EXAM 2 STUDY GUIDE MOTIVATION AND ENGAGEMENT Motivation behavior physiological processes that arouse and direct goal directed o Intrinsic motivation o Extrinsic motivation o Need based theories of motivation Needs behavior Maslow s need hierarchy theory Pyramid physiological or psychological deficiencies that drive o Bottom of pyramid Physiological needs safety needs social needs deficiency needs o Top of pyramid esteem needs self actualization needs growth needs Strict hierarchy theory Alderfer s ERG theory Pyramid o Bottom top existence needs relatedness needs growth needs Unlike Maslow s need hierarchy this is not a strict hierarchy theory McClelland s need theory motivation is a function of 3 different needs that vary from individual to individual the desire to accomplish Need for achievement something difficult Need for affiliation relationships and activities encourage others to achieve Success in a role largely a fit between the job and person s needs Need for power the desire to spend time in social the desire to influence coach teach or o Job design approaches to motivation satisfaction motivation and performance while reducing absenteeism turnover etc focuses on improving Job enlargement Job enrichment Job rotation Job sharing Job characteristics model Equation regarding performance opportunity Job characteristics model Hackman and Oldham performance ability X motivation X o Core job characteristics critical psychological states outcomes Equity theory o Festinger has its roots in cognitive dissonance theory Cognitive dissonance creates psychological discomfort Psychological comfort causes dissonance reduction activities o Components of Adams Equity Theory Inputs Outcomes compensation anything else that is valued Outcomes inputs ratio can be equitable or inequitable This ratio is what potentially creates dissonance and motivates behavior o Equity theory in operation EQUAL other s outcomes other s inputs individuals may If my outcomes my inputs DOES NOT Increase or decrease inputs Change their outcomes Distort their perceptions of inputs and or outcomes Distort perceptions of other s inputs and or outcomes Change the referent others Leave the organization o Conclusions from equity theory Need to pay attention to perceptions of equity and Involve others in making decisions that affect them Be open to constructive criticism and appeals of decisions Work hard to treat everyone in an equitable not necessarily Where equity exists but is not perceived help others equal manner understand Where inequity exists work to reduce eliminate it Expectancy theory o Effort performance outcomes rewards o Expectancy X instrumentality X valence of outcome reward motivation Goals need to be smart o Specific o Measurable o Attainable o Relevant o Time based Job satisfaction an affective or emotional response to one s job o Moderately correlated with most work outcomes measures o Satisfied employees may not be necessarily high performing innovative enthusiastic etc o Engagement assumes satisfaction plus a level of excitement and enthusiasm about the work energy enthusiasm for the organization and passion for what one does Engagement is more strongly correlated with turnover Employee engagement negative correlation than is satisfaction a measure of how engaged involved satisfied and committed individuals feel in their job and as an employee Measured by 3 key behaviors o Say employees speak positively about the employees strongly desire to continue company to coworkers potential coworkers and current and future customers working for the company dedicated to doing the best job to contribute to business success employees exert extra effort and are o Stay o Serve Influenced by o Relationships o Organization leadership o Organization culture and purpose o Quality of work life o Career opportunity o Work activities o Total compensation o Application survey items 7 point scale Employees are given meaningful decision making authority People are treated fairly Communication is open and honest Employees share in the financial success of the company I am evaluated and rewarded based on my individual performance Overall I feel my compensation is appropriate for the contribution I make to my business unit Compared to other places I might work I feel I am fairly paid COMPENSATION the rewards usually that reinforce behavior Compensation organizational membership performance and retention Merit based compensation o Link performance appraisal ratings to annual pay increases o Merit increase grid combines an employee s performance Can help bring about perceived pay equity o Criticisms Emphasis on individual performance vs teamwork Measurement problems o Effective means of reinforcing performance Incentive variable compensation o Can be supplemental income commissions in addition to base pay Or sole source of income realtor commissions o Typically linked to previously set performance targets o Focused on both individual and organizational performance o When used as bonuses Funding organization targets need to be met to fund bonus pool Profit sharing Distribution bonus pools distributed according to plan targets o Payments based on a measure of organizational performance and payments do not become a part of base pay o Encourages employees to think more like owners o Can enhance feelings of procedural and distributive justice o Drawback Employees may not see strong link between their performance and organizational performance o Encourages employees to focus on the success of the organization as a o Stock options give employees the opportunity to buy company stock o Employee stock ownership plans ESOPs at a fixed price strike price employee ownership plans that give employers certain tax and financial advantages when stock is granted to employees Equity ownership whole entity Stock options o Typically used at higher levels of an organization o Gives an employee the option to purchase stock at a later date at a price strike price that is set at a given point strike date o Some amount of options or dollars at work used as indicator of number of options o Typically seen at long term incentive Linked to future potential vs current performance o Typically have a vesting period of 3 5 years until they can actually be o Can help employees focus on overall organization performance and exercised success o Concerns Shouldn t focus too much on high potential employees at the expense of known high value employees The more an
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