Motivating Employees

MOTIVATING EMPLOYEES
Chapter 16

Learning Objectives
You should learn to:
Define the motivation process
Describe three early motivation theories
Explain how goals motivate people
Differentiate reinforcement theory from
goal-setting theory
Identify ways to design motivating jobs

Prentice Hall, 2002 16-2
Learning Objectives (cont.)
You should learn to:
Describe the motivational implications of
equity theory
Explain the key relationships in expectancy
theory
Describe current motivation issues facing
managers
Identify management practices that are
likely to lead to more motivated employees
What is motivation?
Motivation refers to forces within an individual
that account for the level, direction, and
persistence of effort expended at work.
Direction an individuals choice when presented
with a number of possible alternatives.
Level the amount of effort a person puts forth.
Persistence the length of time a person stays with a
given action.
The Motivation Process
Unsatisfied
Need
Satisfied
Need
Search
Behavior
Drives Tension
Reduction
of Tension
The Basic Motivational Model
1. Needs (deficiencies)
2. Search for ways
to satisfy needs
3. Goals directed
behaviors
4. performance
5. Rewards or
punishments
6. Needs reassessed
by the employee
The Employee
Maslows Hierarchy of Needs Theory
each level in hierarchy must be satisfied
before the next is activated
once a need is substantially satisfied it
no longer motivates behavior
theory received wide recognition
little research support for the validity of
the theory
Early Theories Of Motivation
Maslows Hierarchy Of Needs
Physiological
Safety
Social
Esteem
Self-
Actualization
Description Five Basic Needs
Physiological needs
- Required to sustain life
- chemical needs of the body hunger, thirst,
sleeplessness, sexual desire
Safety needs:
- security from threatening events or surroundings
- living in safe environment, medical insurance, job
security, financial reserves
Social / affiliation needs:
- friendship, belonging to a group, giving and
receiving love
Description Five Basic Needs
Esteem needs:
falls into two categories:
i. Internal esteem needs:
- desires for such feelings as power, achievement,
confidence, freedom, independence
ii. External esteem needs:
- derived from reputation, prestige, recognition. Attention
and importance
Both group of needs leads to more self confidence
Self-actualization needs
- realize or actualize ones self potential
- includes needs such as truth, justice, wisdom \, meaning
Ways to fulfill the five needs
Physiological Needs:
- lunch breaks, rest breaks, wages that are sufficient to
purchase the essentials of life
Safety needs:
- safe work environment, job security, medical benefits,
retirement benefits
Social / affiliation needs:
- create feeling of acceptance, belonging and community by
reinforcing team dynamics
Esteem needs:
- recognize achievements, assign important projects, provide
status to make employees feel important and valued
Self actualization need :
- provide challenging and meaningful work which enables
innovation, creativity, and progress in the long term
Early Theories Of Motivation (cont.)
McGregors Theory X and Theory Y
Theory X
assumes that workers have little ambition, dislike
work, want to avoid responsibility, and need to be
closely controlled
assumed that lower-order needs dominated
Theory Y
- assumes that workers can exercise self-direction,
accept and actually seek out responsibility, and
consider work to be a natural activity
assumed that higher-order needs dominated
no evidence that either set of assumptions is valid
no evidence that managing on the basis of Theory Y
makes employees more motivated
Early Theories Of Motivation (cont.)
Herzbergs Motivation-Hygiene Theory
intrinsic characteristics consistently related to job
satisfaction
motivator factors energize employees
extrinsic characteristics consistently related to job
dissatisfaction
hygiene factors dont motivate employees
proposed dual continua for satisfaction and
dissatisfaction
theory enjoyed wide popularity
influenced job design
theory was roundly criticized
Herzbergs Motivation-Hygiene Theory
Contrasting Views Of Satisfaction-
Dissatisfaction
Satisfaction No Satisfaction
No Dissatisfaction Dissatisfaction
Motivators Hygienes
Satisfaction Dissatisfaction
Herzbergs View
Traditional View
Contemporary Theories Of Motivation
Three-Needs Theory - McClelland
need for achievement (nAch)
drive to excel, to achieve in relation to a set of
standards, and to strive to succeed
do not strive for trappings and rewards of success
prefer jobs that offer personal responsibility
want rapid and unambiguous feedback
set moderately challenging goals
avoid very easy or very difficult tasks
high achievers dont necessarily make good managers
focus on their own accomplishments
good managers emphasize helping others to accomplish their
goals
(cont.)
Three-Needs Theory (cont.)
need for power (nPow)
need to make others behave in a way that
they would not have behaved otherwise
need for affiliation (nAff)
desire for friendly and close interpersonal
relationships
best managers tend to be high in the need for
power and low in the need for affiliation
Examples of Pictures used for Asscess Levels of nAch, nAff, and
aPow
(cont.)
Goal-Setting Theory
intention to work toward a goal is a major source of
job motivation
specific goals increase performance
difficult goal, when accepted, results in higher performance
than does an easy goal
specific hard goals produce a higher level of output than
does the generalized goal of do your best
participation in goal setting is useful
reduces resistance to accepting difficult goals
increases goal acceptance
(cont.)
Goal-Setting Theory (cont.)
feedback is useful
helps identify discrepancies between what has been
accomplished and what needs to be done
self-generated feedback is a powerful motivator
contingencies in goal-setting theory
goal commitment - theory presupposes that individual is
determined to accomplish the goal
most likely to occur when:
goals are made public
individual has an internal locus of control
goals are self-set rather than assigned
(cont.)
Goal-Setting Theory (cont.)
contingencies (cont.)
self-efficacy
- an individuals belief that s/he is capable of
performing a task
higher self-efficacy, greater motivation to attain
goals
national culture - theory is culture bound
main ideas align with North American cultures
goal setting may not lead to higher performance in other
cultures
Guidelines for Job Redesign
Reinforcement Theory
behavior is solely a function of its consequences
behavior is externally caused
reinforcers
consequences that, when given immediately
following a behavior, affect the probability that the
behavior will be repeated
managers can influence employees behavior by
reinforcing actions deemed desirable
emphasis in on positive reinforcement, not
punishment
(cont.)
The Practice of reinforcing

consequence
of
Contingent

Reward
( something desirable)

Noxious Stimuli
(Something aversive or
undesirable)

Application

Positive Reinforcement
Behavior Increase

Punishment
Behavior Decrease

Withdrawal

Punishment/ extinction
Behavior Decrease

Negative Reinforcement
Behavior Decrease
Designing Motivating Jobs
Job Design
the way tasks are combined to form complete jobs
historically, concentrated on making jobs more specialized
Job Enlargement
horizontal expansion of job
job scope
the number of different tasks required in a job and the
frequency with which these tasks are repeated
provides few challenges, little meaning to workers activities
only addresses the lack of variety in specialized jobs
(cont.)
Designing Motivating Jobs (cont.)
Job Enrichment
vertical expansion of job
job depth
- degree of control employees have over their
work
empowers employees to do tasks typically
performed by their managers
research evidence has been inconclusive about
the effect of job enrichment on performance
(cont.)
(cont.)
Job Characteristics Model (JCM) - conceptual
framework for analyzing jobs
jobs described in terms of five core characteristics
skill variety - degree to which job requires a variety of
activities
more variety, greater need to use different skills
task identity - degree to which job requires completion of an
identifiable piece of work
task significance - degree to which job has substantial impact
on the lives of other people
these three characteristics create meaningful work
JCM (cont.)
core characteristics (cont.)
autonomy - degree to which job provides substantial
freedom, independence, and discretion in performing the
work
give employee a feeling of personal responsibility
feedback - degree to which carrying out the job results in
receiving clear information about the effectiveness with
which it has been performed
employee knows how effectively s/he is performing
(cont.)
Job Characteristics Model
Core Job
Dimensions
Skill Variety
Task Identity
Task Significance

Autonomy

Feedback

Experienced
meaningfulness
of the work
Experienced responsibility for
outcomes of work
Knowledge of the actual
results of the work
Critical
Psychological States
High Internal Work
Motivation
High-Quality
Work Performance
High Satisfaction
with the Work
Low Absenteeism
and Turnover
Personal and
Work Outcomes
Strength of Employee Growth
Need
(cont.)
JCM (cont.)
links between core characteristics and
outcomes are moderated by the strength
of the individuals growth need
growth need - persons desire for self-
esteem and self-actualization
model offers specific guidance for job
design
Guidelines For Job Redesign Core Job
Dimensions
Suggested
Actions
Opening Feedback
Channels
Combining Tasks
Task Identity
Skill Variety
Forming Natural
Work Units
Task Significance
Load Vertically
Autonomy
Forming Natural
Work Units
Feedback
(cont.)
Equity Theory
proposes that employees perceive what they get from a job
(outcomes) in relation to what they put into it (inputs)
input/outcome ratio compared with the ratios of relevant
others
equity - ratio is equal to that of relevant others
inequity - ratio is unequal to that of relevant others
referent (relevant other) may be:
other - individuals with similar jobs
a system - includes organizational pay policies and administrative
systems
self - past personal experiences and contacts
Equity Theory
Equity Theory (cont.)
when inequities are perceived, employees act to correct
the situation
distort either their own or others inputs or outputs
behave in a way to induce others to change their inputs or
outputs
behave in a way to change their own inputs or outputs
choose a different comparison person
quit their jobs
theory leaves some issues unclear
(cont.)
(cont.)
Expectancy Theory
theory states that an individual
tends to act in a certain way based
on the expectation that the act will
be followed by a given outcome and
on the attractiveness of that
outcome to the individual
Simplified Expectancy Model
Individual
Effort
Individual
Performance
A
Organizational
Rewards
B
Individual
Goals
C
A
= Effort-performance linkage
B
= Performance-reward linkage
C = Attractiveness
Vrooms Expectancy Theory
the strength of tendency to act in a certain way depends on the
strength of an expectancy that an act will be followed by a
given consequence for outcome and on the value or
attractiveness of that consequence for outcome to the
actor
Motivation according to Vroom, boils down to the decision
about how much effort to exert in a specific task situation
This choice is based on three-stage sequence of expectation
1. Motivation is affected by an individuals expectation that a
certain level of effort will produce the intended goal
2. Motivation is also influenced by the individuals perceived
chances of getting various outcomes as a result of
accomplishing his or her performance goals
3. Individuals are motivated to the extent that they value the
outcomes received

1. Expectancy:
Belief that a particular degree of effort will be followed by a
particular level of performance
It is an effort to performance expectation
Expectancy takes the form of subjective probabilities
Probability range from 0 1
An expectancy of 0 indicates effort has no anticipated
impact on performance
The following factors influence an employees expectancy
perceptions
1. Self esteem
2. Self-efficacy
3. Previous success
4. Help received from supervisor and subordinates
5. Information necessary to complete the task
6. Good material and equipment to work with
2. Instrumentality
An Instrumentality is a performance to outcome perceptions
It represents a persons belief that a particular outcome is
contingent on accomplishing a specific level of performance
Instrumentalities range from -1 to +1
An instrumentality of +1 indicates that attainment of
particular outcome is totally dependent on task performance
An instrumentality of zero means that there is no relationship
between performance and outcome
An instrumentality of -1 reveals that high performance reduce
the chance of obtaining an outcome while low performance
increases the outcome
3. Valence:
Refers to positive and negative value people
place on outcomes
Valence mirrors personal preferences
An outcomes valence depends on personal
needs
Valence ranges from -1 to + 1
Vrooms Expectancy Model
Motivational Force
F={valence x Expectancy
Expectancy
E P
1
st
level out
come
Outcome 1
Outcome 2
instrumentality
P O
2
nd
level
outcome
1 a
1b
2a
2b
Expectancy Theory Application Example
Motivation
Expectancy 1
st
level outcome instrumentality
valence
2
nd
level outcome
6.3 0.5 Completion
of project
ahead of
schedule
12.6
Pay raise
Promotion
Recognition
(8)
(10)
(4)
0.6
0.5
0.7
3.4 0.6
Completion
of project
within
schedule
5.6
0.3
0.2
0.3
(8)
(10)
(4)

Pay raise
Promotion
Recognition
- 5.9
0.8 Behind
Schedule
-7.4
- 0.5
- 0.3
- 0.1
(8)
(10)
(4)
Pay raise
Promotion
Recognition
Combination of Expectancy Theory Variables
Case Valence Instrumentalit
y
Expectanc
y
Motivation
1. High High High High
2. High High Low Low
3. High Low High Low
4. Moderat
e
Moderate Moderate Moderate
5. low High High Low
6. Low Low Low Low
Porter and Lawler model
Extended Vrooms model
This model attempt to :
1. Identify source of peoples valences and expectancies
2. Link effort with performance and job satisfaction
Predictor of effort:
Effort is a function of two elements:
i. The perceived value of reward which represents reward
valence
ii. Perceived effort to reward probability which reflects an
expectancy i.e. the expectation that performance will lead
to reward
Employees should exhibit more effort when they believe
they will receive valued rewards for task accomplishment
Predictors of performance
Performance is determined by more than effort
The relationship between effort and performance is
contingent on an employees abilities and role
perception
Employees with higher abilities attain higher
performance for a given level of effort than
employees with less ability
Employees effort results in higher performance when
employees clearly understand , and are comfortable
with their role.
This occurs because effort is channeled into most
important job activities or tasks
Predictors of Satisfaction
Employees receive both intrinsic and extrinsic
rewards for performance
Employees are more satisfied when they feel
they are equitably rewarded
Job satisfaction affects employees
subsequent valence for rewards
Employees future effort to reward
probabilities are influenced by past experience
with performance and rewards

The Porter-lawler motivation model
Value of
reward
Effort
Abilities
& trait
Role
perception
Performance
Intrinsic
Rewards
Extrinsic
Rewards
Satisfaction
Perceived E P
expectancy
Perceived
Equitable
Rewards
Organization Implication of Expectancy
Theory
Dealing with effort to performance expectancies
Is the employees work reasonable, challenging, and
attainable?
Is the employee able to perform the his/her work? Or more
education, training, experience, support, or coaching needed?
Does the employee possess necessary self-confidence and self
esteem to do his/her work? Or is time and effort needed to
enhance his/her level of confidence?
Is it clear to employee what acceptable level of performance
are? Do we agree on it? Can this performance easily be
measured?
Does the work provide employee with feeling of usefulness,
involvement, and competence? How this feeling be
reinforced?
Theory
Dealing with (performance-outcome)
instrumentality:
Does the employee trust his/her superiors? Does the
organization keep promises made to employees?
Does the organization avoid lying to their
employees?
Is the organization fair and predictable in providing
outcomes to the employees?
Is the organization consistent in the application of
giving rewards? While the rewards may vary for
differing employees are they perceived as being
equitable?
Are the changes in outcome large enough to
motivate employees
Theory
Dealing with ( outcome personal goals) valences:
Are the personal goals of the employee congruent with the
goals of the organization? How can a greater alignment
between these goals be accomplished?
Does the employee see the outcome as worth expenditure of
time and effort?
What constraints of and on the job influence employee? Does
the employee and the organization have realistic mutual
expectations?
Does the organization reward employee with something
he/she really values? Does the organization know which
outcomes the employee values?
Integrating Contemporary Theories of Motivation
Current Issues In Motivation
Motivating a Diverse Workforce
flexibility is the key to motivating a diverse
workforce
diverse array of rewards necessary to
satisfy diverse personal needs and goals
Flexible Working Schedule
compressed workweek - employees work
longer hours per day but fewer days per
week
Motivating a Diverse Workforce (cont.)
Flexible Working Schedule (cont.)
flexible work hours (flextime) - employees required to
work a specific number of hours a week but are free to
vary those hours within certain limits
system entails common core hours when all employees are
required to be on the job
starting, ending, and lunch-hour times are flexible
job sharing - two or more people split a full-time job
telecommuting - employees work at home and are
linked to the workplace by computer and modem
Current Issues In Motivation (cont.)
Current Issues In Motivation (cont.) Motivating a Diverse Workforce (cont.)
Cultural Differences in Motivation
motivation theories developed in the U.S. and validated with
American workers
may be some cross-cultural consistencies
Pay-for-Performance
instead of paying for time on the job, pay is adjusted to reflect
some performance measure
compatible with expectancy theory
imparts strong performance-reward linkage
programs are gaining in popularity
research suggests that programs affect performance
Open-Book Management
involve employees in workplace decisions by opening up
the financial statements
workers treated as business partners
get workers to think like an owner
may also provide bonuses based on profit improvements
Motivating the New Workforce
Motivating Professionals - professionals tend to derive
intrinsic satisfaction from their work and receive high
pay
more loyal to their profession than their employer
value challenging jobs and support for their work
Motivating the New Workforce (cont.)
Motivating Contingent Workers - part-time, contract, or
temporary workers
less security and stability than permanent employees
receive fewer benefits
display little identification or commitment to their employers
hard to motivate contingent workers
opportunity to become a permanent employee
opportunity for training
repercussions of mixing permanent and contingent workers
when pay differentials are significant
Motivating the New Workforce (cont.)
Motivating Low-Skilled, Minimum-Wage Employees
difficult challenge to keep performance levels high
employee recognition programs
highlight employees whose work performance has been
good
encourage others to perform better
power of praise
in service industries, empower front-line employees to address
customers problems
tie compensation to customer satisfaction
From Theory To Practice
Recognize
individual
differences
Ensure that goals
are perceived as
attainable
Check the system
for equity
Individualize
rewards
Link rewards
to performance
Suggestions
for
Motivating
Employees
Use goals
Dont ignore
money
Match people
to jobs
Job Satisfaction
Is the degree to which individual feel
positively or negatively about their job
It is an attitude or emotional response to
ones task as well as to the physical and
social conditions of the work place
The five facets of job satisfaction are:
1. The work itself responsibility, interest, and
growth
2. Quality of supervision technical help and
social support
Job Satisfaction
3. Relationship with co workers social harmony and
respect
4. Promotion opportunities chances for further
advancement
5. Pay adequacy of pay and perceived equity vis--vis
others
Job satisfaction can be assessed:
By managerial observation and interpretation.
Through use of job satisfaction
questionnaires.

Job Satisfaction and Performance
Implications of key work decisions for job
satisfaction.
Joining and remaining a member of an
organization.
Satisfied workers have better attendance and
less turnover.
Working hard in pursuit of high levels of task
performance.
Three alternative relationships between
performance and satisfaction.

Argument: satisfaction causes performance
Managerial implication to increase
employees performance, make them happy
Research indicates that no simple and direct
relationship exist between employee job
satisfaction at one point in time and work
performance latter
Job satisfaction alone is not a consistent
predictor of individual work performance
Argument: performance causes satisfaction
Managerial implication help people achieve high
performance, then satisfaction will follow.
Research indicates an empirical relationship between
individual performance measured at a certain time
period and later job satisfaction
The expectancy model of Lawler and porter
maintains that performance accomplishment leads
to rewards, that in turn leads to satisfaction
Argument: performance causes satisfaction
In this model rewards are intervening variable. In
addition , a moderator variable is perceived equity of
rewards that further affects the relationship
This moderator indicates that performance leads to
satisfaction only if rewards are perceived equitable
If an individual feels that his/her performance is not
equitably rewarded, the performance-cause
satisfaction will not hold
Argument: rewards cause both satisfaction
and performance
Proper allocation of rewards can positively influence both
performance and satisfaction
Research indicates that people who receive high rewards
report high job satisfaction
Research also indicates that performance contingent rewards
influence a persons work performance
Size and value of rewards vary in proportion to the level of
ones performance accomplishment
Satisfaction and performance should be considered as two
separate but interrelated work results that are allocated by
the allocation of rewards
Job satisfaction is not a good predictor of work performance,
well managed rewards can have a positive influence on both
satisfaction and performance

Motivating Employees

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