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    MOTIVATION

    AJAY SOLKHEFaculty

    niversity School of Management,[email protected]

    mailto:[email protected]:[email protected]
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    What Is

    Motivation?

    The processes that account for an

    individuals willingness to exert high

    levels ofeffort to reach organizationalgoals, conditioned by the efforts abilityto satisfy some individual need.

    Effort: a measure of intensity or

    drive.Direction: toward organizational

    goals

    Need: personalized reason to

    exert effort

    Motivation works best when

    individual needs are compatible with

    organizational goals.

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    163

    Exhibit 16.1

    The Motivation Process

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    NeedAn internal state that makes certain outcomes appear

    attractive.

    An unsatisfied need creates tension which is reduced

    by an individuals efforts to satisfy the need.

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    EARLY THEORIES OF MOTIVATION

    These early theories may not be valid,

    but they do form the basis forcontemporary theories and are stillused by practicing managers.

    Maslows Hierarchy of Needs

    McGregors Theories X and Y

    Herzbergs Motivation-Hygiene

    Theory

    McClellands Theory of Needs

    Alderfers ERG (Existence,

    Relatedness, and Growth)

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    Maslows Hierarchy of Needs

    Theory

    Needs were categorized asfive levels of lower- to higher-

    order needs.

    Individuals must satisfy

    lower-order needs beforethey can satisfy higher order

    needs.

    Satisfied needs will no longer

    motivate.Motivating a person depends

    on knowing at what level that

    person is on the hierarchy.

    Hierarchy of needs

    Lower-order

    (external):

    physiological,

    safetyHigher-order

    (internal): social,

    esteem, self-

    actualization

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 167

    Exhibit 16.2

    Maslows Hierarchy of Needs

    Lower OrdExternal

    Higher OrderInternal

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    McGregors Theory X and

    Theory Y

    Two distinct views of humanbeings:

    Theory X (basically negative)

    andTheory Y (positive).

    Managers used a set of

    assumptions based on their

    view

    The assumptions molded their

    behavior toward employees

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    Motivation is maximized by participative

    decision making, interesting jobs, and goodgroup relations.

    Theory X

    Workers have littleambition

    Dislike work

    Avoid responsibility

    Theory Y

    Workers are self-directed

    Enjoy work

    Acceptresponsibility

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    Herzbergs Motivation-Hygiene Theory

    Job satisfaction and Job Dissatisfaction are

    created by different factors.

    Hygiene factors: extrinsic (environmental)

    factors that create job dissatisfaction.

    Motivators: intrinsic (psychological) factorsthat create job satisfaction.

    Attempted to explain why job satisfactiondoes not result in increased performance.

    The opposite of satisfaction is not

    dissatisfaction, but rather no satisfaction.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1611

    Exhibit 16.3

    Herzbergs Motivation-Hygiene Theory

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1612

    Exhibit 16.4

    Contrasting Views of Satisfaction-

    Dissatisfaction

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    Comparison of Satisfiers and Dissatisfiers

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    Factors characterizing

    events on the job thatled to extreme job

    dissatisfaction Factors characterizing

    events on the job that

    led to extreme job

    satisfaction

    Source: Reprinted by permission ofHarvard Business Review. An exhibit from One More Time: How Do You Motivate Employees?by Frederick Herzberg,

    SeptemberOctober 1987. Copyright 1987 by the President and Fellows of Harvard College: All rights reserved.

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    Motivation and Needs

    David McClellands Three-

    Needs Theory

    There are three major acquired

    needs that are major motives in

    work.

    Need for achievement (nAch)

    The drive to excel and succeed

    Need for power (nPow)

    The need to influence the

    behavior of others

    Need of affiliation (nAff)

    The desire for interpersonal

    relationships

    nAch

    nPow

    nAff

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    E

    GR

    ERG THEORY (Clayton Alderfer)

    There are three groups of core needs: existence,

    relatedness, and growth. Existence: provision of basic material requirements.

    Relatedness: desire for relationships.

    Growth: desire for personal development.

    * More than one need can be operative at the

    same time.

    * If a higher-level need cannot be fulfilled, the

    desire to satisfy a lower-level need increases.

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    Contemporary Theories of Motivation

    Goal-Setting Theory

    Reinforcement Theory

    Designing Motivating J obs

    Equity Theory

    Expectancy Theory

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    Motivation and Goals

    Edwin Lockes Goal-Setting Theory

    Proposes that setting goals that are

    accepted, specific, and challenging yetachievable will result in higher

    performance than having no or easy

    goals.

    Benefits of Participation in Goal-Setting

    Increases the acceptance of goals.

    Fosters commitment to difficult, publicgoals.

    Provides for self-feedback (internal locus

    of control) that guides behavior and

    motivates performance (self-efficacy).

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    Exhibit 16.6

    Goal-Setting Theory

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    Factors influencing the GOALS

    PERFORMANCE Relationship:

    1.Goal commitment,

    2.adequate self-efficacy,

    3.task characteristics, and4.national culture.

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    Self-Efficacy

    The individuals belief that he or she is capable ofperforming a task.

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    MANAGEMENT BY OBJECTIVES (MBO)

    MBO is a systematic way to utilize goal-setting.

    Goals must be: S M A R TTangible

    Verifiable

    Measurable

    Corporate goals are broken down into smaller,more specific goals at each level oforganization.

    Four common ingredients to MBO programs:

    Goal specificityParticipative decision making

    Explicit time period

    Performance feedback

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    Banduras Self-Efficacy Theory

    An individuals belief that he or she is capable ofperforming a task.

    Higher efficacy is related to:

    Greater confidence

    Greater persistence in the face of difficulties

    Better response to negative feedback (work harder)

    Self-Efficacy complements Goal-Setting Theory.

    Given Hard Goal

    Higher Self-Set Goal

    Increased Confidence

    Higher Performance

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    Increasing Self-Efficacy

    Enactive mastery

    Most important source of efficacy

    Gaining relevant experience with task or job

    Practice makes perfect

    Vicarious modeling

    Increasing confidence by watching others perform the task

    Most effective when observer sees the model to be similar to

    him- or herself

    Verbal persuasion

    Motivation through verbal conviction

    Pygmalion and Galatea effects - self-fulfilling prophecies

    Arousal

    Getting psyched up emotionally aroused to complete task

    Can hurt performance if emotion is not a component of the task

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    Motivation and Behavior

    Reinforcement TheorySimilar to Goal-Setting Theory, but focused on a

    behavioral approach rather than a cognitive one

    Assumes that a desired behavior is a function ofits consequences, is externally caused, and if

    reinforced, is likely to be repeated.

    Positive reinforcement is preferred for its long-term

    effects on performanceIgnoring undesired behavior is better than

    punishment which may create additional

    dysfunctional behaviors.

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    Designing Motivating Jobs

    Job Design

    The way into which tasks can be combined to formcomplete jobs.

    Factors influencing job design:

    Changing organizational environment/structure

    The organizations technology

    Employees skill, abilities, and preferences

    Job Enlargement

    Increasing the scope (number of tasks) in a job.Job Enrichment

    Increasing responsibility and autonomy (depth) in a

    job.

    J b Ch t i ti M d l (JCM)

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    Job Characteristics Model (JCM)

    A conceptual framework for designing motivating jobs that

    create meaningful work experiences that satisfy

    employees growth needs.

    Five primary job characteristics:

    Skill variety:The degree to which a job requires a

    variety of different activities.

    Task identity:The degree to which the job requirescompletion of a whole and identifiable piece of work.

    Task significance:The degree to which the job has a

    substantial impact on the lives or work of other people.

    Autonomy:The degree to which the job providessubstantial freedom and discretion to the individual inscheduling the work and in determining the proceduresto be used in carrying it out.

    Feedback: do workers know how well they are doing?

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    Job Characteristics Model

    Source:J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.

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    Exhibit 16.8

    Guidelines for Job Redesign

    Source:J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.

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    Designing Motivating Jobs (contd)

    Suggestions for Using the JCMCombine tasks (job enlargement) to create more

    meaningful work.

    Create natural work units to make employees work

    important and whole.Establish external and internal client relationships to

    provide feedback.

    Expand jobs vertically (job enrichment) by giving

    employees more autonomy.Open feedback channels to let employees know how

    well they are doing.

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    Motivation and Perception

    Equity Theory

    Proposes that employees perceive what they get

    from a job situation (outcomes) in relation to what

    they put in (inputs) and then compare their inputs-

    outcomes ratio with the inputs-outcomes ratios ofrelevant others.

    If the ratios are perceived as equal then a state of

    equity (fairness) exists.

    If the ratios are perceived as unequal, inequity existsand the person feels under- or over-rewarded.

    When inequities occur, employees will attempt to do

    something to rebalance the ratios (seek justice).

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    Equity Theorys Relevant Others

    Can be four different situations:

    Self-Inside

    The persons experience in a different job in the same

    organization

    Self-Outside

    The persons experience in a different job in a different

    organization

    Other-Inside

    Another individual or group within the organization

    Other-Outside

    Another individual or group outside of the organization

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    Employee responses to perceived

    inequities:

    Distort own or others ratios.

    Induce others to change their own inputs or

    outcomes.

    Change own inputs (increase or decrease

    efforts) or outcomes (seek greater rewards).

    Choose a different comparison (referent)other (person, systems, or self).

    Quit their job.

    Employees are concerned with both the

    absolute and relative nature oforganizational rewards.

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    Exhibit 16.9

    Equity Theory

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    Justice and Equity Theory

    Overall perception

    of what is fair in the

    workplace.

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    Distributive justice

    The perceived fairness of the amount and allocation of

    rewards among individuals (i.e., who received what).

    Influences an employees satisfaction.

    Distributive

    The perceived fairness of the process use to determine

    the distribution of rewards (i.e., how who received

    what).Affects an employees organizational commitment.

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    Motivation, Perception, and Behavior

    Expectancy TheoryStates that an individual tends to act in a certain way

    based on the expectation that the act will be followed by

    a given outcome and on the attractiveness of that

    outcome to the individual.Key to the theory is understanding and managing

    employee goals and the linkages among and between

    effort, performance and rewards.

    Effort: employee abilities and training/developmentPerformance: valid appraisal systems

    Rewards (goals): understanding employee needs

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    Simplified Expectancy Model

    Expectancy of

    performance

    success

    Instrumentality

    of success in

    getting reward

    Valuation of the

    reward in

    employees eyes

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    Motivation, Perception, and Behavior

    (contd)

    Expectancy Relationships

    Expectancy (effort-performance linkage)

    The perceived probability that an individuals effort will

    result in a certain level of performance. Instrumentality

    The perception that a particular level of performance

    will result in the attaining a desired outcome (reward).

    ValenceThe attractiveness/importance of the performance

    reward (outcome) to the individual.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1638

    Exhibit 16.11

    Integrating

    Contemporary

    Theories ofMotivation

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1639

    Current Issues in Motivation

    Cross-Cultural ChallengesMotivational programs are most applicable in cultures

    where individualism and quality of life are culturalcharacteristics

    Uncertainty avoidance of some cultures invertsMaslows needs hierarchy.

    The need for achievement (nAch) is lacking in other

    cultures.

    Collectivist cultures view rewards as entitlements to

    be distributed based on individual needs, not individual

    performance.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1640

    Current Issues in Motivation (contd)

    Cross-Cultural Consistencies Interesting work is widely desired, as is growth,

    achievement, and responsibility.

    Motivating Unique Groups of Workers

    Motivating a diverse workforce through flexibility:

    Men desire more autonomy than do women.

    Women desire learning opportunities, flexible work

    schedules, and good interpersonal relations.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1641

    Current Issues in Motivation (contd)

    Flexible Work/Job schedulesCompressed work week

    Longer daily hours, but fewer days

    Flexible work hours (flextime)

    Specific weekly hours with varying arrival, departure,lunch and break times around certain core hours during

    which all employees must be present.

    Job Sharing

    Two or more people split a full-time job.Telecommuting

    Employees work from home using computer links.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1642

    Current Issues in Motivation (contd)

    Motivating ProfessionalsCharacteristics of professionals

    Strong and long-term commitment to their field of

    expertise.

    Loyalty is to their profession, not to the employer.Have the need to regularly update their knowledge.

    Dont define their workweek as 8:00 am to 5:00 pm.

    Motivators for professionals

    Job challengeOrganizational support of their work

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1643

    Current Issues in Motivation (contd)

    Motivating Contingent WorkersOpportunity to become a permanent employee

    Opportunity for training

    Equity in compensation and benefits

    Motivating Low-Skilled, Minimum-Wage

    Employees

    Employee recognition programs

    Provision of sincere praise

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1644

    Current Issues in Motivation (contd)

    Designing Appropriate Rewards ProgramsOpen-book management

    Involving employees in workplace decision by opening

    up the financial statements of the employer.

    Employee recognition programsGiving personal attention and expressing interest,

    approval, and appreciation for a job well done.

    Pay-for-performance

    Variable compensation plans that reward employees onthe basis of their performance:

    Piece rates, wage incentives, profit-sharing, and lump-sum

    bonuses

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1645

    Current Issues in Motivation (contd)

    Designing Appropriate Rewards Programs(contd)

    Stock option programs

    Using financial instruments (in lieu of monetary

    compensation) that give employees the right topurchase shares of company stock at a set (option)

    price.

    Options have value if the stock price rises above the

    option price; they become worthless if the stock price

    falls below the option price.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1646

    Exhibit 16.12b

    Recommendations for Designing Stock Options

    * Vesting refers to the time that must pass before a person can exercise the option.

    Source:P. Brandes, R. Dharwadkar, and G.V. Lemesis, Effective Employee StockOption Design: Reconciling Stakeholder, Strategic, and Motivational Factors,

    Academy of Management Executive, February 2003, p. 84.

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    Copyright 2005 Prentice Hall, Inc. All rights reserved. 1647

    Exhibit 16.12b

    Recommendations for Designing Stock Options

    Source:P. Brandes, R. Dharwadkar, and G.V. Lemesis, Effective Employee StockOption Design: Reconciling Stakeholder, Strategic, and Motivational Factors,

    Academy of Management Executive, February 2003, p. 84.

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    Copyright 2005 Prentice Hall Inc All rights reserved 1648

    From Theory to Practice:

    Guidelines for Motivating Employees

    Recognize individual

    differences

    Match people to jobs

    Use goals

    Ensure that goals are

    perceived as attainable

    Individualize rewards

    Link rewards to

    performance

    Check the system for

    equity

    Use recognition

    Dont ignore money