Chapter 8

Motivation and learning at work

Motivation Is Not the Whole Story

P = f(A x M x O)

“Movere” = To Move

• The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a (organizational) goal

• The result of the interaction between the individual and the situation.

• We are dealing with 3 questions:1. What energizes human behavior?2. What directs or channels behavior to goal?3. How long this behavior is maintained or

sustained?

Figure 8.1 Maslow’s hierarchy of needs (1943) although intuitively appealing, no research support

Figure 8.2 Alderfer’s ERG model; a refinement of Maslow’s hierarchy of needs

Herzberg’s Two-Factor TheoryKey Point: Satisfaction and dissatisfaction are not opposites

but separate constructs

Lack creates Dissatisfaction

Related to Satisfaction

– Hygiene factors… structure for avoidance of unpleasantness

Factors contributing to job dissatisfaction• Working conditions, salary, company policies,

interpersonal relations…(extrinsic factors)

– Motivation factors…system for personal growth Factors contributing to job satisfaction

• Growth, advancement, responsibility, achievement, recognition, work itself… (intrinsic factors)

• Improvements in Hygiene Factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction.

Figure 8.3 Comparison of need theories

These early theories are popular, but may not be accurate; important to know as they form the basis for contemporary theories and are still used by some practicing managers.

McGregor’s Theory X and Theory Y• Two distinct views of human beings: Theory X (basically

negative) and Theory Y (when committed).– Managers use a set of assumptions based on their view– The assumptions mold their behavior toward employees

Table 8.1 Theories X and Y: A summary

McClelland’s theory of acquired needs

• Need for Achievement– The drive to excel, to achieve in relation to a set of

standards, to strive to succeed.– At work…the need to take responsibility for finding

solutions to problems, master complex tasks, set goals, get feedback on level of success.

• Need for Power– The need to make others behave in a way that they

would not have behaved otherwise.– At work…a drive to control and influence others, a

need to win arguments, a need to persuade and prevail.

• Need for Affiliation– The desire for friendly and close personal relationships.– At work…enjoyment of teamwork

Need forAchievement

Need forNeed forPowerPower

Need forNeed forAffiliationAffiliation

Performance Predictions

• Some evidence showed that those motivated by need for achievement (nAch) make more successful managers and entrepreneurs.

• People with a high need for power (nPow) are likely to seek power over others (personal power), or for the general good (institutional power) and this group is more effective.

• Research support, but it is not a very practical theory. People have varying levels of each of the three needs and it is hard to measure.

• Self Determination (Cognitive Evaluation) Theory

• Learning (Reinforcement) Theory

• Equity Theory

• Expectancy Theory

• Goal-Setting Theory

Contemporary Theories of Motivation

Self-Determination TheoryPeople prefer to feel they have control over their actions.

Anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation.

Reward is an outcome of positive value to the individual, but can undermine motivation.– EXTRINSIC REWARDS are the motivational stimulus that

originates from outside the person (e.g., pay, job security, working conditions, verbal praise)

– INTRINSIC REWARDS are self-administered; they occur "naturally" as a person performs a task (e.g., competency feelings, self-control experienced in work, challenge, personal development, recognition, autonomy, the work itself)

• Major Implications for Work Rewards– Intrinsic and extrinsic rewards are not independent– Extrinsic rewards may decrease intrinsic rewards– Goal setting is more effective in improving motivation– Verbal rewards increase intrinsic motivation; tangible rewards reduce it– Pay should be non-contingent on performance.

• Self-concordance – When the personal reasons for pursuing goals are consistent

with personal interests and core values (intrinsic motivation), people are happier and more successful.

• What these boils into is twofold:– Choose your job for reasons other than extrinsic rewards– Organizations need to provide intrinsic rewards in addition to extrinsic

incentives• Mangers need to make work interesting, support employee growth,

provide recognition, ..

• A theory that focus on a behavioral approach rather than cognitive one– Behavior is environmentally caused– Thought (internal event) is not important

• Feelings, attitudes, and expectations ignored– Behavior is controlled by its consequences –

reinforcers or REWARDS

Learning Reinforcement Theory

Table 8.2 Effect of reinforcement schedules on behavior

Reinforcement Theory and Recognition Programs

Consistent with reinforcement theoryreinforcement theory, rewarding a behavior (with recognition) immediately will increase likelihood of that behavior’s repetition.

It is also linked to need theoriesneed theories..

Adams’ Equity Theory

• Employees compare their ratios of outcomes-to-inputs of relevant others.– When ratios are equal: state of equity exists – no

tension as the situation is considered fair– When ratios are unequal: tension exists due to

unfairness• Underrewarded states cause anger• Overrewarded states cause guilt,

demotivation/motivation– Tension motivates people to act to bring their

situation into equity

EMPLOYEES COMPARE RELATIVE INPUT-OUTPUT RATIOS OF FELLOW WORKERS

OUTPUT-------------- = EQUITY RATION INPUT

• Input: Loyalty, hard work, commitment, skills, abilities, tolerance, enthusiasm, personal sacrifices..

• Output: All financial rewards including pay, expenses, benefits, pension arrangements, bonus and commission

• Intangibles: Recognition, reputation, praise and thanks, responsibility, training, sense of achievement and advancement

Figure 8.5 Adams’ equity theory

Figure 8.4 Vroom’s valence, instrumentality and expectancy theory

–Examples for Expectancy

–If I spend tonight studying will it improve my grade on tomorrow's exam?

–If I make more sales calls will I make any more sales?

–Variables affecting the individual's Expectancy perception:

–Self Efficacy

–Goal Difficulty

–Control Over Performance

–Examples for Instrumentality and Valence–If I get a better grade on tomorrow's math test, will I get an "A"?

–If I produce more than anyone else in the plant, will I get a bigger raise? A faster promotion?

–If I make more sales will I get a bonus? A greater commission?

–If I make more sales will I be recognized by others as the best sales person?

–Variables affecting the individual's instrumentality perception:

–Trust - trusting the leaders

–Policies - the degree to which pay and reward systems are formalized

Goal-Setting Theory• Basic Premise:

– specific and difficult goals, with feedback, lead to higher performance

• Difficult Goals:– Focus and direct attention– Energize the person to work harder– Difficulty increases persistence– Force people to be more effective and efficient

• Relationship between goals and performance depends on: – Task characteristics (well-learned)– Adequate self-efficacy– Both manager and employee seek challenging goals and achievement

oriented– Goal commitment (the more public the better!)

An Implementation: MBO

• MBO is a systematic way to utilize goal-setting.• Goals must be:

– Tangible– Verifiable– Measurable– not like “do your best!”, “cut the costs”

• Corporate goals are broken down into smaller, more specific goals at each level of organization.

• Four common ingredients to MBO programs:– Goal specificity– Participative decision making– Explicit time period– Performance feedback (through periodic managerial evaluations)

An Overview..• Need Theories (Maslow, McGregor, McClelland..)

– Well known, but not very good predictors of behavior

• Herzberg’s Two Factor and Self Determination Theories• Extrinsic and intrinsic factors count

• Reinforcement Theory– Powerful predictor in many work areas

• Expectancy Theory– Good predictor of performance variables but many the

assumptions of rational decision making and complex• Equity Theory

– Best known for research in fairness• Goal-Setting Theory

– While limited in scope, good predictor

Managerial Implications

• To Motivate Employees

– Recognize individual differences

– Use goals and feedback

– Allow employees to participate in decisions that affect them

– Link rewards to performance

– Check the reward system for equity

Performance, pay and motivation• All of the theories have implications for how best to

compensate employees for their labor to maximize motivation.

• Reinforcement theory: reinforce desired, punish undesired act– Challenge: discover which rewards and reinforcement schedule works– Criticism: cash-based incentives focusing on quantity tend to decorate; – performance-based incentives (bonus) increase employee engagement

• Self-determination theory provide evidence even performance –based incentives (extrinsic) undermine intrinsic motivation

• Equity theory suggests bonuses could give rise to resentment among colleagues who fail to benefit from such schemes.

• Employees are more motivated when they are moving towards a single goal; defining such goal rather than presenting a list of aims is more motivating, as predicted by Goal-setting theory.

Motivation by Job Redesign

• Job Characteristics Model (JCM)– Building on Vroom’s Expectancy Theory, Hackman and

Oldham described jobs through five core dimensions:• Skill variety – Requirements for different tasks in the job.• Task identity – Completion of a whole piece of work.• Task significance – The job’s impact on others.• Autonomy – Level of discretion in decision making. • Feedback – Amount of direct and clear information on

performance.

– The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.

Figure 8.6 Hackman and Oldham’s job characteristics model

Employee’s nAch moderates the relationship.

How Can Jobs be Redesigned? Two common practices

Strengths of Job Rotation

Job Rotation (sometimes called Cross-training)

Drawbacks:- Increased training costs- Affects organizational economies- Adaptation period to work group and to

new task - More control by supervisors

Job EnrichmentThe vertical expansion of jobs

• It allows the employee to complete a work• It increases employee’s freedom, independence and

responsibility• Reduces absenteeism and turnover costs, increase satisfaction• Works best when feedback provided so that the employee is

able to assess and correct his/her performanceReal life example:– Bank clerks processing import/export files in an assembly line fashion

boredom, low satisfaction– After 200 hours of finance and law training– Full-service advisers who process individual transactions– Productivity tripled, satisfaction, transaction volume increased 10%

Job Redesign and Scheduling

• Jobs can be reshaped in order to make them more motivating

• When the job is composed of:– Repetitive tasks job rotation– Tasks with little variety job enlargement– Little autonomy job enrichment– Little challenge and stimulation ?

Employee Recognition Programs• Employee rewards need to be intrinsic and extrinsic.

Employee recognition programs are a good method of intrinsic rewards. – The rewards can range from a simple thank-you to

more widely publicized formal programs. – Advantages of recognition programs are that they are

inexpensive and effective.– Some critics say they can be politically motivated and if they are perceived to be applied unfairly, they can cause more harm than good.

Employee Recognition Programs In Practice

• It is popular especially when organizations are under cost pressures. It is low cost.

– RECOGNITION MAY BE MOTIVATIONAL FOR THE MOMENT… BUT IT DOES NOT HAVE ANY STAYING POWER.

– IT IS AN EMPTY REINFORCER BECAUSE YOU CAN’T PAY BILLS WITH RECOGNITION…