Topic 11 Motivation and Performance PDF

Topic 11 Motivation and Performance  The Nature of Motivation Definition The psychological forces 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 organization...

Topic 11 Motivation and Performance  The Nature of Motivation Definition The psychological forces 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. 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. Source of motivation Intrinsically motivated behavior: Behavior performed for its own sake. Extrinsically motivated behavior: Behavior is performed to acquire material or social rewards or to avoid punishment. Prosocially motivated behavior: Behavior performed to benefit or help others.  Outcomes and Inputs Outcome: Anything a person gets from a job or an organization. Input: Anything a person contributes to his or her job or organization. Figure 13.1 The Motivation Equation  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 19 60s. Figure 13.3 Expectancy Theory Figure 13.2 Expectancy, Instrumentality, and Valence 2. Need Theories Theories of motivation 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. a) Maslow’s Hierarchy of Needs b) Alderfer’s E R G Theory c) Herzberg’s Motivation-Hygiene Theory d) McClelland’s Needs for Achievement, Affiliation, and Power  a) 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. 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. The lowest level of to be respected by others, and unsatisfied needs to receive recognition and appreciation. motivates behavior; once Medium-Level Belongingness Needs for social interaction, Promoting good interpersonal relations and this level of needs is Needs Needs friendship, affection, and love. organizing social functions such as company satisfied, a person tries to picnics and holiday parties. satisfy the needs at the Above Lowest- Safety Needs Needs for security, stability, and Providing job security, adequate health care next level. Level Needs 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.  b) Alderfer’s ERG Theory The theory that three universal needs—for existence, relatedness, and growth— constitute a hierarchy of needs and motivate behavior. Levels Needs Description Examples of How Managers Can Help People Satisfy These Needs at Work Highest-Level Needs Growth needs The needs for self-development Allowing people to continually and creative and productive improve their skills and abilities work and engage in meaningful work As lower-level needs are Medium-Level Relatedness The needs to have good Promoting good interpersonal satisfied, a person is Needs needs interpersonal relations, to share relations and providing accurate motivated to satisfy higher- thoughts and feelings, and to feedback level needs. When a person have open two-way is unable to satisfy higher- communication level needs (or is frustrated), motivation to satisfy lower- Lowest-Level Needs Existence Basic needs for food, water, Providing enough pay for the level needs increases. needs clothing, shelter, and a secure basic necessities of life and safe and safe environment working conditions  d) McClelland’s Needs for c) Herzberg’s Motivation-Hygiene Achievement, Affiliation, and Theory Power This need theory distinguishes between Need for achievement motivator needs and hygiene needs and proposes that motivator needs The extent to which an individual has must be met for motivation and job a strong desire to perform challenging satisfaction to be high. tasks well and to meet personal standards for excellence. Motivator needs relate to the nature of the work itself: autonomy, responsibility, Need for affiliation interesting work. Concerned about establishing and maintaining good interpersonal Hygiene needs are related to the relations, being liked, and having the physical and psychological context of people around him or her get along the work: comfortable work with each other. environment, pay, job security. Need for power A desire to control or influence others.  3. Equity Theory A theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs. Equity exits when a person perceives their outcome/input ratio to be equal to the referent’s ratio. Equals, less than, or Condition Person greater 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. 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.  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.  Equity and Justice in Organizations Distributive justice Interpersonal justice A person’s perception of the fairness A person’s perception of the fairness of the distribution of outcomes in an of the interpersonal treatment he or organization. she receives from whoever distributes outcomes to him or her. Procedural justice A person’s perception of the fairness Informational justice of the procedures that are used to A person’s perception of the extent to determine how to distribute which his or her manager provides outcomes in an organization. explanations for decisions and the procedures used to arrive at them. 4. 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. Specific goals are often quantitative. Difficult goals are hard, but not impossible to attain.  5. 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. a) Operant Conditioning Theory b) Social Learning Theory a) Operant Conditioning Theory People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. Four tools that managers can use: 1. Positive reinforcement: Gives people outcomes they desire when they perform organizationally functional behaviors. 2. Negative reinforcement: Eliminating or removing undesired outcomes when people perform organizationally functional behaviors. 3. Punishment: Administering an undesired or negative consequence when dysfunctional behavior occurs. 4. Extinction: Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing it.  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. Figure 13.4 Five Steps in Organizational Behavior Modification (O B M O D)  b) 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. Vicarious learning (also called observational learning): Occurs when a person becomes motivated to perform a behavior by watching another person perform the behavior and be positively reinforced for doing so. 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. Pay and Motivation 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. Goal setting theory: Pay is linked to the attainment of goals. Learning theory: Outcomes (pay) are distributed upon the performance of functional behaviors. 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. Merit Pay and Performance Merit pay plan is A compensation plan that bases pay on individual, group or organization performance. Individual plan is when individual performance (sales) can be accurately measured. Merit pay plan Group plan: when group that works closely together is measured and rewarded as a group Organization plan: when group or individual outcomes are not easily measured Piece-rate pay Employee’s pay based on the number of units the employee produces Commission pay Employee’s pay based on a percentage of sales that the employee makes Organization-based merit plans Scanlon plan: focuses on reduced expenses or cutting costs Profit sharing: employees receive share of organization’s profits