DOC PREVIEW
Berkeley UGBA 105 - Lecture Notes

This preview shows page 1-2-3-4-5 out of 14 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

UGBA 105 Sections 102,104,106AgendaA Definition of MotivationEarlier Theories of MotivationDilbert on MotivationMotivation is complicated: Expectancy TheoryTightening E-P-O LinkagesEquity and MotivationMotivation and Money: It DOES MatterThe Problem With Strong Monetary Incentives …Alternatives to Strong Monetary Incentives:The Importance of ContextExtrinsic and Intrinsic rewardsLessons LearnedMotivation at People ExpressUGBA 105UGBA 105Sections 102,104,106Sections 102,104,106Week 10: Motivation IWeek 10: Motivation IAgendaAgendaReview theories of Review theories of motivationmotivationVideo of Lincoln Electric Video of Lincoln Electric Discuss motivation at Discuss motivation at Lincoln Electric & People Lincoln Electric & People ExpressExpressA Definition of A Definition of MotivationMotivationPerformance = Performance =  (Motivation x (Motivation x Ability)Ability)Motivation is an internal state that energizes, directs and maintains human action.Greenberg, Jerald (2002) Managing Behavior in OrganizationsEarlier Theories of Earlier Theories of MotivationMotivationThe learning (Skinnerian) approach The learning (Skinnerian) approach to motivation:to motivation:if you do _____, I’ll give you if you do _____, I’ll give you ______.______.Homo economicus (e.g.Theory X) Homo economicus (e.g.Theory X) suggests: the greater the promised suggests: the greater the promised reward, the greater the motivation. reward, the greater the motivation.Dilbert on MotivationDilbert on MotivationMotivation is complicated: Motivation is complicated: Expectancy TheoryExpectancy TheoryMotivationMotivation determines the level of employee determines the level of employee efforteffort..PerformancePerformance depends on depends on motivationmotivation and and abilityability..MotivationMotivation is partly determined by perceptions of is partly determined by perceptions of linkages from effort to performance to outcomes.linkages from effort to performance to outcomes.The The environmentenvironment (incentive system) partly (incentive system) partly determines the strength of the linkage from effort determines the strength of the linkage from effort to performance, and from performance to outcomes.to performance, and from performance to outcomes.MotivationEffortPerformanceOutcomesEnvironmentAbilityEdward Lawler, Motivation in Work Organizations, Brooks/Cole, 1973.Tightening E-P-O Tightening E-P-O LinkagesLinkagesMotivationEffortPerformanceOutcomesIf I put forth theeffort, will it fulfill theorganization’s performance goals?EXPECTANCYWill meeting theorganization’s performance goalsearn me the promisedrewards?INSTRUMENTALITYDo I value thisreward?VALENCEEquity and MotivationEquity and MotivationIf I perceive these as unequal I may:• reduce my effort (my input)• increase my outcomes in other ways• change my referent other• change my perception of my inputMY OUTCOMESMY INPUTS=OTHER’S OUTCOMESOTHER’S INPUTS?To determine valence, people compare their input/output ratios to those of people around them.M. Patchen, The Choice of Wage Comparisons, Prentice-Hall, 1961.J. Adams, “Toward an understanding of inequity,” Journal of Abnormal & Social Psychology, 1963.Motivation and Money: Motivation and Money: It DOES MatterIt DOES MatterThe Problem With Strong The Problem With Strong Monetary Incentives …Monetary Incentives …… … is that they work TOO well!is that they work TOO well!Sears Auto CentersSears Auto Centers–1989 – Unveiled a new incentive system that based 1989 – Unveiled a new incentive system that based compensation on the average revenue per customer visit.compensation on the average revenue per customer visit.–1999 – A class-action lawsuit claimed Sears had defrauded 1999 – A class-action lawsuit claimed Sears had defrauded $400M from its customers nationwide by selling them $400M from its customers nationwide by selling them unnecessary services.unnecessary services.Nortel NetworksNortel Networks–After the 2000/01 dot-com crash, the Board of Directors After the 2000/01 dot-com crash, the Board of Directors offered top executives $13.6M in incentive compensation if offered top executives $13.6M in incentive compensation if the firm broke even for one quarter; $30M more if the firm the firm broke even for one quarter; $30M more if the firm broke even for three consecutive quarters.broke even for three consecutive quarters.–The firm massively under-reported income in 2002 to make The firm massively under-reported income in 2002 to make sure 2003 was a break-even year. 2003 bonuses: CEO Frank sure 2003 was a break-even year. 2003 bonuses: CEO Frank Dunn $2.15M; CFO $831K. The firm’s performance crashed in Dunn $2.15M; CFO $831K. The firm’s performance crashed in 2004.2004.Alternatives to Strong Alternatives to Strong Monetary Incentives:The Monetary Incentives:The Importance of ContextImportance of ContextCustomer SatisfactionCustomer Satisfaction–““We [at Nordstrom] remain committed to the simple idea We [at Nordstrom] remain committed to the simple idea our company was founded on, earning the trust of our our company was founded on, earning the trust of our customers, one at a time.”customers, one at a time.”Technological InnovationTechnological Innovation–The mission of Cray Research (founded 1972 by Seymour The mission of Cray Research (founded 1972 by Seymour Cray, designer of the world’s first supercomputer) is Cray, designer of the world’s first supercomputer) is “to design and build a larger, more powerful computer “to design and build a larger, more powerful computer than anyone has now.”than anyone has now.”–““Google’s mission is to organize the world's Google’s mission is to organize the world's information and make it universally accessible and information and make it universally accessible and useful.”useful.”What other overarching goals do firms use to keep monetary incentives in context?Extrinsic and Extrinsic and Intrinsic rewardsIntrinsic rewardsExtrinsicExtrinsicIntrinsicIntrinsicLessons LearnedLessons LearnedImplications of Motivation Theories for Implications of Motivation Theories for ManagersManagersFigure out what outcomes each employee values.Figure out what outcomes each employee values.Determine what kinds of behavior you desire.Determine what kinds of behavior you desire.Make sure desired levels of performance are reachable.Make


View Full Document

Berkeley UGBA 105 - Lecture Notes

Download Lecture Notes
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Lecture Notes and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Lecture Notes 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?