Management: Motivation

Management Fundamentals - Chapter

14

Planning Ahead Chapter 14 Study Questions

What is motivation?
What are the different types of individual needs?
What are the process theories of motivation?
What role does reinforcement play in motivation?
What are the challenges of motivation in the new

workplace?
Management - Chapter 14

Study Question 1: What is motivation?

Basic motivational concepts
Motivationthe forces within the individual that

account for the level, direction, and persistence of

effort expended at work.
Rewarda work outcome of positive value to the
individual
Extrinsic rewardsvalued outcomes given to
someone by another person.
Intrinsic rewardsvalued outcomes that occur
naturally as a person works on a task.
Management - Chapter 14

Study Question 1: What is motivation?

To achieve maximum motivational potential in

linking rewards to performance

Respect diversity and individual differences to best
understand what people want from work.
Allocate rewards to satisfy the interests of both
individuals and the organization.

Management - Chapter 14

Study Question 1: What is motivation?

Types of motivation theories
Content theories
Human needs and how people with different needs may
respond to different work situations.

Process theories
How people give meaning to rewards and make decisions on
various work-related behaviors.

Reinforcement theory
How peoples behavior is influenced by environmental
consequences.
Management - Chapter 14

Study Question 2: What are the different types

of individual needs?
Needs
Unfulfilled physiological and psychological desires of
an individual.
Explain workplace behavior and attitudes.
Create tensions that influence attitudes and behavior.
Good managers and leaders facilitate employee need
satisfaction.
Management - Chapter 14

Study Question 2: What are the different types

of individual needs?
Types of content theories:
Hierarchy of needs theory
ERG theory
Two-factor theory
Acquired needs theory
Management - Chapter 14

Study Question 2: What are the different types

of individual needs?
Hierarchy of needs theory
Developed by Abraham Maslow.
Lower-order and higher-order needs affect workplace
behavior and attitudes.
Lower-order needs:
Physiological, safety, and social needs.
Desires for physical and social well being.

Higher-order needs:
Esteem and self-actualization needs.
Desire for psychological growth and development.
Management - Chapter 14

Study Question 2: What are the different types

of individual needs?
Hierarchy of needs theory
Deficit principle
A satisfied need is not a motivator of behavior.

Progression principle
A need at one level does not become activated until
the next lower-level need is satisfied.

Management - Chapter 14

Figure 14.1 Opportunities for satisfaction

in Maslows hierarchy of human needs.

Management - Chapter 14

10

Study Question 2: What are the different types

of individual needs?
ERG theory
Developed by Clayton Alderfer.
Three need levels:
Existence needs desires for physiological and
material well-being.
Relatedness needs desires for satisfying
interpersonal relationships.
Growth needs desires for continued
psychological growth and development.
Management - Chapter 14

11

Study Question 2: What are the different types

of individual needs?
ERG theory
Any/all needs can influence behavior at one
time.
Frustration-regression principle.
An already satisfied lower-level need becomes
reactivated when a higher-level need is frustrated.
Management - Chapter 14

12

Study Question 2: What are the different types

of individual needs?
Two-factor theory
Developed by Frederick Herzberg.
Hygiene factors:
Elements of the job context.
Sources of job dissatisfaction.

Satisfier factors:
Elements of the job content.
Sources of job satisfaction and motivation.
Management - Chapter 14

13

Figure 14.2 Herzbergs two-factor theory.

Management - Chapter 14

14

Study Question 2: What are the different types

of individual needs?
Acquired needs theory
Developed by David McClelland.
People acquire needs through their life
experiences.
Needs that are acquired:
Need for Achievement (nAch)
Need for Power (nPower)
Need for Affiliation (nAff)
Management - Chapter 14

15

Study Question 2: What are the different types

of individual needs?
Acquired needs theory
Need for Achievement (nAch)
Desire to do something better or more efficiently, to
solve problems, or to master complex tasks.

People high in (nAch) prefer work that:

Involves individual responsibility for results.
Involves achievable but challenging goals.
Provides feedback on performance.
Management - Chapter 14

16

Study Question 2: What are the different types

of individual needs?
Acquired needs theory
Need for Power (nPower)
Desire to control other persons, to influence their
behavior, or to be responsible for other people.
Personal power versus social power.

People high in (nPower) prefer work that:

Involves control over other persons.
Has an impact on people and events.
Brings public recognition and attention.
Management - Chapter 14

17

Study Question 2: What are the different types

of individual needs?
Acquired needs theory
Need for Affiliation (nAff)
Desire to establish and maintain friendly and warm
relations with other persons.

People high in (nAff) prefer work that:

Involves interpersonal relationships.
Provides for companionship
Brings social approval.
Management - Chapter 14

18

Study Question 2: What are the different types

of individual needs?
Questions for summarizing the content

theories of motivation:
How many different individual needs are there?
Can a work outcome or reward satisfy more

than one need?

Is there a hierarchy of needs?
How important are the various needs?
Management - Chapter 14

19

Figure 14.3 Comparison of Maslows, Alderfers,

Herzbergs, and McClellands motivation theories.

Management - Chapter 14

20

Study Question 3: What are the process

theories of motivation?
Process theories of motivation
How people make choices to work hard or not.
Choices are based on:
Individual preferences.
Available rewards.
Possible work outcomes.

Types of process theories:

Equity theory.
Expectancy theory.
Goal-setting theory.
Management - Chapter 14

21

Study Question 3: What are the process

theories of motivation?
Equity theory
Developed by J. Stacy Adams.
When people believe that they have been
treated unfairly in comparison to others, they
try to eliminate the discomfort and restore a
perceived sense of equity to the situation.
Perceived inequity.
Perceived equity.
Management - Chapter 14

22

Figure 14.4 Equity theory and the role of

social comparison.

Management - Chapter 14

23

Study Question 3: What are the process

theories of motivation?
Equity theory
People respond to perceived negative inequity
by changing
Work inputs.
Rewards received.
Comparison points.
Situation.
Management - Chapter 14

24

Study Question 3: What are the process

theories of motivation?
Managerial implications of equity theory
Underpaid people experience anger.
Overpaid people experience guilt.
Perceptions of rewards determine motivational outcomes.
Negative consequences of equity comparisons should be
minimized, if not eliminated.
Do not underestimate the impact of pay as a source of
equity controversies in the workplace.
Gender equity.
Comparable worth.
Management - Chapter 14

25

Study Question 3: What are the process

theories of motivation?
Expectancy theory
Developed by Victor Vroom.
Key expectancy theory variables:
Expectancy belief that working hard will result
in desired level of performance.
Instrumentality belief that successful
performance will be followed by rewards.
Valence value a person assigns to rewards and
other work related outcomes.
Management - Chapter 14

26

Figure 14.5 Elements in the expectancy

theory of motivation.

Management - Chapter 14

27

Study Question 3: What are the process

theories of motivation?
Expectancy theory
Motivation (M), expectancy (E),
instrumentality (I), and valence (V) are related
to one another in a multiplicative fashion:
M=ExIxV

If either E, I, or V is low, motivation will

be low.
Management - Chapter 14

28

Study Question 3: What are the process

theories of motivation?
Managerial implications of expectancy

theory
To maximize expectancy, managers should:
Select workers with ability.
Train workers to use ability.
Support work efforts.
Clarify performance goals.
Management - Chapter 14

29

Study Question 3: What are the process

theories of motivation?
Managerial implications of expectancy

theory
To maximize instrumentality, managers should:
Clarify psychological contracts.
Communicate performance-outcome possibilities.
Identify rewards that are contingent on performance.

Management - Chapter 14

30

Study Question 3: What are the process

theories of motivation?
Managerial implications of expectancy

theory
To maximize valence in a positive direction,
managers should:
Identify individual needs.
Adjust rewards to match individual needs.
Management - Chapter 14

31

Figure 14.6 Managerial implications of

expectancy theory.

Management - Chapter 14

32

Study Question 3: What are the process

theories of motivation?
Goal-setting theory
Developed by Edwin Locke.
Properly set and well-managed task goals can be highly
motivating.
Motivational effects of task goals:
Provide direction to people in their work.
Clarify performance expectations.
Establish a frame of reference for feedback.
Provide a foundation for behavioral self-management.
Management - Chapter 14

33

Study Question 3: What are the process

theories of motivation?
Key issues and principles in the goal-setting

process:

Set specific goals.

Set challenging goals.
Build goal acceptance and commitment.
Clarify goal priorities.
Provide feedback on goal accomplishment.
Reward goal accomplishment.
Management - Chapter 14

34

Study Question 3: What are the process

theories of motivation?
Goal-setting theory
Participation in goal setting
Unlocks the motivational potential of goal setting.
Management by objectives (MBO) promotes

participation.
When participation is not possible, workers will
respond positively if supervisory trust and support
exist.
Management - Chapter 14

35

Study Question 4: What role does

reinforcement play in motivation?
Fundamentals of reinforcement theory
Reinforcement theory focuses on the impact of external
environmental consequences on behavior.
Law of effect impact of type of consequence on
future behavior.
Operant conditioning:
Developed by B.F. Skinner.
Applies law of effect to control behavior by
manipulating its consequences.
Management - Chapter 14

36

Study Question 4: What role does

reinforcement play in motivation?
Operant conditioning strategies:
Positive reinforcement
Increases the frequency of a behavior through the
contingent presentation of a pleasant consequence.

Negative reinforcement
Increases the frequency of a behavior through the
contingent removal of an unpleasant consequence.
Management - Chapter 14

37

Study Question 4: What role does

reinforcement play in motivation?
Operant conditioning strategies:
Punishment
Decreases the frequency of a behavior through the
contingent presentation of an unpleasant
consequence.

Extinction
Decreases the frequency of a behavior through the
contingent removal of an pleasant consequence.
Management - Chapter 14

38

Study Question 4: What role does

reinforcement play in motivation?
Successful implementation of positive

reinforcement is based on
Law of contingent reinforcement
Reward delivered only if desired behavior is
exhibited.

Law of immediate reinforcement

More immediate the delivery of a reward, the
more reinforcement value it has.
Management - Chapter 14

39

Study Question 4: What role does

reinforcement play in motivation?
Guidelines for using positive reinforcement:
Clearly identify desired work behaviors.
Maintain a diverse inventory of rewards.
Inform everyone about what must be done to
get rewards.
Recognize individual differences when
allocating rewards.
Follow the laws of immediate and contingent
reinforcement.
Management - Chapter 14

40

Figure 14.7 Applying reinforcement

strategies: case of total quality management.

Management - Chapter 14

41

Study Question 4: What role does

reinforcement play in motivation?
Schedules of reinforcement:
Continuous reinforcement administers a reward each
time a desired behavior occurs.
Intermittent reinforcement rewards behavior only
periodically.
Acquisition of behavior is quicker with continuous
reinforcement.
Behavior acquired under an intermittent schedule is
more permanent.
Management - Chapter 14

42

Study Question 4: What role does

reinforcement play in motivation?
Guidelines for using punishment:
Tell the person what is being done wrong.
Tell the person what is being done right.
Match the punishment to the behavior.
Administer punishment in private.
Follow laws of immediate and contingent
reinforcement.
Management - Chapter 14

43

Study Question 4: What role does

reinforcement play in motivation?
Ethical issues in reinforcement:
Ignores individuality.
Restricts freedom of choice.
Ignores the possibility of other types of motivation.

Key concern is whether it is ethical to not control

behavior well enough to serve both individual and

organizational goals.
Management - Chapter 14

44

Study Question 5: What are the challenges of

motivation in the new workplace?
Integrated model of motivation
Motivation leads to work effort that, when combined
with appropriate individual abilities and organizational
support, leads to performance accomplishment.
The motivational impact of any rewards received for
this performance accomplishment depends on equity
and reinforcement considerations.
Ultimately, satisfaction with rewards should lead to
increased motivation to work hard in the future.
Management - Chapter 14

45

Figure 14.8 An integrated approach to

motivational dynamics.

Management - Chapter 14

46

Study Question 5: What are the challenges of

motivation in the new workplace?
Pay for performance
Paying people for performance is consistent with:
Equity theory.
Expectancy theory.
Reinforcement theory.

Merit pay
Awards a pay increase in proportion to individual performance
contributions.
Provides performance contingent reinforcement.
May not succeed due to weakness in performance appraisal
system or lack of consistency in application.
Management - Chapter 14

47

Study Question 5: What are the challenges of

motivation in the new workplace?
Incentive compensation systems:
Skill-based pay.
Links pay to the number of job-relevant skills an
employee masters.

Bonus pay plans.

One-time or lump-sum payments based on the
accomplishment of specific performance targets or
some extraordinary contribution.

Management - Chapter 14

48

Study Question 5: What are the challenges of

motivation in the new workplace?
Incentive compensation systems:
Profit-sharing plans.
Some or all employees receive a proportion of net
profits earned by the organization.

Gain-sharing plans.
Groups of employees share in any savings realized through
their efforts to reduce costs and increase productivity.

Employee stock ownership plans.

Employees own stock in the company that employs them.
Management - Chapter 14

49