UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning

Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College

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UNIT I – Introduction to Management

UNIT 2 – International Management and Diversity

UNIT 3 – Managerial Ethics andSocial Responsibility

UNIT 4 – Planning as aDecision-Making Activity

UNIT 5 – Domestic and International Issues in Planning

UNIT 6 – Organization – Design and Culture

UNIT 7 – Staffing

UNIT 8 – Communication

UNIT 9 – Direction - Teams and Group Processes

UNIT 10 – Motivation Definitions Content Theories Maslow’s Hierarchy Arndorfer’s Needs Theory McClelland’s Need Theory Hertzberg’s two-factor Theory Process Theories Equity Theory Expectancy Theory Learning Theories

UNIT 11 – Leadership

UNIT 12 – Control

UNIT 13 - POM/MIS/DSS

FOUNDATIONS OF MANAGEMENTUNIT 10 - Motivation

FOUNDATIONS OF MANAGEMENTFall 2008

Reading Assignment

Chapter Nine

Unit Ten


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Individual Differences in Motivation


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Definition

• Motivation = a force which impels one to put forth effort

• Managers must assure that the force directs subordinate’s efforts toward organizational purposes

- Internally derived? - simply hire motivated people

- Externally imposed? - becomes a process of one person influencing another

• Manipulation = external force which directs behavior toward manager’s goals against individual’s will


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The Nature of Motivation

Motivation– The psychological forces that determine

the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence


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• 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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Motivation

EffortEffort PersistencePersistence

DirectionDirection


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Motivation Concerns

• What prompts people to initiate action

• What influences their choice of action

• Why they persist in doing it over time.


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Basics of Motivation

1

Extrinsicand Intrinsic

Rewards

Extrinsicand Intrinsic

Rewards

MotivatingPeople

MotivatingPeople

Effortand

Performance

NeedSatisfaction


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Effort and Performance

Performance

Effort

• Initiation• Direction• Persistence


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Effort and Performance

• Job performance– how well someone performs the job

• Motivation– effort put forth on the job

• Ability– capability to do the job

• Situational Constraints– external factors affecting performance

Job Performance = Motivation X Ability X Situational Constraints


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The Motivation Equation

Figure 9.1


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Contemporary Approaches

• Content theories stress the analysis of human needs

• Process theories concern the thought processes that influence behavior

• Reinforcement theories focus on employee learning desired work behaviors.


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Content Theories

Emphasize the needs that motivate people.


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Need Theories

• Need – A requirement for survival and well-

being.

• Need Theories– Theories of motivation that focus on

what needs people are trying to satisfy at work and what outcomes will satisfy those needs.

– Basic premise is that people are motivated to obtain outcomes at work to satisfy their needs.


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Need Satisfaction

• Needs– physical or psychological requirements

– must be met to ensure survival and well being

• Unmet needs motivate people

• Three approaches:– Maslow’s Hierarchy of Needs

– McClelland’s Learned Needs Theory


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Maslow’s Hierarchy of Needs

Table 9.1

Self-actualization

Self-actualization

Realize one’s full potential

Realize one’s full potential

Use abilities to the fullest

Use abilities to the fullest

EsteemEsteem Feel good about oneself

Feel good about oneself

Promotions and recognition

Promotions and recognition

BelongingnessBelongingness Social interaction, love

Social interaction, love

Interpersonal relations, parties

Interpersonal relations, parties

SafetySafety Security, stabilitySecurity, stability Job security, health insurance

Job security, health insurance

PhysiologicalPhysiological Food, water, shelter

Food, water, shelter

Basic pay level to buy items

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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Maslow’s Hierarchy of Needs

EsteemEsteem

BelongingnessBelongingness

Safety Safety

PhysiologicalPhysiological

Self-ActualizationSelf-Actualization

1.2


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McClelland’s Needs for Achievement,Affiliation, and Power

Need for Achievement– A strong desire to perform challenging

tasks well and meet personal standards for excellence

Need for Affiliation– Extent to which an individual is concerned about

establishing and maintaining good interpersonal relations, being liked, and having the people around him get along with each other

Need for Power– Extent to which an individual desires to control or

influence others

McClelland’s Learned Needs Theory


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McClelland’s Learned Needs Theory

AchievementAchievement

AffiliationAffiliation

PowerPower

1.2


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Needs Classification

McClelland’sLearned Needs

Maslow’sHierarchy

Higher-Order Needs

Lower-Order Needs

Self-ActualizationEsteemBelongingness

SafetyPhysiological

PowerAchievementAffiliation


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Adding Need Satisfaction to the Model

PerformancePerformance

EffortEffort


UnsatisfiedUnsatisfiedneedneed TensionTension Energized toEnergized to

take actiontake action

SatisfactionSatisfaction


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Answer These Questions:

Describe a time when you were extremely dissatisfied or turned off by your job

Describe a time when you were extremely satisfied or turned on by your job.


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• Extrinsically Motivated Behavior– Behavior that is performed to acquire

material or social rewards or to avoid punishment.

• Intrinsically Motivated Behavior– Behavior that is performed for its own

sake.


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Extrinsic and Intrinsic Rewards

• Extrinsic Rewards are given by another person, often a manager. – tangible and visible to others– given contingent on performance

• Intrinsic Rewards are received as a direct consequence of a person's actions– natural rewards– associated with performing the task

for its own sake


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Herzberg’s Motivation-Hygiene Theory

Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.– Motivator needs relate to the nature of the

work itself and how challenging it is– Hygiene needs are related to the physical

and psychological context in which the work is performed


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Herzberg’s Two Factors

Hygiene FactorsCompany policy and

administrationSupervision Interpersonal

relationshipsWorking conditionsSalaryJob status and

security.

Motivating Factors Achievement Recognition Work itself Responsibility Advancement Growth.


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Herzberg’s Findings

010 1020 20 30304050 40 50

Achievement

Recognition

Work itself

Responsibility

AdvancementGrowth

Company Policy & Administration

Supervision

Relationship with supervisor

Work conditionsSalary


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Adding Rewards to the Model

EffortEffort




PerformancePerformanceSatisfactionSatisfaction

ExtrinsicExtrinsicRewardsRewards

IntrinsicIntrinsicRewardsRewards


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Motivating with the Basics

Ask people what their needs are

Satisfy lower-order needs first

Expect people’s needs to change

Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards


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Process Theories

Explain the steps and procedures employees use to select behaviors with which to meet their needs and determine if their choices were successful.


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Equity Theory

Componentsof

Equity Theory

Reaction toPerceivedInequity

MotivatingPeople UsingEquity Theory


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Equity Theory

• Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.


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Equity Theory

• Equity– Justice, impartiality, and fairness to

which all organizational members are entitled

• Inequity– Lack of fairness


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Equity Theory• Inputs

– employee contributions to the organization

• Outcomes– rewards employees receive from the

organization

• Referents– comparison others

• Outcome/input (O/I) ratio

Outcomesself

Inputsself

Outcomesother

Inputsother

=


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Inequity• When a person’s O/I ratio differs

from their referent’s O/I ratio• Underreward

– referent’s O/I ratio is greater than yours

– experience anger or frustration

• Overreward– referent’s O/I ratio is less than yours– experience guilt


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How People React to Perceived Inequity

• Reduce inputs

• Increase outcomes

• Rationalize inputs or outcomes

• Change the referent

• Leave


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Adding Equity Theory to the Model EffortEffort• Initiation• Direction• Persistence



PerformancePerformanceSatisfactionSatisfaction

ExtrinsicExtrinsicRewardsRewards

IntrinsicIntrinsicRewardsRewards

Perceived Equity/Inequity


Restoring Equity• Decrease inputs• Increase outcomes• Rationalize inputs or

outcomes• Change the referent• Leave


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Motivating with Equity Theory

Look for and correct major inequities Reduce employees’ inputs Make sure decision-making processes

are fair– distributive justice– procedural justice


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Expectancy Theory

Motivating withExpectancy

Theory

Motivating withExpectancy

Theory

Components ofExpectancy

Theory


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Components of Expectancy Theory

ValenceValence

ExpectancyExpectancy

InstrumentalityInstrumentality


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Expectancy Theory

Motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards.


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Expectancy, Instrumentality, and Valence


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Expectancy Theory


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Victor Vroom’s Expectancy Theory

M = (E P) x (P O) x V


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M = (E P) x (P O) x V

M = Motivation (force to put forth effort)



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M = (E P) x (P O) x V


E P means effort leads to performance (Expectancy)



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M = (E P) x (P O) x V



P O means performance leads to outcomes (Instrumentality)



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M = (E P) x (P O) x V



P O means performance leads to outcomes (Instrumentality)

V = Valence - the value placed on the outcome.



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Adding Expectancy Theory to the Model

Restoring Equity• Decrease inputs• Increase outcomes• Rationalize inputs or

outcomes• Change the referent• Leave

Effort• Initiation• Direction• Persistence

Unsatisfiedneed

TensionEnergized totake action

Performance



Satisfaction

ExtrinsicRewards

IntrinsicRewards

Instrumentality

Valence

Expectancy


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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 of desired outcomes.


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• Systematically gather information to find out what employees want from their jobs

• Clearly link rewards to individual performance

• Empower employees to make decisions which enhance expectancy perceptions

Expectancy Theory


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Goal Setting Theory

• Focuses on identifying the types of goals that are effective in producing high levels of motivation and explaining why goals have these effects.


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Goal-Setting Theory

Motivating withGoal-Setting

Theory

Motivating withGoal-Setting

Theory

Components ofGoal-Setting

Theory


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Goal-Setting Theory• Goal Specificity

– the clarity of goals

• Goal Difficulty– how challenging goals are

• Goal Acceptance– how well goals are agreed to or

understood

• Performance Feedback– information on goal progress


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Adding GOAL Theory to the Model

Restoring Equity• Decrease inputs• Increase

outcomes• Rationalize inputs

or outcomes• Change the

referent• Leave

Effort


Unsatisfiedneed


Performance



Satisfaction

ExtrinsicRewards

IntrinsicRewards

Instrumentality Valence

Expectancy

Goals


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Motivating with Goal-Setting Theory

Assign specific, challenging goalsMake sure workers truly accept

organizational goalsProvide frequent, specific

performance-related feedback


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Learning Theory

Operant Conditioning


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Learning Theories

Theories that focus on increasing employee motivation and performance by linking outcomes that employees receive to the performance of desired behaviors and the attainment of goals

Based on Thorndike’s Law of Effect

Behavior that is rewarded tends to be repeated; Behavior that is ignored or punished tends not to be repeated


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Learning Theories

Learning– A relatively permanent change in

person’s knowledge or behavior that results from practice or experience.


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Operant Conditioning Theory

Operant Conditioning– People learn to perform behaviors

that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.


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LEARNING Theory

Componentsof

LearningTheory

Componentsof

LearningTheory

Schedules forDelivering

Reinforcement

Schedules forDelivering

Reinforcement

Motivating withLearningTheory

Motivating withLearningTheory


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S - R - O RelationshipS = StimulusR = ResponseO = Outcome

S OR

Learned Future Behavior


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Reinforcement Relationship between behavior and its

consequences Reinforcement = anything that increases

the relationship between a given stimulus and a particular response

Leads to the modification of employees' on-the-job behaviors through the appropriate use of immediate rewards and punishments.


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Reinforcement Tools

Behavior modification = reinforcement techniques to modify behavior

Positive reinforcement = pleasant consequence following a desired behavior

Negative reinforcement = withholding unpleasant consequence strengthens behavior

Avoidance learning = removal of an unpleasant consequence following a desired behavior (also called a negative reward).

Punishment = unpleasant outcomes Extinction = withdrawal of positive reward.


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Schedules of Reinforcement Continuous Reinforcement - Schedule

reinforces every occurrence of the desired behavior.

Fixed-Interval Schedule - Rewards employees at specified time intervals. (regular paycheck).

Fixed-Ratio Schedule - Reinforcement occurs after a specified number of desired responses, such as after every fifth event. (piece-rate pay systems)

Variable-Interval Schedule - Reinforcement is administered at random times that cannot be predicted by the employee. (Random inspection followed by praise)

Variable-Ratio Schedule - Random number of desired behaviors rather than on variable time periods. (Slot machine)


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Adding Reinforcement Theory to the Model

Restoring Equity• Decrease inputs• Increase

outcomes• Rationalize

inputs or outcomes

• Change the referent

• Leave

Effort


Unsatisfiedneed


Performance



Satisfaction

ExtrinsicRewards

IntrinsicRewards

Instrumentality Valence

Expectancy

Reinforcement ContingenciesSchedules of

Reinforcement

Goals


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Motivating with Reinforcement Theory Identify, measure, analyze,

intervene, and evaluateDon’t reinforce the wrong behaviorCorrectly administer punishment at

the appropriate timeChoose the simplest and most

effective schedule of reinforcement


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Pay and Motivation

Pay as a Motivator– Expectancy: Instrumentality, the association

between performance and outcomes, must be high for motivation to be high.

– Need Theory: pay is used to satisfy many needs.

– Equity Theory: pay is given in relation to inputs.

– Goal Setting Theory: pay is linked to attainment of goals.

– Learning Theory: outcomes (pay), is distributed upon performance of functional behaviors.


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Social Learning Theory

A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior.


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Social Learning Theory

Vicarious Learning (Observational Learning)– Learning that occurs when a learner

is motivated to perform a behavior by watching another person perform and be reinforced for doing so


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Motivating with the Integrated Model





Motivating with Expectancy Theory

Motivating with Expectancy Theory

Motivating with Reinforcement

Theory

Motivating with Reinforcement

Theory




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FOUNDATIONS OF MANAGEMENTFall 2008 - The End

Dr. Eliot S. Elfner

Professor of Business Administration

St. Norbert College

Documents

UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning