griffin_8e_ppt_ch10 Managing Employee Motivation and Performance.pdf

Learning Outcomes After studying this chapter you should be able to: 1. Characterize the nature of motivation, including its importance and basic historical perspectives. 2. Identify and describe the major content perspectives on motivation. 3. Identify and describe the major proce...

Learning Outcomes After studying this chapter you should be able to: 1. Characterize the nature of motivation, including its importance and basic historical perspectives. 2. Identify and describe the major content perspectives on motivation. 3. Identify and describe the major process perspectives on motivation. 4. Describe reinforcement perspectives on motivation. 5. Identify and describe popular motivational strategies. 6. Describe the role of organizational reward systems in motivation. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–2  The Nature of Motivation Motivation –The set of forces that cause people to behave in certain ways. Determinants of Individual Performance –Motivation –Ability –Work environment © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–3 FIGURE 10.1 The Motivation Framework © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–4  Content Perspectives on Motivation Content Perspectives –Focus on needs and deficiencies of individuals –Try to answer the question, “What factors in the workplace motivate people?” Content Perspectives of Motivation –Maslow’s Hierarchy of Needs –Herzberg’s Two-Factor Theory –McClelland’s Achievement, Power, and Affiliation Needs © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–5  Maslow’s Hierarchy of Needs Attending to basic survival and biological Physiological functions. Seeking a safe physical and emotional Security environment. Belongingness Experiencing love and affection. Having a positive self-image/self-respect Esteem and recognition and respect from others. Realizing one’s potential for personal Self-actualization growth and development. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–6 FIGURE 10.2 Maslow’s Hierarchy of Needs NEEDS General Examples Organizational Examples Self- Challenging Achievement actualization job Job Status Esteem title Friends Friendship Belongingness at work Pension Stability Security plan Base Food Physiology salary © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–7  The Needs Hierarchy Approach Contributions of Maslow’s Theory –Identified and categorized individual needs. –Emphasized importance of needs to motivation. Weaknesses of Maslow’s Theory –All levels of need are not always present. –Ordering or importance of needs is not always the same. –Cultural differences can impact the ordering and salience of needs. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–8  The Two-Factor Theory (Herzberg) Theory Assumptions: –Satisfaction and dissatisfaction are influenced by two independent sets of factors on two distinct continuums: Motivational factors (work content) range from satisfaction to no satisfaction. Hygiene factors (work environment) range from dissatisfaction to no dissatisfaction. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–9 FIGURE 10.3 The Two-Factor Theory of Motivation Work Content Work Environment Motivation Factors Hygiene Factors Achievement Supervisors Recognition Working conditions The work itself Interpersonal relations Responsibility Pay and security Advancement Company policies and and growth administration Satisfaction No satisfaction Dissatisfaction No dissatisfaction © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–10  The Two-Factor Theory (cont’d) Motivation becomes a two-stage process: –Ensuring that deficient hygiene factors are not blocking motivation. –Using job enrichment and redesign of jobs to increase motivational factors for employees. Criticisms of the Two-Factor Theory –Interview findings are subject to different explanations. –Sample population was not representative. –Subsequent research has not upheld theory. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–11  Management Challenge Despite considerable criticism, Herzberg’s Two- Factor theory continues to be studied in management classes. Why? © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–12  Individual Human Needs (McClelland) The desire to accomplish a goal or task Need for Achievement more effectively than in the past. The desire for human companionship and Need for Affiliation acceptance. The desire to be influential in a group and Need for Power to be in control of one’s environment. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–13  Shifting Perspectives: From Content to Process Content Process Perspectives Perspectives (what causes motivation) (how motivation occurs) © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–14  Process Perspectives on Motivation Process Perspectives –Focus on why people choose certain behaviors to satisfy needs and how they evaluate satisfaction after they have attained goals. Process Perspectives of Motivation –Expectancy Theory –Porter-Lawler Extension of Expectancy Theory –Equity Theory –Goal-Setting Theory © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–15  Expectancy Theory Motivation depends on how much we want something and how likely we are to get it. Theory assumes that: –Behavior is determined by personal and environmental forces. –People make decisions about their own behavior. –Different people have different types of needs, desires, and goals. –People choose among alternatives of behaviors in selecting one that that leads to a desired outcome. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–16  Expectancy Theory (cont’d) Model of Motivation –Suggests that motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–17 FIGURE 10.4 The Expectancy Model of Motivation © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–18  Elements of Expectancy Theory Effort-to-Performance Expectancy –The individual’s perception of the probability that effort will lead to a high level of performance. Performance-to-Outcome Expectancy –The individual’s perception of the probability that performance will lead to a specific outcome, or consequence or reward in an organizational setting. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–19  Elements of Expectancy Theory (cont’d) Valences –An index of how much an individual values a particular outcome. It is also the attractiveness of the outcome to the individual. Outcomes (Consequences) –Attractive outcomes have positive valences and unattractive outcomes have negative valences. –Outcomes to which an individual is indifferent have zero valences. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–20  Expectancy Theory: The Porter-Lawler Extension Assumptions: –If performance results in equitable and fair rewards, people will be more satisfied. –High performance can lead to rewards and high satisfaction. Types of Rewards: –Extrinsic rewards are outcomes set and awarded by external parties –Intrinsic rewards are outcomes that are internal to the individual © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–21 FIGURE 10.5 The Porter-Lawler Extension of Expectancy Theory Intrinsic rewards (outcomes) Perceived Performance Satisfaction equity Extrinsic rewards (outcomes) © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–22  The Equity Theory Process Outcomes (self) = Outcomes (other) Inputs (self) = Inputs (other) Motivation to Perception Change of Inequity Something Comparison of Self with Others Motivation to Perception Keep Everything of Equity the Same © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–23  Equity Comparisons and Behavior Feeling equitably rewarded: –Maintain performance and accept comparison as fair estimate. Feeling under-rewarded—reduce inequity by: –Changing inputs by trying harder or slacking off. –Changing outcomes by demanding a raise. –Distorting ratios by altering perceptions of self or of others. –Leaving situation by quitting the job. –Choosing another object person. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–24  Equity Comparisons and Behavior (cont’d) Feeling over-rewarded: –Increase or decrease inputs. –Distort ratios by rationalizing. –Help the object person gain more outcomes. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–25  Goal-Setting Theory Theory’s Assumptions –Behavior is a result of conscious goals and intentions. –Setting goals influences behavior in organizations. Characteristics of Goals –Goal difficulty –Goal specificity –Goal acceptance –Goal commitment © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–26 FIGURE 10.6 The Expanded Goal-Setting Theory of Motivation © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–27  Reinforcement Perspectives on Motivation Reinforcement Theory –Focuses on the role of rewards as they cause behavior to change or remain the same over time. –Assumes that: Behavior that is rewarded is likely to be repeated. Behavior that is punished is less likely to be repeated. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–28  Providing Reinforcement in Organizations Kinds of Reinforcement Positive Reinforcement Avoidance Punishment Extinction © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–29  Kinds of Reinforcement Positive Reinforcement – Strengthens behavior with rewards or positive outcomes after a desired behavior is performed. Avoidance – Strengthens behavior by avoiding unpleasant consequences that would result if the behavior is not performed. Punishment – Weakens undesired behavior by using negative outcomes or unpleasant consequences when the behavior is performed. Extinction – Weakens undesired behavior by simply ignoring or not reinforcing that behavior. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–30  Applying Reinforcement Theory Reinforcement Schedules Time Frequency Fixed Interval Variable Interval Fixed Ratio Variable Ratio © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–31  Providing Reinforcement Schedules for Applying Reinforcement Fixed interval Reinforcement applied at fixed time intervals, regardless of behavior. Variable interval Reinforcement applied at variable time intervals. Fixed ratio Reinforcement applied after a fixed number of behaviors, regardless of time Variable ratio Reinforcement applied after varying numbers of behaviors, regardless of time. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–32  Schedules of Reinforcement T1 T1 T1 T1 Fixed R R R R R Interval T1 T2 T3 T4 Variable R R R R R Interval B1 B2 B1 B2 B1 B2 Fixed R R R R Ratio B1 B2 B1 B2 B3 B4 B1 B2 B3 Variable R R R R Ratio © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–33  Using Reinforcement in Organizations Organizational Behavior Modification (OB Mod) –A method for applying the basic elements of reinforcement theory in an organizational setting. –Specific behaviors are tied to specific forms of reinforcement. Specific Specific Behavior Reinforcement © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–34  Popular Motivational Strategies Empowerment and Participation –Empowerment Enabling workers to set own work goals, make decisions, and solve problems within their sphere of influence. –Participation Giving employees a voice in making decisions about work. –Areas of Participation for Employees Making decisions about their jobs. Making decisions about administrative matters. Participating in decision making about broader issues of product quality. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–35  Alternative Forms of Working Arrangements Compressed work schedule Flexible work schedules Variable (flextime) Work Schedules Job sharing Telecommuting © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–36  Alternative Work Arrangements Variable Work Schedules Compressed Working a full forty-hour week in less than the work schedule traditional five days. “Nine-eighty” Working one full week (five days) and one schedule compressed week (four days), yielding one off-work day every other week. Flexible work Allowing employees to select, within broad schedules parameters, hours they will work. (flextime) Job sharing When two part-time employees share one full-time job. Telecommuting Allowing employees to spend part of their time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–37  Using Reward Systems to Motivate Performance Reward Systems –Formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. Effects of Organizational Rewards –Higher-level performance-based rewards motivate employees to work harder. –Rewards help align employee self-interest with organizational goals. –Rewards foster increased retention and citizenship. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–38  Effects of Organizational Rewards on Employees Attitudes Behaviors Motivation Satisfaction is influenced Extrinsic rewards affect Employees will work by how much is received employee satisfaction and harder when performance and how much the person reduce turnover. will be measured. thinks should have been Rewards influence Employees will work received. patterns of attendance harder if performance is Satisfaction is affected by and absenteeism. closely followed by comparison with others. rewards. Employees tend to work The rewards of others are harder for rewards based often misperceived. on performance. Overall job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–39  Reward Systems and Performance Types of Reward Systems Individual Individual Group and team merit rewards incentive rewards incentive rewards systems systems systems © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–40  Incentive Reward Systems Monetary Incentives –Piece-rate incentive plan Employee is paid a certain amount of money for every unit the employee produces. –Sales commissions plan Employee is paid a percentage of the employee’s sales to customers for selling the firm’s products or services. Nonmonetary Incentives –Immediate, and one-time rewards Days off, additional paid vacation time, and special perks © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–41  Common Team and Group Reward Systems Gainsharing –Sharing cost savings that result from productivity improvements. Scanlon Plan –Distribution of gains is tilted toward the employees and is spread across the organization. Profit Sharing Plans –Provide an annual bonus to all employees based on corporate profits. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–42  Executive Compensation Standard Forms of Executive Compensation – Base salary – Incentive pay (bonuses) Special Forms of Executive Compensation – Stock option plans – Executive perks Criticism of Executive Compensation – Excessively large compensation amounts – Compensation not tied to overall and long-term performance of the organization – Earnings gap between executive pay and typical employee pay © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–43  New Approaches to Performance-Based Rewards Employee Participation –Allowing employee participation in the deciding the distribution of rewards. Innovation in Incentive Programs –Offering stock options to all employees. –Individualizing reward systems such that different employees can be offered different incentives. More Effective Communication –Sharing information about how awards are earned and distributed. © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–44  Management Challenge Question How are expectancy theory, performance appraisal systems, and reward systems linked? © 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10–45