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Chapter 8

Motivation and Empowerment

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Chapter Objectives

Recognize and apply the difference between intrinsic and extrinsic rewards.

Motivate others by meeting their higher-level needs.

Apply needs-based theory of motivation.

Implement individual and systemwide rewards.

Avoid the disadvantages of “carrot-and-stick” motivation.

Implement empowerment by providing the five elements of information, knowledge, discretion, meaning, and rewards.

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Motivation

The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action

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Ex. 8.1 A Simple Model of Motivation

Need Creates desire to fulfill needs (money, friendship, recognition, achievement

Behavior Results in actions to fulfill needs

Rewards Satisfy needs: intrinsic or extrinsic rewards

Feedback Reward informs person whether behavior was appropriate and should be used again

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Types of Rewards

Intrinsic RewardsInternal satisfactions a person receives in the process of performing a particular action

Extrinsic RewardsRewards given by another person, typically a supervisor, such as pay increases and promotions

Systemwide RewardsRewards that apply the same to all people within an organization or within a specific category or department

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Ex. 8.2 Examples of Intrinsic and Extrinsic Rewards

Extrinsic Intrinsic

Individual

Systemwide

Large merit increase

Insurance benefits

Feeling of self-fulfillment

Pride in being part of a “winning”

organization

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Ex. 8.3 Needs of People and Motivation Methods

Needs of people

Conventional management

Lower needs

Carrot and stick (Extrinsic)

Control people

Adequate effort

Leadership

Higher needs

Empowerment (Intrinsic)

Growth and fulfillment

Best effort

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Ex. 8.4 Maslow’s Hierarchy of Needs

Need Hierarchy

Self-actualization Needs

Esteem Needs

Belongingness Needs

Safety Needs

Physiological Needs

Fulfillment on the Job

Opportunities for advancement, autonomy, growth, creativity

Recognition, approval, high status, increased responsibilities

Work groups, clients, coworkers, supervisors

Safe work, fringe benefits, job security

Heat, air, base salary

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Ex. 8.5 Herzberg’s Two-Factor Theory

Area of Satisfaction

Area of Dissatisfaction

Motivators influence level of satisfaction

Hygiene factors influence level of dissatisfaction

Motivators

AchievementRecognitionResponsibilityWork itselfPersonal growth

Hygiene Factors

Work conditionsPay/securityCo. policiesSupervisors

Interpersonal. relationships

Highly Satisfied

Neither Satisfied nor Dissatisfied

Highly Dissatisfied

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Acquired Needs Theory

McClelland’s theory that proposes that certain types of needs are acquired during an individual’s lifetime

Three needs most frequently studied:Need for achievement

Need for affiliation

Need for power

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Ex. 8.6 Key Elements of Expectancy Theory

E > P expectancyEffort Performance

P > O expectancyPerformance Outcomes

Valence – value of outcomes(pay, recognition, other

rewards)

Motivation

Will putting effort into the task lead to the desired performance?

Will high performance lead to the desired outcomes?

Are the available outcomes highly valued?

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Equity Theory

A theory that proposes that people are motivated to seek social equity in the rewards they expect for performance