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8/13/2019 123994619 Contemporary Management
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Motivation and Performance
McGraw-Hill/IrwinContemporary Management, 5/e
Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
chapter thirteen
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Learning Objectives
Explain what motivation is and whymanagers need to be concerned about it.
Describe from the perspectives of
expectancy theory and equity theorywhat managers should do to have ahighly motivated workforce.
Explain how goals and needs motivatepeople and what kinds of goals areespecially likely to result in highperformance.
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Learning Objectives
Identify the motivation lessons that
managers can learn from operant
conditioning theory and social learning
theory.
Explain why and how managers can use
pay as a major motivation tool.
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The Nature of Motivation
Motivation
The psychological forces that determine the
direction of a persons behavior in an
organization, a persons level of effort, anda persons level of persistence
Explains why people behave the way they
do in organizations
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The Nature of Motivation
Direction- possible behaviors the
individual could engage in
Effort- how hard the individual will work
Persistence- whether the individual will
keep trying or give up
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Question?
What behavior is performed for its own
sake?
A. Intrinsically Motivated Behavior
B. Extrinsically Motivated Behavior
C. Centrally Motivated Behavior
D. Inherently Motivated Behavior
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The Nature of Motivation
Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes
from actually performing the behavior. The sense of accomplishment and
achievementderived from
doing the workitself
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The Nature of Motivation
Extrinsically Motivated Behavior
Behavior that is performed to acquire
material or social rewards or to avoid
punishment.
The source of the motivation is the
consequences of the behavior and not
the behavior itself.
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Outcomes and Inputs
OutcomeAnything a person gets from a job or an
organization
Pay, job security, autonomy,accomplishment
Input
Anything a person contributes to his or herjob or organization
Time, effort, skills, knowledge, work
behaviors
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The Motivation Equation
Figure 13.1
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Expectancy Theory
Motivation will be high when
workers believe:
High levels of effort will
lead to high performance.
High performance
will lead to the
attainment ofdesired outcomes.
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Expectancy Theory
Major Factors of Motivation
Expectancy- the belief that effort (input)will result in a certain level of performance
Instrumentality- the belief thatperformance results in the attainment ofoutcomes
Valence- how desirable each of the
available outcomes from the job is to aperson
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Expectancy, Instrumentality, and Valence
Figure 13.2
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Expectancy Theory
Figure 13.3
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Need Theories
Need
A requirement or
necessity for
survival and well-being.
Need Theories
People are
motivated to
obtain outcomesat work that will
satisfy their needs
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Maslows Hierarchy of Needs
Table 13.1
Self-
actualization
Realize ones
full potential
Use abilities
to the fullest
EsteemFeel good
about oneself
Promotions
and recognition
BelongingnessSocial
interaction, love
Interpersonal
relations, parties
Safety Security, stabilityJob security,
health insurance
PhysiologicalFood, water,
shelter
Basic pay level
to buy items
Needs Description Examples
Lower-level needs must be satisfied
before higher-level needs are addressed.
Highest-level
needs
Lowest-level
needs
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Alderfers ERG Theory
Table 13.2
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
GrowthSelf-development,
creative work
Continually
improve skills
RelatednessInterpersonal
relations, feelings
Good relations,
accurate feedback
ExistenceFood, water,
clothing, and shelter
Adequate pay
for necessities
Needs Description Examples
Highest-level
needs
Lowest-level
needs
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Alderfers ERG Theory
As lower level needs become satisfied, a
person seeks to satisfy higher-level
needs
A person can be motivated by needs at
more than one level at the same time
When people experience need
frustration they will focus on satisfying
the needs at the next-lowest level
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Herzbergs Motivation-Hygiene Theory
Focuses on outcomes that lead to highermotivation and job satisfaction, andthose outcomes that can prevent
dissatisfaction. Unsatisfied hygiene needs create
dissatisfaction; satisfaction of hygieneneeds does not lead to motivation or jobsatisfaction.
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Herzbergs Motivation-Hygiene Theory
Motivator needsrelate to the nature of
the work itselfautonomy, responsibility,
interesting work.
Hygiene needsare related to the
physical and psychological context of the
workcomfortable work environment,
pay, job security.
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McClellands Needs for Achievement,
Affiliation, and Power
Need for Achievement
A strong need to perform challenging
tasks well and meet personalstandards for excellence
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McClellands Needs for Achievement,
Affiliation, and Power
Need for Affiliation
Concerned about establishing and
maintaining good interpersonal relations,
being liked, and having the people aroundhim get along with each other
Need for Power
A desire to control or influence others
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Equity Theory
Equity Theory
Focuses on peoples perceptions of thefairness (or lack of fairness) of their work
outcomes inproportion totheir work inputs.
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Equity Theory
A relative outcome to input ratiocomparison to oneself or to anotherperson (referent) perceived as similar to
oneself. Equity exists when a person perceives
that their outcome/input ratio to be equalto the referents ratio.
If the referent receives more outcomes, theyshould also give more inputs to achieveequity.
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Equity Theory
Table 13.3
Condition Person Referent Example
EquityOutcomes = Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
Underpayment
Equity
Outcomes < Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets the same outputs
as referent
Overpayment
Equity
Outcomes > Outcomes
Inputs Inputs
Worker contributessame inputs but also
gets more outputs
than referent
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Equity Theory
Inequity exists when workers outcome/input
ratio is not equal to referent.
Underpayment inequity: ratio is less than the
referent. Workers feel they are not getting the outcomes
they should for their inputs.
Overpayment inequity: ratio is higher than the
referent. Workers feel they are getting more outcomes
than they should for their inputs.
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Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore
equity.
In underpayment, workers may reduce input levelsto correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent
person and readjust their ratio perception.
If inequity persists, workers will often choose toleave the organization.
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Goal Setting Theory
Focuses on motivating workers tocontribute their inputs to their jobs andorganizations
Considers how managers can ensurethat workers focus their inputs in thedirection of high performance and theachievement of organizational goals.
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Goal Setting Theory
Goal
What a person is trying to accomplish
through his efforts and behaviors
Must be specific and difficult
Goals point out what is important to the
firm. Workers should be encouraged to develop
action plans to attain goals.
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Goal Setting Theory
Goals motivate
people to contribute
more inputs to their
jobs
Goals help people
focus their inputs in
the right direction
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Learning Theories
Managers can increase employee
motivation and performance by the ways
they link the outcomes that employees
receive to the performance of desiredbehaviors in an organization and the
attainment of goals
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Learning Theories
Learning
A relatively permanent change in persons
knowledge or behavior that results from
practice or experience.
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Operant Conditioning Theory
Operant Conditioning
People learn to perform behaviors that leadto desired consequences and learn not to
perform behaviors that lead to undesiredconsequences.
Linking specific behaviors to the attainmentof specific outcomes can motivate high
performance and prevent behaviors thatdetract from organizational effectiveness.
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Question?
Which operant conditioning tool
administers an undesired consequence
to immediately stop a dysfunctional
behavior?
A. Positive reinforcement
B. Negative reinforcement
C. Extinction
D. Punishment
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Operant Conditioning Tools
Positive Reinforcement
Gives people outcomes they desire when
they perform organizationally functionally
behaviors Positive reinforcers: Pay, praises, or
promotions
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Operant Conditioning Tools
Negative Reinforcement
Eliminating undesired outcomes once the
functional behavior occurs
Negative reinforcers: criticisms, pay cuts,suspension
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Operant Conditioning Tools
Extinction Curtailing the performance of a dysfunctional
behavior by eliminating whatever is
reinforcing it.
Punishment
Administering an undesired/negative
consequence to immediately stop a
dysfunctional behavior.
Manager administers an undesired consequence
to worker (verbal reprimand, demotion, pay cut).
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Avoiding Side Effects of Punishment
Downplay the emotional element
involved
Try to punish dysfunctional behaviors as
soon as they occur
Try to avoid punishing someone in front
of others
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Organizational Behavior Modification
Organizational Behavior Modification
Managers systematically apply operant
conditioning techniques to promote the
performance of organizationally functionalbehaviors and discourage the performance
of dysfunctional behaviors
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Organizational Behavior Modification
Used to improve productivity, efficiency,
attendance, punctuality, safe work
practices, and customer service
Sometimes questioned because of lack
of relevance to certain work behaviors
To critics it is overly controlling and robs
workers of their dignity, individuality,freedom of choice and creativity
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13-42Figure 13.4
Steps inOrganizational
Behavior
Modification
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Social Learning Theory
Social Learning Theory
Proposes that motivation results not only
from direct experience of rewards and
punishments but also from a personsthoughts and beliefs
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Social Learning Theory
Vicarious Learning (Observational
Learning)
Occurs when a person becomes motivated
to perform a behavior by watching anotherperson perform the behavior and be
positively reinforced for doing so
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Social Learning Theory
Self-Reinforcement
Any desired or attractive outcome or award
that a person can give himself or herself for
good performance.
Self-efficacy
A persons belief about his or her ability to
perform a behavior successfully.
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Pay and Motivation
Pay as a Motivator
Expectancy: Instrumentality, the associationbetween performance and outcomes, must
be high for motivation to be high. Need Theory: pay is used to satisfy manyneeds.
Equity Theory: pay is given in relation to
inputs.
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Pay and Motivation
Pay as a Motivator
Goal Setting Theory: pay is linked to
attainment of goals.
Learning Theory: outcomes (pay), isdistributed upon performance of functional
behaviors.
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Merit Pay and Performance
Merit Pay Plan
A compensation plan that bases pay on
based on individual, group and/or
organization performance. Individual plan: when individual
performance (sales) can accurately
measured.
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Merit Pay and Performance
Merit Pay Plan
Group plan: when group that works closely
together is measured and rewarded as a
group. Organization plan: when group or individual
outcomes not easily measured.
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Salary Increase or Bonus?
Motivational Value of a Bonus Is HigherWhen:
Salary levels are unrelated to current
performance. Changes in other compensation items (cost
of living, seniority) are not having a largeeffect in increasing compensation.
Salaries rarely change and performancedoes.
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Salary Increase or Bonus?
Benefits of Using Bonuses
Do not become permanent part of
compensation
Are more directly tied to currentperformance
Provide more flexibility in distributing
rewards
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Salary Increase or Bonus?
Employee Stock OptionA financial instrument that entitles the bearer
to buy shares of an organizations stock at a
certain price during a certain period of time orunder certain conditions.
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Discussion Question?
Which merit pay plan is the most effective?
A. Piece rate
B. Commission
C. Scanlon plan
D. Profit sharing
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Examples of Merit Pay Plans
Piece-rate Pay Employees pay is based on the number of units
that the employee produces.
Commission Pay Employees pay is based on a percentage of sales
that the employee makes.
Organization-based Merit Plans Scanlon planfocuses on reduced expenses or
cutting costs Profit sharingemployees receive a share of an
organizations profits
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Movie Example: Mr. Hollands Opus
As a manager, is it
important for
Principal Jacobs
to know themotivations of her
subordinates?