that people can learn from watching other people succeed or fail Observational Learning -- learning from watching others Intrinsic Motivation -- when someone works on a task because they find it interesting and gains satisfaction from the task itself Extrinsic Motivation -- involves the performance outcome instrumentality between the task and a tangible reward "Extrinsic in Service of Intrinsics" -- refers to how extrinsic rewards may support an employee's sense of competence if they don't undermine autonomy Motivation-Work Cycle Match -- defined as "an individual differences construct that affects a leader's or leader-to-be's decisions to assume leadership training, roles, and responsibilities and that affect his or her intensity of effort at leading and persistence as a leader." Self-Determination -- a person's needs for autonomy and competence Competence -- "a cluster of related knowledge, skills and attitudes that affect a major part of one's job (a role or responsibility), that correlates with performance on the job, that can be measured against well-accepted standards, and that can be improved via training and development" Cognitive Evaluation Theory -- another term for self-determination theory Pay Dispersion -- how pay rates differ across individuals Pay Inequity -- perceived unfairness of how pay is distributed 360-Degree Performance Appraisal -- the input from several sources included to provide a more comprehensive view of an employee's performance Behaviourally Anchored Rating Scales (BARS) -- a vertical scale that rates specific examples of performance Central Tendency Error -- giving ratings that center in the middle of a scale Profit-Sharing Plans -- when employee bonuses are based upon reaching a financial target such as return on assts or net income Stock Options -- a variation of profit sharing where employees are given stock options as part of their compensation package Gain-Sharing Plans -- compensation tied to unit-level performance, where revenue increases (or cost savings) are shared with employees Flexible Working Hours -- flexible hours that may be formal (i.e., allowing employees to arise later to work and stay later) or informal (i.e., a supervisor being flexible regarding an employee's need to pick up children from school) Job Sharing -- two part-time employees jointly do a full-time job, sharing the remuneration Remote Working -- also known as telecommuting, or working from home---or anywhere Sabbaticals -- leaves taken from work to "recharge one's batteries" or take care if family responsibilities Feedback Seeking -- an individual's general level of proactive activity with respect to obtaining feedback from the work environment **9.1 The Meaning of Money** Gifts are viewed as acts of kindness by an employer, which carries more meaning than cash. Money has a symbolic meaning for employees, and it represents nonmonetary aspects of life such as achievement, success, competence, autonomy, security, and power. Perceived pay inequity motivates employees to act, and compensation is often the focus of employee grievances and lawsuits regarding fairness. **9.2 Reinforcement Theory** Reinforcement theory is based upon the **law of effect**, which states that past actions that led to positive outcomes tend to be repeated, whereas past actions that led to negative outcomes will diminish. The law of effect led to the development of **operant conditioning**, which is an approach to motivation, individual personality, thoughts, and attitudes don't motivate behaviour. Instead, the emphasis in operant conditioning is on the environment. Reinforcers *Reinforcement* is any event that strengthens or increases the behaviour it follows. **Reinforcers** increase or decrease behaviours. The two finds of reinforcement that increases behaviour: 1. **Positive reinforcement** is a favourable event or outcome presented after the behaviour (e.g., praise or a bonus). 2. **Negative reinforcement** is the removal of an unpleasant event or outcome after the display of behaviour (e.g., ending the daily criticism when an employee shows up for work on time). Punishment *Punishment*, in contrast, is the presentation of an adverse event or outcome that causes a decrease in the behaviour it follows. There are two kinds of punishment: 1. **Punishment by application** is the presentation of an unpleasant even or outcome to weaken the responses it follows (e.g., writing a letter to an employee's file for failing to meet a deadline). 2. **Punishment by removal** (also called extinction) is when a pleasant event or outcome is removed after a behaviour occurs (e.g., withholding praise when an employee does not perform well.) **Contingencies of Reinforcement**  Schedules of Reinforcement **Schedules of reinforcement** is how often a reward (or punishment) is applied predicts learning and motivation. The schedules of partial reinforcement are based on time (**interval**) or the number of times the response is given by the employee (**ratio**). Also, the schedule can be **fixed** or **variable** (random). Resulting in four-possible schedules of partial reinforcement. 1. **Fixed-interval schedules are those where the first response is rewarded only after a specified amount of time has elapsed.** For example, the way pay is disbursed---every 2 weeks or month. After a fixed amount of time, the employee receives a paycheck. 2. **Variable-interval schedules occur when a response is rewarded after an unpredictable amount of time has passed.** For example, bringing bagels for breakfast once a weak for employees but varying which days they are brought in. The employees never know when they will be treated to bagels, so the element of surprise is motivating, and they may come to work on time regularly, so they don't miss out. 3. **Fixed-ratio schedules are those where a response is reinforced only after a specific number of responses.** For example, payment based on the number of items employees produce. In a piece-rate systems, the worker is paid for each article produced. 4. **Variable-ratio schedules occur when responses are reinforced after an unpredictable number of responses.** For example, gambling and lottery games. In a work setting, an employee may be praised for good performance after one time then again after four times and then another time after two times. Organizational Behaviour Modification  The application of reinforcement theory in organizational behaviour (OB) is known as **organizational behaviour modification (OB mod).** OB mod has been employed to increase performance and reduce absenteeism. Principles: Step one -- pinpoint the specific behaviour that needs to be changed. Step two -- measure the baseline. Step three -- perform an **ABC Analysis**: Step four -- develop an action plan based on reinforcement theory strategies to apply (using the contingencies of reinforcement and the schedules). Implement the plan and then evaluate the plan comparing the behaviour to the baseline. An example of applied OB mod for an employee who is late to work frequently. The specific behaviour desired is that the employee arrives to work on time. - If an employee is on time, the supervisor can praise them (positive reinforcement) or withhold criticism. - If the employee is late, the objective is to decrease the behaviour, so employee withholds praise (punishment by removal). - Can eventually move the employee to a variable-interval or -ratio schedule once the employee coming to work on time consistently. **9.2 Social Learning Theory** Extends operant conditioning to consider the fact that people can learn from watching other people succeed or fail. Albert Bandura presented social learning theory in the 1970's. Social learning theory introduced the social element into how people acquire new skills and described the ways that people learn by watching other people, known as **observational learning** (or modeling). Social learning theory proposes that rewards can help people learn things but not necessarily change their behaviour. The Modeling Process The modeling process has four steps: 1. **Attention.** To learn, you must pay attention to another's behaviour. 2. **Retention**. The information must be stored for access in the future. 3. **Reproduction**. Once information is noted and retained, the person imitates the behaviour. Repeating the behaviour leads to improved performance. 4. **Motivation**. The person needs motivation to imitate. Not all reinforcement comes from external rewards such as pay. **9.3 Intrinsic Versus Extrinsic Rewards** **Expectancy theory** includes intrinsic and extrinsic work motivation. **Intrinsic motivation** is when someone works on a task because they find it interesting and gain satisfaction from the task itself. **Extrinsic motivation** involves the performance-to-outcome instrumentality between the task and a tangible reward. Satisfaction does not come from the task itself but rather from the extrinsic outcome to which the activity leads. - Extrinsic rewards can lead to a reduction in intrinsic motivation. - Rewards that are delivered immediately increase intrinsic motivation. - Rewards should be administered but monitored. Relationship Between Intrinsic And Extrinsic Rewards 1. **"Extrinsic in service if intrinsics"** is how extrinsic rewards may support an employee's sense of competence if they don't undermine autonomy (self-determinization). 2. **Motivation-work cycle match** is the understanding that innovation occurs in phases, and intrinsic motivation may be more important during the idea-generation phases. Self-Determination Theory **Self-determination theory:** Intrinsic motivation is a function of a person's needs for *autonomy* and *competence*. Also known as **cognitive evaluation theory.** The needs for autonomy and competence significantly predict employee psychological growth, internalization, and well-being. - **Competence:** The sense of mastery an employee has over their job. - **Autonomy:** The need to work alone without constant surveillance. The effects of a reward depend on perception of threats to autonomy and competence. - If an extrinsic reward is seen as controlling, it will undermine intrinsic motivation by threatening autonomy. Extrinsic motivation is complex: - Ranges from external regulation (reward and punishment) to feelings of self-worth derived from job performance (introjected regulation). - Identified regulation: employees realize the goals of the organization are important. - Integrated regulation: the highest level of extrinsic motivation, in which the employee identifies with the values and integrates them automatically. The self-determination continuum of rewards:  What Money Can and Cannot Do **Pros** of money as a motivational tool: - Pay for high performance and overall high pay is related to high return. - Study of hospitals: pay-level practices and pay structures affect resource efficiency, patient care outcomes, and financial performance. **Cons** of money as a motivational tool: - Dysfunctional or unethical consequences. - Green Giant: implemented a pay system for removing insects from vegetables, which resulted in some employees bringing insects from home to put in the vegetables. Pay Dispersion **Pay dispersion:** System in which employees receive different levels of rewards for individual efforts. - **Horizontal**: between employees at the same level. - **Vertical**: between employees at different levels. **Pay inequity:** Unequal compensation systems. If pay inequity is due to discrimination, it may result in litigation. Vertical pay dispersion has more negative effects on productivity than horizontal. - Employees are less motivated when they make significantly less money than managers. - Horizontal pay may not have a negative impact if it is performance-based and fair. Five evidence-based guidelines for money as a motivator: 1. **Define** and measure performance accurately. 2. **Make** rewards contingent on performance. 3. **Reward** employees in a timely manner. 4. **Maintain** justice in the reward system. 5. **Use** monetary and nonmonetary rewards. **9.4 Performance Management** Performance management is essential for the determination of compensation and other outcomes such as promotion. - Identify follower's strengths and weaknesses. - Pay equity and supports a climate of organizational justice. - Provides essential feedback. - Recognizes exceptional performance and document weak performance. Sources of Performance Management Ratings - **360-degree performance appraisal:** Input from several sources is used to provide a more comprehensive view of an employee's performance. - Feedback from higher management, peers (coworkers), the employee's own followers, and customers. - Sometimes includes self-ratings, which are typically strictly developmental and unrelated to compensation or promotion decisions. - Increases the perspectives in the review process. - However, organizations may not train peers to offer constructive or objective feedback. Performance Management Methods **Behaviourally anchored rating scales (BARS)** is a vertical scale presented with specific examples of performance provided. - Avoid rating traits that are not definitively related to actual performance, such as positive attitude. - Most organizations use a standard form to evaluate employee performance. - Includes ratings for specific dimensions of performance. - Typically, on a graphic rating scale with multiple points along a continuum. - Creation and maintenance may be time-consuming, but it can also be more effective by focusing on specific behaviors. **Forced ranking:** all employees in the work group are ranked relatively. - Oftentimes used to fire the bottom 10% of the workforce annually. - Recently, a less common practice due to its contribution to a culture of competition. **9.5 Problems with Performance Reviews** Employee concerns: - Unfair process. - Subject to favoritism. - Perceive reviews as punitive. - Major perceptual errors: primacy, recency, availability, contrast, and halo. - Too lenient or strict in their ratings. - Might have a **central tendency error** in which they rate all dimensions of performance as average. Perceptual biases can be avoided by: - **Profit-sharing plans** where employee bonuses are based upon reaching a financial target. - **Stock options:** A variation where employees are given stock options as part of their compensation package. - **Gain-sharing plans:** A variation where compensation is tied to unit-level performance. Some managers are reluctant to do performance appraisals, feeling they: - Offer little return for a significant investment. - Create face-to-face confrontation over difficult performance issues. - Highlight the inherent conflict between a supervisors two roles: - Evaluator. - Performance coach. Nonetheless, employees are satisfied with performance evaluations when the process combines development with administrative reward purposes. All employees, however, are unhappy to receive negative feedback (even those with a strong learning orientation.) Negative feedback does not seem to help employees learn more from their jobs. Other Forms of Compensation Benefits that employees may value as rewards: - **Flexible working hours:** A formal or informal approach to allowing employees to come and go from work as required by their own schedules or needs. - **Job sharing:** Splitting one full-time job into two jobs. - **Remote working:** Ability to work from home or anywhere. Valuable in the COVID-19 crisis of 2020. - **Sabbaticals**: A leave taken from work to "recharge one's batteries" or take care of family responsibilities. **9.6 Feedback Seeking** Performance management systems have been criticized for emphasis on categorizing employees and failure to address the followers' need for feedback on their work on a day-to-day basis. The situation affects the person's motives for **feedback seeking**. Patterns of feedback seeking that matter: 1. **Frequency of seeking**. How frequently people seek feedback. 2. **Method of seeking**. How they seek it (observing, comparing, or asking for it). 3. **Timing of seeking**. The timing. 4. **Target of seeking**. Whom they ask for feedback from (the target). 5. **Topic of seeking**. What they ask for feedback about (success on task management). Antecedents and Consequences of Feedback Seeking: Motives for feedback seeking: - Ego or image defense. - Enhancing their image in the eyes of others. Seeking negative feedback does improve an employee's image, unless the seeker is a poor performer. Seeking positive feedback can be detrimental to a leader's image to subordinates. **Summary of BUS260 Chapter 9: Motivation Applications** This chapter delves into various motivational theories and their applications in organizational behavior, including reinforcement theory, social learning theory, and the dynamics between intrinsic and extrinsic rewards. It also explores performance management, feedback mechanisms, and compensation strategies to optimize employee engagement and productivity. **Key Points and Concepts** **Reinforcement Theory** - **Definition**: Based on the *law of effect*, behavior is shaped by its consequences (positive outcomes increase repetition, negative outcomes diminish behavior). - **Types of Reinforcement**: - **Positive Reinforcement**: Favorable outcomes (e.g., bonuses). - **Negative Reinforcement**: Removal of negative outcomes (e.g., ending criticism). - **Punishment**: - By application (e.g., reprimands). - By removal (e.g., withholding praise). - **Schedules of Reinforcement**: - **Fixed** (consistent) vs. **Variable** (random). - **Interval** (time-based) vs. **Ratio** (response-based). **Social Learning Theory** - **Concept**: Extends reinforcement theory, emphasizing observational learning from others\' successes or failures. - **Modeling Process**: 1. Attention: Observing behavior. 2. Retention: Storing information. 3. Reproduction: Replicating behavior. 4. Motivation: Driving factor to imitate. **Intrinsic vs. Extrinsic Rewards** - **Intrinsic Motivation**: Satisfaction from the task itself (autonomy and competence). - **Extrinsic Motivation**: Rewards tied to outcomes (e.g., pay or promotions). - **Key Dynamics**: - Extrinsic rewards can undermine intrinsic motivation if perceived as controlling. - Rewards should balance immediate impact and long-term engagement. **Self-Determination Theory** - **Core Needs**: - **Autonomy**: Independence in task execution. - **Competence**: Mastery over job roles. - **Continuum of Extrinsic Motivation**: - From controlled regulation (rewards/punishments) to internalized goals (integrated regulation). **Role of Money in Motivation** - **Advantages**: - Drives performance and links directly to productivity. - Structured systems (e.g., profit-sharing) can enhance team alignment. - **Disadvantages**: - Risk of unethical practices and perceived pay inequities. - **Pay Dispersion**: - **Horizontal**: Among peers; less disruptive if performance based. - **Vertical**: Between levels; can harm morale if perceived as unjust. **Performance Management** - **Purpose**: - Align employee strengths/weaknesses with organizational goals. - Ensure equity and fairness in promotions and compensation. - **Tools**: - **360-degree Appraisal**: Holistic input from various sources. - **Behaviourally Anchored Rating Scales (BARS)**: Specific performance examples to reduce rating bias. **Feedback Seeking** - Proactive behavior to gather input from work environments, vital for continuous improvement and self-regulation. **Practical Applications** - Use **Organizational Behavior Modification (OB Mod)** to shape workplace behavior systematically through the **ABC Analysis**: - Antecedents: Identify causes of behavior. - Behavior: Define current and desired behaviors. - Consequences: Adjust reinforcers to encourage or discourage actions. - Tailor motivation strategies to align with task phases and individual preferences, balancing intrinsic engagement with extrinsic incentives.