Defining

Defining Motivation
Motivation

Key
KeyElements
Elements
1.1. Intensity:
Intensity:how
howhard
hardaaperson
persontries
tries
2.2. Direction:
Direction:toward
towardbeneficial
beneficialgoal
goal
3.3. Persistence:
Persistence:how
howlong
longaaperson
persontries
tries

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 Dimensions
Dimensions of
of performance
performance

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 The
The Nature
Nature of
of Motivation
Motivation
 Intrinsic Motivation
– Behavior that is performed for its own sake.
• The source of the motivation that comes from
actually engaging in the behavior.
• The sense of accomplishment and achievement
derived from doing the work itself
 Extrinsic Motivation
– Behavior that is performed to acquire material or social
rewards or to avoid punishment.
• The source of the motivation is the consequences of
the behavior and not the behavior itself.

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 Model
Model of
of Intrinsic
Intrinsic Motivation
Motivation
 Employees are intrinsically motivated when
rewards an employee gets from work result from:
– Choice– the ability to freely self-select and perform
task activities.
– Competence– the sense of accomplishment from
skillfully performing chosen tasks or activities.
– Meaningfulness– pursuing a task that matters in the
larger scheme of things.
– Progress– the feeling of significant advancement in
achieving the task’s purpose.

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 Improving
Improving Performance
Performance with
with Extrinsic
Extrinsic Rewards
Rewards

– Rewards must satisfy individual needs.

• Cafeteria compensation: a plan that allows employees
to select their own mix of benefits.
– Employees must believe that effort will lead to an
attainable reward.
– Rewards must be personally and socially equitable.
– Rewards must be linked to performance (results) such
that desired behaviors are encouraged.

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 Hierarchy
Hierarchy of
of Needs
Needs Theory
Theory

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 Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs

EXHIBIT 6-1

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 Two-Factor
Two-Factor Theory
Theory (Frederick
(Frederick Herzberg)
Herzberg)

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Factors characterizing events
on the job that led to extreme
job dissatisfaction

Factors characterizing events

on the job that led to extreme
job satisfaction

Comparison
Comparisonof of
Satisfiers
Satisfiersand
and
Dissatisfiers
Dissatisfiers

EXHIBIT 6-3

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 Contrasting
Contrasting Views
Views of
of Satisfaction
Satisfaction
and
and Dissatisfaction
Dissatisfaction

Presence Absence

EXHIBIT 6-4

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 ERG
ERG Theory
Theory (Clayton
(Clayton Alderfer)
Alderfer)

Concepts:
Concepts:
More
Morethan
thanone
oneneed
needcan
can
bebeoperative
operativeatatthe
thesame
same
Core time.
time.
CoreNeeds
Needs
Existence: IfIfaahigher-level
higher-levelneed
need
Existence:provision
provisionof of cannot
basic
basicmaterial
material cannot be fulfilled,the
be fulfilled, the
requirements. desire
desiretotosatisfy
satisfyaalower-
lower-
requirements. level
levelneed
needincreases.
increases.
Relatedness:
Relatedness:desire
desirefor
for
relationships.
relationships.
Growth:
Growth:desire
desirefor
for
personal
personaldevelopment.
development.

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 Goal-Setting
Goal-Setting Theory
Theory (Edwin
(Edwin Locke)
Locke)

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 Equity
Equity Theory
Theory

Referent
Referent
Comparisons:
Comparisons:
Self-inside
Self-inside
Self-outside
Self-outside
Other-inside
Other-inside
Other-outside
Other-outside

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 Equity
Equity Theory
Theory (cont’d)
(cont’d)

EXHIBIT 6-7

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 Equity
Equity Theory
Theory (cont’d)
(cont’d)

Choices
Choicesfor
fordealing
dealingwith
withinequity:
inequity:
1.1. Change
Changeinputs
inputs(slack
(slackoff)
off)
2.2. Change
Changeoutcomes
outcomes(increase
(increaseoutput)
output)
3.3. Distort/change
Distort/changeperceptions
perceptionsof
ofself
self
4.4. Distort/change
Distort/changeperceptions
perceptionsofofothers
others
5.5. Choose
Chooseaadifferent
differentreferent
referentperson
person
6.6. Leave
Leavethe
thefield
field(quit
(quitthe
thejob)
job)

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 Equity
Equity Theory
Theory (cont’d)
(cont’d)

Propositions
Propositionsrelating
relatingto
toinequitable
inequitablepay:
pay:
1.1. Overrewarded
Overrewardedemployees
employeesproduce
producemore
more
than
thanequitably
equitablyrewarded
rewardedemployees.
employees.
2.2. Overrewarded
Overrewardedemployees
employeesproduce
produceless,
less,but
but
do
dohigher
higherquality
qualitypiece
piecework.
work.
3.3. Underrewarded
Underrewardedhourly
hourlyemployees
employeesproduce
produce
lower
lowerquality
qualitywork.
work.
4.4. Underrewarded
Underrewardedemployees
employeesproduce
producelarger
larger
quantities
quantitiesof
oflower-quality
lower-qualitypiece
piecework
workthan
than
equitably
equitablyrewarded
rewardedemployees
employees

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 Equity
Equity Theory
Theory (cont’d)
(cont’d)

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 Vroom’s
Vroom’s Expectancy
Expectancy Theory
Theory

EXHIBIT 6-8

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 Operant
Operant Conditioning
Conditioning Theory
Theory

Operant Conditioning

–People learn to perform behaviors that lead to desired

consequences and learn not to perform behaviors that lead to
undesired consequences.
–Linking specific behaviors to the attainment of specific
outcomes can motivate high performance and prevent
behaviors that detract from organizational effectiveness.

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 Operant
Operant Conditioning
Conditioning Tools
Tools
Positive Reinforcement
–Getting desired outcomes for performing needed work behaviors
•Positive reinforcers: Pay, praises, or promotions
Negative Reinforcement
–Eliminating undesired outcomes once the desired behavior occurs
•Negative reinforcers: criticisms, pay cuts, suspension

Extinction

–Curtailing the performance of a dysfunctional behavior by eliminating whatever is

reinforcing it.
•Behavior is not rewarded and over time, the worker stops performing it.
Punishment

–Administering an undesired/negative consequence to immediately stop a

dysfunctional behavior.
•Manager administers an undesired consequence to worker (verbal
reprimand,
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 Model of Behavior mo Model of Behavior modification
Behavioral events,
Identification of performance and
critical behavior organizational consequences

developing baseline
Percentage and frequency
data

Identifying baseline
consequence A-B-C

Consider environmental variables

Developing Interventions
Apply Appropriate strategy
Chart the frequency
of the response
after interventions
Structure ,technology,
task, processes,groups
Positive reinforcement,
negative reinforcement,
punishment,extinction
Modeling and Shaping

Yes Maintenance of Evaluating

No Problem solved
the desired behavior Performance
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(schedules reinforcement improvement
6–21
 Pay
Pay and
and Motivation
Motivation
 Pay as a Motivator
– Expectancy: pay is an instrumentality (and outcome), must be high
for motivation to be high.
– Need Theory: pay is used to satisfy many needs.
– Equity Theory: pay is given in relation to inputs.
– Goal Setting Theory: pay is linked to attainment of goals.
– Learning Theory: outcomes (pay), is distributed upon performance
of functional behaviors.
 Merit Pay Plan
– A compensation plan that bases pay on individual, group and/or
organization performance.
– Individual plan: when individual performance (sales) can accurately
measured.
– Group plan: when group that works closely together is measured
and rewarded as a group.
– Organization plan: when group or individual outcomes not easily
measured.

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 Salary
Salary Increase
Increase or
or Bonus?
Bonus?
Motivational Value of a Bonus Is Higher When:
–Salary levels are unrelated to current
performance.
–Changes in other compensation items (cost of
living, seniority) are not having a large effect in
increasing compensation.
–Salaries rarely change and performance does.
Benefits of Using Bonuses
–Do not become permanent part of compensation
–Are more directly tied to current performance
–Provide more flexibility in distributing rewards

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 Examples
Examples of
of Merit
Merit Pay
Pay Plans
Plans
 Piece-rate Pay
– Employee’s pay is based on the number of units that the
employee produces.
 Commission Pay
– Employee’s pay is based on a percentage of sales that the
employee makes.
 Organization-based Merit Plans
– Scanlon plan—focuses on reduced expenses or cutting costs
– Profit sharing—employees receive a share of an
organization’s profits

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