Griffin Mgmt12e IM Ch12

Management 12e by Ricky W.
Griffin
CHAPTER 15
Managing Employee Motivation and Performance
CHAPTER SUMMARY
This chapter deals with employee motivation. The text first examines the nature of employee motivation
and then explores the major perspectives on motivation. Newly emerging approaches are then discussed.
The chapter concludes with a description of rewards and their role in motivation.
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Characterize the nature of motivation, including its importance and historical perspectives.
2. Identify and describe the major content perspectives on motivation.
3. Identify and describe the major process perspectives on motivation.
4. Describe reinforcement perspectives on motivation.
5. Identify and describe popular motivational strategies.
6. Describe the role of organizational reward systems in motivation.
MANAGEMENT IN ACTION
Let the Games Begin
In the opening case, Bluewolf, a New York based global consulting agency, decided to incorporate
enterprise gamification into their company. More specifically, Bluewolf wanted social gamification, the
use of games to enhance certain social behaviors, especially sharing. Bluewolf launched a three-part
#GoingSocial program aimed at increasing employee’s use of social media. As a result, blog postings
have increased and there is increased traffic to the company’s website. Bluewolf’s chief marketing
officers says the program gives their employees a megaphone to stream the company’s content to all of
the employee’s social networks.
Discussion Starter: Ask students how they feel about Bluewolf’s #GoingSocial
campaign. Would they relish the idea of a ‘free pass’ to use social media during work
time? Or would they somehow feel ‘used’ as a tool to promote the company?
LECTURE OUTLINE
I. THE NATURE OF MOTIVATION
Motivation is the set of forces that cause people to behave in certain ways.
A. The Importance of Motivation in the Workplace
Individual performance is generally determined by three factors.
1. Motivation is the desire to do the job.
2. Ability is the capability to do the job.
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Chapter 1516: Managing Employee Motivation and Performance
3. The work environment includes the resources needed to do the job.
While the last two can be controlled by the manager, the first cannot. Motivation is important
because of its significance as a determinant of performance and because of its intangible
character.
The motivation framework is a good starting point for understanding how motivated behavior
occurs. The motivation process begins with a need deficiency.
Teaching Tip: Note that motivation reflects behavioral choices—people choose to work
hard, to do just enough to get by, or to do nothing at all.
Teaching Tip: Note the importance of ability and environment, in conjunction with
motivation, as determinants of employee performance. No matter how much most of us
want to be a championship tennis player or golfer, most lack the ability to do so.
Discussion Starter: Ask students to recall instances in which they have done an
exceptionally good job, and then to describe the respective roles of motivation, ability,
and environment in that performance.
B. Historical Perspectives on Motivation
1. The traditional approach to employee motivation is best represented by the work of
Frederick W. Taylor. Taylor advocated an incentive pay system.
His assumptions included managers knew more than workers, economic gain was the
primary motivator, the work is inherently unpleasant and the money is more important
than the job.
Although money is a motivating factor, the traditional approach took too narrow a view
and failed to consider other motivational factors.
Cross-Reference: Note that Frederick Taylor and his scientific management approach
were first introduced in Chapter 2.
Interesting Quote: “If overpaid, many [workers] will work irregularly and tend to
become more or less shiftless, extravagant, and dissipated.” (F.W. Taylor, Shop
Management, Harper & Brothers Publishers, 1911, 27.)
2. The human relations approach emphasizes the role of social processes in the workplace.
The basic assumptions are that employees want to feel useful and important, that
employees have strong social needs, and that these needs are more important than money
in motivating them.
Advocates advised managers to provide employees with the illusion of involvement, a
symbolic gesture, even though no real participation took place.
Extra Example: Carnation Milk used to use the slogan, “Our milk comes from contented
cows.” This slogan essentially mirrors the human relations school of employee behavior.
3. The human resource approach assumes not only that the illusion of involvement is
important, but that workers will be motivated when they provide a real contribution to
both themselves and the organization.
This approach assumes people want to contribute and are able to make genuine
contributions.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 12e by Ricky W. Griffin
Management’s task is to encourage participation and create a work environment that

makes full use of the human resources available.
Extra Example: Recent advances in the use of participation, empowerment, and work
teams in organizations reflect the human resource approach to employee motivation.
II. CONTENT PERSPECTIVES ON MOTIVATION
Content perspectives are approaches to motivation that address the question: What factor or factors
in the workplace motivate people?
A. The Needs Hierarchy Approach
Needs hierarchies assume people have different needs that can be arranged in a hierarchy of
importance. The two best know are Maslow’s hierarchy of needs and the ERG theory.
1. Maslow’s hierarchy of needs states that people are motivated to satisfy five groups of
needs in order:
a) Physiological – food and air.
b) Security – housing or a job.
c) Belongingness – love, affection, and acceptance by one’s peers.
d) Esteem – self-image and self-respect and recognition and respect from others.
e) Self-actualization – continued growth and individual development.
Teaching Tip: Many students will have covered Maslow in other courses (e.g.,
psychology, marketing, etc.). You might consider asking for a show of hands and
skimming or skipping this material if all of your students have already covered it.
Extra Example: Maslow based his theory on research with monkeys, then college
students, and then mental patients.
Group Exercise: Have students work in small groups and identify ways that people
might satisfy each of the five need levels in Maslow’s hierarchy.
Maslow suggested that people will remain at one level until that need is satisfied and
then move up to the next level.
Maslow’s concept of the needs hierarchy has a certain intuitive logic and many managers
accept the theory. But research revealed that five levels of need were not always present
and the order of the levels is not always the same as Maslow defines. In addition, people
from different cultures are likely to have different need categories and hierarchies.
2. The ERG theory of motivation suggests people’s needs are grouped into three possible
overlapping categories – existence, relatedness, and growth.
This theory collapses Maslow’s hierarchy into three levels.

a) Existence needs correspond to the physiological and security needs.
b) Relatedness needs focus on how people relate to their social environment. Maslow
would encompass both the need to belong and the need to earn the esteem of others.
c) Growth needs would include the needs for self-esteem and self-actualization.
There are two main differences from Maslow’s hierarchy. The ERG theory allows more
than one level to cause motivation at the same time, and a person can back down the
hierarchy if he or she becomes frustrated. This is called a frustration-regression element.
Teaching Tip: Stress the similarities and differences between Maslow’s need hierarchy
and the ERG theory.
Discussion Starter: Ask students to critique these two theories and discuss how they, as
future managers, might apply one or the other in a work setting.
B. The Two-Factor Theory
Another popular content perspective is the two-factor theory of motivation which suggests
that people’s satisfaction and dissatisfaction are influenced by two independent sets of factors
– motivation factors and hygiene factors.
Frederick Herzberg developed his theory based on interviews with two hundred accountants
and engineers. The responses indicated that a different set of factors was associated with
satisfaction and with dissatisfaction.
He concluded that satisfaction and dissatisfaction were not at opposite ends of one continuum,
but they were each on a different continuum. Herzberg named the satisfaction continuum
motivation factors and the dissatisfaction continuum hygiene factors.
Herzberg argued there are two stages in the process of motivating employees.
First, managers must ensure the hygiene factors are not deficient. By providing hygiene
factors at an appropriate level, managers do not stimulate motivation.
Managers should move to stage two and give employees opportunity to experience motivation
factors such as achievement and recognition. Herzberg recommended job enrichment.
Although widely accepted, the two-factor theory has its critics. On criticism is the
interpretation and sample size of the initial interviews on which the theory is based.
Cross-Reference: Note that Herzberg’s theory is the basis for job enrichment, an
alternative approach to job design introduced and discussed in Chapter 10.
Discussion Starter: Note that the two-factor theory suggests that people can be satisfied
and dissatisfied at the same time. Ask students whether they accept this premise.
Discussion Starter: Herzberg asserts that pay in and of itself does not motivate
performance. At the same time, pay may be a motivator as a symbol of a person’s worth
or value to an organization. Solicit student opinions about this idea.
C. Individual Human Needs
Individual human needs play a role in motivation as well. The three most important individual
needs are achievement, affiliation, and power.
1. The need for achievement is the desire to accomplish a goal or task more effectively
than in the past.
2. The need for affiliation is the desire for human companionship and acceptance.
3. The need for power is the desire to be influential in a group and to control one’s
environment.
D. Implications of the Content Perspectives
Content perspectives discuss what motivates people, but they do not describe how people are
motivated.
Discussion Starter: Have students assess their achievement, affiliation, and power needs.
Cross-Reference: In many ways, the needs for achievement, affiliation, and power can
be thought of as individual differences of the sort discussed in Chapter 14.
III. PROCESS PERSPECTIVES ON MOTIVATION
Process perspectives are concerned with how motivation occurs. Process perspectives focus on
why people choose certain behavioral options to fulfill their needs and how they evaluate their
satisfaction after they have attained these goals.
Teaching Tip: Stress the “how” aspect of the process perspectives on motivation.
A. Expectancy Theory
Expectancy theory suggests that motivation depends on two things: how much we want
something and how likely we think we are to get it.
Discussion Starter: Ask students to recall an instance in which they did not pursue
something they wanted because they felt they had little or no chance of achieving it.
Cross-Reference: Victor Vroom, one of best known expectancy theorists, also developed
an important theory of leadership discussed in Chapter 16.
Expectancy theory rests on four basic assumptions.
1. Behavior is determined by a combination of forces in the individual and in the
environment.
2. People make decisions about their own behavior in organizations.
3. Different people have different types of needs.
4. People make choices from among alternative plans of behavior, based on their
perceptions of the extent to which a given behavior will lead to desired outcomes.
There are important expectations in the expectancy model.
1. Effort-to-performance expectancy is the individual’s perception of the probability that
effort will lead to high performance.
2. Performance-to-outcome expectancy is the individual’s perception that performance
will lead to a specific outcome.
3. Outcomes are consequences of behaviors in an organization setting, usually rewards.
Each outcome has an associated value or valence.
4. A valance is an index of how much an individual desires a particular outcome, the
attractiveness of the outcome to the individual. If the person wants the outcome, the
valence is positive; if they do not want it, the valence is negative. The valence is zero if
they are indifferent to the outcome.
For motivated behavior to occur, three conditions must be met.
First, the effort-to-performance expectancy must be greater than 0.
Second, the performance-to-outcome expectancy must also be greater than 0.
Third, the sum of the valences for the outcomes must be greater than 0.
The Porter-Lawler extension to expectancy theory suggests that high performance may lead to
satisfaction that results from the rewards given for a high performance.
This reverses the direction of causation because expectancy theory says that motivated
workers will have high performance, but the Porter-Lawler extension says that high-
performing workers will become motivated.
Cross-Reference: In Chapter 2 we noted the fallacy of the human relationists who

argued that satisfaction causes performance. The Porter-Lawler extension of expectancy
theory provides the framework from which this viewpoint was changed.
B. Equity Theory
Equity theory suggests that people are motivated to seek social equity in the rewards they
receive for performance.
To determine equity, a person compares his or her ratio of outcomes (pay, recognition) to
inputs (time, experience) to someone else’s ratio.
Both the formulation of the ratios and comparisons between them are very subjective and
based on individual perceptions. The results can be a feeling of equitable rewards, too few
rewards, or too many rewards.
Those who feel underrewarded may reduce their inputs or ask for an increase in their outcomes
in order to establish equity. Those who feel overrewarded may increase their effort or
rationalize the differences away.
Extra Example: An excellent example of equity theory occurs at the beginning of each
new NFL season. Top draft choices fresh out of college sign big contracts, and
disgruntled veterans almost immediately start calling for their own contracts to be
renegotiated. John Feinstien’s book Next Man Up is an excellent portrayal of the
motivational techniques used in the NFL.
Discussion Starter: Equity theory predicts that if people believe that they are being
overpaid, they will take some action to reduce their feelings of inequity. Ask students
what they think about this prediction.
Cross-Reference: Note the similarities between the equity process and the notion of
psychological contracts, as discussed in Chapter 14.
Discussion Starter: Have students recall situations in which they have felt both equity
and inequity. Then ask them to diagram each instance in terms of their outcomes and
inputs and those of a comparison other.
C. Goal Setting Theory
Goal setting theory of motivation assumes that behavior is a result of conscious goals and
intentions. By setting goals for people, a manager should be able to influence their behavior.
In the original version of goal setting theory, two specific goal characteristics were expected to
shape performance. Both are shown to consistently relate to performance.
1. Goal difficulty is the extent to which a goal is challenging and requires effort.
2. Goal specificity relates to the clarity and precision of the goal.
Discussion Starter: Ask students if they think goals can be too difficult or too specific.
Because the theory attracted so much interest from researchers and managers alike, an
expanded model of the goal setting process was proposed. The expanded theory adds two goal
attributes.
3. Goal acceptance is the extent to which an individual adopts a goal as his or her own.
4. Goal commitment is the extent to which an individual is personally interested in reaching
the goal.
D. Implications of the Process Perspectives
Expectancy theory can be useful for managers who are trying to improve the motivation of
their subordinates. They can follow a series of steps to achieve the theory. Managers need to
consider the nature of the ‘other’ to whom the employee is comparing themselves. Goal-
setting theory can be used to implement both expectancy and equity theory concepts.
Teaching Tip: Point out the similarities between the expanded goal-setting theory of
motivation and the expectancy theory.
Extra Example: Weyerhauser Corp. successfully uses goal setting as motivation.
Cross-Reference: Note the similarities and differences in goal-setting theory (as

discussed in this chapter) and MBO (as discussed in Chapter 6).
IV. REINFORCEMENT PERSPECTIVES ON MOTIVATION
Reinforcement theory is an approach to motivation that argues that behavior that results in
rewarding consequences is likely to be repeated, whereas behavior that results in punishing
consequences is less likely to be repeated.
A. Kinds of Reinforcement in Organizations
There are four basic kinds of reinforcement that can result from behavior – positive
reinforcement, avoidance, punishment, and extinction.
1. Positive reinforcement is a method of strengthening behavior with rewards or positive
outcomes after a desire behavior is performed. Praise, a bonus, or a raise would work.
Extra Example: Explain the role of reinforcement in the classroom as you provide
grades, verbal compliments, criticisms, etc. in response to student behavior.
Extra Example: Also note the reinforcing consequences that student behaviors have on
instructors. For example, good class attendance and student enthusiasm provide positive
reinforcement for instructors.
2. Avoidance is used to strengthen behavior by avoiding unpleasant consequences that
would result if the behavior were not performed. Come to work on time to avoid a
reprimand.
3. Punishment is used to weaken undesired behaviors by using negative outcomes or
unpleasant consequences when the behavior is performed. Punishment brings
counterproductive side effects such as resentment and hostility.
4. Extinction is used to weaken undesired behaviors by simply ignoring or not reinforcing
them. Works on behavior that has previously been rewarded.
Teaching Tip: Solicit examples of the various kinds of reinforcement from students.
B. Providing Reinforcement in Organizations
Not only is the kind of reinforcement important, but so is when or how often it occurs.
1. A fixed-interval schedule provides reinforcement at fixed intervals of time, regardless
of behavior. Weekly paychecks for example.
2. A variable-interval schedule provides reinforcement at varied time intervals, such as
occasional visits by the supervisor. Appropriate for praise or rewards based on visits or
inspections.
3. A fixed-ratio schedule provides reinforcement after a fixed number of behaviors,
regardless of the time interval involved, such as a bonus for every fifth sale.
4. A variable-ratio schedule provides reinforcement after varying numbers of behaviors

are performed, such as the use of complements by a supervisor on an irregular basis.
This is the most powerful schedule in terms of maintaining desired behaviors. Not
appropriate for formal rewards, such as pay.
Behavior modification, or OB Mod (for Organizational Behavior Modification), is a

method for applying the basic elements of reinforcement theory in an organizational
settings. Behavior that should be increased and decreased are identified and tied to
specific kinds of reinforcement.
C. Implications of the Reinforcement Perspectives
Reinforcement in organizations can be a powerful force for maintaining employee motivation.
For effective reinforcement, managers need to use it in a manner consistent with the various
types and schedules of reinforcement. Managers must understand they may be inadvertently
motivating undesired or dysfunctional behaviors.
Group Exercise: Have student groups design a motivational system that a manager
might use that is based on the concepts and principles of reinforcement.
V. POPULAR MOTIVATIONAL STRATEGIES
Managers must use various techniques and strategies to apply the theories discussed.
A. Empowerment and Participation
Empowerment is the process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of responsibility and authority.
Participation is the process of giving employees a voice in making decisions about their own
work.
Empowerment is a broader concept promoting participation in a wide variety of areas.
Teaching Tip: Stress the subtle difference between empowerment and participation.
Discussion Starter: Ask students for their own personal examples involving
participation and/or empowerment.
1. Areas of Participation
Employees can participate in addressing questions and making decisions about their own
job. Workers may make decisions about administrative matters, such as work schedules.
Employees are increasingly participating in broader issues of product quality.
2. Techniques and Issues in Empowerment
Work teams are one method used to empower workers. Another method is to change the
team’s overall method of organizing, such as eliminating layers from its hierarchy and
becoming more decentralized.
Empowerment will enhance organizational effectiveness only if certain conditions exist.

First, the organization must be sincere in efforts to spread power and autonomy to lower
levels.
Second, the organization must be committed to maintaining participation and
empowerment.
Third, workers must truly believe they and their managers are working together in their
joint best interests.
In addition, the organization must be systematic and patient in its efforts to empower
workers.
Finally, the organization must be prepared to increase its commitment to training.
B. Alternative Forms of Working Arrangements

Another popular strategy for motivating workers today is developing and offering alternative
forms of work arrangements involving time and/or place.
1. Variable Work Schedules
A compressed work schedule is working a full 40-hour week in fewer than the
traditional five days.
2. Flexible work schedules, sometimes called flextime, is a work schedule in which
employees have some control over the hours they choose to work. For example,
employees might report to work early or late, take a short or long lunch, and leave early
or late.
Extra Example: Texaco, Shell, and General Mills are among other firms that use
modified workweeks of some sort.
Discussion Starter: Ask students how they would feel about working different forms of
modified workweeks.
3. Job sharing occurs when two or more part-time workers to share one full-time job.
4. Telecommuting allows employees to spend part of their time working offsite, usually at
home. Information technology makes working from home feasible.
Discussion Starter: Note that some employers promote telecommuting not for
motivational reasons but rather to cut down their own facilities costs.
VI. USING REWARD SYSTEMS TO MOTIVATE PERFORMANCE
An organizational reward system is the formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded.
Cross-Reference: Note that the design of reward systems is a part of human resource
management, as discussed in Chapter 13.
Rewards specifically tied to performance have the greatest impact on enhancing both motivation and
actual performance.
A. Merit Reward Systems
Merit pay refers to pay awarded to employees on the basis of the relative value of their
contributions to the organization.
Merit pay plans formally base at least some meaningful portion of compensation on merit.
The most common type of merit pay plan is the annual raise.
Merit is usually determined or defined based on the individual’s performance and overall
contributions to the organization.
B. Incentive Reward Systems
Incentive systems are among the oldest forms of performance-based rewards.
1. A piece-rate incentive plan is a reward system wherein the organization pays an
employee a certain amount of money for every unit she or he produces. This is the
simplest type of incentive system.
2. Individual incentive plans reward individual performance on a real-time basis.

3. Variations on incentive pay involve paying incentives based on both individual and
group performance, or calculating the amount of money available for incentive pay based
on corporate or division performance as a whole.
4. Sales commissions, in which an agent is paid a percentage of his or her sales over a
period of time, perhaps the most common form of individual incentive.
5. Other types of incentives include nonmonetary incentives such as additional time off or a
company-paid vacation.
6. A major advantage of incentives relative to merit systems is that incentives are typically
a one-shot reward and do not accumulate as part of the individual’s base salary. Also,
because the plans focus on one-time events, it is much easier to change the focus of the
incentive plan.
Global Connection: Workers in Japan receive an average of 25 percent of their total pay
in the form of flexible bonuses. In the United States, the average is only 1 percent.
C. Team and Group Incentive Reward Systems
1. Gainsharing programs are designed to share the cost savings from productivity
improvements with employees. Gainsharing aligns employee and corporate interests.
a) In implementing gainsharing, team performance is accurately measured, then team
members devise ways to improve productivity, team members are awarded a
percentage of the cost savings resulting from improvements as a one-time bonus.
Employees usually get 25 percent with the organization getting the other 75 percent
of resulting cost savings.
b) A Scanlon plan is similar to gainsharing, but the distribution of gains is tilted
much more heavily toward employees. Workers typically get two-thirds or more of
the savings, and the award is given to all workers, not just those who made the
improvements.
2. One-time team incentives may be awarded as a proportion of each employee’s base
salary, or the same dollar amount may be given to each worker.
3. Nonmonetary rewards may be given at the group level, most commonly in the form of
prizes and awards.
4. Profit sharing creates a pool of money based on corporate profit that is then distributed
to all employees. Rewards may be given at the end of the time period or kept in an
account until retirement.
5. Employee stock ownership programs, or ESOPs, gradually grants stock ownership of the
firm to employees as a reward.
D. Standard Forms of Executive Compensation

Typically, top managers have a different compensation plan than do the rest of a firm’s
employees. They receive compensation in two forms: base salary and incentive pay.
1. Base salary is a guaranteed amount of compensation.
2. Most executives also receive one or more forms of incentive pay, traditionally bonuses
based on performance of the organization. May be a pool of diverted profits split
between top executives.
3. Special Forms of Executive Compensation.
A stock option plan is established to give senior managers the option to buy company
stock in the future at a predetermined fixed price.
a) If executives are effective, then stock price should rise, and the managers may buy
the stock at bargain prices. The options are worthless, however, if stock price falls.
b) Options are popular because their cost to the organization is low and they align the
interests of managers and stockholders.
c) Disadvantages of options include the potential manipulation of stock price by
unscrupulous executives, new accounting changes under consideration that may
require options to be treated as an expense item on an income statement, and the
fact that options are no reward when stock price is falling.
4. Executives also usually receive many other types of compensation, including club
memberships, use of company apartments and planes, low- or no-interest loans, and so on.
5. There are important criticisms of executive compensation in the U.S. today.
a) Many feel that executive compensation, averaging over $1 million (CEOs can make
much more than this), is simply too high.
b) There often seems to be little relationship between executive pay and performance.
c) The gap between CEO earnings and the earnings of a typical employee is
enormous, and increasing. In 1980, a typical U.S. CEO earned 42 times the
average worker, by 1990, the ratio increased to 85 times the earnings, and in 2014
the ratio was 354 times the earnings of a typical worker.
E. New Approaches to Performance-Based Rewards

1. Some organizations are allowing employees to have a greater say in how rewards are
determined and allocated.
2. Some firms customize rewards to each individual employee’s needs.
Cross-Reference: Note the relevance of designing reward systems to various theories of
motivation as discussed throughout earlier sections of this chapter.
END OF CHAPTER QUESTIONS
Questions for Review

1. Each historical perspective on motivation built on the earlier perspectives and differed from
them in some ways. Describe the similarities and differences between the traditional approach
and the human relations approach. Then describe the similarities and differences between the
human relations approach and the human resource approach.
The human relations approached put more emphasis on social needs than did the traditional
approach. However, like the traditional approach, the human relations approach did not offer
workers real participation in decision making. The human resource approach agreed with the
emphasis on social factors that was first proposed by the human relations approach. In contrast to
the human relations approach, the human resource approach did offer employees a chance for
meaningful participation in their work environment.
2. Compare and contrast content, process, and reinforcement perspectives on motivation.
The content theories of motivation focus on why people are motivated, whereas the process and
reinforcement perspective focus on how people are motivated. In both the reinforcement and the
process perspectives, individual rewards are seen as fulfilling the needs discussed in the content
theories; however, the actual decision to perform is outlined in the process perspective.
3. Explain how goal-setting theory works. How is goal setting different from merely asking a
worker to “do your best”?
Goal-setting theory proposes that workers are most motivated when they know exactly what they
are expected to achieve (goal specificity) and when the goal is somewhat challenging but not
impossible to achieve (goal difficulty). The expanded theory addresses additional areas: the need for
employees to accept the goal and feel a commitment to achieving it. Asking a worker to do his or
her “best” will be motivating for some individuals who have a high need for achievement, but most
workers will be more motivated by being given a specific and challenging goal.
4. Describe some new forms of working arrangements. How do these alternative arrangements
increase motivation?
Variable work schedules allow workers to work outside of the traditional “Monday to Friday, 8-to-
5” hours of most businesses. Workers may work early in the morning, stay late in the evening, work
on weekend, or work a few long days followed by several days off. Flexible work schedules given
even more freedom for each employee to design their own optimum schedule. Job sharing allows
two part-time workers to fill a full-time position. Workers who telecommute can work from home or
any other location by using email and the Internet to communicate with their office. Anything that
makes workers’ lives more convenient or gives workers control over how they work is likely to be
motivating.
Questions for Analysis

5. Choose one theory from the content perspectives and one from the process perspectives.
Describe actions that a manager might take to increase worker motivation under each of the
theories. What differences do you see between the theories in terms of their implications for
managers?
Students will choose different theories, so answers will vary. Students should note that content
theories imply that managers should diagnose worker needs and then attempt to fill those needs,
while process theories claim that managers must engage in a variety of behaviors such as
communication, setting goals, or giving punishment.
6. Can factors from both the content and the process perspectives be acting on a worker at the
same time? Explain why or why not. Whether you answered yes or no to the previous
question, explain the implications for managers.
Clearly, both content and process theories can be operating at the same time, because there is
nothing in the theories that precludes this conclusion. For managers, the implication is that they
should be aware of the variety of theories that can explain worker motivation. Greater awareness
and skill in applying the theories make it more likely that the manager will be effective in increasing
motivation.
7. How do rewards increase motivation? What would happen if an organization gave too few
rewards? What would happen if it gave too many?
Underlying every motivation theory is the premise that individuals act in certain ways in order to
gratify their needs. Rewards can fill those needs directly such as when a worker uses his or her pay
to buy groceries, feeling a need for food. Rewards can also fill needs indirectly such as when a
worker’s promotion leads to greater status and respect from others, filling a need for power.
Organizations that do not offer adequate rewards will have employees who are unmotivated, leading
to low performance, absenteeism, negative attitudes, and other undesirable outcomes. Organizations
that offer too many rewards, on the other hand, may find that rewards lose their power to motivate.
For example, if a manager praises every worker every day, regardless of performance, then there is
little incentive for the workers to increase their performance.
Questions for Application

8. Think about the worst job you have held. What approach to motivation was used in that
organization? Now think about the best job you have held. What approach to motivation was
used there? Can you base any conclusions on this limited information? If so, what are they?
One likely response is the use of Herzberg’s theory. Note whether the response shows hygiene
factors to be present on the “worst” job and motivation factors present on the “best” job. Another
approach would be positive reinforcement for the best job and punishment for the worst job. A
complex answer might involve expectancy theory—intensive training and a clearly defined reward
system in the best job and being hired and thrown into a position in the worst job.
9. Interview both a manager and a worker (or administrator and faculty member) from a local
organization. What views of or approaches to motivation seem to be in use in that
organization? Do the manager’s views differ from the worker’s? If so, how do you explain the
differing perceptions?
Students may show how a manager attempts to make each subordinate feel self-actualized at work.
Of course, this would also involve motivation factors, growth needs, and a need for achievement.
These same comments could be examples of positive reinforcement or positive valence outcomes.
Be sure particular approaches are applied properly. The perceptions of workers and managers may
differ. For example, a reward that the manager feels is desirable may not be motivating to a worker.
Or, the praise that a manager offers may be seen as hypocritical or manipulative by the worker.
10. Consider a class you have taken. Using just that one class, offer examples of times when the
professor used positive reinforcement, avoidance, punishment, and extinction to manage
students’ behavior.
Examples will vary, but students will see that most professors, like most managers, use a variety of
reinforcement techniques depending on the particular situation. Reinforcement theory is most
effectively applied when a manager uses all of the four techniques.
END OF CHAPTER EXERCISES
Building Effective Interpersonal Skills

I. Purpose
This exercise gives students a chance to see whether the factors that motivate them come primarily
from within and from work or from factors external to them and their work.
II. Format
Students are given 12 factors that contribute to job satisfaction. They are asked to rank how
important each factor is to them, on a scale of 1 to 5.
III. Follow-Up
The 12 factors are divided into two lists – motivating factors and maintenance factors and questions
that correspond to each are listed. The closer the student’s column score is to 30, the more
important is that factor to them.
Building Effective Decision-Making Skills

I. Purpose
Students exercise their decision-making skills by researching a career path and making choices
about that path.
II. Format
This decision-making skills exercise should be done outside of class by individuals. It will take
students about 10 minutes to complete, although research will take longer.
III. Follow-Up
A. Consider the position that you’d like to hold at the peak of your career. It may be CEO, or
owner of a chain of clothing stores, partner in a law or accounting firm, or president of a
university. Then again, it may be something less lofty. Whatever it is, write it down.
B. Now describe a career path that will lead you toward that goal. It may help to work
“backwards,” that is, starting with your final position and work backwards in time to some
entry-level job. If you aren’t sure about the career path that will lead to your ultimate goal, do
some research. Talk to someone in your selected career field, ask an instructor who teaches in
it, or go online. The website of the American Institute of Certified Public accountants, for
example, has a section on “Career Resources,” which includes information about career paths
and position descriptions for accounting.
C. Write down each step in your path on a card or a sheet of paper.
D. If, like Lee Iacocca, you were to carry this piece of paper with you and refer to it often as you
pursued your career goals, do you think it would help you achieve them? Why or why not?
Students will choose a variety of goals and an even-larger variety of paths to achieve those
goals. However, most will acknowledge that an explicit consideration and recording of career
goals could be useful. In addition, the constant reminder may be helpful as students make
choices and accomplish tasks in their chosen fields.
MANAGEMENT AT WORK
Engaged to Be Motivated
Using Gallup survey results, the closing case presents the argument that if you graduate from college you
are less likely to be engaged in your work. While technically the statistics support this statement, the case
outlines several related factors. Does the problem lie with colleges or with the workplace? Not
surprisingly, the answer is both. Some feel this lack of engagement is a sign of students not planning a
clear career path. Others feel engaging in one’s job is more of a personal decision.
Management Update: Ken Royal and Susan Sorenson write in Employees Are
Responsible for Their Engagement Too, published in Business Journal, June 16, 2015,
“You have a choice in how you respond to daily challenges, and if there’s nothing else
you can change about a situation, at least you can choose your attitude and approach.”
1. Case Question 1: Consider each of the following perspectives on motivation, needs hierarchy
(including the ERG theory), two-factor theory, expectancy theory, equity theory, and goal-setting
theory. How does each of these perspectives depend upon learned motivation? On personal
motivation?
Personal motivation is important for achieving the layers of Maslow’s hierarchy of needs. Personal
motivation may lead a person to seek a job offering the security needs they desire. Personal
motivation may even satisfy the person’s belongingness needs themselves if the manager is unable
to fulfill those needs. Even the top two tiers require personal motivation to apply for that higher
level job or continuing to grow in their job. The ERG theory is similar with personal motivation a
factor for moving up the chain on needs from existence to relatedness to growth. The two-factor
theory requires personal motivation to achieve the work content motivational factors. Learned
motivation could be used on the work environment motivation factors. Personal motivation would
play into expectancy theory if the person believed there was a good chance of achieving the
outcome. It would require learned motivation if the person did not believe the outcome was an
option. Personal motivation and learned motivation could come into play if an employee perceives
an imbalance in the equity theory. The worker will try to correct the imbalance and this may take
motivation from both internal and learned motivation. Goal-setting theory relies mainly on personal
motivation but also some learned motivation. Workers motivated to complete goals (personal)
sometimes require some extra motivation (learned) in order to achieve the tougher goals.
2. Case Question 2: What about you? Which form of motivation – learned motivation or personal
motivation – has played a greater role in your pursuit of your goals, whether in school, at work, or in
both areas? Given this assessment of your own experience with motivation, which of the
motivational perspectives listed in Question 1 is most likely to help you in your work life?
Whatever your answers to these questions, be sure to give examples from your own experience.
Due to the personal nature of these questions, students answers will vary widely.
3. Case Question 3: The theory that too few students get the help they need in setting clear career
paths suggests that colleges should provide more career counseling. However, according to the
National Survey of Student Engagement, only 43 percent of college seniors talked very often or
often about career plans with a faculty member or adviser; 39 percent did sometimes, and 17 percent
never did.* How about you? Have you sought career advice or counseling from resources available
at your school? Do you plan to? Have you sought advice elsewhere? If so, where elsewhere and
why elsewhere?
Student responses will vary.
4. Case Question 4: The Gallup survey measured levels of engagement by asking respondents
whether they agreed or disagreed with several statements about post-graduation work experiences.
Here are six of those statements:
 I have opportunities to learn and grow.
 My opinions seem to count.
 I have the opportunity to do what I do best every day.
 I have the tools and resources I need to do my job.
 My supervisor encourages my development.
 I know what is expected of me.†
List these six statements in order of importance to you as probably factors in your satisfaction with
a job. Be prepared to discuss your priorities.
[Note: One of these statements proved to be the strongest predictor of workplace engagement
among all of the statements in the survey. Your instructor can tell you which one it is after you’ve
drawn up and discussed your list.]
Student’s ordering of the statements will vary by student. The item “I have the opportunity to do
what I do best every day” is the strongest predictor of workplace engagement.
*National Survey of Student Engagement, Promoting Student Learning and Institutional

Improvement: Lessons from NSSE at 13: Annual Results 2012 (2012), http://nsse.iub.edu, on March
17, 2015.
†Adapted from Tim Hodges, Gallup-Purdue Index of Great Jobs and Great Lives (Gallup Inc.,
2014), www.mhec.org, on March 17, 2015.

Griffin Mgmt12e IM Ch12

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Management 12e by Ricky W.

I. THE NATURE OF MOTIVATION

3. The work environment includes the resources needed to do the job.

Management’s task is to encourage participation and create a work environment that

II. CONTENT PERSPECTIVES ON MOTIVATION

This theory collapses Maslow’s hierarchy into three levels.

III. PROCESS PERSPECTIVES ON MOTIVATION

Cross-Reference: In Chapter 2 we noted the fallacy of the human relationists who

Extra Example: Weyerhauser Corp. successfully uses goal setting as motivation.

Cross-Reference: Note the similarities and differences in goal-setting theory (as

IV. REINFORCEMENT PERSPECTIVES ON MOTIVATION

4. A variable-ratio schedule provides reinforcement after varying numbers of behaviors

Behavior modification, or OB Mod (for Organizational Behavior Modification), is a

V. POPULAR MOTIVATIONAL STRATEGIES

Empowerment will enhance organizational effectiveness only if certain conditions exist.

B. Alternative Forms of Working Arrangements

VI. USING REWARD SYSTEMS TO MOTIVATE PERFORMANCE

2. Individual incentive plans reward individual performance on a real-time basis.

D. Standard Forms of Executive Compensation

E. New Approaches to Performance-Based Rewards

END OF CHAPTER QUESTIONS

Questions for Review

Questions for Analysis

Questions for Application

END OF CHAPTER EXERCISES

Building Effective Interpersonal Skills

Building Effective Decision-Making Skills

*National Survey of Student Engagement, Promoting Student Learning and Institutional

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