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PowerPoint Presentation to Accompany Chapter 14 of Management, 8/e John R. Schermerhorn, Jr. Prepared by:Michael K. McCuddy Valparaiso University Published by: John Wiley & Sons, Inc.

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Management 8/e - Chapter 142 Planning Ahead Chapter 14 Study Questions What is motivation? What are the different types of individual needs? What are the process theories of motivation? What role does reinforcement play in motivation? What are the challenges of motivation in the new workplace?

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Management 8/e - Chapter 143 Study Question 1: What is motivation? Basic motivational concepts Motivationthe forces within the individual that account for the level, direction, and persistence of effort expended at work. Rewarda work outcome of positive value to the individual Extrinsic rewardsvalued outcomes given to someone by another person. Intrinsic rewardsvalued outcomes that occur naturally as a person works on a task.

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Management 8/e - Chapter 144 Study Question 1: What is motivation? To achieve maximum motivational potential in linking rewards to performance Respect diversity and individual differences to best understand what people want from work. Allocate rewards to satisfy the interests of both individuals and the organization.

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Management 8/e - Chapter 145 Study Question 1: What is motivation? Types of motivation theories Content theories Human needs and how people with different needs may respond to different work situations. Process theories How people give meaning to rewards and make decisions on various work-related behaviors. Reinforcement theory How peoples behavior is influenced by environmental consequences.

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Management 8/e - Chapter 146 Study Question 2: What are the different types of individual needs? Needs Unfulfilled physiological and psychological desires of an individual. Explain workplace behavior and attitudes. Create tensions that influence attitudes and behavior. Good managers and leaders facilitate employee need satisfaction.

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Management 8/e - Chapter 147 Study Question 2: What are the different types of individual needs? Types of content theories: Hierarchy of needs theory ERG theory Two-factor theory Acquired needs theory

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Management 8/e - Chapter 148 Study Question 2: What are the different types of individual needs? Hierarchy of needs theory Developed by Abraham Maslow. Lower-order and higher-order needs affect workplace behavior and attitudes. Lower-order needs: Physiological, safety, and social needs. Desires for physical and social well being. Higher-order needs: Esteem and self-actualization needs. Desire for psychological growth and development.

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Management 8/e - Chapter 149 Study Question 2: What are the different types of individual needs? Hierarchy of needs theory Deficit principle A satisfied need is not a motivator of behavior. Progression principle A need at one level does not become activated until the next lower-level need is satisfied.

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Management 8/e - Chapter 1410 Study Question 2: What are the different types of individual needs? ERG theory Developed by Clayton Alderfer. Three need levels: Existence needs desires for physiological and material well-being. Relatedness needs desires for satisfying interpersonal relationships. Growth needs desires for continued psychological growth and development.

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Management 8/e - Chapter 1411 Study Question 2: What are the different types of individual needs? ERG theory Any/all needs can influence behavior at one time. Frustration-regression principle. An already satisfied lower-level need becomes reactivated when a higher-level need is frustrated.

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Management 8/e - Chapter 1412 Study Question 2: What are the different types of individual needs? Two-factor theory Developed by Frederick Herzberg. Hygiene factors: Elements of the job context. Sources of job dissatisfaction. Satisfier factors: Elements of the job content. Sources of job satisfaction and motivation.

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Management 8/e - Chapter 1413 Study Question 2: What are the different types of individual needs? Acquired needs theory Developed by David McClelland. People acquire needs through their life experiences. Needs that are acquired: Need for Achievement (nAch) Need for Power (nPower) Need for Affiliation (nAff)

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Management 8/e - Chapter 1414 Study Question 2: What are the different types of individual needs? Acquired needs theory Need for Achievement (nAch) Desire to do something better or more efficiently, to solve problems, or to master complex tasks. People high in (nAch) prefer work that: Involves individual responsibility for results. Involves achievable but challenging goals. Provides feedback on performance.

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Management 8/e - Chapter 1415 Study Question 2: What are the different types of individual needs? Acquired needs theory Need for Power (nPower) Desire to control other persons, to influence their behavior, or to be responsible for other people. Personal power versus social power. People high in (nPower) prefer work that: Involves control over other persons. Has an impact on people and events. Brings public recognition and attention.

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Management 8/e - Chapter 1416 Study Question 2: What are the different types of individual needs? Acquired needs theory Need for Affiliation (nAff) Desire to establish and maintain friendly and warm relations with other persons. People high in (nAff) prefer work that: Involves interpersonal relationships. Provides for companionship Brings social approval.

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Management 8/e - Chapter 1417 Study Question 2: What are the different types of individual needs? Questions for summarizing the content theories of motivation: How many different individual needs are there? Can a work outcome or reward satisfy more than one need? Is there a hierarchy of needs? How important are the various needs?

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Management 8/e - Chapter 1418 Study Question 3: What are the process theories of motivation? Process theories of motivation How people make choices to work hard or not. Choices are based on: Individual preferences. Available rewards. Possible work outcomes. Types of process theories: Equity theory. Expectancy theory. Goal-setting theory.

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Management 8/e - Chapter 1419 Study Question 3: What are the process theories of motivation? Equity theory Developed by J. Stacy Adams. When people believe that they have been treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity to the situation. Perceived inequity. Perceived equity.

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Management 8/e - Chapter 1420 Study Question 3: What are the process theories of motivation? Equity theory People respond to perceived negative inequity by changing Work inputs. Rewards received. Comparison points. Situation.

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Management 8/e - Chapter 1421 Study Question 3: What are the process theories of motivation? Managerial implications of equity theory Underpaid people experience anger. Overpaid people experience guilt. Perceptions of rewards determine motivational outcomes. Negative consequences of equity comparisons should be minimized, if not eliminated. Do not underestimate the impact of pay as a source of equity controversies in the workplace. Gender equity. Comparable worth.

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Management 8/e - Chapter 1422 Study Question 3: What are the process theories of motivation? Expectancy theory Developed by Victor Vroom. Key expectancy theory variables: Expectancy belief that working hard will result in desired level of performance. Instrumentality belief that successful performance will be followed by rewards. Valence value a person assigns to rewards and other work related outcomes.

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Management 8/e - Chapter 1423 Study Question 3: What are the process theories of motivation? Expectancy theory Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion: M = E x I x V If either E, I, or V is low, motivation will be low.

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Management 8/e - Chapter 1424 Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory To maximize expectancy, managers should: Select workers with ability. Train workers to use ability. Support work efforts. Clarify performance goals.

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Management 8/e - Chapter 1425 Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory To maximize instrumentality, managers should: Clarify psychological contracts. Communicate performance-outcome possibilities. Identify rewards that are contingent on performance.

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Management 8/e - Chapter 1426 Study Question 3: What are the process theories of motivation? Managerial implications of expectancy theory To maximize valence in a positive direction, managers should: Identify individual needs. Adjust rewards to match individual needs.

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Management 8/e - Chapter 1427 Study Question 3: What are the process theories of motivation? Goal-setting theory Developed by Edwin Locke. Properly set and well-managed task goals can be highly motivating. Motivational effects of task goals: Provide direction to people in their work. Clarify performance expectations. Establish a frame of reference for feedback. Provide a foundation for behavioral self-management.

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Management 8/e - Chapter 1428 Study Question 3: What are the process theories of motivation? Key issues and principles in the goal-setting process: Set specific goals. Set challenging goals. Build goal acceptance and commitment. Clarify goal priorities. Provide feedback on goal accomplishment. Reward goal accomplishment.

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Management 8/e - Chapter 1429 Study Question 3: What are the process theories of motivation? Goal-setting theory Participation in goal setting Unlocks the motivational potential of goal setting. Management by objectives (MBO) promotes participation. When participation is not possible, workers will respond positively if supervisory trust and support exist.

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Management 8/e - Chapter 1430 Study Question 4: What role does reinforcement play in motivation? Fundamentals of reinforcement theory Reinforcement theory focuses on the impact of external environmental consequences on behavior. Law of effect impact of type of consequence on future behavior. Operant conditioning: Developed by B.F. Skinner. Applies law of effect to control behavior by manipulating its consequences.

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Management 8/e - Chapter 1431 Study Question 4: What role does reinforcement play in motivation? Operant conditioning strategies: Positive reinforcement Increases the frequency of a behavior through the contingent presentation of a pleasant consequence. Negative reinforcement Increases the frequency of a behavior through the contingent removal of an unpleasant consequence.

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Management 8/e - Chapter 1432 Study Question 4: What role does reinforcement play in motivation? Operant conditioning strategies: Punishment Decreases the frequency of a behavior through the contingent presentation of an unpleasant consequence. Extinction Decreases the frequency of a behavior through the contingent removal of an pleasant consequence.

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Management 8/e - Chapter 1433 Study Question 4: What role does reinforcement play in motivation? Successful implementation of positive reinforcement is based on Law of contingent reinforcement Reward delivered only if desired behavior is exhibited. Law of immediate reinforcement More immediate the delivery of a reward, the more reinforcement value it has.

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Management 8/e - Chapter 1434 Study Question 4: What role does reinforcement play in motivation? Guidelines for using positive reinforcement: Clearly identify desired work behaviors. Maintain a diverse inventory of rewards. Inform everyone about what must be done to get rewards. Recognize individual differences when allocating rewards. Follow the laws of immediate and contingent reinforcement.

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Management 8/e - Chapter 1435 Study Question 4: What role does reinforcement play in motivation? Schedules of reinforcement: Continuous reinforcement administers a reward each time a desired behavior occurs. Intermittent reinforcement rewards behavior only periodically. Acquisition of behavior is quicker with continuous reinforcement. Behavior acquired under an intermittent schedule is more permanent.

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Management 8/e - Chapter 1436 Study Question 4: What role does reinforcement play in motivation? Guidelines for using punishment: Tell the person what is being done wrong. Tell the person what is being done right. Match the punishment to the behavior. Administer punishment in private. Follow laws of immediate and contingent reinforcement.

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Management 8/e - Chapter 1437 Study Question 4: What role does reinforcement play in motivation? Ethical issues in reinforcement: Ignores individuality. Restricts freedom of choice. Ignores the possibility of other types of motivation. Key concern is whether it is ethical to not control behavior well enough to serve both individual and organizational goals.

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Management 8/e - Chapter 1438 Study Question 5: What are the challenges of motivation in the new workplace? Integrated model of motivation Motivation leads to work effort that, when combined with appropriate individual abilities and organizational support, leads to performance accomplishment. The motivational impact of any rewards received for this performance accomplishment depends on equity and reinforcement considerations. Ultimately, satisfaction with rewards should lead to increased motivation to work hard in the future.

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Management 8/e - Chapter 1439 Study Question 5: What are the challenges of motivation in the new workplace? Pay for performance Paying people for performance is consistent with: Equity theory. Expectancy theory. Reinforcement theory. Merit pay Awards a pay increase in proportion to individual performance contributions. Provides performance contingent reinforcement. May not succeed due to weakness in performance appraisal system or lack of consistency in application.

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Management 8/e - Chapter 1440 Study Question 5: What are the challenges of motivation in the new workplace? Incentive compensation systems: Skill-based pay. Links pay to the number of job-relevant skills an employee masters. Bonus pay plans. One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution.

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Management 8/e - Chapter 1441 Study Question 5: What are the challenges of motivation in the new workplace? Incentive compensation systems: Profit-sharing plans. Some or all employees receive a proportion of net profits earned by the organization. Gain-sharing plans. Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity. Employee stock ownership plans. Employees own stock in the company that employs them.

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