CHAPTER

16

Managing
Employee
Motivation and
Performance

PowerPoint Presentation
by Charlie Cook

Copyright by Houghton Mifflin Company.

All rights reserved.
 The Nature of Motivation
Motivation
The set of forces that cause people to behave in certain
ways.
The goal of managers is to maximize desired behaviors and
minimize undesirable behaviors.
The Importance of Motivation in the Workplace
Determinants of Individual Performance
Motivationthe desire to do the job.
Abilitythe capability to do the job.
Work environmentthe resources
to do the job.

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 The Motivation Framework

Choice of
Need or Search for ways
behavior to
deficiency to satisfy need
satisfy need

Determination of
future needs and Evaluation of
search/choice for need satisfaction
satisfaction

The motivation processes through a series of discreet

steps. Content, process, and reinforcement perspectives
on motivation address different parts of this process.
Figure 16.1
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 Historical Perspectives on Motivation
The Traditional Approach
Frederick Taylor (Scientific Management)
Assumptions:
Managers know more than workers.
Economic gain (money) is the primary
motivation for performance.
Work is inherently unpleasant.
The Human Relations Approach
Emphasized the role of social processes in the workplace.
Assumptions:
Employees want to feel useful and and important.
Employees have strong social needs, more important than money.
Maintaining the appearance of employee participation is important.

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 Historical Perspectives on Motivation
(contd)
The Human Resource Approach
Assumptions:
Employee contributions are important and valuable to the employee
and the organization.
Employees want to and are able to make genuine contributions.
Managements job is to encourage participation
and create a work environment that
motivates employees.

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 Content Perspectives on Motivation
Content Perspectives
Approaches to motivation that try to answer the question,
What factors in the workplace motivate people?
Content Perspectives of Motivation
Maslows Hierarchy of Needs
Herzbergs Two-Factor Theory
McClellands Achievement,
Power, and Affiliation Needs
Aldefers ERG Theory

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 Content Perspectives on Motivation (contd)
The Need Hierarchy Approach
Maslows Hierarchy of Needs
People must, in a hierarchical order, satisfy five groups of needs:
Physiological needs for basic survival and biological function.
Security needs for a safe physical and emotional environment.
Belongingness needs for love and affection.
Esteem needs for positive self-image/self-respect and recognition
and respect from others.
Self-actualization needs for realizing ones potential for personal
growth and development.
Weakness of Maslows theory
Five levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences.

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 Maslows Hierarchy of Needs
NEEDS
General Examples Organizational Examples

Self- Challenging
Achievement actualization job

Job
Status Esteem
title

Friends
Friendship Belongingness
at work

Pension
Stability Security
plan

Base
Food Physiology
salary

Figure 16.2
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 Content Perspectives on Motivation (contd)
The ERG Theory (Alderfer)
Peoples needs are grouped into three overlapping
categoriesexistence, relatedness, and growth.
Maslows hierarchy is collapsed into three levels:
Existence needs related to physiological and security needs.
Relatedness needs that are similar to belongingness and esteem by
others.
Growth needs encompass needs for self-esteem and self-
actualization.
ERG theory assumes that:
Multiple needs can be operative at one time (there is no absolute
hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need and
pursue that need (frustration-regression).

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 Content Perspectives on Motivation (contd)
The Two-Factor Theory (Herzberg)
Peoples satisfaction and dissatisfaction are influenced by
two independent sets of factorsmotivation factors and
hygiene factors.
Theory assumes that job satisfaction and job dissatisfaction
are on two distinct continuums:
Motivational factors (work content) are on a continuum that ranges
from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate continuum that
ranges from dissatisfaction to no dissatisfaction.
Motivation is a two-step process:
Ensuring that the hygiene factors are not deficient and not blocking
motivation.
Giving employees the opportunity to experience motivational factors
through job enrichment.

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 Motivation Factors
Achievement
The Two-
Recognition Factor
The work itself
Responsibility Theory of
Advancement
and growth Motivation
Satisfaction No satisfaction

Hygiene Factors
Supervisors
Working conditions
Interpersonal relations
Pay and security
Company policies and
administration

Dissatisfaction No dissatisfaction
Figure 16.3
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 Content Perspectives on Motivation (contd)
Individual Human Needs (McClelland)
The need for achievement
The desire to accomplish a goal or task more effectively than in the
past.
The need for affiliation
The desire for human companionship and acceptance.
The need for power
The desire to be influential in
a group and to be in control
of ones environment.

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 Process Perspectives on Motivation
Process Perspectives
Approaches to motivation that focus on why people choose
certain behavioral options to satisfy their needs and how
they evaluate their satisfaction after they have attained their
goals.

Process Perspectives of Motivation

Expectancy Theory

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 Process Perspectives on Motivation (contd)
Expectancy Theory
Motivation depends on how much we want something and
how likely we are to get it.
Assumes that:
Behavior is determined by a combination of personal and
environmental forces.
People make decisions about their own behavior in organizations.
Different people have different types of needs, desires, and goals.
People choose among alternatives of behaviors in selecting one that
that leads to a desired outcome.
Motivation leads to effort, when combined with ability and
environmental factors, that results in performance which, in turn,
leads to various outcomes that have value (valence) to employees.

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 Process Perspectives on Motivation (contd)
Elements of Expectancy Theory
Effort-to-Performance Expectancy
The employees perception of the probability that effort will lead to a
high level of performance.
Performance-to-Outcome Expectancy
The employees perception of the probability
that performance will lead to a specific
outcomethe consequence or reward
for behaviors in an organizational
setting.

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 Process Perspectives on Motivation (contd)
Elements of Expectancy Theory (contd)
Valence
An index of how much an individual values a particular outcome.
It is the attractiveness of the outcome to the individual.
Attractive outcomes have positive valences and unattractive
outcomes have negative valences.
Outcomes to which an individual is indifferent have zero valences.
For motivated behavior to occur:
Both effort-to-performance expectancy and performance-to-outcome
expectancy probabilities must be greater than zero.
The sum of the valences must be greater than zero.

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 Process Perspectives on Motivation (contd)
The Expectancy Model of Motivation

Outcome Valence

Environment Outcome Valence

Motivation Effort Performance Outcome Valence

Ability Outcome Valence

Outcome Valence

Figure 16.4
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 Using Reward Systems to
Motivate Performance
Designing Effective Reward (contd)
Reward system must meet an individuals needs.
Rewards should compare favorably with other organizations.
Distribution of rewards must be perceived to be equitable.
Reward system must recognize different needs.
New Approaches
Merit system
A reward system whereby people get different pay raises at the end of
the year depending on their overall job performance.
Incentive system
A reward system whereby people get different pay amounts at each
pay period in proportion to what they do.

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