Chapter 4: Theories of Motivation

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1 Chapter 4: Theories of Motivation Organizational Behaviour 5 th Canadian Edition Langton / Robbins / Judge Copyright 2010 Pearson Education Canada 4-1

2 Chapter Outline What Is Motivation? Needs Theories of Motivation Process Theories of Motivation Responses to the Reward System Motivating Employees Through Reinforcement Motivation for Whom? 4-2

3 Theories of Motivation 1. What is motivation? 2. How do needs motivate people? 3. Are there other ways to motivate people? 4. Do equity and fairness matter? 5. What role does reinforcement play in motivation? 6. What are the ethics behind motivation theories? 4-3

4 What Is Motivation? Motivation The intensity, direction, and persistence of effort a person shows in reaching a goal: Intensity: How hard a person tries Direction: Where effort is channelled Persistence: How long effort is maintained 4-4

5 Theory X and Theory Y Theory X Assumptions Theory Y Assumptions Employees dislike work Employees like to work Employees attempt to avoid work Employees are creative, and seek responsibility Employees must be coerced, controlled, or threatened with punishment if they are to perform. Employees can exercise self-direction and selfcontrol. 4-5

6 Motivators Intrinsic Motivators A person s internal desire to do something interest, challenge, and personal satisfaction Extrinsic Motivators Motivation that comes from outside the person pay, bonuses, and other tangible rewards 4-6

7 Needs Theories of Motivation Basic idea Individuals have needs that, when unsatisfied, will result in motivation Maslow s Hierarchy of Needs Theory. Motivation-Hygiene Theory ERG Theory McClelland s Theory of Needs 4-7

8 Maslow s Hierarchy of Needs Physiological Includes hunger, thirst, shelter, sex, and other bodily needs Safety Includes security and protection from physical & emotional harm Social Includes affection, belongingness, acceptance, and friendship Esteem Includes internal esteem factors: self-respect, autonomy, and achievement Includes external esteem factors: status, recognition, and attention Self-actualization The drive to become what one is capable of becoming Includes growth, achieving one s potential, and self-fulfillment 4-8

9 Exhibit 4-1 Maslow s Hierarchy of Needs Self- actualization Esteem Social Safety Physiological 4-9

10 Alderfer s ERG Theory Existence Concerned with providing basic material existence requirements. Relatedness Desire for maintaining important interpersonal relationships. Growth Intrinsic desire for personal development. 4-10

11 Herzberg s Motivation-Hygiene Theory Motivators Sources of satisfaction Intrinsic factors (content of work) Hygiene factors Sources of dissatisfaction Extrinsic factors (context of work) Achievement Recognition Challenging, varied, or interesting work Responsibility Advancement Company policy and administration Unhappy relationship with employee s supervisor Poor interpersonal relations with one s peers Poor working conditions 4-11

12 Exhibit 4-2 Comparison of Satisfiers and Dissatisfiers Source: Reprinted by permission of Harvard Business Review. An exhibit from Frederick Herzberg, One More Time: How Do You Motivate Employees? Harvard Business Review 81, no. 1 (January 2003), p. 90. Copyright 1987 by the President and Fellows of Harvard College; all rights reserved. 4-12

13 Exhibit 4-3 Contrasting Views of Satisfaction and Dissatisfaction Traditional view Dissatisfaction Satisfaction Herzberg's view Dissatisfaction Hygiene Factors No Dissatisfaction No Satisfaction Motivators Satisfaction 4-13

14 Criticisms of Motivation-Hygiene Theory Procedure Herzberg used is limited by its methodology. Reliability of Herzberg s methodology is questioned. Herzberg did not really produce a theory of motivation. No overall measure of satisfaction was used. The theory is inconsistent with previous research. 4-14

15 McClelland s Theory of Needs Need for achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for power The need to make others behave in a way that they would not have behaved otherwise Need for affiliation The desire for friendly and close interpersonal relationships 4-15

16 Exhibit 4-4 Relationship of Various Needs Theories Maslow Alderfer Herzberg McClelland Self-Actualization Esteem Growth Motivators Need for Achievement Affiliation Relatedness Need for Power Security Hygiene Factors Need for Affiliation Existence Physiological 4-16

17 Summary: Hierarchy of Needs Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. Herzberg: Motivators lead to satisfaction. Hygiene factors must be met if person is not to be dissatisfied. However, they will not lead to satisfaction. Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases. McClelland: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power. 4-17

18 Summary: Impact of Theory Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time. Alderfer: Seen as a more valid version of the need hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks. McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally. 4-18

19 Summary: Support and Criticism of Theory Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. Herzberg: Not really a theory of motivation: Assumes a link between satisfaction and productivity that was not measured or demonstrated. Alderfer: Ignores situational variables. McClelland: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement. 4-19

20 Process Theories of Motivation Look at the actual process of motivation Expectancy theory Goal-setting theory 4-20

21 Expectancy Theory The theory that individuals act depending on: whether their effort will lead to good performance whether good performance will be followed by a given outcome whether that outcome is attractive to them 4-21

22 Expectancy Relationships The theory focuses on three relationships: Effort-Performance Relationship The perceived probability that exerting a given amount of effort will lead to performance Performance-Reward Relationship The degree to which the individual believes that performing at a particular level will lead to a desired outcome Rewards-Personal Goals Relationship The degree to which organizational rewards satisfy an individual s personal goals or needs and and are attractive to the individual 4-22

23 Exhibit 4-6 How Does Expectancy Theory Work? My professor offers me $1 million if I memorize the textbook by tomorrow morning. Expectancy Instrumentality Valence Effort Performance Link Performance Rewards Link Rewards Personal Goals Link No matter how much effort I put in, probably not possible to memorize the text in 24 hours My professor does not look like someone who has $1 million There are a lot of wonderful things I could do with $1 million E=0 I=0 V=1 Conclusion: Though I value the reward, I will not be motivated to do this task. 4-23

24 Exhibit 4-7 Steps to Increasing Motivation, Using Expectancy Theory Improving Expectancy Improving Instrumentality Improving Valence Improve the ability of the Increase the individual s belief that Make sure that the reward is individual to perform performance will lead to reward meaningful to the individual Make sure employees have skills for the task Observe and recognize performance Deliver rewards as promised Ask employees what rewards they value Provide training Indicate to employees how previous Give rewards that are valued Assign reasonable tasks and goals good performance led to greater rewards 4-24

25 Goal-Setting Theory The theory that specific and difficult goals lead to higher performance. Goals tell an employee what needs to be done and how much effort will need to be expended. Specific goals increase performance. Difficult goals, when accepted, result in higher performance than do easy goals. Feedback leads to higher performance than does non-feedback. Specific hard goals produce a higher level of output than does the generalized goal of do your best. The specificity of the goal itself acts as an internal stimulus. 4-25

26 Management by Objectives A program that encompasses: Specific goals Participative decision-making Explicit time period Performance feedback 4-26

27 How Does Goal Setting Motivate? Goals: Direct attention Regulate effort Increase persistence Encourage the development of strategies and action plans 4-27

28 Goals Should Be SMART For goals to be effective, they should be SMART: Specific Measurable Attainable Results Oriented Time bound 4-28

29 Exhibit 4-8 Locke s Model of Goal Setting Directing attention Goals motivate by... Regulating effort Increasing persistence Task performance Encouraging the development of strategies and action plans Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A. Locke. 4-29

30 Self-Efficacy Theory Self Efficacy also known as social cognitive theory and social learning theory An individual s belief that he or she is capable of performing a task. The higher your self efficacy the more confident you are in your ability to succeed in a task 4-30

31 Four Ways to Improve Self Efficacy Enactive Mastery Gaining relevant experience Vicarious Modelling Confidence gained by seeing someone else perform the task. Verbal Persuasion Confidence gained because someone convinces you that you have the necessary skills to succeed. Arousal An energized state can drive a person to complete the task. 4-31

32 Exhibit 4-9 Joint Efforts of Goals and Self Efficacy on Performance 4-32

33 Equity Theory Responses to the Reward System Fair Process and Treatment Cognitive Evaluation Theory Increasing Intrinsic Motivation 4-33

34 Exhibit 4-10 Equity Theory Ratio of Output to Input Person 1s Perception Person 1 Person 2 Inequity, under-rewarded Person 1 Person 2 Equity Person 1 Person 2 Inequity, over-rewarded 4-34

35 Equity Theory Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive. Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. 4-35

36 Equity Comparisons Self-inside Self-outside Other-inside Other-outside 4-36

37 Responses to Inequity Change their inputs. Adjust perceptions of others. Change their outcomes. Choose a different referent. Adjust perceptions of self. Leave the field. 4-37

38 Equity Theory Propositions When paid by time worked, over-rewarded employees will produce more than will equitably paid employees. When paid by time worked, under-rewarded employees will produce less or poorer-quality output. When paid by number of units produced, over-rewarded employees will produce fewer, but higher-quality, units than will equitably paid employees. When paid by number of units produced, under-rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees. 4-38

39 Fair Process and Treatment Historically, equity theory focused on: Distributive Justice: perceived fairness of the amount and allocation of resources among individuals. Equity is thought of from various standpoints Organizational Justice: an overall perception of what is fair in the workplace. Procedural Justice: perceived fairness of the process used to determine the distribution of rewards. Interactional Justice: the quality of interpersonal treatment from the manager. 4-39

40 Exhibit 4-11 Model of Organizational Justice 4-40

41 Cognitive Evaluation Theory The introduction of extrinsic rewards for work effort that was previously rewarded intrinsically will tend to decrease the overall level of a person s motivation. Intrinsic Motivators A person s internal desire to do something, due to such things as interest, challenge, and personal satisfaction. Extrinsic Motivators Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards. 4-41

42 Research Findings: Cognitive Evaluation Theory A recent outgrowth of Cognitive Evaluation Theory is self concordance, which considers the degree to which people s reasons for pursuing goals is consistent with their interests and core values. OB research suggest that people who pursue work goals for intrinsic reasons are more satisfied with their jobs, feel like they fit into their organization better, and may perform better. 4-42

43 Four Key Rewards to Increase Intrinsic Motivation 1.Sense of choice 2.Sense of competence 3.Sense of meaningfulness 4.Sense of progress Managers can act in ways that will build these intrinsic rewards for their employees. 4-43

44 Motivating Employees Through Reinforcement Skinner suggested that people learn how to behave to get something they want or to avoid something they don t want. This idea is known as operant conditioning. Behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour. 4-44

45 Methods of Shaping Behaviour Positive reinforcement Following a response with something pleasant. Negative reinforcement Following a response by the termination or withdrawal of something unpleasant. Punishment Causing an unpleasant condition in an attempt to eliminate an undesirable behaviour. Extinction Eliminating any reinforcement that is maintaining a behaviour. 4-45

46 Schedules of Reinforcement The two major types of reinforcement schedules are continuous and intermittent. Continuous reinforcement: reinforces desired behaviour each and every time it is demonstrated. Intermittent reinforcement: ratio or interval The individual is reinforced after giving a certain number of specific types of behaviour. The individual is reinforced on the first appropriate behaviour after a particular time has elapsed. 4-46

47 Fixed and Variable Reinforcements A reinforcement can also be classified as fixed or variable. Fixed-interval schedule Variable-interval schedule Fixed-ratio schedule Variable-ratio schedule 4-47

48 Exhibit 4-12 Building Blocks for Intrinsic Rewards Leading for Choice Delegated authority Trust in workers Security (no punishment) for honest mistakes A clear purpose Information Leading for Competence Knowledge Positive feedback Skill recognition Challenge High, non-comparative standards Leading for Meaningfulness A non-cynical climate Clearly identified passions An exciting vision Relevant task purposes Whole tasks Leading for Progress A collaborative climate Milestones Celebrations Access to customers Measurement of improvement Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and Commitment. Copyright K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved

49 Exhibit 4-13 Types of Reinforcement 4-49

50 Exhibit 4-14 Schedules of Reinforcement 4-50

51 Putting It All Together What we know about motivating employees in organizations: Recognize individual differences. Employees have different needs. Don t treat them all alike. Spend the time necessary to understand what s important to each employee. Use goals and feedback. Allow employees to participate in decisions that affect them. Link rewards to performance. Check the system for equity. 4-51

52 Summary and Implications 1. What is Motivation? Motivation is the process that accounts for an individual s intensity, direction, and persistence of effort toward reaching the goal. 2. How do needs motivate people? All needs theories of motivation propose a similar idea: individuals have needs that, when unsatisfied, will result in motivation. 3. Are there other ways to motivate people? Process theories focus on the broader picture of how someone can set about motivating another individual. Process theories include expectancy theory and goal setting theory (and its application, management by objectives). 4-52

53 Summary and Implications 4. Do equity and fairness matter? Individuals look for fairness in the reward system. Rewards should be perceived by employees as related to the inputs they bring to the job. 5. What role does reinforcement play in motivation? B. F. Skinner suggested that behaviour is influenced by whether or not it is reinforced. Managers might consider, then, how their actions towards employees reinforce (or do not reinforce) employee behaviour. 6. What are the ethics behind motivation theories? There is a debate among theorists about whether motivation theories are used for the employees benefit or to just improve productivity. 4-53