Business Leadership Motivation Theories Slides PDF

Motivation Theories  Motivation Definition McGregor’s Theory of X and Y Need theories 1. Hierarchy of needs (Maslow) 2. ERG Theory (Alderfer) 3. Motivation – Hygiene Theory (Herzberg) 4. Self-Determination Theory Process theories 1. Vroom: Expectancy th...

Motivation Theories  Motivation Definition McGregor’s Theory of X and Y Need theories 1. Hierarchy of needs (Maslow) 2. ERG Theory (Alderfer) 3. Motivation – Hygiene Theory (Herzberg) 4. Self-Determination Theory Process theories 1. Vroom: Expectancy theory 2. Equity theory 3. Operant conditioning (reinforcement theory) Social Learning Theory (observational learning) Goal Setting Theory  Motivation – Brainstorm questions 1. What is motivation? 2. How can you see if someone is motivated? 3. Why is motivation important? 4. What motivates you? Factors Determining Performance Knowled ge Motivati Skills on Abilities Environm ent Performance Performance = KSA x E x M  The Nature of Motivation Motivation – The psychological processes that determine the direction, intensity and persistence of a person’s voluntary behavior. (notice the 3 components! See next slide) – Explains why people behave the way they do in organizations.  The Nature of Motivation The three key elements of motivation are: 1. Direction: possible behaviors the individual could engage in. 2. Intensity: how hard the individual works (the level of effort). 3. Persistence: whether the individual will keep trying or give up. How long the individual can maintain his/her effort. Intrinsically Motivated Behavior Behavior that is performed for its own sake (e.g., because it is enjoyable). The source of the motivation: actually performing the behavior. The sense of accomplishment and achievement derived from doing the work itself.  Extrinsically Motivated Behavior Behavior that is performed to acquire rewards or to avoid punishment. The source of the motivation: the consequences of the behavior and not the behavior itself!  Motivation – Brainstorm questions Imagine you are the leader of a company. What would you do to ensure that your employees are motivated and perform at their best? – How would you act towards them? – What things would you provide them? – Does everyone get the same treatment?  Intrinsic – Extrinsic Rewards Video Dan Pink Extrinsic rewards may decrease the intrinsic motivation! People paid for work feel less like they want to do it and more like they have to it. Extrinsic rewards are only effective for mechanical, routine, non-creative tasks. Lower performance as well as lowers intrinsic motivation. Extrinsic rewards kills intrinsic rewards-> organization must focus on intrinsic rewards because it increases motivation and performance – Studies showed extrinsic rewards can decrease productivity when tasks require cognitive skills such as creativity (e.g., the candlelight problem)!!  Types of Motivation Class discussion: – What kinds of tasks will you do at work? – What kinds of tasks do most people do at work today? Why? – What does this say about our compensation systems?  Discussion Video Many companies have pay-for-performance programs (e.g., sales incentive programs). Identify the behavior an organization is trying to encourage with such plans. Characterize the pros and cons of pay-for- performance. – Describe when pay and bonuses promote high motivation and performance.  Scientific Management (Frederick Taylor, 1856-1915) Idea: Scientific management can lead to gains in efficiency. Taylor believed that these gains could be shared with employees in the form of higher wages. He believed employees would be motivated to work harder because of these economic incentives – He assumed that workers are extrinsically motivated.  McGregor’s Theory X and Theory Y Focuses on managers’ beliefs about what motivates others: Theory X assumptions: Employees’ efforts must be directed because people are lazy, lack ambition, prefer to be led, and dislike responsibility. Theory Y assumptions: People are not naturally lazy but have become so as a result of their experiences in organizations. Management’s task is to create the conditions through which people can achieve their own goals by directing their effort towards organizational goals. McGregor’s Theory X and Theory Y  Need Theories Need – A requirement or necessity for survival and well-being. Need Theories – Theories emphasizing that people are motivated to obtain outcomes that will satisfy their needs.  Need Theories 1. Hierarchy of Needs (Maslow) 2. ERG Theory (Alderfer) 3. Two-Factor Theory (Herzberg) = Motivation-Hygiene Theory 4. Self-Determination Theory  Maslow’s Hierarchy of Needs People are motivated by lower-order needs; only when they are met, people become motivated by higher-order needs. People seek to satisfy five basic kinds of needs: 1. Physiological needs 2. Safety and security needs 3. Love and belongingness needs 4. Self-esteem needs 5. Self-actualization needs These needs constitute a hierarchy of needs. – Empirical criticisms on the hierarchy!  1. PHYSIOLOGICAL Necessary for survival; if these needs are unmet, it will lead to death Food Water Breathing - Oxygen Sleep Protection from extreme temperatures Clothing  2. SAFETY and SECURITY The need to be free from anxiety and fear The need to be secure in the environment The need for order and routine Emotional & financial security  3. LOVE AND BELONGING Social acceptance, friendship, family, … Need to belong, to relate to others, to be loved, affection, intimacy  4. SELF-ESTEEM Feeling important and worthwhile – includes respect, approval, appreciation. We engage in activities that bring achievement, success, and recognition. We gain self-confidence and begin to direct our actions toward becoming what we WANT to be.  5. SELF-ACTUALIZATION Self-realization “The desire to accomplish everything that one can, to become the most that one can be”. Obtaining our full potential Eager to express our beliefs Willing to reach out to others to help them.  Maslow’s Hierarchy of Needs Needs Description Examples Highest- Self- Realize one’s Use abilities level needs actualization full potential to the fullest Feel good Promotions Esteem about oneself and recognition Social Interpersonal Love & Belonging interaction, love relations, parties Job security, Safety Security, stability health insurance Lowest- Food, water, Basic pay level Physiological level needs shelter to buy items Lower-level needs must be satisfied before higher-level needs  Alderfer’s ERG Theory 3 universal needs constitute a hierarchy of needs and motivate behaviors. Based upon Maslow’s work – Existence Physiological and Security – Relatedness Being valued and accepted by others – Growth Feelings of self-worth and competence Clayton Alderfer  Alderfer’s ERG Theory Needs Description Examples Highest- level needs Self-development, Continually Growth creative work improve skills Interpersonal Relatedness relations, feelings Good relations Food, water, Adequate pay Lowest-level Existence clothing, and shelter for necessities needs Lower-level needs and higher-level needs can be addressed simultaneously.  Alderfer’s ERG Theory As lower-level needs become satisfied, a person seeks to satisfy higher-level needs. People can be motivated by multiple needs (at different levels) simultaneously. – Difference with Maslow (lower-order needs must be met first) Frustration-regression hypothesis: if people cannot satisfy a need (i.e., experience need frustration), they will focus on satisfying other needs. Question: Give examples of what a leader can do to satisfy each level of the followers’ needs.  Quiz Question How is Hierarchy of Needs different from ERG Theory?  Motivation Think of a time when you were highly motivated. Why were you highly motivated? Think of a time when you were unmotivated. Why were you unmotivated? Are there any similarities between why you were motivated and unmotivated?  Herzberg’s Motivation-Hygiene Theory Also known as the two-factor theory (or dual factor theory). Satisfaction and dissatisfaction are determined by different needs. Needs are hierarchical – People are motivated by lower order-needs to not be dissatisfied. – When those are met, people become motivated by higher-order needs to be satisfied. Herzberg's motivation- hygiene theory  Herzberg's motivation- hygiene theory Hygiene factors – Factors that ensure that employees are not dissatisfied by jobs. – In other words, these factors prevent employees from being dissatisfied. – Related to job context (extrinsic factors) Salary (e.g., do you get it on time?) Working conditions Job security Safety  Herzberg's motivation- hygiene theory Motivators – Factors that lead to higher motivation and job satisfaction. – Related to the actual nature of the job (intrinsic), thus to the job content. Interesting work Autonomy Responsibility Recognition Herzberg's motivation- hygiene theory  Herzberg’s Motivation-Hygiene Theory Example hygiene factor – Imagine that you are working in an unpleasant work environment. Your office is too hot in the summer and too cold in the winter. Or it is too noisy, the lights do not work, bad internet connection, you get your salary too late, … – You would be dissatisfied. – If these problems were solved (e.g., your office temperature is just right), would you be satisfied (motivated)?  Herzberg’s Motivation-Hygiene Theory Unmet hygiene needs (when hygiene needs are not met/ unsatisfied hygiene needs) create dissatisfaction… … But removing the sources of dissatisfaction does not lead to motivation or job satisfaction! – We miss hygiene factors when they are absent, but we take them for granted if they are present. – When hygiene needs are met (satisfaction of hygiene needs), this does not yet lead to job satisfaction.  Herzberg’s Motivation-Hygiene Theory Satisfaction and dissatisfaction are determined by different needs. Dissatisfaction Neutral Satisfaction Hygiene needs Motivator s  Herzberg’s Motivation- Hygiene Theory Tips for leaders: Contextual factors matter because they can cause dissatisfaction. Improving the environment in which the job is performed is not enough to motivate employees. Only focusing on hygiene factors is not enough, and leaders should also enrich jobs by giving employees opportunities for challenging work, greater responsibilities, advancement opportunities, and a job in which their employees can feel successful. Focus on job design and job enrichment. Overview Needs Theories  Self-Determination Theory Satisfaction of three psychological needs leads to intrinsic motivation: 1. Autonomy 2. Belongingness (Relatedness) 3. Competence These 3 aspects are the nutrients for intrinsic motivation. Video (optional)  Self-Determination Theory Think back to your examples of motivated/unmotivated situations. Think about your current school life. – According to Self-Determination Theory, why are you motivated/ unmotivated? – How could you (or your teachers) improve your academic motivation?  Motivation Definition McGregor’s Theory of X and Y Need theories 1. Hierarchy of needs (Maslow) 2. ERG Theory (Alderfer) 3. Motivation – Hygiene Theory (Herzberg) 4. Self-Determination Theory Process theories 1. Vroom: Expectancy theory 2. Equity theory 3. Operant conditioning (reinforcement theory) Social Learning Theory (observational learning) Goal setting theory  Process Theories Theories emphasizing that people are active decision makers who strive to be rational in choosing what to do and how much effort to exert. Assumption: people do things because they have made rational decisions between options  Expectancy Theory (Vroom) Motivation will be high when employees believe: 1. High levels of effort (input) will result in high performance. 2. High performance will lead to the attainment of rewards. AND 3. If they value the rewards.  Expectancy Theory (Vroom) 1. Expectancy: does my effort lead to better performance (self-efficacy)? 2. Instrumentality: does that performance result in good outcomes or rewards? 3. Valence: are the rewards attractive to me? (do I care about those rewards?)  Expectancy Theory (Vroom) 1. Belief about 2. Belief 3. Employee performance success about getting perception of the (Self-Efficacy) the rewards value of the reward Value Reward of Effort Performance Reward s s 1. Effort to performance expectation: how much success do you expect? (expectancy) 2. Performance to reward expectation: do you think you will get the rewards? (instrumentality) 3. How desirable are the rewards for you? (valence) Expectancy Theory (Vroom) M (motivation) = E * I * V – Expectancy can range from 0 to 1 – Instrumentality can range from 0 to 1 – Valence can range from -1 to 1 Need ALL components to work. If one of these components is 0, M = 0 Expectancy Theory (Vroom) Which actions can you take as a leader to increase your followers’  Expectancy theory: Tips for leaders 1. What does the employee expect? Does (s)he expect success?  Show that success is likely! Provide confidence, increase self-efficacy. – Followers will try harder, longer. – They will be more motivated to learn. Self-efficacy is based on: 1. Prior experience. 2. Behavioral models: successes and failures of others. 3. Other’s feedback: e.g., encouragement, verbal persuasion. 4. Physical and emotional state (arousal). If you want to increase self-efficacy, focus on these 4 points.  Expectancy theory: Tips for leaders 2. Do employees see the connections between their performance and the outcomes? (instrumentality) 3. What does the employee value?  Make the outcomes as desirable as possible for the employees.  Employees can be motivated by different things: the valence we put on outcomes differs. Expectancy Theory (Vroom)  Expectancy Theory (Vroom) EXERCISE List the three factors in Expectancy Theory and describe how they are related to effort, performance, and outcomes. Provide an example of a behavior you engage in (e.g., studying, practicing a sport, …) and describe your motivation for that behavior. (Hint: Identify the effort, performance, and outcome. Describe your level for each of the three factors and use the equation to get your motivation score)  Expectancy Theory Quiz Saeed is the owner of a Toyota dealership. His employees typically sell 3 cars each per month. He tries to motivate employees by offering bonuses to all employees who sell at least 20 cars that month. Joe really wants the bonus, but he is still unmotivated. According to Expectancy Theory, why is Joe still not motivated?  Expectancy Theory Quiz Saeed is the owner of a Toyota dealership. His employees typically sell 3 cars each per month. He tries to motivate employees by offering a bonus to one lucky employee who sells at least 4 cars that month. Joe knows he can sell 4 cars and really wants the bonus, but he is still unmotivated. According to Expectancy Theory, why is Joe still not motivated?  Expectancy Theory Quiz Saeed is the owner of a Toyota dealership. His employees typically sell 3 cars each per month. He tries to motivate employees by offering bonuses of vacation tickets to Detroit, USA to all employees who sell at least 4 cars that month. Joe knows he can sell 4 cars, but he is still unmotivated. According to Expectancy Theory, why is Joe still not motivated?  Equity Theory Perceptions about fairness determine motivation. Comparison of the ratios of what you bring to a situation (inputs) and what you get out of it (outcomes) to others’ ratios of inputs and outcomes. When people perceive inequity, they become distressed. They will try to restore equity!  Equity Theory Inputs: time, effort, Outcomes: pay, loyalty, education, benefits, bonus, flexibility, skill, prior recognition, praise, … experience, training, … Video Equity Theory Satisfi ed Angry Guilty  Equity Theory Example You earn 20 000 dirham, and you work 100 hours per month. Your colleague earns 25 000 dirham, and she works 120 hours per month. Is there equity? Overpayment? Underpayment?  Equity Theory Example ?? (= or < or >) Is there equity? Overpayment? Underpayment? 200 < 208,333  underpayment Example of Equity theory: employee vs. CEO salary.  Equity Theory What employees can do to reduce inequity: 1. Change inputs (see table below) 2. Change outcomes (see table below) 3. Change perceptions of yourself: “I thought I worked at a normal pace but actually I work very hard, so I deserve my higher salary” (when overpaid) 4. Change perceptions of others: “Mike does not work as hard as I thought” 5. Choose a different referent: “I don’t earn as much as Mike, but I earn more than my father when he was young.” 6. Leave the field e.g., quit the job Change: Example for « underpayment »: Input (Person) Decrease inputs by being less productive Outcome (Person) Increase outcomes by asking for a raise Input (Other) Increase other’s inputs by pressuring them to work harder Outcome (Other) Decrease other’s outcomes by sabotage  Equity Theory Imagine that you are told everyone in your group project will receive the same grade, but one of your group members has done very little work. According to Equity Theory, describe the ways you could restore equity to increase your motivation for the course.  Equity Theory Imagine you find out that your colleague earns much less than you. This colleague has the same degree as you and works equally hard on all of your projects. According to Equity Theory, describe the ways you could restore equity to increase your motivation for the job.  Which piece of the pie do you want? Entitled: Prefers to be over-benefitted (i.e., prefer higher outcome/input ratio than others) Benevolent: Prefers to be under-benefitted Equity sensitive: (i.e., prefer lower Prefer equal outcome/input ratio outcome/input ratios than others)  Self-assessment (preference for equity) For more information, see: Foote, D. A., & Harmon, S. (2006). Measuring equity sensitivity. Journal of Managerial Psychology, 21(2), 90-108.  Reinforcement Theory (Skinner) Behaviorism Operant Conditioning – Behavior followed by a satisfying consequence is strengthened (more likely to happen). – Behavior followed by a dissatisfying consequence will be avoided. Reinforcement Theory (Skinner) Operant Conditioning – People learn to perform behaviors that lead to desired consequences and learn to avoid behaviors that lead to undesired consequences.  Operant Conditioning Tools Positive Reinforcement – Positive reinforcement happens when an outcome is presented as a consequence of a behavior and the likelihood of the occurrence of the behavior increases. – Gives people outcomes they desire when they perform organizationally functionally behaviors Examples: – Salary raise – Praises, compliments,...  Operant Conditioning Tools Negative Reinforcement – An undesired outcome is removed or eliminated (= taken away) once the functional behavior occurs. Examples: undesirable outcomes (e.g., late work hours or extra tasks) are taken away after you show desirable behavior  Operant Conditioning Tools Negative reinforcement examples A child cleans her room, and this behavior is followed by the parent stopping "nagging". Here, the nagging serves to negatively reinforce the behavior of cleaning because the child wants to remove the aversive stimulus of nagging. A person puts ointment on a bug bite to soothe an itch. If the ointment works, the person will likely increase the usage of the ointment because it resulted in removing the itch, which is the negative reinforcer. A company has a policy that if an employee completes their assigned work by Thursday, they can have Friday off. Working Friday is the negative reinforcer, the employee’s productivity will be increased as they avoid experiencing the negative reinforcer.  Operant Conditioning Tools Positive Punishment – Administering an undesired consequence to stop a dysfunctional behavior. Manager administers an undesired consequence to worker (verbal reprimand, demotion). Negative Punishment = Extinction – Restricting the demonstration of a dysfunctional behavior by eliminating whatever is reinforcing it. – E.g., After getting into a fight with his sister over who gets to play with a new toy, the mother takes the toy away. Present (+) a stimulus (the stimulus is desirable) Remove (-) undesirable stimulus. THE - does not mean the result is bad!!!!!!  Present (+) an undesirable stimulus. THE + does not mean it is “good” or “nice” !!!!!!  Remove (-) an desirable stimulus. = extinction Reinforcement Theory  Operant Conditioning Student participates in class, so teacher does not give him homework Teacher is using: _______________ Student does not do his homework, so teacher yells at the student Teacher is using: _______________  Operant Conditioning Imagine you have an employee who frequently looks at his phone during meetings instead of paying attention. According to Operant Conditioning, describe four ways you could change his behavior.  Reinforcement vs. Punishment Punishment: Only tells which behavior is not desired. Employees can avoid leader and hide behavior. Must be severe enough to offset the rewards of the behavior. Reinforcement: Leader can be away, employees will try to show their behavior. This is easier and better for the leader as the employees will try to communicate the good behavior.  Schedules of reinforcement Continuous Reinforcement – Once the reward is withdrawn, the person may stop performing the desired behavior. (not practical) Partial Reinforcement – Fixed: reinforcement after a fixed time period ( = fixed interval) or fixed number of responses (= fixed ratio; e.g., giving a bonus after every 10th sale). – Variable: reinforcement after varying time periods ( = variable interval) or numbers of responses ( = variable ratio). – Variable is better than fixed.  Reinforcement Theory… Easy? Linking specific behaviors to the attainment of specific outcomes can motivate high performance and prevent behaviors that detract from organizational effectiveness. This seems easy but… Desirable behavior is often ignored, or worse, undesirable behavior is rewarded – E.g., An employee goes above and beyond the call of duty, yet her actions are ignored, or she gets more work to do. – E.g., Employees with disruptive habits may receive no punishments because the leader is afraid of the reaction the person will give when confronted. – E.g., Employees get rewarded by the number of parts produced, regardless of the number of defects.  Reinforcement Theory Criticisms: Focused on extrinsic motivation – Theory is based on the importance of the CONSEQUECES of the behavior, not the behavior itself intrinsic motivation Only “Behaviorism” – No attention for feelings No attention for conscious thoughts or awareness For example, people can delay gratification, or still do activities even if they they are not matched with direct rewards  Learning theories Learning – A relatively permanent change in knowledge or behavior that results from practice or experience.  Social Learning Theory Social learning theory – People can learn through observations of other people’s behavior. Albert Bandura Bobo Doll Experiment Monkey see, monkey do  Social Learning Theory Vicarious learning = observational learning – Learning that occurs when the learner becomes motivated to perform a behavior by watching another person perform. – More information in this video  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.  Goal Setting Theory Goals tell an employee what needs to be done and how much effort is needed. – Specific goals increase performance. – Challenging but achievable goals, when accepted, result in higher performance than do easy goals. – Feedback leads to higher performance than does non-feedback. Goals point out what is important to the firm. – Workers should be encouraged to develop action plans to attain goals. Goal Setting Theory Goals motivate people to contribute more inputs to their jobs Goals help people focus their inputs in the right direction Performance vs Mastery Goals Performance vs Mastery Goals SMART GOALS  SMART Goals Is this goal SMART? Ensure training programs are provided for volunteer firefighters. NO How can it be improved? Ensure two safety training programs (in June and December) are provided for volunteer firefighters this year. Management by Objectives (MBO) MBO is based on goal setting theory Stages of MBO: 1) Managers and employees jointly set objectives for subordinates 2) Employees develop an action plan to achieve the objectives 3) Managers conduct a performance review to examine progress  Possible Questions What is motivation? List and describe the 3 components of the definition of motivation. Explain why motivation is important (Hint: Identify how motivation relates to performance). What is the difference between intrinsic and extrinsic motivation? Give your opinion on using extrinsic rewards (refer to the video of Dan Pink). Give examples of needs theories. You need to be able to explain them too. Explain the expectancy theory of Vroom in detail. How can you increase someone’s self-efficacy? What is operant conditioning? What is a positive (negative) punishment? What is a positive (negative) reinforcement? According to Reinforcement Theory, explain what the word ‘negative’ and what the word ‘reinforcement’ means. Provide an example of negative reinforcement. What is extinction? Compare punishment with reinforcement. What are the benefits/downsides of each? What are – based on Goal Setting Theory – the best kind of goals? What does the “social learning theory” tell us about how we learn? List and describe the three major types of goals. Provide an example of each type of goal (make sure each example is SMART).  Applied Question Your employee is reluctant and unmotivated to take on a task assigned to her. She feels that the task is boring and that someone else would be better suited to handle it. How would you try to motivate your employee? TIP: choose one or more of your preferred theories and explain how you could motivate the employee  Hierarchy of Needs (Maslow)  Two Factor Theory of Herzberg  Self-Determination Theory  Equity Theory  Expectancy Theory  Operant Conditioning