Contemporary Management Chapter 13 PDF

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This document is a chapter on motivation and performance from a contemporary management textbook. It explores different theories of motivation, including Maslow's Hierarchy of Needs, expectancy theory, equity theory, and goal-setting theory, and covers the application of these theories in the workplace.

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Because learning changes everything. ® Chapter 13 Motivation and Performance © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill....

Because learning changes everything. ® Chapter 13 Motivation and Performance © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill. Learning Objectives 1 1. Explain what motivation is and why managers need to be concerned about it. 2. Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce. 3. Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance. © McGraw Hill 2 Learning Objectives 2 4. Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory. 5. Explain why and how managers can use pay as a major motivation tool. © McGraw Hill 3 The Nature of Motivation 1 Motivation: The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence. Explains why people behave the way they do in organizations. © McGraw Hill 4 The Nature of Motivation 2 Direction: Possible behaviors a person could engage in. Effort: How hard people work. Persistence: Refers to whether, when faced with roadblocks and obstacles, people keep trying or give up. © McGraw Hill 5 The Nature of Motivation 3 Intrinsically motivated behavior: Behavior performed for its own sake. Extrinsically motivated behavior: Behavior performed to acquire material or social rewards or to avoid punishment. Prosocially motivated behavior: Behavior performed to benefit or help others. © McGraw Hill 6 Outcomes and Inputs Outcome: Anything a person gets from a job or an organization. Pay, job security, benefits, vacation time. Input: Anything a person contributes to his or her job or organization. Time, effort, skills, knowledge, work behaviors. © McGraw Hill 7 Figure 13.1 The Motivation Equation Access the text alternative for slide images. © McGraw Hill 8 Expectancy Theory 1 Expectancy theory: The theory that motivation will be high when workers believe that high levels of effort lead to high performance and that high performance leads to the attainment of desired outcomes. Formulated by Victor H. Vroom in the 1960s. © McGraw Hill 9 Expectancy Theory 2 Expectancy: A person’s perception about the extent to which effort (an input) results in a certain level of performance. Instrumentality: A person’s perception about the extent to which performance at a certain level results in the attainment of outcomes. Valence: How desirable each of the available outcomes from the job is to a person. © McGraw Hill 10 Figure 13.2 Expectancy, Instrumentality, and Valence Access the text alternative for slide images. © McGraw Hill 11 Figure 13.3 Expectancy Theory Access the text alternative for slide images. © McGraw Hill 12 Need Theories Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs. Need: A requirement or necessity for survival and well-being. © McGraw Hill 13 Maslow’s Hierarchy of Needs The hierarchy of needs is an arrangement of five basic needs that motivate behavior. Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time. © McGraw Hill 14 Table 13.1 Maslow’s Hierarchy of Needs Levels Needs Description Examples of How Managers Can Help People Satisfy These Needs at Work Highest-Level Self-actualization The needs to realize one’s full Giving people the opportunity to use their Needs Needs potential as a human being. skills and abilities to the fullest extent possible. Below Highest- Esteem Needs The needs to feel good about Granting promotions and recognizing Level Needs oneself and one’s capabilities, accomplishments. to be respected by others, and to receive recognition and appreciation. Medium-Level Belongingness Needs for social interaction, Promoting good interpersonal relations and Needs Needs friendship, affection, and love. organizing social functions such as company picnics and holiday parties. Above Lowest- Safety Needs Needs for security, stability, Providing job security, adequate health care Level Needs and a safe environment. benefits, and safe working conditions. Lowest-Level Physiological Basic needs for things such as Providing a level of pay that enables a Needs Needs food, water, and shelter that person to buy food and clothing and have must be met in order for a adequate housing. person to survive. The lowest level of unsatisfied needs motivates behavior; once this level of needs is satisfied, a person tries to satisfy the needs at the next level. © McGraw Hill 15 Alderfer’s ERG Theory The theory that three universal needs—for existence, relatedness, and growth— constitute a hierarchy of needs and motivate behavior. Proposed that needs at more than one level can be motivational at the same time. © McGraw Hill 16 Table 13.2 Alderfer’s ERG Theory Levels Needs Description Examples of How Managers Can Help People Satisfy These Needs at Work Highest-Level Growth The needs for self- Allowing people to Needs needs development and creative continually improve their and productive work skills and abilities and engage in meaningful work Medium-Level Relatedness The needs to have good Promoting good Needs needs interpersonal relations, to interpersonal relations share thoughts and and providing accurate feelings, and to have feedback open two-way communication Lowest-Level Existence Basic needs for food, Providing enough pay for AsNeeds lower-level needs needsare satisfied, a person water, clothing, is motivated shelter, to necessities the basic satisfy of higher-level needs. When a person is unable and a secure and safe environment to satisfy higher-level life and safe working conditions needs (or is frustrated), motivation to satisfy lower-level needs increases. © McGraw Hill 17 Herzberg’s Motivation-Hygiene Theory 1 Herzberg’s motivator-hygiene theory: This need theory distinguishes between motivator needs and hygiene needs and proposes that motivator needs must be met for motivation and job satisfaction to be high. Interesting work, autonomy, responsibility, the ability to grow and develop on the job, sense of accomplishment and achievement help to satisfy motivator needs. © McGraw Hill 18 Herzberg’s Motivation-Hygiene Theory 2 Motivator needs relate to the nature of the work itself: autonomy, responsibility, interesting work. Hygiene needs are related to the physical and psychological context of the work: comfortable work environment, pay, job security. © McGraw Hill 19 McClelland’s Needs for Achievement, Affiliation, and Power 1 Need for achievement: The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence. © McGraw Hill 20 McClelland’s Needs for Achievement, Affiliation, and Power 2 Need for affiliation: Concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him or her get along with each other. Need for power: A desire to control or influence others. © McGraw Hill 21 Equity Theory A theory of motivation that focuses on people’s perceptions of the Equity exits when a fairness of their person perceives work outcomes their outcome/input relative to their ratio to be equal to work inputs. the referent’s ratio. © McGraw Hill 22 Table 13.3 Equity Theory Equals, less than, or greater Condition Person than Referent Example Equity Outcomes/ = Outcomes/ An engineer perceives that he Inputs Inputs contributes more inputs (time and effort) and receives proportionally more outcomes (a higher salary and choice job assignments) than his referent. In the following table, read ‘Outcomes/Inputs’ as Outcomes over Inputs. Underpayment Outcomes/ < Outcomes/ An engineer perceives that he inequity Inputs (less than) Inputs contributes more inputs but receives the same outcomes as his referent. Overpayment Outcomes/ > Outcomes/ An engineer perceives that the inequity Inputs (greater Inputs contributes the same inputs but than) receives more outcomes than his referent. © McGraw Hill 23 Inequity Underpayment inequity: The inequity that exists when a person perceives that his or her own outcome–input ratio is less than the ratio of a referent. Overpayment inequity: The inequity that exists when a person perceives that his or her own outcome–input ratio is greater than the ratio of a referent. © McGraw Hill 24 Equity and Justice in Organizations 1 Distributive justice: A person’s perception of the fairness of the distribution of outcomes in an organization. Procedural justice: A person’s perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization. © McGraw Hill 25 Equity and Justice in Organizations 2 Interpersonal justice: A person’s perception of the fairness of the interpersonal treatment he or she receives from whoever distributes outcomes to him or her. Informational justice: A person’s perception of the extent to which his or her manager provides explanations for decisions and the procedures used to arrive at them. © McGraw Hill 26 Goal-Setting Theory A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects. Must be specific and difficult. © McGraw Hill 27 Learning Theories Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals. © McGraw Hill 28 Operant Conditioning Theory Operant Four tools that conditioning: managers can use: People learn to 1. Positive perform behaviors reinforcement. that lead to desired 2. Negative consequences and reinforcement. learn not to perform 3. Punishment. behaviors that lead to undesired 4. Extinction. consequences. © McGraw Hill 29 Operant Conditioning Tools 1 Positive reinforcement: Gives people outcomes they desire when they perform organizationally functional behaviors. Negative reinforcement: Eliminating or removing undesired outcomes when people perform organizationally functional behaviors. © McGraw Hill 30 Operant Conditioning Tools 2 Extinction: Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it. Punishment: Administering an undesired or negative consequence when dysfunctional behavior occurs. © McGraw Hill 31 Avoiding Side Effects of Punishment Downplay the emotional element involved. Try to punish dysfunctional behaviors as soon as they occur. Try to avoid punishing someone in front of others. © McGraw Hill 32 Organizational Behavior Modification The systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors. © McGraw Hill 33 Figure 13.4 Five Steps in Organizational Behavior Modification (OB MOD) Access the text alternative for slide ima ges. © McGraw Hill Source: Adapted from F. Luthans and R. Kreitner, Organizational Behavior Modification and Beyond, Scott Foresman, 19 85. Copyright © 19 85. 34 Social Learning Theory 1 Social learning theory: A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior. © McGraw Hill 35 Social Learning Theory 2 Vicarious learning Learner should: (also called Observe the model. observational learning): Accurately perceive the Occurs when a person behavior. becomes motivated to Remember the behavior. perform a behavior by watching another person Have the skills and abilities perform the behavior and needed to perform the be positively reinforced behavior. for doing so. See or know that the model is positively reinforced for the behavior. © McGraw Hill 36 Social Learning Theory 3 Self-reinforcer: Any desired or attractive outcome or award that a person gives himself or herself for good performance. Self-efficacy: A person’s belief about his or her ability to perform a behavior successfully. © McGraw Hill 37 Pay and Motivation 1 Pay as a motivator: Expectancy theory: Instrumentality, the association between performance and outcomes, must be high for motivation to be high. Need theory: Pay is used to satisfy many needs. Equity theory: Pay is given in relation to inputs. © McGraw Hill 38 Pay and Motivation 2 Pay as a motivator: Goal setting theory: Pay is linked to attainment of goals. Learning theory: Outcomes (pay) are distributed upon performance of functional behaviors. © McGraw Hill 39 Merit Pay and Performance Merit pay plan: A compensation plan that bases pay on individual, group or organization performance. Individual plan: When individual performance (sales) can be accurately measured. © McGraw Hill 40 Salary Increase or Bonus? Employee stock option: A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price, during a certain period of time, or under certain conditions. Uses: To attract high-level managers. To motivate employee performance through ownership in the firm. © McGraw Hill 41 Example: Warren Buffet Investor Warren Buffett is giving away a large portion of his fortune to the Gates Foundation. He is doing it now because he believes in the work the foundation is doing with world health issues and improving U.S. libraries and high schools. © McGraw Hill 42 End of Main Content Because learning changes everything. ® www.mheducation.com © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

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