Economics And Business Organisation Chapter 4 PDF

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 4 : MOTIVATION never stop daring SUMMARY I. What is motivation? A. Determinants of performance B. Direction & I...

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 4 : MOTIVATION never stop daring SUMMARY I. What is motivation? A. Determinants of performance B. Direction & Intensity C. Process and Content Theories of Motivation II. Content Theories of Motivation A. Manifest Needs (Murray) B. Learned Needs (McClelland) C. Maslow’s Hierarchy of Needs D. Existence-Relatedness-Growth (ERG) Needs (Alderfer) E. Motivator-Hygiene Theory (Herzberg) III. Process Theories of Motivation A. Operant Conditioning (Skinner) B. Equity Theory (Adams) C. Goal Theory (Locke) D. Expectancy Theory (Vroom) IV. The role of corporate culture in employee involvement 3 LEARNING GOALS At the end of this chapter, students should be able to : Describe and apply the 5 core content theories of motivation (Murray, McClelland, Maslow, Alderfer and Herzberg) Compare and contrast the 5 core content theories of motivation (Murray, McClelland, Maslow, Alderfer and Herzberg Describe and apply the 4 core process theories of motivation (Operant conditioning, Equity Theory, Goal Theory and Expectancy Theory) Compare and contrast the 4 core process theories of motivation (Operant conditioning, Equity Theory, Goal Theory and Expectancy Theory) Describe Schein’s onion model of corporate culture and how it can impact motivation Explain the strategic impact of corporate culture 4 WHAT IS MOTIVATION ? never stop daring I. WHAT IS MOTIVATION ? Determinants of Performance Knowledge & Skills My goals & way to acheive them Resources, information 6 I. WHAT IS MOTIVATION ? Determinants of Performance Motivation : A force inside(satisfaction of needs, values,..) or outside (incentives) of the body that energizes, directs, and sustains human behavior. The word stems from its Latin root movere, which means “to move.” Motivation : How much effort/energy are you ready to exert to achieve a desired objective? 7 I. WHAT IS MOTIVATION ? Determinants of Performance 8 I. WHAT IS MOTIVATION ? Direction & Intensity : 2 major components of motivation Direction : Direction is what a person wants to achieve, what they intend to do. It implies a target that motivated people try to “hit.” (ex. A performance target) Careful : the employee’s target may not be the employer’s target. Manager need to make sure goals are clear and understood – role perception need to be accurate. Intensity: is what we think of as effort. It represents the energy we expend to accomplish something. If our efforts are getting nowhere, will we try different strategies to succeed? BOTH are important to create performance 10 I. WHAT IS MOTIVATION ? Process and Content Theories of Motivation Process Theories : Process motivation theories address how people become motivated - that is, how people perceive and think about a situation. What’s going on in their minds – the rational process? They examine how a person's needs will affect his behavior in order to achieve a goal related to those needs. These theories are typically used in a workplace context. (How we perceive, think and behave in regards to motivation) A basic question : Why are behaviors initiated and why exert effort to hit the goal? Content Theories : content motivation theories focus on the content of what motivates people. (What motivates us) The basic premise of content theories is that humans have needs. When these needs are not satisfied, humans are motivated to satisfy the need. The need provides direction for motivation. They “propel” us. 11 II. CONTENT THEORIES never stop daring II. CONTENT THEORIES A. Manifest Needs (Murray) When a need has been energized (“I feel deficient”), we are motivated to satisfy it. We strive to make the need disappear. Hedonism, one of the first motivation theories, assumes that people are motivated to satisfy mainly their own needs (seek pleasure, avoid pain). Hedonism clarifies the idea that needs provide direction for motivation Once a need is satisfied → other needs take over. A manifest need is whatever need is motivating us at a given time. Manifest needs dominate our other needs. Only a few needs are expressed at a given time. A latent need cannot be inferred from a person’s behavior at a given time, yet the person may still possess that need. 13 II. CONTENT THEORIES A. Manifest Needs (Murray) When a need has been energized (“I feel deficient”), we are motivated to satisfy it. We strive to make the need disappear. Hedonism, one of the first motivation theories, assumes that people are motivated to satisfy mainly their own needs (seek pleasure, avoid pain). Hedonism clarifies the idea that needs provide direction for motivation Once a need is satisfied → other needs take over. A manifest need is whatever need is motivating us at a given time. Manifest needs dominate our other needs. Only a few needs are expressed at a given time. A latent need cannot be inferred from a person’s behavior at a given time, yet the person may still possess that need. 14 II. CONTENT THEORIES A. Manifest Needs (Murray) Instincts (primary needs) include physiological needs for food, water, sex (procreation), urination, and so on. Learned needs, which Murray called secondary needs, are learned throughout one’s life and are basically psychological in nature. They include such needs as the need for achievement, for love, and for affiliation. 15 II. CONTENT THEORIES A. Manifest Needs (Murray) Some employee needs are latent ! Assume that employees do not have certain needs because the employees never try to satisfy them at work is an error. Such needs may exist (latent needs); the work environment is simply not conducive to their manifestation (manifest needs). I have a need to achieve something new and innovate but I’ve never been given a challenging job to do… 17 II. CONTENT THEORIES B. Learned Needs (McClelland) McClelland’s Learned Needs Theory 3 key needs are learned in childhood and they can be taught (especially nAch) nAch Need for Achievement Need to excel at the task being performed. nAff Need for Affiliation Desire to establish and maintain warm/friendly relations with others. nPow Need for Power Need to control other things – especially people (most important for successful managers) 18 II. CONTENT THEORIES B. Learned Needs (McClelland) Dominant Characteristics Comments Motivator Need for Feels personally responsible to complete assigned task Important for jobs that require self- Achievement Likes situations where probablity of success is moderate. motivation and managing others (nAch) Likes regular feeedback on progress Perform well with minimal supervision – Has need to set and accomplish goals important in many businesses today. Takes calculated risks to accomplish goals Important for success of organizations Often likes to work alone Important for wide span of control Need for Affiliation Wants to belong to the group Work well in teams but less so in isolation (nAff) Wants to be liked (goes along) Place in jobs that acquire or offer high Favors collaboration vs competition levels of interaction with people Doesn’t like risk/uncertainty Are motivated when others depend on them Need for Power Wants to control and influence Seek persons with desire for social power (nPow) Likes to win not personal (egoistic) power.(two faces Most important Enjoys competition of power) motivator for Enjoys status and recognition Place persons with high need for social successful managers power in managerial roles. 19 AND YOU ? - CHOOSE 1 OPTION FOR EACH LINE B. Learned Needs (McClelland) A B C When doing a job I need feedback I prefer to work alone and be my I am uncomfortable when forced own boss to work alone After starting a task, I am I enjoy a good argument I go out of my way to make friends uncomfortable until it is finished with new people I work better when there is a Status symbols are important to I am always getting involved with deadline me group projects I work best when there is some I would rather give orders than I am sensitive to others, especially challenge involved take them when they are angry I accept responsibility eagerly I am eager to be my own boss I get personally involved with my superiors I desire to out-perform others I am concerned about my I am concerned about being liked reputation or position and accepted nAch nPow nAff 20 II. CONTENT THEORIES C. Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Human needs are arranged hierarchically. Before one type of need can manifest itself, other needs need to be satisfied. 21 II. CONTENT THEORIES An overriding principle in this theory is that a C. Maslow’s Hierarchy of Needs person’s attention (direction) and energy (intensity) will focus on satisfying the lowest- level need that is not currently satisfied. When lower-level needs are not satisfied, we once again concentrate on that need. As managers, we seek to guide employees to the upper parts of the hierarchy, saitsfying lower needs first then higher ones. You can’t engage a worker in a challenge or new job responsibilities until adequate pay, safe working conditions, and cohesive work groups have been established. 22 II. CONTENT THEORIES C. Maslow’s Hierarchy of Needs In the workplace : Achievement concerns (autonomy, subject matter expertise) Respect and recognition (perks, job titles) Social concerns (cooperative peers, good boss) Stable work environment (benefits, work safety) Survival issues (salary, stable employment) 23 II. CONTENT THEORIES D. Alderfer’s ERG Theory But for Maslow, does interaction with others satisfy our need for acceptance or need for recognition (a higher need) – not very clear. Alderfer extended Herzberg’s approach and compressed Maslow’s five need categories into three and detailed the movement between categories. Existence (E) Relatedness (R) Growth (G) 25 II. CONTENT THEORIES D. Alderfer’s ERG Theory These needs tend to be satisfied Where do I through one’s full involvement in work and the work setting. invest energy? These needs are satisfied through the exchange of thoughts and feelings with other people. These needs are satisfied by material conditions and not through interpersonal relations or personal involvement in the work setting. 26 II. CONTENT THEORIES 4 critical components of the theory D. Alderfer’s ERG Theory 1. Aspiration : by its nature, growth is intriniscally satisfying. Satisfaction 2. Satisfaction progression : as one level’s Frustration needs are met, energy is pointed to the next level (moving upward) (like Maslow) 3. Frustration : failing to meet a need makes it more important – more effort is exerted as we become frustrated. Satisfaction Frustration 4. Frustration regression : if we fail over and over we redirect energy and focus on a lower more concrete and verifiable level 27 II. CONTENT THEORIES What managers can do to support need satisfaction ? D. Alderfer’s ERG Theory 28 II. CONTENT THEORIES What managers can do to support need satisfaction ? D. Alderfer’s ERG Theory 29 II. CONTENT THEORIES D. Alderfer’s ERG Theory If employees are complaining about lack of social activities and bonuses linked to the quality of their work…. What needs are probably satisfied and what needs have yet to be satisfied? Where is motivation lacking? Existence needs? Relatedness needs? Growth needs ? 30 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Jane works as an administrative assistant. Despite her hard work, she feels increasingly unmotivated and frustrated. Her office is cramped with outdated equipment that frequently malfunctions, making her tasks more difficult. Additionally, her salary is lower than the industry standard, and there have been no raises or bonuses in the past two years. To motivate her, her boss has given her challenging tasks and recognized her continued efforts to perform well – but Jane remains unmotivated. WHY ? 31 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory 2 sets of needs Motivators (growth needs or “satisfiers”) – relate to job being done and a sense of achievement as a result of performing them. Based on need to grow and self-actualization. These growth needs motivate us to perform well. Hygienes – (“dissatisfiers”) based on need to “avoid pain”. These needs must be met to avoid dissatisfaction and do NOT motivate. Not related to the work being done (content of the work) but are part of job context. 32 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Managing DISSATISFACTION is not 2 sets of needs the same as managing SATISFACTION Motivators (growth needs or “satisfiers”) – relate to job being done and a sense of Proper management of hygiene achievement as a result of performing them. factors can prevent employee Based on need to grow and self-actualization. dissatisfaction, but that these factors These growth needs motivate us to perform well. can not serve as a source of satisfaction or motivation. Hygienes – (“dissatisfiers”) based on need to “avoid pain”. These needs must be met to avoid Good working conditions, for instance, will keep dissatisfaction and do NOT motivate. Not employees at a job but won’t make them work related to the work being done (content of harder. But poor working conditions, which are job the work) but are part of job context. dissatisfiers, may make employees quit. 33 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Herzberg’s Job Dissatisfaction Job Satisafction Two-Factor Principles Influenced by ACTION : Influenced by Hygiene Improving the motivator Motivator Factors factors increases job Factors satisfaction Working conditions Achievement Coworker relations Recognition ACTION: Policies & rules Responsibility Improving the hygiene Supervisor quality Work itself factors decreases job Base wage, salare Advancement dissatisfaction Personal Growth EXTRINSIC FACTORS INTRINSIC FACTORS 34 II. CONTENT THEORIES E. Herzberg’s Motivator-Hygiene Theory Second, managers First, managers should should address the address the hygiene factors. motivator factors. Intense dissatisfaction Increase satisfaction to distract from work and tend motivate high to de-motivate performance. 35 II. CONTENT THEORIES Summary McClelland Maslow Alderfer Herzberg Intrinsic Motivation Self- Higher Achievement Actualization Order Growth Motivators Needs Power Esteem Affiliation Belonging Relatedness Lower Order Hygiene Safety Factors Needs Existence Physiological Extrinsic Motivation 36