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John W. Slocum, Jr.

Susan E. Jackson
Don Hellriegel

COMPETENCY-BASED
MANAGEMENT
11th Edition

Motivating Employees
Prepared by
Argie Butler
Texas A&M University
Learning Goals

1. Describe four approaches that can be used to explain


employee motivation and satisfaction
2. Explain how managers can use goals and rewards to
improve performance
3. Describe how jobs can be designed to be motivational
and satisfying

(continued)
Chapter 14: PowerPoint 14.1
Learning Goals (cont’d)

4. State how the organization context affects motivation


and satisfaction
5. Describe how the needs of individuals can affect their
work
6. Describe how understanding motivation can help
managers improve employee performance and
satisfaction

Chapter 14: PowerPoint 14.2


 Motivation: a psychological state that
exists whenever internal and/or external
forces stimulate, direct, or maintain
behaviors

 Satisfaction: a psychological state that


indicates how people feel about their
situation, based on their evaluation of
the situation
Chapter 14: PowerPoint 14.3
Manager
Behavior Consequences for employers
and employees
Job
Design  Improved individual and
Employee Motivation team performance
Employee Satisfaction
Organization  Satisfied customers
Context  High morale
 Reduced turnover
Individual
Differences

Chapter 14: PowerPoint 14.4 (Adapted from Figure 14.1)


Practical actions by managers to enhance motivation
1. Inspire employees through one-on-one communication
2. Set specific and challenging goals that employees
accept and will strive to achieve
3. Provide employees with praise, recognition, or other
rewards

Chapter 14: PowerPoint 14.5


Goals Goals
 Specific  Directs attention
 Difficult  Energizes Performance
 Accepted  Encourages
persistency
 New strategies
developed

Feedback

Chapter 14: PowerPoint 14.6 (Adapted from Figure 14.2)


Pitfalls Possible Solutions
 Focusing on performance  Include goals that recognize
may reduce learning the importance of learning
as well as maximizing
performance
 Employees may feel stressed  Be sure employees have the
training and resources they
need to achieve their goals
 Individual goals may create  Establish group goals and a
conflict among members of shared vision
a team
(continued)
Chapter 14: PowerPoint 14.7 (Adapted from Table 14.1)
Pitfalls Possible Solutions
 People may be tempted to  Put proper controls in place
cheat, especially if they are
 Establish a culture that
close to achieving their goals
values ethical behavior
but expect to ultimately fail
 Focusing on goals may  Set goals for all important
mean some other aspects of aspects of performance
performance are ignored

Chapter 14: PowerPoint 14.8 (Adapted from Table 14.1)


Managerial Approach: How Goals
Work

 Goals help direct the attention of employees toward


the most important work activities and away from
irrelevant tasks
 Goals energize employees to exert more effort when
accepted

 Goals encourage employees to persist in their work


efforts

 Accepted goals motivate employees to think about


alternative strategies for achieving them

Chapter 14: PowerPoint 14.9


Managerial Approach: Offering
Incentives and Rewards

 Reinforcement theory: behavior is a function


of its consequences

 Focuses on changing behaviors

 Behavior modification: using the principles


of reinforcement theory to modify employee
behaviors (actions)
 Positive reinforcement: increases the likelihood that
a behavior will be repeated by creating a pleasant
consequence after the behavior occurs
Chapter 14: PowerPoint 14.10
 Punishment: creating a negative consequence to
discourage a behavior whenever it occurs

 Extinction: the absence of any consequence—either


positive reinforcement or punishment—following
the occurrence of a behavior

 Negative reinforcement: employees engage in a


behavior in anticipation of avoiding unpleasant
consequences in the future
 Actions serve to avoid unpleasant results
 Causes the behavior to be repeated

Chapter 14: PowerPoint 14.11


“The problem with reward and
recognition as it’s typically done is that it tends
to violate everything that we know about positive
reinforcement from a scientific perspective…Much of
[what managers do] is based on their own personal
experiences rather than any systematic ways of
approaching them to sort out fact from fiction.”

Aubrey Daniels, Founder, Aubrey Daniels International


Chapter 14: PowerPoint 14.12
Likelihood of
Response of
Consequence Behavior X in a
Stimulus Employee
for Employee Similar Future
(Behavior X)
Situation
Employee Experiences
a Reward Increases
(Positive Reinforcement)
or
Employee Avoids a
Negative Consequence Increases
Employee
A Situation (Negative Reinforcement)
Reacts By or
Experienced
Exhibiting Employee Experiences a
By Employee
Behavior X Negative Consequence Decreases
(Punishment)
or
Employee Experiences
No Consequences Decreases
(Extinction)
Chapter 14: PowerPoint 14.13 (Adapted from Figure 14.3)
 Expectancy theory: people tend to choose behaviors
that they believe will help them achieve their personal
goals (e.g., a promotion or job security) and avoid
behaviors that they believe will lead to undesirable
personal consequences (e.g., a demotion or criticism)

 Emphasizes the initial decision to engage in a


behavior

 Emphasizes personal goals of employees

Chapter 14: PowerPoint 14.14


 Expectancy: person’s estimate of how likely a certain
level of effort will lead to the intended behavior or
performance result
 Expectancy question: If I make an effort, will
I be able to perform the behavior?
 Instrumentality: a person’s perception of how useful
the intended behavior or performance is for obtaining
desired outcomes (or avoiding undesired outcomes)
 Instrumentality question: If I perform the
behavior, what will be the consequences?
 Valence: the value (weight) that an employee attaches
to a consequence
 Valence question: How much do I value the
consequences associated with the behavior?
Chapter 14: PowerPoint 14.15 (continued)
Expectancy Question: Instrumentality
If I make an effort, Question:
will I be able to If I perform the
Obtain desired
perform the behavior? behavior, what will
outcomes (e.g.,
be the consequences?
rewards,
recognition, pride)
?
Effort Performance ?
Receive undesirable
outcomes (e.g.,
punishment,
ridicule, shame)
Valence Question:
How much do I value the ?
consequences associated
with the behavior?
Chapter 14: PowerPoint 14.16 (Adapted from Figure 14.4)
Job Design Approach to Employee
Satisfaction and Motivation

Job characteristics theory: employees are


more satisfied and motivated when their jobs
are meaningful, when jobs create a feeling of
responsibility, and when jobs are designed
to ensure that some feedback is available

Chapter 14: PowerPoint 14.17 (continued)


Job Design Approach to Employee
Satisfaction and Motivation (cont’d)

Critical Psychological States


 Experienced meaningfulness: whether employees
perceive their work as valuable and worthwhile

 Experienced responsibility: whether employees


feel personally responsible for the quantity and
quality of their work

 Knowledge of results: extent to which employees


receive feedback about how well they are doing

Chapter 14: PowerPoint 14.18


 Key job characteristics: objective aspects of the
job design that can be changed to improve the
critical psychological states
 Skill variety: degree to which the job involves
many different work activities or requires several
skills and talents
 Task identity: the job involves completing an
identifiable piece of work, that is, doing a job
with a clear beginning and outcome
 Task significance: the job has a substantial impact
on the goals or work of others in the company

Chapter 14: PowerPoint 14.19 (continued)


 Key job characteristics: (cont’d)
 Autonomy: the job provides substantial freedom,
independence, and discretion in scheduling work and
determining the procedures to be used in carrying
out tasks
 Feedback: the outcome provides direct and clear
information to employees about their performance

 Growth need strength: the degree of desire for


personal challenge, accomplishment, and
learning
(continued)
Chapter 14: PowerPoint 14.20
Five Job Characteristics
 Skill variety
 Task Identity  Autonomy  Feedback
 Task significance
Growth Need Strength

Three Critical Psychological States


 Experienced  Experienced  Knowledge of
meaningfulness responsibility for actual work
of work work outcomes results

Personal and Work Outcomes


 High internal  High-quality  High  Low
work work satisfaction absenteeism and
motivation performance with the work turnover
Chapter 14: PowerPoint 14.21 (Adapted from Figure 14.6)
 Two-factor theory: two separate and distinct aspects
of the work context are responsible for motivating
and satisfying employees

 Hygiene factors: the non-task characteristics of


the work environment—the organizational
context—that create dissatisfaction

 Motivator factors: aspects of the organizational


context that create positive feelings among
employees

Chapter 14: PowerPoint 14.22


High Motivation

No Motivation and
No Dissatisfaction

Dissatisfaction
Low High Low High
Hygienes Motivators
Chapter 14: PowerPoint 14.23 (Adapted from Figure 14.7)
Organizational Approach: Two-Factor
Theory

 Hygiene factors
 Absence of dissatisfaction is an essential, but not
sufficient, condition for creating a motivated
workforce
 Help create work setting that makes it possible
to motivate employees

 Motivator factors
 Presence results in employees who feel excited
and committed to their work
Chapter 14: PowerPoint 14.24
Organizational Approach: Treating
People Fairly

 Equity theory: employees judge whether they’ve been


treated fairly by comparing the ratio of their outcomes
and inputs to the ratios of others doing similar work

 Inputs: what an employee gives to the job (e.g., time,


effort, education, and commitment to the organization)
 Outcomes: what an employee gets out of doing the job
(e.g., the feelings of meaningfulness and responsibility
associated with the job, promotions, and increased pay)

Chapter 14: PowerPoint 14.25


Organizational Approach: Equity
Theory—Examples of Equity Perceptions

Andy’s Ally’s
Equity Equity
Andy Ally Comparison Perception Perception

Situation A Outcome: Outcome: $500/50 = Equitable Equitable


$500 $800 $800/80 =
Input: 50 Input: 80 $10/hour
hours work hours work

Situation B Outcome: Outcome: $500/50 > Feels Feels


$500 $500 $500/60 over- under-
Input: 50 Input: 60 rewarded rewarded
hours work hours work (inequitable) (inequitable)

Chapter 14: PowerPoint 14.26 (Adapted from Table 14.3)


Organizational Approach: Equity Theory—
Possible Reactions to Perceived Inequity

 Increase outputs

 Decrease outputs
 Change compensation (outcome) through
legal or other actions
 Modify comparison by choosing another
person or group to evaluate oneself against
 Distort reality by rationalizing that the
inequities are justified

 Leave the situation (quit job)


Chapter 14: PowerPoint 14.27
 Need: feeling of deficiency in some aspect of a
person’s life that creates an uncomfortable
tension
Tension becomes a motivating force

 Hierarchy of needs: describes the order in


which people seek to satisfy their desires
Satisfying the bottom level hierarchy
comes first
Chapter 14: PowerPoint 14.28
 Physiological needs: food, clothing, and shelter,
which people try to satisfy before all others
(Most basic level)

 Security needs: desire for safety and stability,


and the absence of pain, threat, and illness

 Affiliation needs: desire for friendship, love,


and belonging

(continued)
Chapter 14: PowerPoint 14.29
 Esteem needs: desire for self-respect, a sense
of personal achievement, and recognition
from others

 Self-actualization needs: desire for personal


growth, self-fulfillment, and the realization
of the individual’s full potential

Chapter 14: PowerPoint 14.30


 Moving Up
 Satisfaction-progression hypothesis: a need
motivates until it becomes satisfied
 Until basic needs are satisfied, people won’t be
concerned with higher level needs

 Moving Down
 Frustration-regression hypothesis: when an
individual is frustrated in meeting higher level
needs, the next lower level needs reemerge and
again direct behavior
Chapter 14: PowerPoint 14.31
Self-
Actualization

Esteem

Affiliation

Security

Physiological
Chapter 14: PowerPoint 14.32 (Adapted from Figure 14.8)
 Clearly communicate the organization’s mission
to employees and explain how their contribution
to the organization will help the organization
realize its mission
 State the behaviors and performance
achievements that are desired and explain
how they will be rewarded
 Design jobs with high motivating potential

 Provide frequent and constructive feedback

Chapter 14: PowerPoint 14.33 (continued)


 Provide rewards for desired behaviors
and outcomes

 Provide rewards that employees value

 Provide equitable rewards

 Recognize that each person is unique

Chapter 14: PowerPoint 14.34