Chapter 11 Motivation Motivation Is o The set of forces that initiates directs and makes people persist their efforts to accomplish a goal Theory X Theory Y encapsulate a fundamental distinction between management styles o Theory X Authoritarian style where the emphasis is on productivity and on the concept of a fair day s work o Theory Y Theory X managers believe that employees need to be controlled do not like work need to be punished to be more productive need incentive schemes and have to be directed to do things that they do not enjoy Participative style of management which assumes that people will exercise self direction and self control in the achievement of organizational objectives to the degree that they are committed to those objectives Theory Y managers believe that employees want to be involved can t think for themselves and make decisions share ownership of tasks will find work more rewarding if given responsibility and a variety of tasks have good ideas and can engage in some level of self management The Basics of Motivation 3 Components 1 Motivation Effort and Performance Job Performance Motivation x Ability x Situational Constraints o Job Performance how well someone performs the requirements of the job Motivation effort or the degree to which someone works hard to do the job well Ability the degree to which workers possess the knowledge skills and talent needed to do a job well Situational Constraints factors beyond the control of individual employees such as tools policies and resources that have an effect on job performance Needs the physical or psychological requirements that must be met to ensure survival and o A person s unmet need creates an uncomfortable internal state of tension that must be o People are motivated by unmet needs managers must learn what those unmet needs are 2 Need Satisfaction well being resolved and address them o Once a need is met it no longer motivates 3 Well Known Needs Theories o Maslow Hierarchy of Needs Suggests that people are motivated by Physiological Safety Belongingness Esteem and Self Actualization Needs are arranged in a hierarchy from low to high people are motivated by o Alderfer ERG their lowest unsatisfied needs Collapses Maslow s five needs into three Existence safety and physiological needs Relatedness belongingness Growth esteem and self actualization People can be motivated by more than one need at a time o McClelland Learned Needs Suggests that people are motivated by the need for Affiliation Achievement or Power The degree to which particular needs motivate varies from person to person needs are learned What Leads to Effort o Higher order needs will not motivate as long as lower order needs remain unsatisfied o It s difficult to predict which higher order needs will motivate employees behavior o The relative importance of the various needs may change over time 3 Extrinsic and Intrinsic Rewards Extrinsic Rewards tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors o Most important extrinsic rewards good benefits and health insurance job security a week or more of vacation Intrinsic Rewards the natural rewards associated with performing a task or activity for its own sake o Most important intrinsic rewards interesting work the opportunity to learn new skills and Says to make sure decision making process is perceived as fair Links rewards to individual performance in a clear and understandable way independent work situations 4 Basic Theories Around Motivation o Equity Theory o Expectancy Theory o Reinforcement Theory o Goal Setting Theory Behaviors is a function of its consequences Assign employees specific challenging goals Equity Theory equity theory stresses the importance of perceptions o Components of Equity Theory o People will be motivated at work when they perceive that they are being treated fairly in particular Inputs the contributions employees make to the organization include education and training intelligence experience effort number of hours worked and ability Outcomes what employees receive in exchange for their contributions to the organization include pay fringe benefits status symbols and job titles and assignments Referents others with whom people compare themselves to determine if they have been treated fairly Usually people chose to compare themselves with referents who hold the same or similar jobs or who are otherwise similar in gender race age tenure or other characteristics o Forms of Inequity Underreward occurs when a referent s output input ratio is better than your output input ratio In other words you are getting fewer outcomes relative to your inputs than the referent you compare yourself with is getting Overreward occurs when a referent s output input ratio is worse than your output input ratio You are getting more outcomes relative to your inputs than your referent is In theory when people perceive that they have been overrewarded they experience guilt o Employees Reacting to Inequity When responding to inequity one may decreasing or withholding inputs increasing outcomes rationalize or distort inputs to outcomes change the referent or leave the company o Motivating with Equity Theory Start by looking for and correcting major inequities Reduce employees inputs Make sure decision making processes are fair Distributive Justice the degree to which outcomes and rewards are fairly distributed or allocated important o Equity theory focuses on distributive justice but procedural justice is just as Procedural Justice the fairness of the procedures used to make reward allocation Expectancy Theory decisions o The theory people will be motivated to the extent to which they believe that their efforts will lead to good performance that good performance will be rewarded and they will be offered attractive rewards o 3 Factors That Affect People s Choices expectancy theory holds that people make conscious choices about their motivation Motivation Valence x Expectancy x Instrumentality Valence the attractiveness or desirability of a reward or outcome Reinforcement Theory Expectancy the perceived relationship between effort and performance o When expectancies are strong employees believe hard work and efforts will result in good performance so they work harder Instrumentality the perceived relationship between performance and rewards o When instrumentality is strong employees believe that improved performance will lead to better and