Business Management 2B Chapter 12 Notes PDF

BUSINESS MANAGEMENT 2B CHAPTER 12 NOTES MOTIVATION INTRODUCTION TO MOTIVATION Motivation plays a key role in attracting and retaining talented employees and in encouraging...

BUSINESS MANAGEMENT 2B CHAPTER 12 NOTES MOTIVATION INTRODUCTION TO MOTIVATION Motivation plays a key role in attracting and retaining talented employees and in encouraging them to attain high levels of performance – because motivated employees are engaged, committed, loyal and perform at their best. Managers, therefore, need to understand what motivates both themselves and others, and they must be able to inspire and implement strategies to ensure that the organisation can attract, retain, and motivate employees – managers need to engage employees and communicate about: ICT – CS  Individual needs and well-being  Consequences of behaviour (rewards and sanctions)  The role and value of people to the organisation  Change in the organisation  Salaries/wages benefits, and incentives and relevant policies. Managers also need to:  Be aware of and sensitive to people and their well-being  Be aware of initiatives to motivate employees across cultures and national borders  Be aware of what motivates them personally and others Understanding motivation helps managers understand what influences people’s actions and why they continue over time – thus helping managers decide what strategies to implement to influence behaviour in line with organisational goals. Managers need insight and understanding to help them design and implement appropriate motivation strategies. THE OVERVIEW OF MOTIVATION Motivation is any influence, either within or external, to a person that triggers, directs, or maintains goal-directed behaviour. The four general categories that theories in this chapter fall into:  1. There are theories about individual differences in motivation that focus on motivation as a characteristic of individuals, which varies from person to person – These theories address questions such as – “Are the factors that motivate one individual different from those that motivate another?” – These theories help managers to understand what drives the behaviour of individuals. Managers can then use their understanding to maximise the performance of these individuals. 2. These theories focus on how the nature of the job itself and organisational contexts affect the motivation of employees – These theories address questions such as – “Are people who work for an organisation that is committed to creating a workplace where all employees can enjoy equal opportunities and develop to their full potential more satisfied than people who work at organisations where this is not the case?”. 3. Are theories about how managerial behaviour affects motivation focuses on how the use of goals and rewards affects motivation – These theories address questions such as – “How can a manager use goals and rewards to improve people's motivation?” 4. This is the category of theories that considers how the entire motivation process, such as the integrated expectancy theory, helps in understanding how several motivational factors or influencers combine to influence motivation and performance. They can be used to design effective performance management systems. All these theories help managers understand and make sense of motivation and how to design and implement strategies that create an attractive work environment that motivates employees. DESCRIPTION OF THE FOUR CATEGORIES a. Individual differences – Managers need to acknowledge the specific content of individual differences that make each person unique.  Effective managers understand the individual differences that shape each employee’s unique view of work and use this understanding to maximise each employee's motivation. b. The nature of the job and organisational contexts – The specific characteristics of a job determine the extent to which employees experience work to be meaningful, the level of personal responsibility that employees feel, and the knowledge that employees gain about how well they are performing.  The organisational context - particularly the organisation's human resources management policies, procedures, and practices – also affects employee motivation. c. Behaviours of managers – Managers are responsible for the design of jobs as well as for the implementation of policies. Managers also motivate employees directly through more personal,  one-to-one communication, including providing recognition. Managers have an important role in communicating the organisation's vision and strategy in a manner that employees can relate to and understand. Managers can also work with employees to set realistic goals, and they can use both monetary and non-monetary means to reward employees for achieving those goals or to penalise them for failing to do so. d. An integrative approach to motivation – The expectancy theory accounts for individual differences in employees needs the way the work is designed, human resource management policies, and managerial behaviours. THEORIES ABOUT INDIVIDUAL DIFFERENCES These theories acknowledge that each employee is a unique individual who differs from others in many ways – abilities, personalities, values, and needs. A. Maslow’s Hierarchy of Needs A need is a strong feeling of deficiency in some aspect of a person’s life that creates an uncomfortable tension Maslow’s five types of needs: 1.1. Physiological Needs: Are those basic needs people try to satisfy before all others and include needs such as food, clothing, and shelter 1.2. Security Needs: These needs include the desire for safety and security. In an organisational context, these needs can be expressed as a desire for a stable job with medical, disability, unemployment, death and retirement benefits. Stability in the form of job security can also be a need 1.3. Affiliation Needs: Are the desire for friendship, love and a sense of belonging. This level in the hierarchy represents a clear set up from the truly physiological and security needs and is seen as the first higher level need. Employees with high affiliation needs enjoy working closely with other and Employees with low affiliation needs may be content to work independently on tasks. 1.4. Esteem Needs: Represent the desire for self-respect, a sense of personal achievement and recognition from other people. Can be addressed through opportunities for challenging work, achievement, promotion, bonuses, praise, and status are ways of addressing these needs. 1.5. Self-actualisation Needs: Are the desire for personal growth, self-fulfilment and the realisation of the individual’s full potential Which needs motivate you? A key hypothesis of the theory is the satisfaction-progression hypothesis, which proposes that a satisfied need is no longer a motivator and that once a need has been satisfied, another need  emerges to take its place. Lower-level needs must be satisfied before higher-level needs become strong enough to motivate behaviour; therefore, people are always striving to satisfy some higher need B. Alderfer’s ERG theory a. Existence Needs – Are the desires for material and physical well-being that are satisfied through food, water, air, shelter, working conditions, pay, fringe benefits etc. Similar to Maslow’s Physiological and Security Needs. b. Relatedness Needs: Desire to establish and maintain interpersonal relationships with other people, including family, friends, supervisors, subordinates, and co-workers. Similar to Maslow’s Affiliation Needs. c. Growth Needs – Are desires to be creative, to make useful and productive contributions, and to have opportunities for personal development. Similar to Maslow’s Esteem and Self- actualisation Needs. Growth and development are important, so organisations need to offer development opportunities for employees Alderfer’s ERG Model contains a frustration-regression hypothesis which holds that when individuals are frustrated in meeting higher-level needs, the next lower-level needs re-emerge and direct behaviour. C. McClelland’s theory of learnt needs – Specifies that people acquire needs over time through interaction with their surrounding environment – the social contexts in which people live and work influence the learning of motivating needs and their strength. This theory does not view needs as a hierarchy through which people move thus contradicting Maslow and Alderfer’s theories. When a need determines a person’s behaviour it is referred to as a motive. a. Achievement – The achievement motive is the desire to succeed relative to some standard of excellence, or in competitive situations. Being achievement orientated may be necessary to succeed at work in an increasingly competitive business world. b. Affiliation – The affiliation motive is a person’s desire to develop and maintain close, mutually satisfying interpersonal relationships with others. The affiliation motive affects people’s willingness to work together in teams – when there’s high affiliation motive, managers should try to create a cooperative environment where people work with each other and feel accepted. c. Power – The power motive is an individual’s desire to have influence and control over others as well as their social environment. It is expressed in two ways: as personal power and as socialised power. JOB AND ORGANISATIONAL CONTEXTS AS MOTIVATORS A. Herzberg’s two factor theory – identifies aspects of the job and organisational contexts that contribute to the satisfaction and motivation of individuals. Two separate and distinct aspects of the environment are responsible for creating feelings of job satisfaction and job dissatisfaction – Motivator factors and Hygiene Factors (hence the name two-factor theory). a. Motivator factors Often referred to as intrinsic or intangible factors, are aspects of the job and organisational contexts that, when present, create positive feelings of satisfaction within individuals. The motivation that comes from a feeling of satisfaction, as opposed to external sources outside the individual are referred to as intrinsic motivation. Motivator factors are the characteristics of the job that should, when present, create feelings of satisfaction – and no satisfaction when absent. Motivators lead to superior performance only if no dissatisfiers are present. b. Hygiene factors Also referred to as extrinsic or tangible factors, are the non-task characteristics of the work environment, that, if absent, create dissatisfaction and if present and acceptable create no dissatisfaction. Hygiene factors include aspects of the environment that are closely associated with the job and certain aspects of the broader organisation. These factors need to be present to some extent to avoid dissatisfaction – as they are external to the job they contribute to extrinsic motivation. No dissatisfaction does not mean satisfaction -the opposite of dissatisfaction is no satisfaction, and the opposite of satisfaction is no dissatisfaction. B. Job Enrichment a. Critical Psychological states – 3 critical psychological states needed to create high levels of motivation in the workplace : 1. Experienced meaningfulness – refers to whether employees perceive their work as valuable and worthwhile. 2. Experienced responsibility – refers to whether employees feel personally responsible for the quantity and quality of their work. 3. Knowledge of results – refers to the extent to which employees receive feedback about how well they are doing – and feedback can come from the task itself or from other sources such as managers, colleagues, and customers. b. Key job characteristics – are objective aspects of a job that can be changed to improve the critical psychological states 1. Skills variety – the degree to which the job involves many different work activities or requires several skills. 2. Task identity – is present when a job involves completing an identifiable piece of work (that is, doing a job with a visible beginning and outcome)  3. Task significance – is present when a job has a substantial impact on the goals or works of others in the organisation 4. Autonomy – present when the job provides substantial freedom, independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying out tasks 5. Feedback – is present when work results give the employee direct and clear information about their performance – such feedback motivates employees and helps them improve their performance c. Growth need strength – refers to a desire for personal challenges, a sense of accomplishment, and learning – employees with a strong need are likely to respond positively enriched job C. Equity Theory – relates to how employees make judgements about whether the organisation is treating them fairly compared to others. Internal equity is the fairness of what is paid for one job in the organisation compared to that of other jobs. External equity is concerned with the fairness of the organisation’s pay in comparison with the payments made to similar jobs outside the organisation. Inputs are what the employee gives to the job to obtain desired outcomes – Outcomes from work include the feelings of meaningfulness and responsibility associated with enriched jobs as well as rewards. 6 ALTERNATIVES AVAILABLE TO EMPLOYEES WHO WANT TO REDUCE THEIR FEELINGS OF INEQUITY  Increase their inputs to justify higher rewards when they feel that they are over-rewarded in comparison with others  Decrease their inputs to compensate for lower rewards when they feel under-rewarded   Change the compensation they receive through legal or other actions, such as leaving work early, forming a union, and …  Modify their comparisons by choosing other people with whom to compare themselves  Distort reality by rationalising that the inequities are justified  Leave their situations (resign from their jobs) if the inequities cannot be resolved. HOW THE BEHAVIOUR OF MANAGERS AFFECTS MOTIVATION  Because of the importance of compensation and rewards – organisations need to remunerate fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long term – and that remuneration is disclosed in terms of the policy and its implementation.  In large organisations, remuneration policy decisions are often made by managers at high levels -whether they are good or bad for employee motivation, they place constraints on how much middle- and first-line managers can change the type of work that people are asked to do or the general level of pay that they will receive. A. Reinforcement Theory – states that behaviour is a function of its consequences (rewards or punishments) – using rewards and punishments, managers can influence and change the behaviour of people in the workplace.  Reinforcement theory principles hold that behaviour followed by pleasant consequences is more likely to be repeated, and that behaviour followed by unpleasant consequences is less likely to repeated. If you receive a reward for superior performance, you are likely to continue performing well in anticipation of future rewards. However if the consequences of a particular behaviour are unpleasant you will tend to modify that behaviour. a. Positive Reinforcement – creates a pleasant consequence by using rewards to increase the likelihood that a behaviour will be repeated – any reward that encourages an individual to repeat a behaviour can be classified as positive reinforcer. Common positive reinforcers used by organisations include praises, recognition of accomplishment, promotion, and salary increases. b. Punishment – is an attempt to discourage a behaviour by the application of negative outcomes whenever it does occur, The purpose of punishment is to reduce the likelihood that an individual will repeat the target behaviour – for example disciplinary action may be taken against an employee who comes to work late, neglects to clean up the work area, or turns out too many defective parts – punishment should match the nature of the misconduct and should be consistent with what other employees have received.  c. Negative Reinforcement – Experienced when people engage in behaviour to avoid unpleasant consequences. Whereas punishment causes a behaviour to occur less frequently, negative reinforcement causes the behaviour to be repeated. d. Extinction – is the absence of any reinforcement, either positive or negative, following the occurrence of a behaviour. It generally occurs when the positive reinforcement that once normally resulted from the behaviour is removed. Because the behaviour no longer produces reinforcement the employee stops engaging in it. Extinction is a common problem for mangers, who often become victims of their own successful attempts to be more systematic in delivering attempts to be more systematic in delivering rewards and punishments e. Managers guidelines Positive reinforcement is the preferred approach for influencing work behaviour. Drawbacks of the reinforcement model:  The model may oversimplify behaviour by not recognising individual characteristics, such as needs and values  It may unduly emphasise manipulating and controlling subordinates.  With its heavy emphasis on external rewards, the model tends to ignore the fact that an increasing number of employees are motivated by the job itself. FIVE GUIDELINES FOR USING REINFORCEMENT THEORY GOAL SETTING Focuses attention on the consequences of behaviour and it also focuses attention on the aspiration that people have. Goal-setting theory states that managers can direct the performance of their employees assigning specific, challenging goals that employees accept and to which they are willing to commit. Such goals increase and direct the effort that individuals exert in the workplace. Managers need to ensure that these goals are aligned with the strategic goals of the organisation to ensure that individual employee behaviour is directed in line with the strategic requirements of the organisation – requiring managers to understand the organisation’s strategic intent, vision, and mission – exercising their strategic action competency. Goal-setting theory views employees as rational beings who control their own goal-directed behaviour. Goals affect motivation in two ways:  By increasing the amount of effort people choose to exert.  By directing or channelling that effort. Management by objectives – is a managerial technique used in many types of organisations – it begins with a conversation between the manager and the employee. During this conversation, past performance is reviewed and objectives (goals) for the future are identified. Motivation: An Integrated View Of all the motivation theories that have been discussed, managers must be able to integrate them. 1. Basic Expectancy Theory – It suggests that people choose among alternative behaviours by considering which behaviour will lead to the more desired outcomes for them – it combines ideas from both reinforcement theory and goal-setting theory. States that people tend to choose behaviour that they believe will help them to achieve their goals and avoid behaviour that they believe will lead to undesirable consequences. The theory is formulated to explain a wide range of behavioural choices, but it focuses on behaviour related to work performance. When making behavioural choices as such as these employees normally consider three questions, perhaps unconsciously at times: a. The expectancy question – If I make an effort, will be able to perform the intended behaviour? b. The instrumentally question – If I perform the intended behaviour, what will the outcome be? c. The valence question – How much do I value the outcome associated with the intended behaviour?  1.1. Expectancy – the belief that a certain level of effort will lead to improved performance. 2. The integrated expectancy model – Recognises that employee satisfaction and performance are two different – but related, phenomena. In this model satisfaction is not viewed as a cause of high performance – the model suggests that employees who perform well will feel more satisfied, assuming that their performance is rewarded appropriately. This model begins with the idea that employees will exert effort when they believe that increased effort will lead to a reward and that the reward is something they value. If increased effort will lead to a reward and that the reward is something they value. If increased effort is needed to perform at a level that will allow you to keep your job, then keeping your job is the reward is the importance you attach to friendships with your coworkers, your pay, or your feelings of accomplishment in the job. Employees effort is not the only variable that affects performance; abilities, traits, and role perceptions also do so. Ability refers to the individual mastery of competencies required to do a job. Traits – are individual characteristics that can affect a person’s job performance. Therefore, abilities and traits are relatively independent of the work situation. Role perception are the employees beliefs about what is required to do the job successfully. It includes both the specific tasks that are employee believes are part of the job as well as the attitudes and behaviour that employee thinks are appropriate in terms of organisational culture. Performance can be rewarded in two ways – Through extrinsic rewards - which are outcomes supplied by the organisation, such as a good salary, status, job, security and fringe benefit. Through intrinsic rewards - which are personally satisfying outcomes, such as feelings of achievement and personal growth. In the Porter-Lawler model – both intrinsic and extrinsic rewards are desirable. Satisfaction – An employee’s attitude towards the work situation – this attitude is determined by the difference between the rewards employees receive, and the rewards thy believe that they should have received - the smaller the difference, the greater the employee’s satisfaction. CONSIDERATIONS WHEN MOTIVATING PEOPLE IN SOUTH AFRICA There is still a lack of a uniquely formulated understanding of motivation relevant to Africa, and of indigenous theories focusing on “a whole range of potential influencing variables which may be of relevance in contexts such as those we find in Africa”.  As managers, while working with the current theories and models of motivation, we need to be aware of the unique culture and context in South Africa and its potential influence on people and their motivation. The current South African context within which organisations operate and people live and work, needs to be understood. Managers need to especially understand the impact of the 4IR and Covid-19 on a developing country such as South Africa, with its peculiar and unique challenges, for example, load-shedding. WHAT MANAGERS IN SOUTH AFRICA NEED TO DO  Acknowledge and show understanding of the difficulties and challenges people are facing  Understand that individuals have different needs and face different situations. Be aware of and address the needs people may have as a result of the new and challenging circumstances under which they need to live, work, and relate to others and their manager.  Provide support and encouragement and address the barriers may have to performing.  Develop their ability to provide appropriate leadership. In particular, managers need to be approachable and available and demonstrate EI (Emotional Intelligence)  Address employee well-being through a well-being strategy and wellness interventions.  Acknowledge the importance of employee well-being and promote it in a workplace by – Formulating and implementing an employee wellness strategy Designing, implementing and monitoring employee wellness programmes Providing a healthy and safe work environment Providing a fair compensation and benefits. Addressing aspects of wellness at work. GUIDELINES FOR PERFOMANCE MANAGEMENT  Managers can use their understanding of motivation theory to design performance management systems that enhance employee’s motivation and performance.  They can also use their understanding of the theories to help diagnose causes of performance problems and to implement or take remedial action.  Managers also need to be aware of the impact of new and disruptive technologies on what is expected of employees in term of performance, and conversely, what employees expect – which include what is expected of employees relates to where they now need to perform; how they are expected to perform in terms of current and future skills needed. 1. Enhancing Employees Performance Recruiting and retaining employees who are highly motivated is an important first step in maximising employee’s performance. Maximising employees performance through motivation requires -  a. Design jobs with high motivating potential Jobs that may be candidates for enrichment are those that are characterised by repetitive tasks requiring few skills, are narrow in scope, and are restrictive in terms of the amount of freedom they give employees as they carry out their tasks. b. Clearly identify the behaviour and performance achievements that will be rewarded For employees to be energised by their work, they must have a clear understanding of what it means to perform well and what it requires to perform well. c. Align rewards with what employees values – To motivate, rewards must be aligned with what employees value. The rewards that employees want can be determined simply by asking and listening to them. d. Provide plenty of feedback – Feedback is essential to motivation regardless of whether employees are performing well or poorly. When employees are performing well, feedback telling them, so encourages them. e. Provide equitable rewards. Employee’s perceptions of whether rewards are equitable are affected by many factors. Manager’s must be aware of these factors. Employees makes two types of comparison when evaluating whether they have been awarded fairly 1. Assessing their own accomplishments in terms of the rewards they receive. Insufficient rewards may demotivate employees, causing them to do little more than go through the motions. Conversely, sufficient rewards can motivate superior performance. 2. Assessing their own accomplishments and rewards against those of other employees assessments if equity and fairness are basically subjective perceptions. Perceptions may partially reflect objective facts, but inaccurate assumptions and beliefs often play a role, too. DIAGNOSING PERFORMANCE DEFICIENCIES Linking performance to rewards that employees value, and paying attention to employees’ perceptions of equity, managers can increase the motivation levels of employees. 1. Assess whether employees have necessary competencies To perform well people must know more than simply what is expected of them. They must know how to do their assigned tasks. That is, they must have the competencies required to translate their efforts into achievements. Motivated employees who lack the required competencies perform just as poorly as competent unmotivated employees. 2. Verify that employees perceive their goals as feasible, yet challenging Managers who set specific goals (with or without employees’ participation) help employees focus on the most important aspects of their jobs. However, specific goals can sometimes  backfire and become barriers to performance , especially if they are either to easy or too difficult. 3. Verify that employees believe that the performance desired by managers is what will be rewarded To maintain or increase motivation, the link between rewards and performance must be clear. While managers often believe that good performance is rewarded, employees may feel that behaviour, such as putting in time at the office, socialising with the boss, being agreeable and not causing trouble, gets rewarded. REMUNERATION ETHICS Considerations for ethical remuneration  Performance relatedness – Performance is an important determinant of pay but must be seen as more than just the ‘hard’ business results  Remuneration policy and procedure guidelines – Remuneration policy and procedures should be fully communicated and understood by all, including communicating any deviation from policy or change to policy.  Demanding yet achievable performance expectations – Performance expectations deliberately set too low or too high could indicate unethical remuneration practice.  Risky business practice – What behaviour does the reward and negotiation system encourage?  Reward for doing nothing – Are managers and others rewarded for the organisation performing beyond expectations because of external factors beyond the control of managers, for example a favourable exchange rate?  Pay ratio – What are managers paid in comparison to others?  Changing the ‘goal posts’ – Ethical remuneration practices sticks to performance goals for all until the end of the performance period.  Human Resources Practitioners and Consultants – Human Resources practitioners employed by the organisation need to subscribe to a code of behaviour and ethics and provide unbiased advice.