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Chapter 4

Motivating Self and Others


Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-1 Copyright 2007 Pearson Education Canada

Chapter Outline
Defining Motivation Needs Theories of Motivation Process Theories of Motivation Responses to the Reward System Creating a Motivating Workplace: Rewards and Job Design Chapter 4, Nancy Langton and Stephen P. Robbins, Evaluating Use of Rewards in theThird Workplace Fundamentals ofthe Organizational Behaviour, Canadian
Edition 4-2 Copyright 2007 Pearson Education Canada

Theories of Motivation
What is motivation? How do needs motivate people? Are there other ways to motivate people? Do equity and fairness matter? How can rewards and job design motivate employees? 6. What kinds Langton of mistakes are made reward Chapter 4, Nancy and Stephen P. in Robbins, systems? Fundamentals of Organizational Behaviour, Third Canadian
Edition 4-3 Copyright 2007 Pearson Education Canada

1. 2. 3. 4. 5.

What Is Motivation?
Motivation
The intensity, direction, and persistence of effort a person shows in reaching a goal:
Intensity: How hard a person tries Direction: Where effort is channelled Persistence: How long effort is maintained Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-4 Copyright 2007 Pearson Education Canada

Theory X and Theory Y


Theory X
Assumes that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform.

Theory Y
Assumes that employees like work, are creative, seek responsibility, and can exercise self-direction and selfcontrol. Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-5 Copyright 2007 Pearson Education Canada

Motivators
Intrinsic Motivators
A persons internal desire to do something, due to such things as interest, challenge, and personal satisfaction.

Extrinsic Motivators
Motivation that comes from outside the person Chapter 4, Nancy Langton Stephen P. Robbins, and includes such and things as pay, bonuses, and Fundamentals of Organizational other tangible rewards.Behaviour, Third Canadian
Edition 4-6 Copyright 2007 Pearson Education Canada

Needs Theories of Motivation


Basic idea
Individuals have needs that, when unsatisfied, will result in motivation
Maslows Hierarchy of Needs Theory ERG Theory McClellands Theory of Needs Chapter 4, Nancy Langton and Stephen P. Robbins, Motivation-Hygiene Theory Fundamentals of Organizational Behaviour, Third Canadian Edition 4-7 Copyright 2007 Pearson Education Canada

Maslows Hierarchy of Needs


Physiological
Includes hunger, thirst, shelter, sex, and other bodily needs.

Safety
Includes security and protection from physical and emotional harm.

Social Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Includes affection, belongingness, acceptance, Edition and friendship. 4-8 Copyright 2007 Pearson Education Canada

Maslows Hierarchy of Needs


Esteem
Includes internal esteem factors such as selfrespect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention.

Self-actualization
The drive Langton to become one is capable of Chapter 4, Nancy andwhat Stephen P. Robbins, becoming; includes growth, achieving ones Fundamentals of Organizational Behaviour, Third Canadian Editionpotential, and self-fulfillment. 4-9 Copyright 2007 Pearson Education Canada

Exhibit 4-1
Selfactualization Esteem Social

Chapter 4, Nancy Langton and Stephen P. Robbins, Safety Fundamentals of Organizational Behaviour, Third Canadian Physiological Edition 4-10 Copyright 2007 Pearson Education Canada

Alderfers ERG Theory


Existence
Concerned with providing basic material existence requirements.

Relatedness
Desire for maintaining important interpersonal relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Growth Fundamentals of Organizational Behaviour, Third Canadian Intrinsic desire for personal development. Edition 4-11 Copyright 2007 Pearson Education Canada

McClellands Theory of Needs


Need for achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for power


The need to make others behave in a way that they would not have behaved otherwise. Chapter 4, Nancy Langton and Stephen P. Robbins, Need for affiliation Fundamentals of Organizational Third Canadian The desire for friendly andBehaviour, close interpersonal Editionrelationships. 4-12 Copyright 2007 Pearson Education Canada

Herzbergs Motivation-Hygiene Theory


Hygiene factors the sources of dissatisfaction
Extrinsic factors (context of work)
Company policy and administration Unhappy relationship with employees supervisor Poor interpersonal relations with ones peers working conditions Chapter 4,Poor Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-13 Copyright 2007 Pearson Education Canada

Herzbergs Motivation-Hygiene Theory


Motivators the sources of satisfaction
Intrinsic factors (content of work)
Achievement Recognition Challenging, varied, or interesting work Chapter 4,Responsibility Nancy Langton and Stephen P. Robbins, Advancement Fundamentals of Organizational Behaviour, Third Canadian Edition 4-14 Copyright 2007 Pearson Education Canada

Comparison of Satisfiers and Dissatisfiers

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-15 Copyright 2007 Pearson Education Canada

Source: Reprinted by permission of Harvard Business Review. An exhibit from Frederick Herzberg, One More Time: How Do You Motivate Employees? Harvard Business Review 81, no. 1 (January 2003), p. 90. Copyright 1987 by the President and Fellows of Harvard College; all rights reserved.

Exhibit 4-2 Contrasting Views of Satisfaction and Dissatisfaction

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-16 Copyright 2007 Pearson Education Canada

Criticisms of Motivation-Hygiene Theory


The procedure that Herzberg used is limited by its methodology. The reliability of Herzbergs methodology is questioned. Herzberg did not really produce a theory of motivation. No overall measure of satisfaction was used. Chapter 4, Nancy Langton and Stephen P. Robbins, The theory inconsistent with previous research. Fundamentals ofis Organizational Behaviour, Third Canadian
Edition 4-17 Copyright 2007 Pearson Education Canada

Exhibit 4-3 Relationship of Various Needs Theories


Maslow
Self-Actualization Esteem Affiliation Security Growth Relatedness Hygiene Factors Existence Motivators Need for Achievement Need for Power Need for Affiliation

Alderfer

Herzberg

McClelland

Chapter 4, Nancy Langton and Stephen P. Robbins, Physiological Fundamentals of Organizational Behaviour, Third Canadian Edition 4-18 Copyright 2007 Pearson Education Canada

Summary: Hierarchy of Needs


Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction. Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases. McClelland: People vary in Stephen the types of they have. Their Chapter 4, Nancy Langton and P. needs Robbins, motivation and how well they perform in a work situation are Fundamentals of Organizational Behaviour, Third Canadian related to whether they have a need for achievement, affiliation, Editionor power.

4-19 Copyright 2007 Pearson Education Canada

Summary: Impact of Theory


Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time. Alderfer: Seen as a more valid version of the needs hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks. McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they Chapter 4, Nancy Langton and Stephen P. Robbins, do personally.

Fundamentals of Organizational Behaviour, Third Canadian Edition 4-20 Copyright 2007 Pearson Education Canada

Fundamentals of Organizational Behaviour, Third Canadian Edition 4-21 Copyright 2007 Pearson Education Canada

Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. Herzberg: Not really a theory of motivation. Assumes a link between satisfaction and productivity that was not measured or demonstrated. Alderfer: Ignores situational variables. McClelland: Mixed empirical support, but theory is consistent with our knowledge of and individual differences among people. Chapter 4, Nancy Langton Stephen P. Robbins, Good empirical support, particularly on needs achievement.

Summary: Support and Criticism of Theory

Process Theories of Motivation


Look at the actual process of motivation
Expectancy theory Goal-setting theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-22 Copyright 2007 Pearson Education Canada

Expectancy Theory
The theory that individuals act depending on whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whether that outcome is attractive to them.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-23 Copyright 2007 Pearson Education Canada

Expectancy Relationships
The theory focuses on three relationships: Effort-Performance Relationship
The perceived probability that exerting a given amount of effort will lead to performance

Performance-Reward Relationship
The degree to which the individual believes that performing at a particular level will lead to a desired outcome

Rewards-Personal Relationship Chapter 4, Nancy LangtonGoals and Stephen P. Robbins, The degree to which organizational rewards satisfy an Fundamentals of Organizational Behaviour, Third Canadian personal goals or needs and are attractive to the Edition individuals individual 4-24 Copyright 2007 Pearson Education Canada

Exhibit 4-5 How Does Expectancy Theory Work?


My professor offers me $1 million if I memorize the textbook by tomorrow morning. Expectancy
Effort Performance Link

Instrumentality
Performance Rewards Link

Valence
Rewards Personal Goals Link There are a lot of wonderful things I could do with $1 million V=1

No matter how much effort I put in, probably not possible to memorize the text in 24 hours E=0

My professor does not look like someone who has $1 million I=0

Conclusion: Though I value the reward, I will not be Robbins, motivated to do this task. Chapter 4, Nancy Langton and Stephen P. Fundamentals of Organizational Behaviour, Third Canadian Edition 4-25 Copyright 2007 Pearson Education Canada

Exhibit 4-6 Steps to Increasing Motivation, Using Expectancy Theory


Improving Expectancy
Improve the ability of the individual to perform Make sure employees have skills for the task Provide training Assign reasonable tasks and goals

Improving Instrumentality
Increase the individuals belief that performance will lead to reward Observe and recognize performance Deliver rewards as promised Indicate to employees how previous good performance led to greater rewards

Improving Valence
Make sure that the reward is meaningful to the individual Ask employees what rewards they value Give rewards that are valued

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-26 Copyright 2007 Pearson Education Canada

Goal-Setting Theory
The theory that specific and difficult goals lead to higher performance.
Goals tell an employee what needs to be done and how much effort will need to be expended.
Specific goals increase performance. Difficult goals, when accepted, result in higher performance than do easy goals. Feedback leads to higher performance than does nonfeedback.

Chapter 4, Nancy Langton and Stephen P. Robbins, Specific hard goals produce a higher level of output than Fundamentals of Organizational Behaviour, Third Canadian does the generalized goal of do your best. Edition The specificity of the goal itself acts as an internal stimulus. 4-27 Copyright 2007 Pearson Education Canada

How Does Goal Setting Motivate?


Goals:
Direct attention Regulate effort Increase persistence Encourage the development of strategies and Chapter 4, Nancy Langton and Stephen P. Robbins, action plans

Fundamentals of Organizational Behaviour, Third Canadian Edition 4-28 Copyright 2007 Pearson Education Canada

Goals Should Be SMART


For goals to be effective, they should be SMART:
Specific Measurable Attainable Chapter 4, Nancy Langton and Stephen P. Robbins, Results-oriented Fundamentals of Organizational Behaviour, Third Canadian Time-bound
Edition 4-29 Copyright 2007 Pearson Education Canada

Exhibit 4-7 Lockes Model of Goal Setting


Directing attention Goals motivate by . . . Regulating effort Inc easing r persistence Encouraging the development of strategies and action plans T ask performance

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-30 Copyright 2007 Pearson Education Canada

Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A. Locke.

Contingency Factors in Goal Setting


Self-efficacy
An individuals belief that he or she is capable of performing a task.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-31 Copyright 2007 Pearson Education Canada

Responses to the Reward System


Equity Theory Fair Process and Treatment Cognitive Evaluation Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-32 Copyright 2007 Pearson Education Canada

Exhibit 4-8 Equity Theory


Ratio of Output to Input
Person 1 Person 2 Inequity, underrewarded

Person 1s Perception

Person 1 Equity Person 2

Person 1 Chapter 4, Nancy Langton and Stephen Inequity, overrewarded P. Robbins, Person 2 Fundamentals of Organizational Behaviour, Third Canadian Edition 4-33 Copyright 2007 Pearson Education Canada

Equity Theory
Main points:
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the Chapterrelationship 4, Nancy Langton and Stephen P.what Robbins, of this amount to others Fundamentals of Organizational Behaviour, Third Canadian receive.
Edition 4-34 Copyright 2007 Pearson Education Canada

Responses to Inequity
Change their inputs. Change their outcomes. Adjust perceptions of self. Adjust perceptions of others. Choose a different referent. Chapter 4, Nancy Langton and Stephen P. Robbins, Leave the Fundamentals of field. Organizational Behaviour, Third Canadian
Edition 4-35 Copyright 2007 Pearson Education Canada

Fair Process and Treatment


Historically, equity theory focused on
Distributive justice.

However, equity should also consider


Procedural justice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-36 Copyright 2007 Pearson Education Canada

Fair Process and Treatment


Distributive Justice
Perceived fairness of the amount and allocation of rewards among individuals.

Procedural Justice
Perceived fairness of the process used to determine the distribution of rewards. Chapter 4, Nancy Justice Langton and Stephen P. Robbins, Interactional Fundamentals of Organizational Behaviour, Third Canadian The quality of the interpersonal treatment received from a Editionmanager. 4-37 Copyright 2007 Pearson Education Canada

Cognitive Evaluation Theory


The introduction of extrinsic rewards for work effort that was previously rewarded intrinsically will tend to decrease the overall level of a persons motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-38 Copyright 2007 Pearson Education Canada

Motivators
Intrinsic
A persons internal desire to do something, due to such things as interest, challenge, and personal satisfaction.

Extrinsic
Motivation that comes from outside the person, Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals ofpay, Organizational Behaviour, Third Canadian such as bonuses, and other tangible rewards. Edition 4-39 Copyright 2007 Pearson Education Canada

Four Key Rewards to Increase Intrinsic Motivation


1.Sense of choice 2.Sense of competence 3.Sense of meaningfulness 4.Sense of progress
Chapter 4, Nancy and Stephen P. Robbins, Managers canLangton act in ways that will build these Fundamentals of Organizational Third Canadian intrinsic rewards for theirBehaviour, employees. Edition 4-40 Copyright 2007 Pearson Education Canada

Exhibit 4-9 Building Blocks for Intrinsic Rewards


Leading for Choice Delegated authority T rust in workers Leading for Competence Knowledge Positive feedback Security (no punishment) for honest mistakes Skill recognition Challenge A clear purpose Information High, non-comparative standards Leading for Meaningfulness A noncynical climate Clearly identified passions An exciting vision Relevant task purposes Whole tasks Leading for Progress A collaborative climate Milestones Celebrations Access to customers Measurement of improvement

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-41 Copyright 2007 Pearson Education Canada
Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and Commitment. Copyright K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved. www.bkconnection.com.

Employee Recognition
Employee recognition programs use multiple sources and recognize both individual and group accomplishments. In contrast to most other motivators, recognizing an employees superior performance often and costs little P. orRobbins, no money. Chapter 4, Nancy Langton Stephen
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-42 Copyright 2007 Pearson Education Canada

Variable-Pay Programs
A portion of an employees pay is based on some individual and/or organizational measure of performance.
Individual-based
Piece-rate wages, bonuses

Group-based
Gainsharing

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational-based Fundamentals of Organizational Behaviour, Third Canadian Profit sharing Edition Employee stock ownership plans (ESOPs) 4-43 Copyright 2007 Pearson Education Canada

Variable Pay Programs: IndividualBased Incentives


Piece-rate pay plans
Employees are paid a fixed sum for each unit of production completed.

Bonuses
Fundamentals of Organizational Behaviour, Third Canadian Edition 4-44 Copyright 2007 Pearson Education Canada

One-time rewards for defined work rather than Chapter 4, Nancy Langton and Stephen P. Robbins, ongoing entitlements.

Variable Pay Programs: Group-Based Incentives


Gainsharing
An incentive plan where improvements in group productivity determine the total amount of money that is allocated.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-45 Copyright 2007 Pearson Education Canada

Variable Pay Programs: Organizational-Based Incentives


Profit-Sharing Plans
Organization-wide programs that distribute compensation based on some established formula designed around a companys profitability.

Employee Stock Ownership Plans (ESOPs)


Company-established benefit P. plans in which Chapter 4, Nancy Langton and Stephen Robbins, Fundamentals of Organizational Behaviour, Third Canadian employees acquire stock as part of their benefits. Edition 4-46 Copyright 2007 Pearson Education Canada

Research Findings
Linking variable-pay programs and expectancy theory:
Variable-pay programs seem to be consistent with expectancy theory predictions. Employees are motivated when there is a perceived strong relationship between Chapter 4, Nancy Langton and Stephen P. Robbins, performance and rewards. Fundamentals of Organizational Behaviour, Third Canadian
Edition 4-47 Copyright 2007 Pearson Education Canada

Motivating Beyond Productivity


Commissions beyond sales
Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets.

Leadership effectiveness
Employee satisfaction, or how the manager handles his or her employees.

Chapter 4, Nancy Langton and Stephen P. Robbins, All employees who contribute to specific organizational Fundamentals of Organizational Behaviour, Third Canadian goals, such as customer satisfaction, cycle time, or quality Editionmeasures. 4-48 Copyright 2007 Pearson Education Canada

New goals

Knowledge workers in teams Competency and/or skills

Rewards for Other Types of Performance

Performance of knowledge workers and/or professional employees who work on teams. Abstract knowledge or competenciesfor example, knowledge of technology, the international business context, customer service, or social skills. Chapter 4, Nancy Langton and Stephen P. Robbins, Skill-based Fundamentals of Organizational Behaviour, Third Canadian Pay is based on how many skills an employee has, or how Editionmany jobs he or she can do. 4-49 Copyright 2007 Pearson Education Canada

Exhibit 4-11 Comparing Various Pay Programs

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-50 Copyright 2007 Pearson Education Canada

Designing Motivating Jobs


Job Characteristic Model (JCM) is a model that identifies five core job dimensions and their relationship to personal and work outcomes. Job Enrichment The vertical expansion of jobs.
Employee does a complete activity.

Expands theLangton employees independence, Chapter 4, Nancy andfreedom Stephenand P. Robbins, increases and provides feedback. Fundamentals ofresponsibility, Organizational Behaviour, Third Canadian Edition 4-51 Copyright 2007 Pearson Education Canada

JCM Core Job Dimensions


Skill variety Task identity Task significance Autonomy Feedback

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-52 Copyright 2007 Pearson Education Canada

JCM Critical Psychological States


Experienced meaningfulness Experienced responsibility for outcomes Knowledge of the actual results

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-53 Copyright 2007 Pearson Education Canada

Exhibit 4-12 Examples of High and Low Job Characteristics


High variety The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers Low variety A body shop worker who sprays paint eight hours a day High identity A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection Low identity A worker in a furniture factory who operates a lathe solely to make table legs High significance Nursing the sick in a hospital intensive care unit Low significance Sweeping hospital floors

Skill Variety

Task Identity

Task Significance Autonomy

Chapter 4, Nancy Langton and Stephen P. Robbins, Feedback Fundamentals of Organizational Behaviour, Third Canadian High feedback An electronics factory worker who assembles a radio and then tests it to determine if it operates properly Edition Low feedback An electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests it for proper operation and makes needed adjustments 4-54 Copyright 2007 Pearson Education Canada
Source: G. Johns, Organizational Behavior: Understanding and Managing Life at Work , 4th ed. Copyright 1997. Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ.

High autonomy A telephone installer who schedules his or her own work for the day, makes visits without supervision, and decides on the most effective techniques for a particular installation Low autonomy A telephone operator who must handle calls as they come according to a routine, highly specified procedure

Exhibit 4-13 The Job Characteristics Model


Core job dimensions Critical psychological states Personal and work outcomes Skill variety Task identity Task significance Experienced meaningfulness of the work High internal work motivation High-quality work performance High satisfaction with the work

Autonomy

Experienced responsibility for outcomes of the work

Feedback

Chapter 4, Nancy Langton and Knowledge of the Stephen P. Robbins, Low absenteeism actual results of and turnover the work activities Behaviour, Third Canadian Fundamentals of Organizational Edition Employee growthneed strength 4-55 Copyright 2007 Pearson Education Canada

Source: J. R. Hackman, G. R. Oldham, Work Design (excerpted from pages 78-80). Copyright 1980 by Addison-Wesley Publishing Co. Reprinted by permission of Addison-Wesley Longman.

Beware the Signals That Are Sent By Rewards


Often reward systems do not reflect organizational goals:
Individuals are stuck in old patterns of rewards and recognition.
Stick to rewarding things that can be easily measured.

Organizations dont look at the big picture.


with each other. P. Robbins, Chapter 4,Subunits Nancy compete Langton and Stephen Management and shareholders focus on short-term results. Fundamentals of Organizational Behaviour, Third Canadian Edition 4-56 Copyright 2007 Pearson Education Canada

Exhibit 4-14 Management Reward Follies


We hope for: Teamwork and collaboration Innovative thinking and risk-taking Development of people skills Employee involvement and empowerment High achievement Long-term growth; environmental responsibility Commitment to total quality But we reward: The best team members Proven methods and not making mistakes Technical achievements and accomplishments Tight control over operations and resources Another years effort

Chapter 4, Nancy Langton and Stephen P. Robbins, Quarterly earnings Fundamentals of OrganizationalBehaviour, Third Canadian Shipment on schedule, even with defects Candor; surfacing bad news early Edition Reporting good news, whether its true or not; agreeing with the manager, 4-57 whether or not (s)hes right Copyright 2007 Pearson Education Canada
Source: Constructed from S. Kerr, On the Folly of Rewarding A, While Hoping for B, Academy of Management Executive 9, no. 1 (1995), pp. 7-14; and More on the Folly, Academy of Management Executive 9, no. 1 (1995), pp. 15-16. Reprinted by permission.

Caveat Emptor: Apply Motivation Theories Wisely


Motivation Theories Are Culture-Bound
Canada and US rely on extrinsic rewards more than other countries. Japan and Germany rarely use individual incentives.
emphasizes group rewards. Chapter 4,Japan Nancy Langton and Stephen P. Robbins, China of is more likely toBehaviour, give bonuses to everyone. Fundamentals Organizational Third Canadian Edition 4-58 Copyright 2007 Pearson Education Canada

Exhibit 4-15 Snapshots of Cultural Differences in Motivation


Japan: Sales representatives preferred being members of a successful team with shared goals and values, rather than financial rewards. Russia:Cotton mill employees given either valued extrinsic rewards (North American T-shirts with logos, childrens sweatpants, tapes of North American music, etc.) or praise and rewards were more productive. However , rewards did not help for those who worked on Saturdays. China: Bonuses often given to everyone, r egardless of individual productivity. Many employees expect jobs for life, rather than jobs based on performance. Mexico: Employees pr efer immediate feedback on their work. Therefore Chapter 4, Nancy Langton and Stephen P. Robbins, daily rewards for exceeding quotas are preferred. Fundamentals of Organizational Third Canadian Canada and the United Behaviour, States: Managers rely more heavily on extrinsic motivators. Edition Japan and Germany:Firms rarely give rewards based on individual performance. 4-59 Copyright 2007 Pearson Education Canada

Can We Just Eliminate Rewards?


Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments:
Abolish Incentives. Re-evaluate Evaluation. Create Conditions for Authentic Motivation. Chapter 4, NancyCollaboration. Langton and Stephen P. Robbins, Encourage Fundamentals of Organizational Behaviour, Third Canadian Enhance Content. Edition Provide Choice. 4-60 Copyright 2007 Pearson Education Canada

Putting It All Together


What we know about motivating employees in organizations: Recognize individual differences. Employees have different needs. Dont treat them all alike. Spend the time necessary to understand whats important to each employee. Use goals and feedback. Allow employees to participate in decisions that affect them. Chapter 4, Nancy Langton and Stephen P. Robbins, Link rewards to performance. Behaviour, Third Canadian Fundamentals of Organizational Check the system for equity. Edition

4-61 Copyright 2007 Pearson Education Canada

Summary and Implications


1. What is Motivation?
Motivation is the process that accounts for an individuals intensity, direction, and persistence of effort toward reaching the goal.

2. How do needs motivate people?


4, All needs theories of motivation propose a Chapter Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third that, Canadian similar idea: individuals have needs when Edition unsatisfied, will result in motivation. 4-62 Copyright 2007 Pearson Education Canada

Summary and Implications


3. Are there other ways to motivate people?
Process theories focus on the broader picture of how someone can set about motivating another individual. Process theories include expectancy theory and goalsetting theory (and its application, management by objectives).

3. Do equity and fairness matter?


4,Individuals look for fairness inP. the reward system. Chapter Nancy Langton and Stephen Robbins, Rewards should be perceived by employees as related to Fundamentals of Organizational Behaviour, Third Canadian Edition the inputs they bring to the job. 4-63 Copyright 2007 Pearson Education Canada

Summary and Implications


How can rewards and job design motivate employees? Recognition helps employees feel that they matter. Employers can use variable-pay programs to reward performance. Employers can use job design to motivate employees. Jobs that have variety, autonomy, feedback, and similar complex task characteristics tend to be more motivating for employees. 6. What kinds of mistakes are made in reward systems? 4, Often reward systems do not rewardP. the performance that is Chapter Nancy Langton and Stephen Robbins, expected. Also, reward systems sometimes do not recognize Fundamentals of Organizational Behaviour, Third Canadian that rewards are culture-bound. 5.

Edition 4-64 Copyright 2007 Pearson Education Canada

OB at Work

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-65 Copyright 2007 Pearson Education Canada

For Review
1. What are the implications of Theories X and Y for motivation practices? 2. Identify the variables in expectancy theory. 3. Describe the four ways in which goal setting motivates. Chapter 4, Nancy Langton and Stephen P. Robbins, 4. Explain evaluation theory. How Fundamentals ofcognitive Organizational Behaviour, Third Canadian applicable is it to management practice? Edition
4-66 Copyright 2007 Pearson Education Canada

For Review
5. What are the pluses and minuses of variable-pay programs from an employees viewpoint? From managements viewpoint? 6. What is an ESOP? How might it positively influence employee motivation? 7. Describe the five core dimensions in the JCM. 8. Describe three jobs that score high on the JCM. Describe three jobs that score low. Chapter 4, Nancy Langton and Stephen P. Robbins, 9. What can do to create more motivating Fundamentals of firms Organizational Behaviour, Third Canadian environments for their employees? Edition
4-67 Copyright 2007 Pearson Education Canada

For Critical Thinking


1. Identify three activities you really enjoy (for example, playing tennis, reading a novel, going shopping). Next, identify three activities you really dislike (for example, visiting the dentist, cleaning the house, following a low-fat diet). Using expectancy theory, analyze each of your answers to assess why some activities stimulate your effort while others dont. Chapter 4, Nancy Langton andby Stephen P. Robbins, can 2. Identify five different bases which organizations Fundamentals of Organizational Third Canadian compensate employees. BasedBehaviour, on your knowledge and experience, is performance the basis most used in practice? Edition Discuss. 4-68 Copyright 2007 Pearson Education Canada

For Critical Thinking


Employee recognition may be motivational for the moment, but it doesnt have any staying power. Why? Because employees cant take recognition to Roots or The Bay! Do you agree or disagree? Discuss. 4. Performance cant be measured, so any effort to link pay with performance is a fantasy. Differences in performance are often caused by the system, which means the organization ends up rewarding the Chapter 4, Nancy Langton and Stephen P. Robbins, circumstances. Its the same thing as rewarding the Fundamentals of Organizational Behaviour, Canadian weather forecaster for a pleasant day. Third Do you agree or Edition disagree with this statement? Support your position. 4-69 Copyright 2007 Pearson Education Canada 3.

For Critical Thinking


5. Your textbook argues for recognizing individual differences. It also suggests paying attention to members of diverse groups. Does this view contradict the principles of equity theory? Discuss.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-70 Copyright 2007 Pearson Education Canada

Breakout Group Exercises


Form small groups to discuss the following topics:
1. One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. Choose one of the available theories and indicate how the theory explains the members current behaviour and how the theory could be used to motivate the group member to perform more responsibly. 2. You are unhappy with the performance of one of your instructors and would like to encourage the instructor to present more lively classes. Choose one of the available theories and indicate how the theory explains the instructors behaviour. How could you as a Chapter 4, Nancy Langtoncurrent and Stephen P. Robbins, student use the theory to motivate the instructor to present more lively Fundamentals classes? of Organizational Behaviour, Third Canadian

Edition 4-71 Copyright 2007 Pearson Education Canada

Breakout Group Exercises


3. Harvard University recently changed its grading policy to recommend to instructors that the average course mark should be a B. This was the result of a study showing that more than 50 percent of students were receiving an A or A- for coursework. Harvard students are often referred to as the best and the brightest, and they pay $27 000 (US) for their education, so they expect high grades. Discuss the impact of this change in policy on the motivation of Harvard students to study harder.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-72 Copyright 2007 Pearson Education Canada

Exhibit 4-16 2005 Compensation of Canadas Most Overpaid CEOs


CEO(s) 1. Ian Telfer/Robert McEwen Goldcorp Vancouver, BC 2. E. Melnyk Biovail Mississauga, Ontario 3. Richard Smith/David Stein CoolBrands Markham, Ontario Was Paid (3-Yr Avg.) Should Have Been Paid Amount Overpaid

$32 823 000

$1 313 000

$31 510 000

$23 392 000

$1 404 000

$21 988 000

$9 647 000

$675 000

$8 972 000

Chapter 4, Nancy Langton$76 and Stephen 4. Jeffrey Orr/Robert Gratton 139 000 $9P. 898Robbins, 000 $66 241 000 Power Financial Corporation Montreal, Quebec Fundamentals of Organizational Behaviour, Third Canadian 5. Gerald Schwartz $26 163 000 $4 709 000 $21 454 000 Edition Onex Toronto, Ontario 4-73 Copyright 2007 Pearson Education Canada

Supplemental Material
Slides for activities I do in my own classroom

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-74 Copyright 2007 Pearson Education Canada

Exercise on Motivation Theories


Jesse has been underperforming at work, coming in late, and causing some problems with the other workers. Previously, Jesse had been one of your star employees. Using the theory assigned to your group, explain what steps you might take to motivate Jesse to perform better.
Describe the plan. and Stephen P. Robbins, Chapter 4, Nancy Langton Indicateof how the plan relates to the theory. Fundamentals Organizational Behaviour, Third Canadian Edition 4-75 Copyright 2007 Pearson Education Canada

Theories to Apply
Herzberg Motivation-Hygiene (Two-Factor) Theory Expectancy Goal-Setting Theory Equity Chapter 4, Nancy Langton and Stephen P. Robbins, Cognitive Theory Fundamentals of Evaluation Organizational Behaviour, Third Canadian
Edition 4-76 Copyright 2007 Pearson Education Canada