Contrast Theories

Robbins: Organizational Behavior Chapter Six

BASIC MOTIVATION CONCEPTS

LEARNING OBJECTIVESAfter studying this chapter, students should be able to:

1. Outline the motivation process.2. Describe Maslow’s need hierarchy.3. Contrast Theory X and Theory Y.4. Differentiate motivators from hygiene factors.5. List the characteristics that high achievers prefer in a job.6. Summarize the types of goals that increase performance.7. State the impact of under-rewarding employees.8. Clarify the key relationships in expectancy theory.9. Explain how the contemporary theories of motivation complement each other.

CHAPTER OVERVIEW

The theories we have discussed in this chapter address different outcome variables. Some, for instance, are directed at explaining turnover, while others emphasize productivity. The theories also differ in their predictive strength. In this section, we 1) review the key motivation theories to determine their relevance in explaining our dependent variables, and 2) assess the predictive power of each.

Need theories. We introduced four theories that focused on needs. These were Maslow’s hierarchy, two-factor, ERG, and McClelland’s needs theories. The strongest of these is probably the last, particularly regarding the relationship between achievement and productivity. If the other three have any value at all, that value relates to explaining and predicting job satisfaction.

Goal-setting theory. There is little dispute that clear and difficult goals lead to higher levels of employee productivity. This evidence leads us to conclude that goal-setting theory provides one of the more powerful explanations of this dependent variable. The theory, however, does not address absenteeism, turnover, or satisfaction.

Reinforcement theory. This theory has an impressive record for predicting factors like quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. It does not offer much insight into employee satisfaction or the decision to quit.

Equity theory. Equity theory deals with all four dependent variables. However, it is strongest when predicting absence and turnover behaviors and weakest when predicting differences in employee productivity.

Expectancy theory. Our final theory focused on performance variables. It has proved to offer a relatively powerful explanation of employee productivity, absenteeism, and turnover, but expectancy theory assumes that employees have few constraints on their decision discretion. It makes many of the same assumptions that the rational model makes about individual decision-making (see Chapter 5). This acts to restrict its applicability.

For major decisions, such as accepting or resigning from a job, expectancy theory works well because people do not rush into decisions of this nature. They are more prone to take the time to carefully consider the costs and benefits of all the alternatives. However, expectancy theory is not a very good explanation for more typical types of work behavior, especially for individuals in lower-level jobs, because such jobs come with considerable limitations imposed by work methods, supervisors, and company policies. We would conclude, therefore, that expectancy theory’s power in explaining employee productivity increases where the jobs being performed are more complex and higher in the organization (where discretion is greater).

A Guide through the Maze. Exhibit 6-10 summarizes what we know about the power of the more well known motivation theories to explain and predict our four dependent variables. While based on a wealth of research, it also includes some subjective judgments. However, it does provide a reasonable guide through the motivation theory maze.

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WEB EXERCISES

At the end of each chapter of this instructor’s manual you will find suggested exercises and ideas for researching the WWW on OB topics. The exercises “Exploring OB Topics on the Web” are set up so that you can simply photocopy the pages, distribute them to your class, and make assignments accordingly. You may want to assign the exercises as an out-of-class activity or as lab activities with your class. Within the lecture notes the graphic

will note that there is a WWW activity to support this material.

The chapter opens with the story of EMC data storage, which is among employers that are having employees walk on 1500 degree coals. While there is no proof that walking on coals increases accomplishment by snuffing out fear, the anecdotal evidence from some of the senior employees suggests that does motivate employees at EMC to tackle the difficult jobs.

CHAPTER OUTLINE

A. What is Motivation? Notes:

1. Many people incorrectly view motivation as a personal trait—that is, some have it and others do not. Motivation is the result of the interaction of the individual and the situation.

2. Definition: Motivation is “the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.”

3. We will narrow the focus to organizational goals in order to reflect our singular interest in work-related behavior.

4. The three key elements of our definition are intensity, direction, and persistence:

Intensity is concerned with how hard a person tries. This is the element most of us focus on when we talk about motivation.

Direction is the orientation that benefits the organization.

Persistence is a measure of how long a person can maintain his/her effort. Motivated individuals stay with a task long enough to achieve their goal.

B. Early Theories of Motivation

1. In the 1950s three specific theories were formulated and are the best known: hierarch of needs theory, Theories X and Y, and the two-factor theory.

2. These early theories are important to understand because they represent a foundation from which contemporary theories have grown. Practicing managers still regularly use these theories and their terminology in explaining employee motivation.

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C. Hierarchy of Needs Theory Notes:

1. Abraham Maslow’s hierarchy of needs is the most well-known theory of motivation. He hypothesized that within every human being there exists a hierarchy of five needs: (See Exhibit 6-1).

Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs Safety: Includes security and protection from physical and emotional harm Social: Includes affection, belongingness, acceptance, and friendship Esteem: Includes internal esteem factors such as self-respect, autonomy,

and achievement; and external esteem factors such as status, recognition, and attention

Self-actualization: The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment

2. As a need becomes substantially satisfied, the next need becomes dominant. No need is ever fully gratified; a substantially satisfied need no longer motivates.

3. Maslow separated the five needs into higher and lower orders.

Physiological and safety needs are described as lower-order. Social, esteem, and self-actualization are as higher-order needs Higher-order needs are satisfied internally. Lower-order needs are predominantly satisfied externally.

4. Maslow’s need theory has received wide recognition, particularly among practicing managers. Research does not generally validate the theory.

5. Maslow provided no empirical substantiation, and several studies that sought to validate the theory found no support for it.

Instructor Note: At this point in the lecture you may want to introduce the TEAM EXERCISE: What Do People Want from Their Jobs? found in the text. The purpose of the exercise is to help students better understand the importance of Herzberg’s model. It illustrates the difference between what motivates individuals versus what causes only satisfaction.

D. Theory X and Theory Y Notes:

1. Douglas McGregor concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mold his or her behavior toward employees according to these assumptions.

2. Theory X assumptions are basically negative.

Employees inherently dislike work and, whenever possible, will attempt to avoid it.

Since employees dislike work, they must be coerced, controlled, or threatened with punishment.

Employees will avoid responsibilities and seek formal direction whenever possible.

Most workers place security above all other factors and will display little ambition.

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D. Theory X and Theory Y (cont.) Notes:

3. Theory Y assumptions are basically positive.

Employees can view work as being as natural as rest or play.

People will exercise self-direction and self-control if they are committed to the objectives.

The average person can learn to accept, even seek, responsibility.

The ability to make innovative decisions is widely dispersed throughout the population.

4. What are the implications for managers? This is best explained by using Maslow’s framework:

Theory X assumes that lower-order needs dominate individuals.

Theory Y assumes that higher-order needs dominate individuals.

McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X.

There is no evidence to confirm that either set of assumptions is valid.

Either Theory X or Theory Y assumptions may be appropriate in a particular situation.

Instructor Note: At this point in the lecture you may want to introduce the MYTH OR SCIENCE?: “People Are Inherently Lazy” found in the text and at the end of these chapter notes. The discussion of the material will provide students the opportunity to identify Theory X or Theory Y theories in practice.

MYTH OR SCIENCE? – “People Are Inherently Lazy”

This statement is false on two levels. All people are not inherently lazy, and “laziness” is more a function of the situation than an inherent individual characteristic. If this statement is meant to imply that all people are inherently lazy, the evidence strongly indicated the contrary. Many people today suffer from the opposite affliction—they are overly busy, overworked, and suffer from over-exertion. Whether externally motivated or internally-driven, a good portion of the labor force is anything but lazy.

Managers frequently draw that conclusion by watching a few of their employees who may be lazy at work, but these same employees are often quite industrious off the job. People’s need structures differ. As accompanying Exhibit 6-2 illustrates, evidence indicates that work needs differ by gender, age income level, job type, and level in the organization.

Unfortunately, work often ranks low in its ability to satisfy individual needs. Very few people are perpetually lazy. They merely differ in terms of the activities they most enjoy doing.

Class Exercise:

1. Before reviewing this situation, discuss with students the task of working on team projects.2. What constitutes working hard on a team project?3. What motivates them to work hard?4. Why would a team member not work hard? Not carry his/her fair share?5. How could they make the team project as important to the other team members as it is to them?

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E. Two-Factor Theory Notes:

1. The Two-Factor Theory is sometimes also called motivation-hygiene theory.

2. Proposed by psychologist Frederick Herzberg when he investigated the question, “What do people want from their jobs?” He asked people to describe, in detail, situations in which they felt exceptionally good or bad about their jobs. These responses were then tabulated and categorized.

3. From the categorized responses, Herzberg concluded:

Intrinsic factors, such as advancement, recognition, responsibility, and achievement seem to be related to job satisfaction.

Dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies, and working conditions.

The opposite of satisfaction is not dissatisfaction.

Removing dissatisfying characteristics from a job does not necessarily make the job satisfying.

4. Job satisfaction factors are separate and distinct from job dissatisfaction factors. Managers who eliminate job dissatisfaction factors may not necessarily bring about motivation.

5. When hygiene factors are adequate, people will not be dissatisfied; neither will they be satisfied. To motivate people, emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it.

6. Criticisms of the theory:

The procedure that Herzberg used is limited by its methodology. The reliability of Herzberg’s methodology is questioned. No overall measure of satisfaction was utilized. Herzberg assumed a relationship between satisfaction and productivity,

but the research methodology he used looked only at satisfaction, not at productivity.

7. Regardless of criticisms, Herzberg’s theory has been widely read, and few managers are unfamiliar with his recommendations.

The popularity of vertically expanding jobs to allow workers greater responsibility can probably be attributed to Herzberg’s findings.

Contemporary Theories of Motivation

Contemporary Theories of Motivation Notes:

The following theories are considered contemporary not because they necessarily were developed recently, but because they represent the current state of the art in explaining employee motivation.

A. ERG Theory

1. Clayton Alderfer reworked Maslow’s need hierarchy to align it with the empirical research. His revised need hierarchy is labeled ERG theory.

2. Alderfer argues that there are three groups of core needs: existence, relatedness, and growth.

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A. ERG Theory (cont.) Notes:

3. The existence group

Provides our basic material existence requirements They include Maslow’s physiological and safety needs.

4. Relatedness

The desire we have for maintaining important interpersonal relationships These social and status desires require interaction with others. They align with Maslow’s social need and the external component.

5. Growth needs

An intrinsic desire for personal development These include the intrinsic component from Maslow’s esteem category and

the characteristics included under self-actualization.

6. In addition to collapsing Maslow’s five into three, Alderfer’s ERG theory also differs from Maslow’s in that:

More than one need may be operative at the same time.

If the gratification of a higher-level need is stifled, the desire to satisfy a lower-level need increases.

ERG theory does not assume that there exists a rigid hierarchy. A person can be working on growth even though existence or relatedness needs are unsatisfied, or all three need categories could be operating at the same time.

7. ERG theory also contains a frustration-regression dimension.

Maslow argued that an individual would stay at a certain need level until that need was satisfied. ERG argues that multiple needs can be operating as motivators at the same time.

ERG theory notes that when a higher-order need level is frustrated, the individual’s desire to increase a lower-level need takes place.

8. ERG theory is more consistent with our knowledge of individual differences among people.

Variables such as education, family background, and cultural environment can alter the importance or driving force that a group of needs holds for a particular individual.

The evidence demonstrating that people in other cultures rank the need categories differently would be consistent with ERG theory.

B. McClelland’s Theory of Needs

1. The theory focuses on three needs: achievement, power, and affiliation.

Need for achievement: The drive to excel, to achieve in relation to a set of standards, to strive to succeed

Need for power: The need to make others behave in a way that they would not have behaved otherwise

Need for affiliation: The desire for friendly and close interpersonal relationships

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Robbins: Organizational Behavior Chapter SixB. McClelland’s Theory of Needs (cont.) Notes:

2. Some people have a compelling drive to succeed. They are striving for personal achievement rather than the rewards of success per se. This drive is the achievement need (nAch).

3. McClelland found that high achievers differentiate themselves from others by their desire to do things better.

They seek personal responsibility for finding solutions to problems. They want to receive rapid feedback on their performance so they can tell

easily whether they are improving or not. They can set moderately challenging goals. High achievers are not

gamblers; they dislike succeeding by chance. High achievers perform best when they perceive their probability of

success as 50-50. They like to set goals that require stretching themselves a little.

4. The need for power (nPow) is the desire to have impact, to be influential, and to control others.

Individuals high in nPow enjoy being “in charge.” Strive for influence over others Prefer to be placed into competitive and status-oriented situations Tend to be more concerned with prestige and gaining influence over others

than with effective performance

5. The third need isolated by McClelland is affiliation (nAfl).

This need has received the least attention from researchers. Individuals with a high affiliation motive strive for friendship. Prefer cooperative situations rather than competitive ones Desire relationships involving a high degree of mutual understanding

6. Relying on an extensive amount of research, some reasonably well-supported predictions can be made based on the relationship between achievement need and job performance.

First, as shown in Exhibit 6-4, individuals with a high need to achieve prefer job situations with personal responsibility, feedback, and an intermediate degree of risk. When these characteristics are prevalent, high achievers will be strongly motivated.

Second, a high need to achieve does not necessarily lead to being a good manager, especially in large organizations. People with a high achievement need are interested in how well they do personally and not in influencing others to do well.

Third, the needs for affiliation and power tend to be closely related to managerial success. The best managers are high in their need for power and low in their need for affiliation.

Finally, employees have been successfully trained to stimulate their achievement need. Trainers have been effective in teaching individuals to think in terms of accomplishments, winning, and success, and then helping them to learn how to act in a high achievement way by preferring situations where they have personal responsibility, feedback, and moderate risks.

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C. Cognitive Evaluation Theory Notes:

1. In the late 1960s, one researcher proposed that the introduction of extrinsic rewards, such as pay, for work effort that had been previously intrinsically rewarding due to the pleasure associated with the content of the work itself, would tend to decrease the overall level of motivation.

2. This has come to be called the cognitive evaluation theory. Well researched and supported theorists have assumed that intrinsic motivations, such as achievement, etc., are independent of extrinsic motivators such as high pay, promotions, etc.

3. Cognitive evaluation theory suggests otherwise. When extrinsic rewards are used by organizations as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced.

4. The popular explanation is that the individual experiences a loss of control over his or her own behavior so that the previous intrinsic motivation diminishes.

5. Furthermore, the elimination of extrinsic rewards can produce a shift—from an external to an internal explanation—in an individual’s perception of causation of why he or she works on a task.

6. If the cognitive evaluation theory is valid, it should have major implications for managerial practices.

If pay or other extrinsic rewards are to be effective motivators, they should be made contingent on an individual’s performance.

Cognitive evaluation theorists would argue that this will tend only to decrease the internal satisfaction that the individual receives from doing the job.

If correct, it would make sense to make an individual’s pay non-contingent on performance in order to avoid decreasing intrinsic motivation.

7. While supported in a number of studies, cognitive evaluation theory has also met with attacks, specifically on the methodology used and in the interpretation of the findings.

10. Further research is needed to clarify some of the current ambiguity. The evidence does lead us to conclude that the interdependence of extrinsic and intrinsic rewards is a real phenomenon.

11. Its impact on employee motivation at work may be considerably less than originally thought.

First, many of the studies testing the theory were done with students. Second, evidence indicates that very high intrinsic motivation levels are

strongly resistant to the detrimental impacts of extrinsic rewards.

The theory may have limited applicability to work organizations because most low-level jobs are not inherently satisfying enough to foster high intrinsic interest, and many managerial and professional positions offer intrinsic rewards.

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D. Goal-Setting Theory Notes:

1. In the late 1960s, Edwin Locke proposed that intentions to work toward a goal are a major source of work motivation.

2. Goals tell an employee what needs to be done and how much effort is needed. The evidence strongly supports the value of goals.

3. Specific hard goals produce a higher level of output than do the generalized goals.

4. If factors like ability and acceptance of the goals are held constant, we can also state that the more difficult the goal, the higher the level of performance.

5. People will do better when they get feedback on how well they are progressing toward their goals. Self-generated feedback is more powerful a motivator than externally generated feedback.

6. The evidence is mixed regarding the superiority of participative over assigned goals. If employees have the opportunity to participate in the setting of their own goals, will they try harder?

A major advantage of participation may be in increasing acceptance. If people participate in goal setting, they are more likely to accept even a

difficult goal than if they are arbitrarily assigned it by their boss.

7. There are contingencies in goal-setting theory. In addition to feedback, four other factors influence the goals-performance relationship.

Goal commitment: Goal-setting theory presupposes that an individual is committed to the goal.

Adequate self-efficacy: Self-efficacy refers to an individual’s belief that he or she is capable of performing a task. The higher your self-efficacy, the more confidence you have in your ability to succeed in a task.

Task characteristics: Individual goal setting does not work equally well on all tasks. Goals seem to have a more substantial effect on performance when tasks are simple, well-learned, and independent.

National culture: Goal-setting theory is culture bound and it is well adapted to North American cultures.

8. Intentions, as articulated in terms of hard and specific goals, are a potent motivating force. However, there is no evidence that such goals are associated with increased job satisfaction.

E. Reinforcement Theory

1. In contrast to Goal-Setting theory, which is a cognitive approach, Reinforcement theory is behavioristic approach. It argues that reinforcement conditions behavior.

Reinforcement theorists see behavior as being environmentally caused.

Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action.

2. The two theories are clearly at odds philosophically. Reinforcement is undoubtedly an important influence on behavior, but few scholars are prepared to argue that it is the only influence.

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F. Flow and Intrinsic Motivation Theory Notes:

1. A state of absolute concentration that occurs when doing a favorite activity. You lose yourself in the task and often lose track of time. Athletes call this being “in the zone.”

2. A key element of the flow experience is that its motivation is unrelated to end goals.

When a person experiences the flow he or she is completely intrinsically motivated.

There is extreme concentration during the activity. It is when the individual looks back on the experience he or she is flooded with feelings of gratitude for the experience.

It is the desire to repeat the experience that creates continued motivation.

3. Conditions likely to produce a flow state:

Task is challenging and require high level of skill They were goal directed and received feedback on how they were doing. Task demanded total concentration and creativity. More often to occur at work than home (flow is not associated with leisure.

4. A Model of Intrinsic Motivation, as described by Ken Thomas, is an extension of the flow concept. He identifies the key elements that create intrinsic motivation as:

Choice: The ability to select task activities that make sense to you and perform them as you think appropriate.

Competence: The accomplishment you feel in skillfully performing task activities you have chosen.

Meaningfulness: The opportunity to pursue a worthy task purpose, that matters in the larger scheme of things.

Progress: Feeling you are making significant advancement in achieving the task’s purpose.

5. Studies with managerial staff demonstrate that these four components are significantly related to improved job satisfaction and increased performance.

G. Equity Theory

1. What role does equity play in motivation? An employee with several years experience can be frustrated to find out that a recent college grad hired at a salary level higher than he or she is currently earnings, causing motivation levels to drop. Why?

2. Employees make comparisons of their job inputs and outcomes relative to those of others. (See Exhibit 6-7).

If we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity is said to exist. We perceive our situation as fair.

When we see the ratio as unequal, we experience equity tension.

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G. Equity Theory (cont.) Notes:

3. Additionally, the referent that an employee selects adds to the complexity of equity theory. There are four referent comparisons that an employee can use:

Self-inside: An employee’s experiences in a different position inside his or her current organization

Self-outside: An employee’s experiences in a situation or position outside his or her current organization

Other-inside: Another individual or group of individuals inside the employee’s organization

Other-outside: Another individual or group of individuals outside the employee’s organization

4. Which referent an employee chooses will be influenced by the information the employee holds about referents, as well as by the attractiveness of the referent. There are four moderating variables: gender, length of tenure, level in the

organization, and amount of education or professionalism.

Men and women prefer same-sex comparisons. This also suggests that if women are tolerant of lower pay, it may be due to the comparative standard they use.

Employees in jobs that are not sex-segregated will make more cross-sex comparisons than those in jobs that are either male- or female-dominated.

5. Employees with short tenure in their current organizations tend to have little information about others.

6. Employees with long tenure rely more heavily on coworkers for comparison.

7. Upper-level employees tend to be more cosmopolitan and have better information about people in other organizations. Therefore, these types of employees will make more other-outside comparisons.

8. When employees perceive an inequity, they can be predicted to make one of six choices:

Change their inputs. Change their outcomes. Distort perceptions of self. Distort perceptions of others. Choose a different referent. Leave the field.

9. The theory establishes the following propositions relating to inequitable pay:

Given payment by time, over-rewarded employees will produce more than will equitably paid employees.

Given payment by quantity of production, over-rewarded employees will produce fewer, but higher quality, units than will equitably paid employees.

Given payment by time, under-rewarded employees will produce less or poorer quality of output.

Given payment by quantity of production, under-rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.

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Robbins: Organizational Behavior Chapter SixH. Equity Theory (cont.) Notes:

10. These propositions have generally been supported with a few minor qualifications.

Inequities created by overpayment do not seem to have a very significant impact on behavior in most work situations.

Not all people are equity sensitive.

11. Employees also seem to look for equity in the distribution of other organizational rewards.

12. Finally, recent research has been directed at expanding what is meant by equity or fairness.

Historically, equity theory focused on distributive justice or the perceived fairness of the amount and allocation of rewards among individuals.

Equity should also consider procedural justice, the perceived fairness of the process used to determine the distribution of rewards.

The evidence indicates that distributive justice has a greater influence on employee satisfaction than procedural justice.

Procedural justice tends to affect an employee’s organizational commitment, trust in his or her boss, and intention to quit.

By increasing the perception of procedural fairness, employees are likely to view their bosses and the organization as positive even if they are dissatisfied with pay, promotions, and other personal outcomes.

13. Equity theory demonstrates that, for most employees, motivation is influenced significantly by relative rewards as well as by absolute rewards, but some key issues are still unclear.

Instructor Note: At this point in the lecture you may want to introduce the POINT-COUNTER POINT: Money Motivates found in the text and at the end of these chapter notes.

I. Expectancy Theory Notes:

1. Expectancy theory is one of the most widely accepted explanations of motivation. Victor Vroom’s expectancy theory has its critics but most of the research is supportive.

2. Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

3. It says that an employee will be motivated to exert a high level of effort when he/she believes that:

Effort will lead to a good performance appraisal. That a good appraisal will lead to organizational rewards. That the rewards will satisfy his/her personal goals.

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I. Expectancy Theory (cont.) Notes:

4. Three key relationships (See Exhibit 6-7).

Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance

Performance-reward relationship: the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome

Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual

5. Expectancy theory helps explain why a lot of workers merely do the minimum necessary to get by. For example:

If I give a maximum effort, will it be recognized in my performance appraisal? No, if the organization’s performance appraisal assesses nonperformance factors. The employee, rightly or wrongly, perceives that his/her boss does not like him/her.

If I get a good performance appraisal, will it lead to organizational rewards? Typically many employees see the performance-reward relationship in their job as weak.

If I am rewarded, are the rewards ones that I find personally attractive? It is important the rewards being tailored to individual employee needs

6. The key to expectancy theory is the understanding of an individual’s goals and the linkage between effort and performance, between performance and rewards, and finally, between the rewards and individual goal satisfaction.

7. As a contingency model, expectancy theory recognizes that there is no universal principle for explaining everyone’s motivations.

8. Attempts to validate the theory have been complicated by methodological criterion and measurement problems.

Published studies that purport to support or negate the theory must be viewed with caution.

Importantly, most studies have failed to replicate the methodology as it was originally proposed.

Some critics suggest that the theory has only limited use, arguing that it tends to be more valid for predicting in situations where effort-performance and performance-reward linkages are clearly perceived by the individual.

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J. Don’t Forget Ability and Opportunity Notes:

1. Success on a job is facilitated or hindered by the existence or absence of support resources.

2. A popular although arguably simplistic way of thinking about employee performance is as a function of the interaction of ability and motivation; that is, performance = f(A M).

3. If either is inadequate, performance will be negatively affected. We need to add opportunity to perform to our equation—performance = f(A M O).(See Exhibit 6-9).

4. When you attempt to assess why an employee may not be performing to the level that you believe he or she is capable of, look to the environment to see if it is supportive.

Integrating Contemporary Theories of Motivation Notes:

1. The Model in Exhibit 6-10 integrates much of what we know about motivation. Its basic foundation is the expectancy model.

2. Expectancy theory predicts that an employee will exert a high level of effort if he/she perceives that there is a strong relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal goals.

3. Each of these relationships, in turn, is influenced by certain factors. For effort to lead to good performance, the individual must have the requisite ability to perform, and the performance appraisal system must be perceived as being fair and objective.

4. The final link in expectancy theory is the rewards-goals relationship.

5. ERG theory would come into play at this point. Motivation would be high to the degree that the rewards an individual received for his or her high performance satisfied the dominant needs consistent with his or her individual goals.

6. The model considers the achievement, need, reinforcement, and equity theories. High achievers are internally driven as long as the jobs they are doing provide them with personal responsibility, feedback, and moderate risks.

7. Reinforcement theory recognizes that the organization’s rewards reinforce the individual’s performance.

8. Individuals will compare the rewards (outcomes) they receive from the inputs they make with the outcome-input ratio of relevant others and inequities may influence the effort expended.

Instructor Note: At this point in the lecture you may want to introduce the CASE INCIDENT: What Drives Employees at Microsoft? found in the text and at the end of these chapter notes. The case will give students the opportunity to identify motivation theories in practice.

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Caveat Emptor : Motivation Theories Are Culture Bound Many—Theories Were Developed in the United States

Notes:

1. The most blatant pro-American characteristic inherent in these theories is the strong emphasis on individualism and quantity of life. Both goal-setting and expectancy theories emphasize goal accomplishment as well as rational and individual thought.

2. Maslow’s need hierarchy

People start at the physiological level and then move progressively up the hierarchy in this order: physiological, safety, social, esteem, and self-actualization. This hierarchy aligns with American culture.

In countries where uncertainty avoidance characteristics are strong, Japan, Greece and Mexico, security needs would be on top of the need hierarchy. Countries like the Netherlands and Denmark who score high on quality of life characteristics would have social needs at the top.

The view that a high achievement need acts as an internal motivator presupposes two cultural characteristics—a willingness to accept a moderate degree of risk and a concern with performance.

3. Equity theory

It is based on the assumption that workers are highly sensitive to equity in reward allocations. In the United States, equity is meant to be closely tying pay to performance.

However, in collectivist cultures such as the former socialist countries, employees expect rewards to reflect their individual needs as well as their performance. Moreover, consistent with a legacy of communism and centrally planned economies, employees exhibited an entitlement attitude.

4. There are cross-cultural consistencies.

The desire for interesting work seems important to almost all workers.

Growth, achievement, and responsibility were rated the top three and had identical rankings in another study of several countries.

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QUESTIONS FOR REVIEW

1. Does motivation come from within a person, or is it a result of the situation? Explain.Answer – Many people incorrectly view motivation as a personal trait—that is, some have it and others do not. Motivation is the result of the interaction of the individual and the situation. The text defines motivation as the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. There are three key elements.

Intensity is concerned with how hard a person tries. This is the element most of us focus on when we talk about motivation. Direction is the orientation that benefits the organization. Persistence is a measure of how long a person can maintain his/her effort. Motivated individuals stay with a task long enough to achieve their goal.

2. What are the implications of Theories X and Y for motivation practices?Answer – Douglas McGregor concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions. Theory X assumptions are basically negative. Theory Y assumptions are basically positive. There are several implications. Theory X assumes that lower-order needs dominate individuals. Theory Y assumes that higher-order needs dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. Either Theory X or Theory Y assumptions may be appropriate in a particular situation.

3. Compare and contrast Maslow’s hierarchy of needs theory with (a) Alderfer’s ERG theory and (b) Herzberg’s two-factor theory.Answer – Abraham Maslow’s hierarchy of needs.

Physiological—Includes hunger, thirst, shelter, sex, and other bodily needs Safety—Includes security and protection from physical and emotional harm Social—Includes affection, belongingness, acceptance, and friendship Esteem—Includes internal esteem factors such as self-respect, autonomy, and achievement; and also external esteem factors such as status, recognition, and attention Self-actualization—The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment See Exhibit 6-1.

No need is ever fully gratified; a substantially satisfied need no longer motivates. Maslow separated the five needs into higher and lower orders.

Physiological and safety needs were described as lower-order. Social, esteem, and self-actualization were described as higher-order needs.

Higher-order needs are satisfied internally.Lower-order needs are predominantly satisfied externally.

Two-factor theory is sometimes also called motivation-hygiene theory. It was proposed by psychologist Frederick Herzberg when he investigated the question, “What do people want from their jobs?” Herzberg concluded:

Intrinsic factors, such as advancement, recognition, responsibility, and achievement seem to be related to job satisfaction. Dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies, and working conditions. The opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. See Exhibit 6-3.

Job satisfaction factors are separate and distinct from job dissatisfaction factors. To motivate people, emphasize factors that are intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it.

ERG theory. Clayton Alderfer reworked Maslow’s need hierarchy to align it with the empirical research. His revised need hierarchy is labeled ERG theory. Alderfer argues that there are three groups of core needs—existence, relatedness, and growth. (cont.)

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The existence group Providing our basic material existence requirements. They include Maslow’s physiological and safety needs. Relatedness The desire we have for maintaining important interpersonal relationships. These social and status desires require interaction with others. They align with Maslow’s social need and the external component. Growth needs An intrinsic desire for personal development. These include the intrinsic component from Maslow’s esteem category and the characteristics included under self-actualization.

Alderfer’s ERG theory also differs from Maslow’s in that: More than one need may be operative at the same time. If the gratification of a higher-level need is stifled, the desire to satisfy a lower-level need increases. ERG theory does not assume that there exists a rigid hierarchy. A person can be working on growth even though existence or relatedness needs are unsatisfied, or all three need categories could be operating at the same time. ERG theory also contains a frustration-regression dimension. Maslow argued that an individual would stay at a certain need level until that need was satisfied. ERG theory notes that when a higher-order need level is frustrated, the individual’s desire to increase a lower-level need takes place. ERG theory is more consistent with our knowledge of individual differences among people.

4. Describe the three needs isolated by McClelland. How are they related to worker behavior?Answer – Developed by David McClelland and his associates, the theory focuses on three needs: achievement, power, and affiliation.

Need for achievement: The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for power: The need to make others behave in a way that they would not have behaved otherwise Need for affiliation: The desire for friendly and close interpersonal relationshipsSome people have a compelling drive to succeed. They are striving for personal achievement rather than the rewards of success, per se. This drive is the achievement need (nAch). McClelland found that high achievers differentiate themselves from others by their desire to do things better.

The need for power (nPow) is the desire to have impact, to be influential, and to control others. Individuals high in nPow enjoy being “in charge” and strive for influence over others. They prefer to be placed into competitive and status-oriented situations, and tend to be more concerned with prestige and gaining influence over others than with effective performance.

The third need isolated by McClelland is affiliation (nAfl). This need has received the least attention from researchers. Individuals with a high affiliation motive strive for friendship. Prefer cooperative situations rather than competitive ones, and desire relationships involving a high degree of mutual understanding.

5. Explain cognitive evaluation theory. How applicable is it to management practice? Answer – Cognitive evaluation theory is well researched and supported. It suggests that when extrinsic rewards are used by organizations as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced. If the cognitive evaluation theory is valid, it should have major implications for managerial practices.

If pay or other extrinsic rewards are to be effective motivators, they should be made contingent on an individual’s performance. Cognitive evaluation theorists would argue that this will tend only to decrease the internal satisfaction that the individual receives from doing the job. If correct, it would make sense to make an individual’s pay non-contingent on performance in order to avoid decreasing intrinsic motivation.

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6. What is the role of self-efficacy in goal setting?Answer – If factors such as ability and acceptance of the goals are held constant, we can also state that the more difficult the goal, the higher the level of performance. People will do better when they get feedback on how well they are progressing toward their goals. Self-generated feedback is more powerful a motivator than externally generated feedback.

Self-efficacy refers to an individual’s belief that he or she is capable of performing a task. The higher one’s self-efficacy, the more confidence one has in his or her ability to succeed in a task.

7. Contrast distributive and procedural justice. What implications might they have for designing pay systems in different countries?Answer – Historically, equity theory focused on distributive justice or “the perceived fairness of the amount and allocation of rewards among individuals.” Equity should also consider procedural justice, “the perceived fairness of the process used to determine the distribution of rewards.” The evidence indicates that distributive justice has a greater influence on employee satisfaction than procedural justice. Procedural justice tends to affect an employee’s organizational commitment, trust in his or her boss, and intention to quit. By increasing the perception of procedural fairness, employees are likely to view their bosses and the organization as positive even if they are dissatisfied with pay, promotions, and other personal outcomes.

8. Identify the variables in expectancy theory.Answer – Expectancy theory is one of the most widely accepted explanations of motivation. It argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. It says that an employee will be motivated to exert a high level of effort when he/she believes that:

Effort will lead to a good performance appraisal. That a good appraisal will lead to organizational rewards. That the rewards will satisfy the employee’s personal goals.

Three key relationships (See Exhibit 6-7.) Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance Performance-reward relationship: the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual

9. Explain the formula: Performance = f(A M O), and give an example.Answer – Success on a job is facilitated or hindered by the existence or absence of support resources. A popular although arguably simplistic way of thinking about employee performance is as a function of the interaction of ability and motivation; that is, performance = f(A M). If either is inadequate, performance will be negatively affected. We need to add opportunity to perform to our equation—performance = f(A M O). See Exhibit 6-8. When you attempt to assess why an employee may not be performing to the level that you believe he or she is capable of, take a look at the work environment to see if it is supportive.

10. What consistencies among motivation concepts, if any, apply cross-culturally?Answer – Exhibit 6-9 presents a model that integrates much of what we know about motivation. There are cross-cultural consistencies.

The desire for interesting work seems important to almost all workers. Growth, achievement, and responsibility were rated the top three and had identical rankings in another study of several countries.

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QUESTIONS FOR CRITICAL THINKING

1. “The cognitive evaluation theory is contradictory to reinforcement and expectancy theories.” Do you agree or disagree? Explain.Answer – As students make their arguments they should include the following facts from the text.

Cognitive evaluation theory When extrinsic rewards are used by organizations as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced. The elimination of extrinsic rewards can produce a shift—from an external to an internal explanation—in an individual’s perception of causation of why he or she works on a task. If the cognitive evaluation theory is valid, it should have major implications for managerial practices. The theory may have limited applicability to work organizations because most low-level jobs are not inherently satisfying enough to foster high intrinsic interest, and many managerial and professional positions offer intrinsic rewards. Reinforcement theory Reinforcement theory is behavioristic in approach and is clearly in contradiction to cognitive evaluation theory. It argues that reinforcement conditions behavior. Reinforcement theorists see behavior as being environmentally caused. Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action. Reinforcement is undoubtedly an important influence on behavior, but few scholars are prepared to argue that it is the only influence. Expectancy theory Expectancy theory is one of the most widely accepted explanations of motivation. Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. It says that an employee will be motivated to exert a high level of effort when he/she believes that:


Three key relationships (See Exhibit 6-7.) Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance Performance-reward relationship: the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual

The key to expectancy theory is the understanding of an individual’s goals and the linkage between effort and performance, between performance and rewards, and finally, between the rewards and individual goal satisfaction. As a contingency model, expectancy theory recognizes that there is no universal principle for explaining everyone’s motivations.

2. “Managers should be able, through proper selection and job design, to have every employee experience flow in his or her job.” Do you agree or disagree? Discuss.Answer – That would be a lofty accomplishment, however studies done on this theory have been done on management level employees and it remains to be seen whether or not it would apply to the rank and file worker. However, managers can try to design jobs with the goal of increased job satisfaction using intrinsic factors as motivators. Thomas suggests that the are four components to be considered. They are:

Choice: the ability to select tasks activities that make sent to you and perform them as you deem appropriate.

Competence: the accomplishment you feel in skillfully performing tasks activities you have chosen.

Meaningfulness: the opportunity to pursue a worthy task purpose—that matters in the larger scheme of things.

Progress: feeling you are making significant advancement in achieving the task’s purpose.

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Jobs requiring high levels of education, training, and skill with a high degree of autonomy would be the most likely to allow employees to experience the “flow.”

3. Analyze the application of Maslow’s and Herzberg’s theories to an African or Caribbean nation where more than a quarter of the population is unemployed.Answer – Students may lack sufficient knowledge of these cultures to fully answer the question. They should focus on the issues of large scale unemployment. It should be relatively obvious to students that people in other cultures world rank the need categories differently and that what is satisfaction or motivation will vary as well.Abraham Maslow’s hierarchy of needs.

Physiological—Includes hunger, thirst, shelter, sex, and other bodily needs Safety—Includes security and protection from physical and emotional harm Social—Includes affection, belongingness, acceptance, and friendship Esteem—Includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention Self-actualization—The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment See Exhibit 6-1.

Motivation-hygiene theoryIntrinsic factors, such as advancement, recognition, responsibility, and achievement seem to be related to job satisfaction. Dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies, and working conditions. Job satisfaction factors are separate and distinct from job dissatisfaction factors.

4. Can an individual be too motivated, so that his or her performance declines as a result of excessive effort? Discuss.Answer – Students’ responses may vary but should consider the following elements from the text. McClelland found that high achievers differentiate themselves from others by their desire to do things better. If a high achiever sets too high goals for him/herself, he/she could end up demotivating him/herself because of the failure to achieve the goals. According to cognitive evaluation theory, when extrinsic rewards are used by organizations as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced. The popular explanation is that the individual experiences a loss of control over his/her own behavior so that the previous intrinsic motivation diminishes. Furthermore, the elimination of extrinsic rewards can produce a shift—from an external to an internal explanation—in an individual’s perception of causation of why he/she works on a task.

5. Identify three activities you really enjoy (for example, playing tennis, reading a novel, going shopping). Next, identify three activities you really dislike (for example, going to the dentist, cleaning the house, staying on a restricted-calorie diet). Using the expectancy model, analyze each of your answers to assess why some activities stimulate your effort while others do not.Answer – Students’ responses will vary but should take into consideration the following elements of expectancy theory. The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. It says that an employee will be motivated to exert a high level of effort when he/she believes that:


Three key relationships Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance Performance-reward relationship: the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual

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POINT-COUNTERPOINT – Money MotivatesPOINT

Behavioral scientists tend to down play money as a motivator. They prefer to emphasize the importance of challenging jobs, goals, participative decision-making, feedback, cohesive work teams, and other non-monetary factors. We argue otherwise here—that is, money is the critical incentive to work motivation.

Money is important to employees because it is a medium of exchange. People may not work only for money, but take the money away and how many people would come to work? A study of nearly 2,500 employees found that although these people disagreed over what was their number-one motivator, they unanimously chose money as their number two.

As equity theory suggests, money has symbolic value in addition to its exchange value. We use pay as the primary outcome against which we compare our inputs to determine if we are being treated equitably. That an organization pays one executive $80,000 a year and another $95,000 means more than the latter’s earning $15,000 a year more. It is a message, from the organization to both employees, of how much it values the contribution of each.

In addition to equity theory, both reinforcement and expectancy theories attest to the value of money as a motivator. In the former, if pay is contingent on performance, it will encourage workers to generate high levels of effort. Consistent with expectancy theory, money will motivate to the extent that it is seen as being able to satisfy an individual’s personal goals and is perceived as being dependent on performance criteria.

However, maybe the best case for money is a review of studies that looked at four methods of motivating employee performance: money, goal setting, participative decision making, and redesigning jobs to give workers more challenge and responsibility. The average improvement from money was consistently higher than with any of the other methods.

S. Caudron, “Motivation? Money’s Only No. 2,” Industry Week, November 15, 1993, p. 33. bT. R. Mitchell and A. E. Mickel, “The Meaning of Money: An Individual-Difference Perspective,” Academy of Management Review, July 1999, p. 570.E. A. Locke et al., “The Relative Effectiveness of Four Methods of Motivating Employee Performance,” in K. D. Duncan, M. M. Gruenberg, and D. Wallis (eds.), Changes in Working Life (London: Wiley, 1980), pp. 363–83.

COUNTER POINT

Money can motivate some people under some conditions, so the issue is not really whether or not money can motivate. The answer to that is: “It can!” The more relevant question is: Does money motivate most employees in the workforce today? The answer to this question, we will argue, is No.

For money to motivate an individual’s performance, certain conditions must be met. First, money must be important to the individual, but money is not important to everybody. High achievers, for instance, are intrinsically motivated. Money would have little impact on these people.

Second, money must be perceived by the individual as being a direct reward for performance. Unfortunately, performance and pay are poorly linked in most organizations. Pay increases are far more often determined by non–performance factors such as experience, community pay standards, or company profitability.

Third, the marginal amount of money offered for the performance must be perceived by the individual as being significant. Research indicates that merit raises must be at least 7 percent of base pay for employees to perceive them as motivating. Unfortunately, recent data indicates average merit increases are only in the 3.9 to 4.4 percent range.

Finally, management must have the discretion to reward high performers with more money. Yet unions and organizational compensation policies constrain managerial discretion. Where unions exist, that discretion is almost zero. In non-unionized environments, traditional limited compensation grades create severe restrictions on pay increases. For example, in one organization, a Systems Analyst IV’s pay grade ranges from $4,775 to $5,500 a month. No matter how good a job that analyst does, her boss cannot pay her more than $5,500 a month. Similarly, no matter how poorly she performs, she will not earn less than $4,775. So money might be theoretically capable of motivating employee performance, but most managers are not given enough flexibility to do much about it.

A. Mitra, N. Gupta, and G. D. Jenkins Jr., “The Case of theInvisible Merit Raise: How People See Their Pay Raises,” Compensation & Benefits Review, May–June 1995, pp. 71–76; and Hewitt Associates Salary Survey, 2000.

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Class Exercise:

1. This exercise reveals at what level money motivates.2. Bring a one dollar bill, a fifty-cent piece, a quarter, a dime, a nickel, and a penny to class.3. Ask for a volunteer to come up to the front of class. [Be sure the volunteer can bend and pick something up off

the floor.] Have the volunteer face away from the class.4. While placing the one dollar bill on the floor, tell a story to the class and the volunteer about walking across

campus and coming across the dollar on the ground.5. Caution the class not to speak their answers to your questions.6. Now ask the class how many would bend over and pick up the dollar. Have them raise their hand rather than

speak. Record the number where you can refer to it later but not where the volunteer can see it.7. Ask the volunteer to turn around, and ask him/her what he/she would do.

If he/she would pick it up, let him/her do so and keep it. [This will increase volunteerism in later classes!] If he/she will not, ask why (almost all students will).

8. Have the volunteer face away from the class again. Continue the story while placing the fifty-cent piece on the floor.

9. Again ask the class what they would do; record the raised hands for picking it up, for leaving it.10. Again ask the volunteer to turn around, and ask him/her what he/she would do.11. Repeat this cycle with each denomination of coin.12. Stop when you reach a denomination that the volunteer will not pick up.13. Now, lead a discussion regarding the different responses from the class and the student.

At what point did the value of the money go low enough that most students would not pick it up? Why? Why did the volunteer continue to pick up the money at a point when the class members probably would not? At what point does a bonus or pay raise motivate them on the job? What factors make a raise or bonus important enough to motivate extra effort?

TEAM EXERCISE – What Do People Want from Their Jobs?

PurposeThis exercise will help students understand the value and importance of Herzberg’s model. It will bring home to them the difference between what motivates individuals versus what causes only satisfaction and the importance of the difference.

Procedure

1. Each class member begins by completing the following questionnaire.2. Rate the following 12 job factors according to how important each is to you. 3. Place a number on a scale of 1 to 5 on the line before each factor.

Very important Somewhat important Not important 5 4 3 2 1

_____ 1. An interesting job_____ 2. A good boss_____ 3. Recognition and appreciation for the work I do_____ 4. The opportunity for advancement_____ 5. A satisfying personal life_____ 6. A prestigious or status job_____ 7. Job responsibility_____ 8. Good working conditions_____ 9. Sensible company rules, regulations, procedures, and policies_____ 10. The opportunity to grow through learning new things_____ 11. A job I can do well and succeed at

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Robbins: Organizational Behavior Chapter Six_____ 12. Job security

This questionnaire taps the dimensions in Herzberg’s two-factor theory. To determine if hygiene or motivating factors are important to you, place the numbers 1-5 that represent your answers below.

Hygiene factors score Motivational factors score2. _____ 1. _____5. _____ 3. _____6. _____ 4. _____8. _____ 7. _____9. _____ 10. _____

12. _____ 11. _____

Total points _____ Total points _____

4. Add up each column. Did you select hygiene or motivating factors as being most important to you?5. Now break into groups of five or six, and compare your questionnaire results. Discuss the following questions.

How similar are your scores? How close did your group’s results come to those found by Herzberg? What motivational implications did your group arrive at based on your analysis?

[This exercise is based on R.N. Lussier, Human Relations in Organizations: A Skill Building Approach, 2nd ed. Homewood, IL: Richard D. Irwin, 1993. With permission.]

CASE INCIDENT – What Drives Employees at Microsoft?

The reality of software development in a huge company like Microsoft (it employs more than 48,000 people) is that a substantial portion of your work involves days of boredom punctuated by hours of tedium. You basically spend your time in an isolated office writing code and sitting in meetings during which you participate in looking for and evaluating hundreds of bugs and potential bugs. Yet Microsoft has no problem in finding and retaining software programmers. Their programmers work horrendously long hours and obsess on the goal of shipping product.

From the day new employees begin work at Microsoft, they know they are special and that their employer is special. New hires all have one thing in common—they are smart. The company prides itself on putting all recruits through a grueling “interview loop,” during which they confront a barrage of brain-teasers by future colleagues to see how well they think. Only the best and the brightest survive to become employees. The company does this because Microsofties truly believe that their company is special. For instance, it has a high tolerance for nonconformity. Would you believe that one software tester comes to work every day dressed in extravagant Victorian outfits? But the underlying theme that unites Microsofties is the belief that the firm has a manifest destiny to change the world. The least consequential decision by a programmer can have an outsized importance when it can effect a new release that might be used by 50 million people.

Microsoft employees are famous for putting in long hours. One program manager said, “In my first five years, I was the Microsoft stereotype. I lived on caffeine and vending-machine hamburgers and free beer and 20-hour workdays. . . . I had no life. . . . I considered everything outside the building as a necessary evil.” More recently, things have changed. There are still a number of people who put in 80-hour weeks, but 60- and 70-hour weeks are more typical and some even are doing their jobs in only 40 hours.

No discussion of employee life at Microsoft would be complete without mentioning the company’s lucrative stock option program. Microsoft created more millionaire employees, faster, than any company in American history—more than 10,000 by the late-1990s. While the company is certainly more than a place to get rich, executives still realize that money matters. One former manager claims that the human resources’ department actually kept a running chart of employee satisfaction versus the company’s stock price. “When the stock was up, human resources could turn off the ventilation and everybody would say they were happy. When the stock was down, we could give people massages and they would tell us that the massages were too hard.” In the go-go 1990s, when Microsoft stock was doubling every few months and yearly stock splits were predictable, employees not only got to participate in Microsoft’s manifest destiny, but they could get rich in the process. By the spring of 2002, with the world in a recession, stock prices down, and the growth for Microsoft products slowing, it was not so clear what was driving its employees to continue the company’s dominance of the software industry.

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Questions:

1. If you were a programmer, would you want to work at Microsoft? Why or why not?Answer: Student’s answers will vary—encourage them to think beyond their present circumstances or a “first” job. Encourage them to think about this question as it would apply to different phases (real or imagined) in their life. For example, when they first begin their career position, when they are considering making a move in their early thirties to gain a promotion, when they have young children, older children, are bankrupt because their own business failed, aging parents, etc. This is not a simple yes or no question, as the situation they are in at the time does play a part in the decision.

2. How many activities in this case can you tie into specific motivation theories? List the activities, the motivation theories, and how they apply.Answer: Students will have varying opinions on how these theories are being applied. The following list is not exhaustive, but is meant to be representative of possible responses.

MaslowNew Employee Orientation = SocialTolerance for nonconformity = EsteemStock Program = Physiological or even esteem due to the recognition factor

Two Factor TheoryStock Plan, tolerance for nonconformity (e.g. dress) = HygieneUnited belief that MS has a manifest destiny to change the world = Motivational

ERGStock Plan = ExistenceNew Employee Orientation, tolerance for nonconformity = RelatednessFreedom to Make Decisions/Goals = Growth

McClelland’s Theory of NeedsFreedom to Make Decisions/Goals = AchievementNew Employee Orientation = Affiliation

Goal Setting TheoryFreedom to Make Decisions/Goals

3. As Microsoft continues to get larger and its growth rate flattens, do you think management will have to modify any of its motivation practices? Elaborate. Answer: Students will have varying opinions. The article emphasizes how much the stock price places in motivation. Employee orientation is a good idea—but it is a one time event. Goal setting also appears to be important from the statement that “obsessed on the goal of shipping product.” Any modifications should include goals and financial rewards.

Source: Based on M. Gimein, “Smart Is Not Enough!” Fortune, January 8, 2001, pp. 124–36.

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Exploring OB Topics on the World Wide WebSearch Engines are our navigational tool to explore the WWW. Some commonly used search engines are:

www.goto.com www.google.com

www.excite.com www.lycos.com

www.hotbot.com www.looksmart.com

1. Motivation the old fashioned way? Read how Bill Mork reenergized his workforce and realized real savings in the process. Go to: http://www.inc.com/magazine/19941101/3187.html and read the article of his companies success. Choose one classic theory of motivation and one contemporary theory to explain why his program works. Bring your analysis to class.

2. What motivated you to go to college? What is motivating you to stay and succeed? Visit these sites for ideas and tips for being successful and staying motivated during your academic career.

http://home.okstate.edu/homepages.nsf/toc/chp12_1 http://www.academictips.org/acad/collegemotivation.htmlhttp://www.ucc.vt.edu/stdysk/motivate.htmlhttp://www.campusblues.com/studentoflife_3.html

3. Stock options are used as management and employee motivators. Are they powerful motivators when the stock is going up? What happens when stock goes down? Not always what you might think. Read the article found on the Red Herring web site, which discusses this issue. Write a short reaction paper (1 page) on this article. Include in the paper your thoughts on what organizations should do when stock plummets, but they still need to motivate employees.

http://www.redherring.com/mag/issue95/1980018598.html

4. Intrinsic or extrinsic rewards for workers? Which are best? How can a manager impact intrinsic motivational sources when rewards are extrinsic? Read the thoughts of Bob Nelson at the Foundation of Enterprise Development to see if you agree/disagree with him. Print the article and bring to class for further discussion. Go to: http://www.fed.org/resrclib/articles/building.html

5. For brief outlines of classic motivation theories go to:

http://www.netmba.com/mgmt/ http://hometown.aol.com/mamapatrpcv/myhomepageindex.html http://www.top-education.com/Management/motivationtheories2.asp http://choo.fis.utoronto.ca/FIS/Courses/LIS1230/LIS1230sharma/motive1.htm

Select one theory that you think has application to the job you have now, or a previous job, and write a short description of the job and how the theory was applied. Now look over the class syllabus. What theories of motivation are applicable for the way this class is set up? Again, write a short description and the theory as it’s applied. For example: Paper due on ?/?/200? = Goal Setting Theory.

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http://www.goto.com/

http://choo.fis.utoronto.ca/FIS/Courses/LIS1230/LIS1230sharma/motive1.htm

http://www.top-education.com/Management/motivationtheories2.asp

http://hometown.aol.com/mamapatrpcv/myhomepageindex.html

http://www.netmba.com/mgmt/

http://www.fed.org/resrclib/articles/building.html

http://www.redherring.com/mag/issue95/1980018598.html

http://www.campusblues.com/studentoflife_3.html

http://www.ucc.vt.edu/stdysk/motivate.html

http://www.academictips.org/acad/collegemotivation.html

http://home.okstate.edu/homepages.nsf/toc/chp12_1

http://www.inc.com/magazine/19941101/3187.html

http://www.looksmart.com/

http://www.hotbot.com/

http://www.lycos.com/

http://www.excite.com/

http://www.google.com/

Robbins: Organizational Behavior Chapter Six6. Read the article found on http://www.cnr.berkeley.edu/ucce50/ag-labor/7research/7calag07.htm

concerning piece rate vs. hourly rate for agricultural workers. Write a journal entry or short reaction paper to this article as to what you would do, and why, as a manager confronting this issue with workers.

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http://www.cnr.berkeley.edu/ucce50/ag-labor/7research/7calag07.htm

Documents

Contrast Theories