The chapter discusses motivating employee performance and discusses several key concepts: 1) Managers must understand what behaviors they want to motivate and how to set goals, reinforce performance, understand beliefs and needs, design motivating jobs, achieve fairness, and ensure job satisfaction. 2) Motivation can be increased by setting challenging but attainable goals, positively reinforcing good performance, designing jobs that satisfy higher-level needs, and ensuring fair processes and outcomes. 3) Theories like expectancy theory, need theories, and equity theory provide frameworks for understanding employee motivation and how to design motivating work environments.

1. 13-1
Bateman Snell
Management Competing
in the
New Era
5th
Edition
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 13-2
Part Four
Chapter 13 - Motivating for Performance
Chapter Outline
Setting the Stage - Motivation at Lincoln Electric
Motivating for Performance
Setting Goals
Reinforcing Performance
Performance-Related Beliefs
Understanding People’s Needs
Designing Motivating Jobs
Achieving Fairness
Job Satisfaction
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 13-3
Learning Objectives
After studying Chapter 13, you will know:
 the kinds of behaviors managers need to motivate in people
 how to set challenging, motivating goals
 how to reward good performance
 the key beliefs that affect people’s motivation
 the ways in which people’s individual needs affect their
behavior
 how to create a motivating, empowering job
 how people assess fairness
 the causes and consequences of a satisfied workforce
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4. 13-4
Motivating For Performance
Motivation
 forcesthat energize, direct, and sustain a person’ efforts
 highly motivated people, with adequate ability and
understanding of the job, will be highly productive
 managers must know what behaviors they want to motivate
people to exhibit
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

5. 13-5
Behaviors That Companies Want
Employees To Exhibit
Join the
organization
Exhibit good Companies Remain in the
citizenship must organization
motivate
workers to:
Achieve high Come to work
output regularly
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

6. 13-6
Setting Goals
Goal setting theory
 people have conscious goals that energize them and direct
their thoughts and behaviors toward one end
Goals that motivate
 goals should be acceptable to employees
 goals should be challenging but attainable
 goals should be specific, quantifiable, and measurable
Limitations of goal setting
 individualized goals create competition and reduce
cooperation
 single productivity goals interfere with other dimensions of
performance Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

7. 13-7
Reinforcing Performance
Law of effect
 behavior that is followed by positive consequences probably
will be repeated
Reinforcers
 positive consequences that motivate behavior
Organizational behavior modification (OB Mod)
 application of reinforcement theory in organizational settings
 influences people’s behavior and improves performance by
systematically managing work conditions and the
consequences of people’s actions
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

8. 13-8
Reinforcing Performance (cont.)
Consequences of behavior
 positive reinforcement - applying valued consequences that
increase the likelihood that a person will repeat the behavior
that led to it
 negative reinforcement - removing or withholding an
undesirable consequence
can involve the threat of punishment
 punishment - administering an aversive consequence
 extinction - withdrawing or failing to provide a reinforcing
consequence
Sometimes the wrong behaviors are reinforced
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

9. 13-9
The Consequences Of Behavior
Positive reinforcement Same behavior
or likely to be
negative reinforcement repeated
Behavior
Punishment Same behavior
or less likely to be
extinction repeated
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

10. 13-10
Performance-Related Beliefs
Expectancy theory
 proposesthat people will behave based on their perceived
likelihood that their effort will lead to a certain outcome and
on how highly they value that outcome
expectancy - employees’ perception of the likelihood that their
efforts will enable them to attain their performance goals
instrumentality - perceived likelihood that performance will be
followed by a particular outcome
valence - value an outcome holds for the person contemplating
it
 formotivation to be high, expectancy, instrumentalities, and
total valence of all outcomes must all be high
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

11. 13-11
Performance-Related Beliefs
(cont.)
Expectancy theory (cont.)
 managerial implications of expectancy theory
increase expectancies
identify positively valent outcomes
make performance instrumental toward positive outcomes
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12. 13-12
Basic Concepts Of Expectancy
Theory
Effort Performance Outcome
Expectancy Instrumentality
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

13. 13-13
Understanding People’s Needs
Content theories
 indicate the kinds of needs that people want to satisfy
 the extent to which and the ways in which a person’s needs
are met or not met affect her/his behavior on the job
Maslow’s need hierarchy
 human needs are organized into five major types
physiological - food, water, sex, and shelter
safety or security - protection against threat and deprivation
social - friendship, affection, belonging, and love
ego - independence, achievement, freedom, recognition, and
self-esteem
self-actualization - realizing one’s potential
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

14. 13-14
Understanding People’s Needs
(cont.)
Maslow’s need hierarchy (cont.)
 postulates
that people satisfy these needs one at a time, from
bottom to top
people motivated to satisfy lower needs before they try to satisfy
higher needs
once satisfied, a need is no longer a powerful motivator
 notaltogether accurate theory of human motivation
 nonetheless, made three major contributions
identifiedimportant need categories
helped to think in terms of lower- and higher-level needs
increased salience of personal growth and self-actualization
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

15. 13-15
Understanding People’s Needs
(cont.)
Alderfer’s ERG theory
 postulates that people have three basic need sets
Existenceneeds - material and physiological desires
Relatedness needs - involve relationships with other people
Growth needs - motivate people to productivity or creativity
 postulates that several different needs can be operating at
once
 has greater scientific support than Maslow’s hierarchy
boththeories remind managers of the types of reinforcers or
rewards that can be used to motivate people
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

16. 13-16
Comparison Of Maslow’s Need
Hierarchy And ERG Theory
act
Se zation
ual
lf-
i
h
Eg Growt
o
So
c ia l
Ph Sa
fe Relatedness
ys ty
io
lo
gi r
ca rfe
l
Alde
Existence
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

17. 13-17
Understanding Poeple’s Needs
(cont.)
McClelland’s needs
 achievement - strong orientation toward accomplishment,
and obsession with success and goal attainment
 affiliation - strong desire to be liked by other people
 power - desire to influence or control other people
personalized power - negative force
 expressed through the manipulation and exploitation of others
socialized
power - channeled toward the constructive
improvement of organizations and societies
Need theories: International perspectives
 need importance varies from country to country
 not all people are motivated by the same needs
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

18. 13-18
Designing Motivating Jobs
Rewards may be available from the nature of the job
 extrinsic reinforcers - reinforcement provided to a person by
the boss, the company, or some other person
 intrinsic reward - derived directly from performing the job
itself
essential to the motivation underlying creativity
 the result of a challenging problem
 the result of work that is exciting in and of itself
 ‘mechanistic’approach to job design - characterizes a
demotivating job
highly specialized, simple and routine
results in employee dissatisfaction, absenteeism, and turnover
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

19. 13-19
Designing Motivating Jobs (cont.)
Job rotation
 changing from one routine task to another to alleviate
boredom
can benefit everyone when done properly
Job enlargement
 giving
people additional tasks at the same time to alleviate
boredom
additional tasks at the same level of responsibility
Job enrichment
 changinga task to make it inherently more rewarding,
motivating, and satisfying
adds higher levels of responsibility2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright ©

20. 13-20
Designing Motivating Jobs (cont.)
Herzberg’s two-factor theory
 distinguishedbetween two broad categories of factors that
affect people working on their jobs
hygiene factors - characteristics of the workplace
 make people unhappy
 will not make people truly satisfied
motivators - characteristics of the job itself
 when present, jobs presumed to be both satisfying and motivating
 theory has been widely criticized
 nevertheless, highlights the distinction between extrinsic and
intrinsic rewards
reminds managers that worker motivation depends on more than
extrinsic rewards Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

21. 13-21
Designing Motivating Jobs (cont.)
The Hackman and Oldham model of job design
 well designed jobs produce three critical psychological states
meaningfulness - believe that work is important to other people
responsibility - feel personally responsible for how the work
turns out
knowledge of results - know how well the job was performed
 psychological states produced by five core job dimensions
skillvariety - different job activities involving several skills
task identity - completion of a whole, identifiable piece of work
task significance - important impact on the lives of others
autonomy - independence and discretion in making decisions
feedback - information about job performance
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

22. 13-22
Designing Motivating Jobs (cont.)
The Hackman and Oldham model of job design (cont.)
 effectivejob enrichment increases all five core dimensions
 effectiveness of a job enrichment program depends on a
person’s growth need strength
growth need strength - degree to which individuals want
personal and psychological development
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

23. 13-23
The Hackman And Oldham Model
Of Job Design
Critical
Core Job Outcomes
Psychological
Characteristics
States
Skill Variety Meaningfulness High Internal
Task Identity of Work Motivation
Task Significance
High Growth
Responsibility for
Autonomy Satisfaction
Work Outcomes
Feedback Knowledge of High Job
From Job Results Satisfaction
MODERATORS
Knowledge and Skill
Growth Need Strength
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

24. 13-24
Designing Motivating Jobs (cont.)
Empowerment
 processof sharing power with employees
 enhances beliefs about being influential contributors
employees perceive meaning in work
employees feel competent
employees derive a sense of self-determination
employees believe they have an impact on important decisions
 empowering environment
providesinformation required to perform at one’s best
knowledge available about how to use the information
 employees have the power to make decisions
employees receive rewards for contributions
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

25. 13-25
Actions That Empower
Employees
Increase
Reduce the
signature authority
number of rules
at all levels
Reduce the Assign
number of nonroutine
approval steps Specific jobs
Actions To
Provide more Empower Allow
freedom of access independent
to people judgment
Provide more Define jobs
freedom of access more broadly as
to resources projects
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

26. 13-26
Achieving Fairness
Equity theory
 people
assess how fairly they have been treated according to
two key factors
outcomes - various things the person receives on the job
inputs - contributions the person makes to the organization
 people expect the outcomes they receive to be proportional
to the inputs they provide
people also pay attention to the outcomes and inputs of others
Assessing equity Outcomes Outcomes
Their own versus Others'
Inputs Inputs
equityexists when the ratios are equal
assessments of equity are subjective perceptions or beliefs
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

27. 13-27
Achieving Fairness (cont.)
Restoring equity
 inequity causes dissatisfaction and leads to attempts to
restore balance to the relationship
 a variety of behavioral and perceptual options may be used to
restore equity
alter Person’s ratio
 reduce inputs - give less effort, perform at lower levels, quit
 increase outcomes - request higher grade, better pay
alter Other’s ratio
 decrease outcomes
 increase inputs
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

28. 13-28
Achieving Fairness (cont.)
Fair process
 procedural justice - using a fair process in decision making
and making sure others know that the process was as fair as
possible
 fair processes make unfair outcomes more palatable
explain how a decision is made
make an unbiased decision
offer a chance to voice complaints
collaborate in making decision
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

29. 13-29
Job Satisfaction
Correlates of job satisfaction
 job satisfaction is unrelated to job performance
 the greater the job dissatisfaction:
the higher turnover
the higher absenteeism
the lower corporate citizenship
the more grievances and lawsuits
the higher the probability of a strike
the more likely that stealing and/or vandalism will occur
the poorer the mental and physical health of the workers
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

30. 13-30
Job Satisfaction (cont.)
Quality of work life (QWL)
 programs designed to create a workplace that enhances
employee well-being
 organizations differ drastically in their attention to QWL
Psychological contracts
a set of perceptions of what employees owe their employers,
and what their employers owe them
hasimportant implications for employee satisfaction/motivation
Benefits provided by Contributions provided
the organization by the employee
Benefits promised by
versus Contributions promised
the organization by the employee
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

31. 13-31
Categories Of Quality Of Life
Safe and
Adequate and fair
healthy
compensation
environment
Socially responsible Jobs develop
organizational human
actions Quality capacities
of Work
Minimum infringe- Life
Chance for personal
ments on personal
growth and security
and family needs
Supportive
Constitutionalism social
environment
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.