Motivation and Performance Management

Focus on motivation before exam

GoalsMany different ways to motivate employees.People have preferences for different types of motivation.Link Motivation to leadership styleLink Motivation to organizational culture.

PerformancePerformance = motivation X ability X situational factors (leadership support, resources, peer support, etc).Attributions.Ability is relatively fixed. Ability linked to wages. Supervisors can work largely on motivation or situational factors. In this class focus on leadership support and peer support (teams). Other classes resource (ex. MIS).

Focus on Motivation for now.

Motivation is important in managementBasic job motivation. Most firms have average workers. Exceptional firms motivate average workers. (note some firms have high pay and select talented employees).Change effortsSupervision is easier if people are trying.

Think of a time when you were highly motivatedDescribe the circumstances.

Intrinsic vs. Extrinsic MotivationIntrinsic Motivation being driven by positive feelings associated with doing well on a task or jobExtrinsic Motivation motivation caused by the desire to attain specific outcomes8-18

McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Model of Intrinsic MotivationOpportunity RewardsAccomplishment RewardsFrom Task ActivitiesFrom Task Purpose8-19Figure 8-6McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Sense ofChoiceSense ofCompetenceSense ofMeaningfulnessSense ofProgress

Models of intrinsic motivationVideoHow do they create meaning, choice, competence, progress?

.The Job Characteristics Model8-15Figure 8-5McGraw-Hill

Advantages of intrinsic MotivationLow costPersistence is highUnleash employees for change.Builds relationships internally and externally

DisadvantagesControl freaks nightmareStrategic change is difficult.

Intrinsic MotivationOften ignored in todays work environment.Its what many of the best firms do! Very few average or below average firms do not.Not leadership per se but more organizational culture. Leadership style needs to be supportive to create the culture.

Extrinsic MotivationMany different approaches.Debate highlighted these issues.

First, What can be used as rewards

Punishments.

Equity approachesDiscussed earlier.

Factors Considered When Making Equity ComparisonsOutcomesInputs9-2Table 9-1McGraw-Hill.

OutcomesInputsFactors Considered When Making Equity Comparisons9-3Table 9-1 cont.McGraw-Hill

Since perceptual many ways to manageExamplesMethods9-9Table 9-2 l

ManagementPerceived Justice is important to employee. Some are more equity sensitive than others.Depends.Some questions. Debate if pay should be made public. What would equity theory suggest?

Susan is a single parent. She needs to come in late to drop her kids at school. How do you manage this? How could equity theory guide your choices?Can you be best friends or have intimate relations with your one subordinate?Here is a tough one. Which leadership style is most equity sensitive? Least equity sensitive?

Expectancy theory is closely linked to reward theory.Assumes People will do what is most rewarding for them.So as students, choice to work and earn more money or study.Work for a course where all get As or course where full range distribution.Work in a course where can get an A or work in a course where lucky to get B but unlikely to fail.

Employees make the same choices.What gets you ahead on your job. Playing golf with your boss or doing a good job.Your job is MIS systems. You are the nerd of all nerds. Love programming and hate people. Job requires meeting clients needs. Spend more time programming or talking to clients?

Effort Performance Outcomes

Vrooms Expectancy TheoryExpectancy belief that effort leads to a specific level of performanceInstrumentality a performance outcome perceptionValence the value of a reward or outcome

9-14McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Influence and Employees Expectancy PerceptionsSelf-esteemSelf-efficacyPrevious success at the taskHelp received from a supervisor and subordinatesInformation necessary to complete the taskGood materials and equipment to do work with9-15

Factors that influence InstrumentalitiesWritten statements/policiesHistorical evidence.Past perceptions from experiences of self and othersRole ambiguity

ValencesIndividual differences.

Lets go back to Mary MartinUsing expectancy theory, what would you do using expectancy theory.

Managerial implicationsMake reward systems explicit and clear.Make job standards explicit and clear.Prepare people to succeed at job standards.Links to which leadership style.Expectancies are supervisory based. Instrumentalities can be supervisor or organizational culture.

Prerequisites to Linking Performance and RewardsManagers should:Develop and communicate performance standards Give valid and accurate performance ratings Determine the relative mix of individual vs. team contribution to performance and reward accordinglyUse the performance ratings to differentially allocate rewards among employees9-20McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

ProblemsVery general and difficult to implement in reality.

MBO/Goal SettingMy favorite extrinsic mode of motivation.Effective managers work with subordinates to set specific, objective performance standards. All jobs.Retails sales easiest.Police officerFootball athletic trainer.

Lockes Model of Goal SettingEncouraging thedevelopment of goal-attainment strategiesor action plansIncreasingones persistenceRegulatingones effortDirectingones attentionGoalsmotivate theindividualby...Taskperformance9-22Figure 9-3

Insights from Goal Setting ResearchDifficult goals lead to higher performanceSpecific, difficult goals lead to higher performance for simple rather than complex tasksFeedback enhances the effect of specific, difficult goalsParticipative goals, assigned goals, and self-set goals are equally effectiveGoal commitment and monetary incentives affect goal-setting outcomes9-24Table 9-4 .

MBOStarts at the top. Officers set strategic goals. Target. 5% revenue Growth through repeat customers -- quality and choice at a low price.Store manager goalsDept manager goalsFloor attendants goalsCheck out goals

Goes beyond goalsGoals are a tool to both motivate and identify performance problems (performance management).Goals setting done jointly long time frame.Monitor (indirectly) if goals are being attained.Provide feedback daily, weekly, monthly

Supervisor monitors. Gives recognition if goals on targetProblems solves if goals are not on target. Done in supportive manner. What does supervisor need to do to help? What does subordinate need to do to help?Bonuses given if goals are met.

Research supportsBut not widely used.

Managerial implicationsSteps to adoption are specific and clear.Monitoring and feedback.Leadership style.Organizational culture.

Dark sideGame playing/Ethical lapses with outcome measurements.Poor goal assessment.

MotivationDifferent approachesChoice based on beliefs about employees, leadership style and organizational culture.All can be proven to be effective at achieving different things.

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Motivation and Performance Management