Chapter 8 Motivation the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action Intrinsic Rewards internal satisfactions a person receives in the process of performing a particular action Extrinsic Rewards rewards given by another person typically a supervisor such as pay increases and promotions Systemwide Rewards rewards that apply the same to all people within an organization or within a specific category or department Individual Rewards rewards that differ among individuals within the same organization or department Hierarchy of Needs Theory Maslow s theory proposes that humans are motivated by multiple needs and those needs exist in a hierarchical order Hygiene Factors the first dimension of Herzbergs two factor theory involves working conditions pay company policies and interpersonal relationships Motivators the second dimension of Herzbergs two factor theory involves job satisfaction and meeting higher level needs such as achievement recognition and opportunity for growth Acquired Needs Theory McClellands theory that proposes that certain types of needs achievement affiliation power are acquired during an individuals lifetime Reinforcement Theory A motivational theory that looks at the relationship between behavior and its consequences by changing or modifying followers on the job behavior through the appropriate use of immediate rewards or punishments Behavior Modification the set of techniques by which reinforcement theory is used to modify behavior Law of Effect states that positively reinforced behavior tends to be repeated and behavior that is not reinforced tends to not be repeated Reinforcement anything that causes a certain behavior to be repeated or inhibited Positive Reinforcement the administration of a pleasant and rewarding consequence following a behavior Negative Reinforcement withdraw unpleasant consequence once behavior is improved Punishment the imposition of unpleasant outcome son an employee following undesirable behavior Extinction the withholding of a positive reward meaning that behavior is no longer reinforced and hence is less likely to occur in the future Expectancy Theory a theory that suggests that motivation depends on individuals mental expectations and about their ability to perform tasks and receive desired rewards Equity Theory a theory that proposes that people are motivated to seek social equity in the rewards they receive for performance Empowerment power sharing the delegation of power or authority to subordinates in the organization Engagement when people enjoy their jobs and are satisfied with their work conditions contribute enthusiastically to meeting team and organizational goals and feel a sense of belonging and commitment to the organization Employee Ownership giving employees real and psychological ownership in the organization as owners people are motivated to give their best performance Gainsharing motivational approach that encourages people to work together rather than focus on individual achievements and rewards ties additional pay to improvements in overall employee performance Pay for Knowledge programs that base an employee s pay on the number of skills he or she possesses Pay for Performance a program that links at least a portion of the employees monetary rewards to results and accomplishments Job Enrichment a motivational approach that incorporates high level motivators into the work including job responsibility recognition and opportunities for growth learning and achievement What is the Importance of Motivation Motivation the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action employee motivation affects productivity so part of the leaders job is to channel followers motivation toward the accomplishment of the organizations vision and goals Motivation helps leaders understand what prompts people to initiate action what influences their choice of action and why they persist in that action over time The importance of motivation is NEED creates desire to fulfill needs money friendship recognition achievement BEHAVIOR results in actions to fulfill REWARDS satisfy needs intrinsic or extrinsic rewards FEEDBACK Reward informs person whether behavior was appropriate and should be used again Different Ways to Motivate Employees Conventional Management Lower needs Carrot and Stick extrinsic Control people Adequate effort Leadership Higher needs Empowerment intrinsic Employee engagement Best effort Different Types of Rewards Intrinsic Rewards internal satisfactions a person receives in the process of performing a particular action solving a problem to benefit others may fulfill a personal mission or the completion of a complex task may bestow a pleasant feeling of accomplishment An intrinsic reward is internal and under the control of the individual such as to engage in task behavior to satisfy a need for competency and self determination Extrinsic Rewards rewards given by another person typically a supervisor such as pay increases and promotions extrinsic rewards compel individuals to engage in a task behavior for an outside source that provides what they need such as money to survive in a modern society Ex A paycheck Systemwide Rewards rewards that apply the same to all people within an organization or within a specific category or department extrinsic system wide reward is could be insurance benefits or vacation time available to an entire organization or category of people such as those who have been with the organization for 6 months or more an intrinsic system wide reward might be the sense of pride that comes from within by virtue of working for a winning organization like Quicken Loans which ranked number 2 on fortune 500 magazine for the best companies to work for Experience an intrinsic system wide reward from working at a company recognized for its smart ethical approach to doing business Individual Rewards rewards that differ among individuals within the same organization or department Extrinsic Individual Reward is a promotion pay raise or a bonus check Intrinsic Individual Reward is would be a sense of self fulfillment that an individual derives from his or her work Ex Oprah Winfrey provides an example from not being motivated by money or desire for power and prestige but she feels rewarded by serving others by uplifting enlightening encouraging and transforming how people