HBO Handout Chapter 5 (Motivation)

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

5-1


5-2

ChapterChapter

MotivationMotivation

55


5-3Determinants of Job Performance

Determinants of Job Performance

Job performanceJob performance

Willingness to perform

Opportunity to perform

Capacity to perform


5-4The Starting Point: The Individual

(1 of 4)

The Starting Point: The Individual

(1 of 4)

• Most managers must motivate a diverse and unpredictable group of people

• The diversity results in different behavioral patterns that are in some manner related to needs and goals


5-5

The Motivational Process: A General Model

The Motivational Process: A General Model

The The EmployeeEmployee

I.

Need deficienciesNeed deficiencies

II.Search for ways to Search for ways to satisfy needssatisfy needs

III.

Goal-directed Goal-directed behaviorbehavior

IV.

Performance Performance (evaluation of goals (evaluation of goals accomplished)accomplished)

V.

Rewards or Rewards or punishmentspunishments

VI.Need deficiencies Need deficiencies reassessed by the reassessed by the employeeemployee



(2 of 4)

The Starting Point: The Individual

(2 of 4)

• Need – a deficiency or lack of something of value that an individual experiences at a particular point in time

• Deficiencies may be:• Physiological (e.g., a need for food)• Psychological (e.g., a need for self-esteem)• Sociological (e.g., a need for social

interaction)



(3 of 4)The Starting Point: The Individual

(3 of 4)

• When needs are present, the individual will seek to fulfill those needs and may be more susceptible to managers’ motivational efforts

• Work-related needs can vary from individual to individual

• People seek to reduce need deficiencies• Need deficiencies trigger a search process

for ways to reduce the tension caused by the deficiencies



(4 of 4)The Starting Point: The Individual

(4 of 4)

• The motivational process is goal-directed

• The goals (or outcomes) that an employee seeks are viewed as forces that attract the person

• The accomplishment of desirable goals can result in a significant reduction in need deficiencies


5-9Motivation Theories: A Summary Overview

Motivation Theories: A Summary Overview

Content Motivation Theories

• Theories that focus on factors within a person that:• Energize behavior• Direct behavior• Sustain behavior• Stop behavior• These factors can only

be inferred

Content Motivation Theories

• Theories that focus on factors within a person that:• Energize behavior• Direct behavior• Sustain behavior• Stop behavior• These factors can only

be inferred

Process Motivation Theories

• Theories that describe and analyze how behavior is:• Energized• Directed• Sustained• Stopped

Process Motivation Theories

• Theories that describe and analyze how behavior is:• Energized• Directed• Sustained• Stopped


5-10

Content Theories of MotivationContent Theories of Motivation

Founders of the Theories• Maslow – five-level need

hierarchy• Alderfer – three-level

hierarchy (ERG)• Herzberg – two major

factors (hygienes and motivators)

• McClelland – three learned needs acquired from the culture

Founders of the Theories• Maslow – five-level need

hierarchy• Alderfer – three-level

hierarchy (ERG)• Herzberg – two major

factors (hygienes and motivators)

• McClelland – three learned needs acquired from the culture

Managerial Application• Managers need to be

aware of differences in needs, desires, and goals because each individual is unique in many ways

Managerial Application• Managers need to be

aware of differences in needs, desires, and goals because each individual is unique in many ways


5-11

Maslow’s Need Hierarchy (1 of 2)Maslow’s Need Hierarchy (1 of 2)

Maslow defined human needs as:

• Physiological: the need for food, drink, shelter, and relief from pain

• Safety and security: the need for freedom from threat; the security from threatening events or surroundings

• Belongingness, social, and love: the need for friendship, affiliation, interaction, and love


5-12

Maslow’s Need Hierarchy (2 of 2)Maslow’s Need Hierarchy (2 of 2)

• Esteem: the need for self-esteem and for respect from others

• Self-actualization: the need to fulfill oneself by making maximum use of abilities, skills, and potential


5-13Maslow’s Need Hierarchy Related to the Job

Maslow’s Need Hierarchy Related to the Job

Receiving a sufficient salary to live onHaving sufficient food and drink available

Working in a comfortable environment

Receiving regular salary increasesHaving medical and disability insuranceWorking in a hazard free environment

PHYSIOLOGICAL

SAFETY AND SECURITY

Being accepted by personal and professional friends

Working in groups that are compatibleHaving supportive supervision

BELONGINGNESS, SOCIAL, AND LOVE

Receiving a high-level promotionEarning an outstanding reputation among peers

Winning a coveted award for performance

ESTEEM

Starting a successful new business

Developing and mentoring othersUsing business skills to start a charity that

helps homeless childrenSELF-ACTUALIZATION


5-14

Maslow’s Theory: Key PointsMaslow’s Theory: Key Points

1. A person attempts to satisfy basic needs before directing behavior toward satisfying upper-level needs

2. A satisfied need ceases to motivate3. Unsatisfied needs can cause frustration, conflict,

and stress4. People have a need to grow and develop and will

strive constantly to move up the hierarchy in terms of need satisfaction


5-15

Alderfer’s ERG TheoryAlderfer’s ERG Theory

Alderfer proposes a hierarchy involving three sets of needs:

1. Existence: needs satisfied by such factors as food, air, water, pay, and working conditions

2. Relatedness: needs satisfied by meaningful social and interpersonal relationships

3. Growth: needs satisfied by an individual making creative or productive contributions


5-16Alderfer’s ERG Theory: Key Points

(1 of 2)Alderfer’s ERG Theory: Key Points

(1 of 2)

• In addition to the satisfaction-progression process, a frustration-regression process is also at work• e.g., if a person is continually frustrated in

attempts to satisfy growth needs, relatedness needs reemerge as a major motivating force

• this causes the individual to redirect efforts toward satisfying a lower-order need category


5-17Alderfer’s ERG Theory: Key Points

(2 of 2)Alderfer’s ERG Theory: Key Points

(2 of 2)

• Individuals are motivated to engage in behavior to satisfy one of the three sets of needs


5-18Alderfer’s ERG Theory: Management Application

Alderfer’s ERG Theory: Management Application

• If a subordinate’s higher-order needs (e.g., growth) are being blocked, perhaps because of a company policy or lack of resources,

• Then it is in the manager’s best interest to attempt to redirect the subordinate’s efforts toward relatedness or existence needs


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Herzberg’s Two-Factor TheoryHerzberg’s Two-Factor Theory

Extrinsic Conditions: Dissatisfiers or Hygienes

• Salary• Job security• Working conditions• Status• Company procedures• Quality of technical

supervision• Quality of interpersonal

relations among peers, with superiors, and subordinates

Extrinsic Conditions: Dissatisfiers or Hygienes

• Salary• Job security• Working conditions• Status• Company procedures• Quality of technical

supervision• Quality of interpersonal

relations among peers, with superiors, and subordinates

Intrinsic Conditions: Satisfiers or Motivators

• Achievement• Recognition• Responsibility• Advancement• The work itself• The possibility of growth

Intrinsic Conditions: Satisfiers or Motivators

• Achievement• Recognition• Responsibility• Advancement• The work itself• The possibility of growth


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I. Traditional Job Satisfaction TheoryI. Traditional Job Satisfaction TheoryHigh job High job dissatisfactiondissatisfaction

High job High job satisfactionsatisfaction

II. Herzberg’s Two-Factor TheoryII. Herzberg’s Two-Factor TheoryNo jobNo jobsatisfactionsatisfaction

High jobHigh jobsatisfactionsatisfaction

No jobNo jobdissatisfactiondissatisfaction

High jobHigh jobdissatisfactiondissatisfaction

Based on MotivatorsBased on Motivators•Feeling of achievementFeeling of achievement•Meaningful workMeaningful work•Opportunities for advancementOpportunities for advancement•Increased responsibilityIncreased responsibility•RecognitionRecognition•Opportunities for growthOpportunities for growth

Hygiene FactorsHygiene Factors•PayPay•StatusStatus•Job securityJob security•Working conditionsWorking conditions•Employee benefitsEmployee benefits•Policies and proceduresPolicies and procedures•Interpersonal relationsInterpersonal relations

Traditional versus Herzberg View of Job Satisfaction

Traditional versus Herzberg View of Job Satisfaction


5-21Herzberg’s Two-Factor Theory:Job EnrichmentHerzberg’s Two-Factor Theory:Job Enrichment

• The process of building personal achievement, recognition, challenge, responsibility, and growth opportunities into a person’s job

• Has the effect of increasing the individual’s motivation by providing him/her with more discretion and accountability when performing challenging work


5-22McClelland’s Learned Needs Theory

McClelland’s Learned Needs Theory

AchievementAchievement

(n Ach)(n Ach)McClelland contends

that when a need is

strong in a person, its

effect is to motivate the

person to use behavior

that leads to its

satisfaction.

McClelland contends

that when a need is

strong in a person, its

effect is to motivate the

person to use behavior

that leads to its

satisfaction.

AffiliationAffiliation

(n Aff)(n Aff)

PowerPower

(n Pow)(n Pow)


5-23McClelland’s Theory: Key Points

McClelland’s Theory: Key Points

1. Needs are learned through coping with one’s environment

2. Since needs are learned, behavior which is rewarded tends to recur at a higher frequency

3. As a result of the learning process, individuals develop unique configurations of needs that affect their behavior and performance


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A Comparison of the Content Theories

A Comparison of the Content Theories

MaslowMaslow(need hierarchy)(need hierarchy)

Self-actualizationSelf-actualization

EsteemEsteem

Belongingness,Belongingness,social, and lovesocial, and love

Safety and securitySafety and security

PhysiologicalPhysiological

MaslowMaslow(need hierarchy)(need hierarchy)

Self-actualizationSelf-actualization

EsteemEsteem

Belongingness,Belongingness,social, and lovesocial, and love

Safety and securitySafety and security

PhysiologicalPhysiological

HerzbergHerzberg(two-factor theory)(two-factor theory)

The work itselfThe work itself•ResponsibilityResponsibility•AdvancementAdvancement•GrowthGrowth

AchievementAchievementRecognitionRecognition

Quality of inter-Quality of inter-personal relationspersonal relationsamong peers, withamong peers, withsupervisors, withsupervisors, withsubordinatessubordinates

Job securityJob security

Working conditionsWorking conditionsSalarySalary

HerzbergHerzberg(two-factor theory)(two-factor theory)

The work itselfThe work itself•ResponsibilityResponsibility•AdvancementAdvancement•GrowthGrowth

AchievementAchievementRecognitionRecognition

Quality of inter-Quality of inter-personal relationspersonal relationsamong peers, withamong peers, withsupervisors, withsupervisors, withsubordinatessubordinates

Job securityJob security

Working conditionsWorking conditionsSalarySalary

AlderferAlderfer

GrowthGrowth

RelatednessRelatedness

ExistenceExistence

AlderferAlderfer

GrowthGrowth

RelatednessRelatedness

ExistenceExistence

McClellandMcClelland

Need forNeed forachievementachievement

Need forNeed forpowerpower

Need forNeed foraffiliationaffiliation

McClellandMcClelland

Need forNeed forachievementachievement

Need forNeed forpowerpower

Need forNeed foraffiliationaffiliation

MotivatorsMotivators

HygieneHygieneconditionsconditions

HigherHigherorderorderneedsneeds

BasicBasicneedsneeds


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Process Theories of MotivationProcess Theories of Motivation

Founders of the Theories• Vroom – an expectance

theory of choices• Adams – equity theory

based on comparisons that individuals make

• Locke – goal-setting theory (conscious goals and intentions are the determinants of behavior)

Founders of the Theories• Vroom – an expectance

theory of choices• Adams – equity theory

based on comparisons that individuals make

• Locke – goal-setting theory (conscious goals and intentions are the determinants of behavior)

Managerial Application• Managers need to

understand the process of motivation and how individuals make choices based on preferences, rewards, and accomplishments

Managerial Application• Managers need to

understand the process of motivation and how individuals make choices based on preferences, rewards, and accomplishments


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Vroom’s Expectancy TheoryVroom’s Expectancy Theory

•Motivation is a process governing choices among alternate forms of voluntary activity

• Most behaviors are considered to be under the voluntary control of the person and consequently are motivated


5-27Expectancy Theory: Key Terms (1 of 4)

Expectancy Theory: Key Terms (1 of 4)

• First-Level Outcomes• First-level outcomes resulting from behavior

are those associated with doing the job itself

• They include:• productivity• absenteeism• turnover• quality of production




• Second-Level Outcomes• Those events (rewards and punishments)

that the first-level outcomes are likely to produce, such as:• merit pay increases• group acceptance or rejection• promotion• termination




• Instrumentality• The perception by an individual that first-

level outcomes are associated with second-level outcomes

• Valence• The preferences for outcomes as seen by

the individual




• Expectancy• The individual’s belief regarding the

likelihood or subjective probability that a particular behavior will be followed by a particular outcome

• Easily thought of as a probability statement


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EffortEffort PerformancePerformance

First-level outcome

First-level outcome

First-level outcome

Second-level outcome






Expectancy Theory

E P EXPECTANCY

Perceived probability of Perceived probability of successful performance, successful performance, given effortgiven effort

E O EXPECTANCY

Perceived probability of Perceived probability of receiving an outcome, given receiving an outcome, given performanceperformance


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Equity TheoryEquity Theory

• Employees compare their efforts and rewards with those of others in similar work situations

• Based on the assumption that individuals are motivated by a desire to be equitably (fairly) at work

• The individual works in exchange for rewards from the organization


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Equity Theory: Key TermsEquity Theory: Key Terms

• Person – the individual for whom equity or inequity is perceived

• Comparison other – any group or persons used by Person as a referent regarding the ratio of inputs and outcomes

• Inputs – the individual characteristics brought by Person to the job

• Outcomes – what Person received from the job


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Compares his/her input/outcome ratio to reference person’s (RP) inputs (I) and outcomes (O)

and perceivesand perceivesOP ORP IP

IRP

equity=

OP ORP IP

IRP

inequity<

OP ORP IP

IRP

inequity >

or

or

IP: Inputs of the personIP: Inputs of the person

OP: Outcomes of the personOP: Outcomes of the person

IRP: Inputs of reference personIRP: Inputs of reference person

ORP: Outcomes of reference personORP: Outcomes of reference person

A person (P) with certain inputs (I) and receiving certain outcomes (O)

The Equity Theory of MotivationThe Equity Theory of Motivation


5-35Change Procedures to Restore Equity

Change Procedures to Restore Equity

1. Changing inputs2. Changing outcomes3. Changing attitudes4. Changing the reference person5. Changing the inputs or outcomes of the

reference person6. Leaving the field


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Organizational JusticeOrganizational Justice

• The degree to which individuals feel fairly treated at the workplace• Distributive justice – the perceived fairness of how

resources and rewards are distributed throughout an organization

• Procedural justice – the perceived equity or fairness of the organization’s processes and procedures used to make resource and allocation decisions


5-37Procedural Justice: Positive Impact

Procedural Justice: Positive Impact

• Procedural justice has been shown to have a positive impact on affective and behavioral reactions:• Organizational commitment• Intent to stay with the organization• Organizational citizenship• Trust in supervisor• Satisfaction with decision outcome• Work effort• Performance


5-38Key Steps to Implementing a Commitment-Oriented Management System:

Key Steps to Implementing a Commitment-Oriented Management System:

1. Commit to people-first values

2. Clarify and communicate your mission

3. Guarantee organizational justice

4. Create a sense of community

5. Support employee development


5-39

Goal Setting: Key ConceptsGoal Setting: Key Concepts

Goal setting The process of establishing goals

Goal Specific target that a person, team, or group is attempting to accomplish

Goal specificity Degree of quantitative precision (clarity) of the goal

Goal difficulty Level of performance required to achieve the goal

Goal intensity Process of setting the goal or of determining how to reach it

Goal commitment Amount of effort used to achieve a goal


5-40Examples of Goal Setting at Work

Examples of Goal Setting at Work

• Developing a new software program within 4-6 months to detect malicious viruses on the Internet

• Landing 5 new customers or increasing sales of existing customers by 10% over the next 12 months

• Decreasing waste in the manufacturing process by 20% over the next 3 years


5-41Goal Setting Applied to Organizations

Goal Setting Applied to Organizations

Goal Characteristics Performance Rewards

Moderators

• Clarity• Meaningful• Challenging

• Ability• Commitment• Feedback

Desired by Organization

Preferred by Individual or Team


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Exchange TheoryExchange Theory

• Suggests that members of an organization engage in reasonably predictable give-and-take relationships (exchanges) with each other• e.g., an employee gives time and effort in

exchange for pay• e.g., management provides pleasant

working conditions in exchange for employee loyalty


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Psychological Contract (1 of 2)Psychological Contract (1 of 2)

• An unwritten agreement between the individual and the organization which specifies what each expects to give and receive from the other

• These implicit agreements may take precedence over written agreements

• May focus on exchanges involving: satisfaction, challenging work, fair treatment, loyalty, and opportunity to be creative


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Psychological Contract (2 of 2)Psychological Contract (2 of 2)

• Managing the psychological contract is a key aspect of most managers’ jobs

• The more attuned the manager is to the needs and expectations of subordinates, the greater the number of matches that are likely to exist and be maintained in the psychological contract

• This can positively impact the direction, intensity, and persistence of motivation in the organization


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Conclusions for Managers (1 of 2)Conclusions for Managers (1 of 2)

1. Managers can influence the motivation state of employees

• If performance needs to be improved, managers must intervene and help create an atmosphere that encourages, supports, and sustains improvement

2. Managers should be sensitive to variations in employees’ needs, abilities, and goals

• Managers must also consider differences in preferences (valences) for rewards


5-46

Conclusions for Managers (2 of 2)Conclusions for Managers (2 of 2)

3. Continual monitoring of needs, abilities, goals, and preferences of employees is each individual manager’s responsibility

• It is not just the domain of human resources managers only

4. Managers need to work on providing employees with jobs that offer task challenge, diversity, and a variety of opportunities for need satisfaction

Business

HBO Handout Chapter 5 (Motivation)