BMGT 364 Management and Organizational Theory Fall 2012 Sessions 12 13 Motivation Relationship Between Motivation and Organizational Performance Compared to those in the bottom quartile those in the bottom 25 organizations in the top quartile in the degree to which their employees are motivated engaged at work were 50 more likely to have lower turnover 56 more likely to have higher than average ratings on customer loyalty 38 more likely to have above average productivity 27 more likely to have higher profitability Source M Buckingham C Coffman 1999 First Break All The Rules What the World s Greatest Managers Do Differently New York Simon Schuster Copyright 2012 Copyright 2012 Are Employees Motivated at Work According to research by Gallup 26 of American workers are fully engaged another 55 are not engaged and 19 are actively disengaged i e regularly share their unhappiness with others at work Motivational Core Components Motivation Set of forces that initiates directs and makes people persist in their efforts to accomplish a goal Williams 2010 Core Components Initiation the energy behind our actions Direction the choices that we make Persistence maintaining effort in pursuit of goals Copyright 2012 Copyright 2012 1 EFFORT PERSISTENCE PERFORMANCE 1 Are people doing work that is interesting fits their own personal needs 2 Do people see a connection between the effort they put in their job performance OUTCOMES Extrinsic Intrinsic 3 Do people find that achieving high performance leads to outcomes that they value SATISFACTION TRUST 4 Are decisions made in ways that inspire trust build commitment promote satisfaction A Basic Framework for Motivating Managing Performance We will explore each question separately Four Critical Questions for Motivation 1 Needs Theories 1 Are people doing work that they find interesting and that fits their own personal motivational needs Managers can increase motivation by Ensuring that the job itself is intrinsically motivating Ensuring that job assignments fit individual motivational needs Copyright 2012 Copyright 2012 Background Need Theories Key Determinants of Motivation Individual Needs and Preferences General Implications Design jobs that match individual Select or place people whose needs fit needs their jobs Examples Maslow s Hierarchy of Needs Theory Herzberg s Two Factor Theory Person job Fit Theory Maslow s Hierarchy of Needs Theory Implication Lowest unsatisfied need becomes the most powerful motivator Copyright 2012 Copyright 2012 2 Herzberg s Two Factor Model Hygiene Factors Motivators Extrinsic to the job Company Policy Supervision Salary Work Conditions Relationships Job Security Intrinsic to the job Achievement Recognition Work itself Responsibility Advancement Growth Prevent dissatisfaction Do not motivate effort Promote satisfaction Motivate effort Implications Enrich people s jobs by providing greater responsibility autonomy authority and challenge Person job Fit Theory The fit between personality type and occupational environment determines motivation Personality types Myers Briggs Type Indicator MBTI extroversion introversion sensing intuitive thinking feeling perceiving judging Big Five extraversion agreeableness conscientiousness emotional stability openness to experience Copyright 2012 Copyright 2012 Framework for Motivating Managing Performance Make job intrinsically motivating Ensure job fits individual needs EFFORT PERSISTENCE PERFORMANCE OUTCOMES Extrinsic Intrinsic SATISFACTION TRUST Four Critical Questions for Motivation 2 Goal Setting Expectancy Theory 2 Do people see a clear connection between the effort they put into their work and their performance Managers can increase motivation by Setting specific and challenging goals Creating and maintaining high expectations Copyright 2012 Providing an unobstructed path to goals Copyright 2012 3 Background Cognitive Theories Key Determinants of Motivation Goals Expectations and Beliefs Goal Setting Theory Purposeful goals motivate direct actions General Implications Goal Setting Mechanisms Concrete managerial practices to directly shape and modify employees goals expectations and beliefs Examples Goal Setting Theory Expectancy Theory GOAL SETTING PERFORMANCE Focused Attention Effort Persistence Strategy Development Copyright 2012 Copyright 2012 Goal Difficulty and Task Performance SMART Goals Specific The task needs to be carefully articulated and the goal clearly described Measurable The results and behaviors that determine goal accomplishment need to be measured and quantifiable Attainable The goal needs to be challenging but realistic accepted and consistently applied Relevant The goal needs to provide meaning or introduce a sense of fun through competition with self and others Time frame There needs to be a clear end point for when the goal should be accomplished and it needs to be accompanied by feedback Source G Latham 2003 Goal Setting A 5 Step Approach to Behavioral Change Organizational Dynamics 32 309 318 Copyright 2012 Copyright 2012 4 Smith s Vision Goals At the Smith School of Business we set out to provide the knowledge and thought leadership that transform students into agents of both economic prosperity and transformative social change The undergraduate business school will consistently be among the top 15 business schools in the United States when the combined ranking by Business Week U S News World Report are considered Goal Setting Important Considerations Learning developing new knowledge vs performance outcome attainment goals Role of leadership Ensure consistency between superordinate and SMART goals Consider situational constraints e g uncertainty proximal or sub goals interdependency group goals Reward and reinforce behaviors that are consistent with goals set high expectations Encourage questioning goals e g personal needs and career goals Write a SMART goal for your internship or job search this semester Copyright 2012 Copyright 2012 Levinson 2003 Management by whose objec tives HBR January 107 116 Expectancy theory Motivation is determined by beliefs not by facts Two types of beliefs E Expectancy V Valence Expectancy Belief that effort will lead to performance Valence Belief that performance will lead to valued outcomes The Power of Expectations Expectancy will effort produce desired performance Instrumentality if I perform will I get this outcome Valence is this an outcome I care about Effort Performance Outcomes To increase productivity managers need
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