Management Part IV: Leading Ch. 12. Motivation Dan C. Lungescu, PhD, assistant professor 2015-2016
Course outline Management Part I: Introduction Part II: Planning Part III: Organizing Part IV: Leading Part V: Controlling
Part IV outline Management Part IV: Leading Ch. 12. Motivation Ch. 13. Leadership Ch. 14. Communication Ch. 15. Managing groups
Learning objectives After studying this chapter, you should: Define motivation, discuss its basic properties, and distinguish it from performance. Compare and contrast intrinsic and extrinsic motivation. Explain and discuss the different factors that predict performance and define general cognitive ability and emotional intelligence. Explain and discuss need theories of motivation. Explain and discuss equity theory and expectancy theory. Discuss the major aspects of motivation in practice.
Chapter 12 outline A. The nature of motivation B. Need theories of motivation C. Process theories of motivation D. Motivation in practice
A. The nature of motivation Motivation The force that energizes behavior, gives direction to behavior, and underlies the tendency to persist. Motivation The extent to which persistent effort is directed toward a goal. 1. Intrinsic motivation Motivation that stems from the direct relationship between the worker and the task; it is usually self-applied. 2. Extrinsic motivation Motivation that stems from the work environment external to the task; it is usually applied by others. Outline» A. The nature of motivation
Motivation and performance Amount of effort Persistence of effort Direction of effort Performance The extent to which an organizational member contributes to achieving the objectives of the organization. Motivation Personality Task understanding Chance Performance General cognitive ability Emotional intelligence General cognitive ability A person s basic information processing capacities and cognitive resources. Emotional intelligence The ability to understand and manage one s own and others feelings and emotions. Outline» A. The nature of motivation» Motivation and performance
The motivating process Needs Effort/action/behavior Performance? Instrumentality Rewards Satisfaction Outline» A. The nature of motivation» The motivating process
Management and motivation Needs Effort/action/behavior Performance Rewards Satisfaction In order to be able to motivate their employees, managers must know: 1. What rewards to provide. 2. How to give those rewards, on the basis of employees performances. Accordingly, two types of theories: 1. Need theories. 2. Process theories. Importance of needs One can get motivated only if he/she has pressing needs. Motivation is not satisfaction Motivating people does not mean fulfilling their needs, but getting their effort (action/behavior). Outline» A. The nature of motivation» Management and motivation
B. Need theories of motivation Need theories (content theories) Motivation theories that specify the kinds of needs people have and the conditions under which they will be motivated to satisfy these needs in a way that contributes to performance. The most important: I. David McClelland s Acquired-needs theory II. Abraham Maslow s Hierarchy of needs III. Clayton Alderfer s ERG theory IV. Frederick Herzberg s Two factor theory Outline» B. Need theories of motivation
I. Acquired-needs theory Acquired-needs theory A nonhierarchical need theory of motivation that outlines the conditions under which certain needs result in particular patterns of motivation. There are 3 needs with special relevance for management: Need for affiliation (naff) A strong desire to establish and maintain friendly, compatible interpersonal relationships. Need for power (npow) A strong desire to influence others, making a significant impact or impression. Need for achievement (nach) A strong desire to perform challenging tasks well. Outline» B. Need theories of motivation» I. Acquired-needs theory [David MaClelland]
II. Hierarchy of needs The hierarchy of needs A five-level hierarchical need theory of motivation that specifies that the lowest-level unsatisfied need has the greatest motivating potential. 3 assumptions about human nature 1. Human beings have needs that are never completely satisfied. 2. Human action is aimed at fulfilling the needs that are unsatisfied at a given point in time. 3. Needs fit into a somewhat predictable hierarchy, ranging from basic to higher-level needs. None of the needs is a best motivator; motivation depends on the person s position in the need hierarchy. Outline» B. Need theories of motivation» II. Hierarchy of needs [Abraham Maslow]
Hierarchy of needs (2) Selfactualization Esteem Belongingness Safety Physiological 5. Self-actualization needs Needs that pertain to the requirement of developing our capabilities and reaching our full potential. 4. Esteem needs Needs related to the two-pronged desire to have a positive self-image and to have our contributions valuated and appreciated by others. 3. Belongingness needs Needs that involve the desire to affiliate with and be accepted by others. 2. Safety needs Needs that pertain to the desire to feel safe, secure, and free from threats to our existence. 1. Physiological needs Needs that pertain to the way the organism is functioning. Outline» B. Need theories of motivation» II. Hierarchy of needs [Abraham Maslow] (2)
Hierarchy of needs (3) Selfactualization Esteem Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts. Self-esteem, confidence, achievement, respect of others, respect by others. Belongingness Safety Physiological Friendship, family, sexual intimacy. Security of: body, employment, resources, morality, the family, health, property. Breating, food, water, sex, sleep, homeostasis, excretion. Outline» B. Need theories of motivation» II. Hierarchy of needs [Abraham Maslow] (3)
III. ERG theory ERG theory A three-level hierarchical need theory of motivation (existence, relatedness, growth) that allows for movement up and down the hierarchy. Unlike the need hierarchy, ERG theory does not assume that a lower-level need must be gratified before a less concrete need becomes operative. ERG theory assumes that if the higher-level needs are ungratified, individuals will increase their desire for the gratification of lower-level needs. Outline» B. Need theories of motivation» III. ERG theory [Clayton Alderfer]
ERG theory (2) Self-actualization Growth Esteem Belongingness Relatedness Safety Physiological Existence Outline» B. Need theories of motivation» III. ERG theory [Clayton Alderfer] (2)
IV. Two factor theory 2 types of factors are able to fulfill the needs: 1. Motivator factors Factors that increase satisfaction: achievement, recognition, work itself, responsibility, promotion, growth etc. 2. Hygiene factors Factors that decrease dissatisfaction: pay and benefits, company policy and administration, relationships with co-workers, physical environment, supervision, job security etc. Outline» B. Need theories of motivation» IV. Two factor theory [Frederick Herzberg]
Two factor theory (2) selfactualization esteem belongingness safety physiological motivators hygiene factors satisfying not satisfying increase motivation decrease motivation Outline» B. Need theories of motivation» IV. Two factor theory [Frederick Herzberg] (2)
C. Process theories of motivation Process theories of work motivation Motivation theories that specify the details of how motivation occurs. The most important: I. John Stacey Adams s Equity theory II. Victor Vroom s Expectancy theory III. Edwin A. Locke s Goal-setting theory [see Chapter 5, B] Outline» C. Process theories of motivation
I. Equity theory my outcomes my inputs = ohters' outcomes others'inputs Needs Effort/action/behavior Performance Real equity: my reward my performance = ohters'reward others'performance Rewards Satisfaction Perceived equity: my reward my effort = ohters'reward others' effort Outline» C. Process theories of motivation» I. Equity theory [John Stacey Adams]
Equity theory: different situations my outcomes my inputs = ohters' outcomes others' inputs 100 120 100 80 = = 50 60 50 40 my outcomes my inputs > ohters' outcomes others' inputs 100 50 100 > 60 120 50 100 > 50 my outcomes my inputs < ohters' outcomes others' inputs 100 50 100 < 40 80 50 100 < 50 Outline» C. Process theories of motivation» I. Equity theory [John Stacey Adams]: Situations
II. Expectancy theory Expectancy theory A process theory that states that motivation is determined by the outcomes that people expect to occur as a result of their actions on the job. Outcomes Consequences that follow work behavior: 1. First-level outcomes = performances. 2. Second-level outcomes = rewards. Force The effort directed toward a first-level outcome. The purpose of this theory: to find out what is influencing this force. Outline» C. Process theories of motivation» II. Expectancy theory [Victor Vroom]
Expectancy theory (2) Force Valence of performance Valence Needs Effort/action/behavior Performance Instrumentality Rewards Satisfaction Valence The expected value of rewards; the extent to which they are attractive or unattractive. Valence of a performance The extent to which a performance is attractive. V (P) = ( I V ) Instrumentality The probability that a particular performance will be followed by a particular reward. Outline» C. Process theories of motivation» II. Expectancy theory [Victor Vroom] (2)
Expectancy theory (3) Force Valence of performance Valence Needs Effort/action/behavior Expectancy Performance Instrumentality Rewards Expectancy The probability that a particular first-level outcome can be achieved. Satisfaction F (E) = E V (P) F (E) = E ( I V ) V (P) = ( I V ) F (E) = ( E I V ) Outline» C. Process theories of motivation» II. Expectancy theory [Victor Vroom] (3)
Expectancy theory: example Force:? 0.6 0.9 0.2 0.8 High performance Average performance 0.3 0.6 0.1 0.2 Promotion Salary increase Promotion Salary increase 9 7 9 7 V (HP) = 0.3 9 + 0.6 7 = 0.69 V (AP) = 0.1 9 + 0.2 7 = 0.23 F (HP) = 0.6 0.69 = 0.414 F (AP) = 0.9 0.23 = 0.207 F (HP) = 0.2 0.69 = 0.138 F (AP) = 0.8 0.23 = 0.184 High performance is more attractive. This one will choose to make the effort needed for a HP. This one will choose to NOT make the effort needed for a HP. Outline» C. Process theories of motivation» II. Expectancy theory [Victor Vroom]: Example
D. Motivation in practice The major approaches: I. Money as a motivator II. Job design as a motivator III. Management by objectives [see Chapter 5, F] IV. Alternative work schedules as motivators Outline» D. Motivation in practice
I. Money as a motivator Piece-rate A pay system in which individual workers are paid a certain sum of money for each unit of production completed. Wage incentive plans Various systems that link pay to performance on production jobs. Potential problems with wage incentives Lowered quality. Differential opportunity. Reduced cooperation. Incompatible job design. Restriction of productivity. Outline» D. Motivation in practice» I. Money as a motivator
II. Job design as a motivator Approaches to job design: Job enrichment Making jobs meaningful, interesting, and challenging. Job enlargement Adding more tasks to the job for variety. Job rotation Doing different jobs for variety. Socio-technical approach Balancing the social and technical aspects of the job. Job engineering Concentrates on the efficiency of the job through time and motion analysis and person-machine interfaces. Goal setting Building goals, feedback, and incentives into the structure of the job. Outline» D. Motivation in practice» II. Job design as a motivator
Job enrichment Herzberg's Two-factor theory» in order to motivate personnel, the job must be designed to provide opportunities for achievement, responsibility, advancement. Jobs should be designed to: Include a greater variety of work content Require a higher level of knowledge and skill Give workers more autonomy and responsibility Provide the opportunity for personal growth Provide the opportunity for a meaningful work experience Two major approaches to job enrichment: a. Job dimensions b. Job characteristics Outline» D. Motivation in practice» II. Job design as a motivator» Job enrichment
a. Job dimensions much High motivation autonomy little little variety much Outline» D. Motivation in practice» II. Job design» Job enrichment» a. Job dimensions
b. Job characteristics Skill variety The extent to which the job entails a number of activities that require different skills. Task identity The degree to which the job allows the completion of a major identifiable piece of work, rather than just a fragment. Task significance The extent to which the worker sees the job output as having an important impact on others. Autonomy The amount of discretion allowed in determining schedules and work methods for achieving the required output. Feedback The degree to which the job provides for clear, timely information about performance results. Outline» D. Motivation in practice» II. Job design» Job enrichment» b. Job characteristics
Job characteristics (2) Core job characteristics 1. Variety of skills 2. Identity of the task 3. Significance of the task 4. Autonomy 5. Feedback Critical psychological states Experienced meaningfulness of the work Experienced responsability for work outcomes Knowledge of results from work activities Personal and work outcomes high internal work motivation high quality work performance high satisfaction with the work low turnover and absenteeism SV + TI+ TS MP = A F 3 Moderated by employee growth need strength Outline» D. Motivation in practice» II. Job design» Job enrichment» b. Job characteristics (2)
Dan C. Lungescu, PhD, assistant professor 2015-2016