BUS 51 - Mosley7e ch07

Part 3

Leading

Chapter 7

Motivation

Mosley • Pietri
PowerPoint Presentation by Charlie Cook
The University of West Alabama

© 2008 Thomson/South-Western
All rights reserved.

Learning Objectives
Learning Objectives
After reading and studying this chapter, you should
be able to:
1. Identify the three levels of employee motivation.
2. Explain the relationship between performance and
motivation.
3. Understand and explain Maslow’s hierarchy of needs
theory and the principle underlying his theory.
4. Differentiate between Herzberg’s dissatisfiers and
motivators.
5. Understand and explain expectancy theory.
6. Explain how supervisors can use goal-setting theory to
motivate employees.
© 2008 Thomson/SouthWestern. All rights reserved.
7–2

Learning Objectives (cont’d)
Learning Objectives (cont’d)
After reading and studying this chapter, you should
be able to:
7. Define equity theory.
8. Define and explain reinforcement theory.
9. Explain how generational differences affect motivation.
10. Identify five steps to motivating employees.


7–3

Motivation: Understanding Human Behavior
• Motivation
 Is the willingness of individuals and groups, as

influenced by various needs and perceptions, to strive
toward a goal.
 Is the result of a person’s individual perceptions,

needs, and goals.
 Involves the integration of the needs and goals of

individuals with the needs and goals of the
organization.

7–4

Historical Insight
• The Hawthorne Studies
 A series of productivity studies begun in 1934 at

Western Electric’s Hawthorne Plant in Chicago.
 Increased worker productivity was attributed to

improvements to psychological factors within the
experimental groups.
 Research results indicated that management’s

attention to workers and social factors operating
within the groups resulted in motivational conditions
that increased work performance.

7–5

EXHIBIT 7.1

The Three Levels of Motivation


7–6

Intrinsic and Extrinsic Motivation
• Intrinsic Motivation
 Behavior that an individual produces because of the

pleasant experiences associated with the behavior
itself.


Example: Enrolling in a professional development class.

• Extrinsic Motivation
 Behavior performed not for its own sake, but for the

consequences associated with it. Consequences can
include pay, benefits, job security, and working
conditions.


Example: Working toward receiving a college degree.


7–7

The Motivation–Performance Link
• Factors Influencing Employee Performance
 Direction of behavior
 Level of effort
 Persistence of effort
 Personal motivation
 Personal abilities and skills
 Level of organization support
 External environment


7–8

EXHIBIT 7.2

Factors Affecting an Individual’s Job Performance


7–9

Maslow’s Hierarchy of Needs Theory
• Hierarchy of Needs
 Arrangement of people’s needs in a hierarchy, or

ranking, of importance.

• Underlying Principles
 People’s needs can be arranged in a hierarchy, or

ranking, of importance.
 Once a need has been satisfied, it no longer serves
as a primary motivator of behavior.


7–10

EXHIBIT 7.3

Maslow’s Hierarchy of Needs


7–11

Maslow’s Hierarchy of Needs (cont’d)
• Physiological Need
 The need for food, water, air, and other physical necessities.

• Safety Need
 The need for protection from danger, threat, or deprivation.

• Social Need
 The need for belonging, acceptance by colleagues, friendship,

and love.

• Ego Need
 The need for self-confidence, independence, appreciation, and

status.

• Self-fulfillment Needs
 Needs concerned with realizing one’s potential, self-

development, and creativity.

7–12

Qualifying the Needs Hierarchy Theory
1. Needs on one level of the hierarchy do not have to be
completely satisfied before needs on the next level
become important.
2. The theory does not attempt to explain the behavior of
the neurotic or the mentally disturbed.
3. Different people have different priorities. Some are less
security oriented or achievement oriented than others.
4. Unlike the lower level needs, the two highest levels of
needs can hardly ever be fully satisfied as new
challenges and opportunities for growth, recognition,
and achievement arise.
7–13

Herzberg’s Theory
• Two-Factor Theory
 Findings disproved the assumption that satisfaction

and motivation are always positively connected.

• Factors
 Dissatisfier (Hygiene) factors


Factors that affect employees negatively, or dissatisfy them
about their job, including low pay, low benefits, and
unfavorable working conditions.

 Satisfier (Motivator) factors


Factors that affect employees positively, such as recognition,
advancement, achievement, challenging work, and being
one’s own boss.


7–14

EXHIBIT 7.4

Herzberg’s Satisfier/Motivator and Dissatisfier/Hygiene Factors

Satisfier/Motivator Factors
+
+
+
+
+

Recognition
Advancement
Challenging work
Being one’s own boss
Work itself

“The boss says I’ve done a good job.”
“I was promoted to team leader.”
“I solved a really tough job problem.”
“I was given a free hand to do my job.”
“I got to design the new system.”

Dissatisfier/Hygiene Factors
–
–
–
–
–

Pay
Benefits
Working conditions
Job security
Company policy/
administration

“I’m not paid fairly for what I do.”
“This company doesn’t pay tuition or medical benefits.”
“It’s so hot in the plant it’s often unbearable.”
“With seasonal work I never know for sure if I’ll have a job.”
“We have so much red tape to go through.”


7–15

Qualifying Herzberg’s Theory
• Money can be a motivating factor, especially when it is
tied to recognition and achievement.
• The absence of motivating factors can constitute
dissatisfaction.
• Herzberg’s findings had a built-in bias.
 When asked about something positive on the job, people are

biased toward mentioning something in which their behavior is
the focal point.
 When asked about dissatisfiers, people tend to mention extrinsic

factors over which they have no control, such as pay or working
conditions.


7–16

Other Theories of Motivation
• Expectancy Theory
 Views an individual’s motivation as a conscious effort

involving the expectancy that a reward will be given
for a good result.

• Variables in Expectancy Theory
1. Expectancy that effort will lead to a given

performance result.
2. Probability of reward(s) associated with the

performance result.
3. Value of the reward to the individual.


7–17

EXHIBIT 7.5

Expectancy Theory

Motivation = Expectancy
that increased
effort will lead to a
given performance
level

×

(Effort → Performance link)


Probability
that a specific
performance level
will lead to a given
reward

Value
× attached
to reward

(Performance → Reward link)

7–18

EXHIBIT 7.6

Applying Expectancy Theory

1.

Hire people who have adequate skill levels.

2.

Set clear, recognizable performance goals.

3.

Make sure employees know what is expected.

4.

Continually stress employee training and skill development.

5.

Use performance feedback and coaching to help employees gain skills.

6.

Have employees share knowledge and expertise with others.

7.

Give employees special jobs or assignments that stretch their abilities.

8.

Celebrate performance successes.

9.

Reward performance achievement.

10. Develop trust in your commitments by others; do not overpromise rewards.
11. Emphasize multiple rewards such as praise and recognition, being
assigned desired work, receiving special training, attending a conference.
12. Determine what different individuals value as rewards (financial, social,
being in the know, learning
© 2008 Thomson/South- a new skill, etc.) and help make these happen.

Western. All rights reserved.

7–19

Perception’s Role in Maximizing Motivation
• An employee must perceive that he or she has
the ability and appropriate support level to
achieve the targeted performance level.
• An employee must perceive that if he or she
does reach the performance level, he or she will
receive the reward
• An employee must perceive the reward to be
something of value to the employee.

7–20

Applying Expectancy Theory Principles
• The Effort → Performance Link
 Help employees reach desired performance levels

through training and coaching.

• The Performance → Reward Link
 Deliver on commitments through proper appraisals of

performance tied to specific levels of rewards.

• The Reward
 Rewards for performance must be meaningful to

employees—give them what they want, not what you
think they want.

7–21

EXHIBIT 7.7

•
•
•
•
•
•
•
•
•
•
•
•
•
•

Manager’s List of Potential Rewards

Raises and bonuses
Social functions
Outings
A night on the town
A nice meal or lunch courtesy of the
manager
Lunch as a group that the manager
buys
Dinner
Day off or time off
Picnics for teams
Tickets to sports, special events
Direct oral praise to individual, one
to one
Direct praise to individual in
presence of others
Direct praise/recognition at group
events
Peer recognition


• Letters of recognition to file or place
where customers can see them
• Passing on customer compliments
and commendations in voice mail or
in writing
• Written praise
• Certificates and plaques
• Shirts, phones, pins, hats, cups,
jackets, and so on, all with the name
of the company on them
• Opportunity to attend conference,
special training course
• A parking space
• Additional responsibilities
• Personal call or visit from CEO or
senior executive
• New furnishings or equipment
• Being assigned more favorable jobs
• Allowing people to bid on projects/
tasks they prefer

Source: Adapted from Peter Meyer, “Can You Give Good, Inexpensive Rewards? Some Real-Life Answers,” Business Horizons, November–
December, 1994, pp. 84–85. Copyright © 1994 by the Trustees of Indiana University, Kelley School of Business. Reprinted with permission.

7–22

Other Theories of Motivation (cont’d)
• Goal-Setting Theory
 Task goals, properly set and managed, can be an

important employee motivator.

• Supervisors can use goal setting to motivate by:
 Setting specific goals.
 Setting challenging but reasonably difficult goals.
 Ensuring timely feedback to employees about goal

achievement.
 Allowing employees to participate in goal setting.
 Making sure employees understand goal priorities.
 Reinforcing goal accomplishments.

7–23

• Equity Theory
 Posits that when people find themselves in situations

of inequity or unfairness, they are motivated to act in
ways to change their circumstances.


A perceived imbalance of rewards to inputs in comparison to
others:
– Equity: Inputs = Outcomes; Inequity: Inputs ≠ Outcomes

• Factors Determining Equity
 Employee inputs into the job—skill, education,

experience, and motivation.
 Outputs (performance rewards)—pay, advancement,
recognition, or desirable job assignments.
7–24

• Employee Options for Dealing with Perceived
Inequities:
 Trying to increase the reward level by appeal to

management or filing a grievance.
 Decreasing the input level by putting in less job effort,

taking longer breaks, or being less cooperative.
 If equity cannot be restored, leaving the situation by

transfer or seeking employment elsewhere.


7–25

• Reinforcement Theory
 Law of effect:
Behavior that is rewarded tends to be repeated.
 Behavior that is punished tends to not be repeated.


• Positive Reinforcement
 Providing positive consequences to encourage

desired employee behaviors.

• Punishment
 Applying negative consequences to discourage

undesired employee behaviors.

7–26

EXHIBIT 7.8

How and When to Praise

Bob Nelson, author of 1001 Ways to Reward Employees, says the form of
reward rated number one by employees is verbal appreciation or praise from
their immediate boss. Written appreciation or praise ranked number two.
Below are some guidelines regarding the effective use of praise.

1.
2.
3.
4.
5.

Praise should be genuine.
Praise should be specific.
Give praise for better than expected performance.
Praise should be timely.
Give praise for its own sake, not as a secondary
motive.


Source: Bob Nelson, 1001 Ways to Reward Employees (New York: Workman Publishing Co., 1993).

7–27

EXHIBIT 7.9

Characteristics of Different Generations
Traditionalists

Baby Boomers

Generation X

Generation Y

Pre 1945

1945–1964

1965–1980

1981–Present

Age 63–

Age 43–62

Age 27–42

Age 1–27

Formative
Events

Great Depression
World Wars

Post war
Prosperity

Globalization
Downsizing
Tech Boom

Networking
9-11, World terrorism
Internet

Qualities

Loyal
Self-sacrificing

Competitive
Optimistic

Independent
Individualistic
Entrepreneurial
Lack loyalty

Diverse
Skilled
Demanding
Sophisticated

Assets

Wisdom
Experience
Persistence

Social skills

Tech skills
Educated

Multi-tasking skills
Work ethic

Lack

Technology skills

Technology skills

Social skills

Direction
Focus
Interpersonal skills

Value

Family
Patriotism

Material success
Free expression
Equity

Skills more than titles
Work-life balance

Patriotism
Family
Respect

Style

Directive
Take charge
Do what’s right

Respect authority
Micromanage
Proactive
Work hard

Skeptical
Reluctant to network
Outcome focused
Bend rules as needed

Plunge right in
Negotiate
Blend work/play
Measure own success

Strategies
For
Managing

Respect their experience
Value their loyalty
Use their knowledge/
experience to help others

Give important roles
Value their contributions
Show respect
Minimize conflict

Provide autonomy
Give quick feedbacks
Update their tech skills
Give credit for results

Train/upgrade
Assign meaningful work
Use in teams
Promote positive, open
environment.


7–28

Source: Adapted from Susan P. Eisner, “Managing Generation Y,” SAM Advanced Management Journal 70, Autumn, 2005, v. 70, pp 4–13.

Lessons from the Theories:
Five Steps to Motivating Employees
1. Help make employees’ jobs interesting.
2. Provide clear performance objectives.
3. Support employees’ performance efforts.
4. Provide timely performance feedback.
5. Reward employees’ performance.


7–29

Important Terms
Important Terms
• baby boomer generation
• dissatisfier (or hygiene)
factors
• ego (or esteem)
• need equity theory
• expectancy theory
• extrinsic motivation
• Generation X
• Generation Y
• goal-setting theory
• hierarchy of needs


• intrinsic motivation
• motivation
• physiological (or biological)
need
• reinforcement theory
• safety (or security) need
• satisfier (or motivator) factors
• self-fulfillment (or self
actualization) needs
• social (or belonging) need
• Traditional Generation

7–30

BUS 51 - Mosley7e ch07

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