MGMT 3000 Lecture 24 Outline of Last Lecture I Motivation II Theories for needs III Equity Theory Outline of Current Lecture I Pink s Theory II Motivating with Equity Theory III Expectancy Theory IV Reinforcement Theory V Goal Setting Theory Current Lecture Pink s Theory Extrinsic rewards cannot improve performance in right brained activities complex tasks Financial Rewards works well in Manufacturing jobs Specialized routine jobs 3 factor s lead to better employee performance and satisfaction 1 Autonomy To be self directed 2 Mastery Desire to get better at things we do 3 Purpose having a purpose to do the job Motivating with Equity Theory Managers can take several steps to motivate employees with equity theory Look for and correct inequities Reduce employee s inputs Make sure decision making is fair make sure it is transparent Distributive justice degree to which outcomes and rewards are fairly distributed or allocated Procedural justice fairness of procedures used to make reward allocation Expectancy theory My motivation is a function of Ewhat I expect I can get for my input The theory that people will be motivated to the extent to which they believe that their efforts will 1 Will my work lead to good performance 2 If it does lead to good performance Will it be rewarded These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 2 Will the rewards be attractive to me Motivation Valance X Expectancy X Instrumentality Valance the attractiveness or desirability of various rewards or outcomes Ex Promotions Can be different for different people Expectancy relationship between effort and performance If I work hard will I succeed If strong hard work will result in good performance so they work hard Instrumentality Relationship between higher performance and whatever reward is being offered If strong Employees will believe that improved performance will lead to more rewards so they will work harder Opposite for weak instrumentality Motivating with expectancy Theory Gather information to find out what employees want from their jobs Take specific steps to link rewards to individual performance in clear and understandable way Empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance Reinforcement Theory Reinforcement is the process of changing behavior by changing the consequences that follow behavior Reinforcement contingencies are the cause and effect relationships between the performance of specific behaviors and specific consequences A schedule of reinforcement is the set of rules regarding reinforcement contingencies such as which behaviors will be reinforced which consequences will follow those behaviors and the schedule by which those consequences will be delivered Types of reinforcement contingencies 1 Positive Reinforcement strengthens behavior i e increases its frequency by following behaviors with desirable consequences 2 Negative reinforcement strengthens behavior by withholding an unpleasant consequence when employees perform a specific behavior Negative reinforcement is also called avoidance learning because workers perform a behavior to avoid a negative consequence a Ex If engineers make a mistake then they are required to go to the call center and answer the public s troubleshooting problems 3 Punishment weakens behavior i e decreases its frequency by following behaviors with undesirable consequences a If lawyers did not get their time sheets in on time then they would face a penalty 4 Extinction is a reinforcement strategy in which a positive consequence is no longer allowed to follow a previously reinforced behavior a By removing the positive consequence extinction weakens the behavior making it less likely to occur Schedules for Delivering Reinforcement is the set of rules regarding reinforcement contingencies such as which behaviors will be reinforced which consequences will follow those behaviors and the schedule by which those consequences will be delivered 2 categories 1 Continuous reinforcement schedules a consequence follows every instance of a behavior For example employees working on a piece rate pay system earn money consequence for every part they manufacture behavior The more they produce the more they earn 2 Intermittent reinforcement schedules consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred a Fixed interval reinforcement schedules consequences follow a behavior only after a fixed time has elapsed i Most people receive their paychecks on a fixed interval schedule e g once or twice per month b Variable interval reinforcement schedules consequences follow a behavior after different times some shorter and some longer that vary around a specified average time i On a 90 day variable interval reinforcement schedule you might receive a bonus after 80 days or perhaps after 100 days but the average interval between performing your job well behavior and receiving your bonus consequence would be 90 days c Fixed ratio reinforcement schedules consequences are delivered following a specific number of behaviors i For example a car salesperson might receive a 1 000 bonus after every 10 sales d Variable ratio reinforcement schedules consequences are delivered following a different number of behaviors sometimes more and sometimes less that vary around a specified average number of behaviors i With a 10 car variable ratio reinforcement schedule a salesperson might receive the bonus after 7 car sales or after 12 11 or 9 sales but the average number of cars sold before receiving the bonus would be 10 cars Motivating with Reinforcement theory 5 steps 1 Identify means singling out critical observable performance related behaviors These are the behaviors that are most important to successful job performance In addition they must also be easily observed so that they can be accurately measured 2 Measure means determining the baseline frequencies of these behaviors In other words find out how often workers perform them 3 Analyze means studying the causes and consequences of these behaviors Analyzing the causes helps managers create the conditions that produce these critical behaviors and analyzing the consequences helps them determine if these behaviors produce the results that they want 4 Intervene means changing the