The document discusses theories of motivation and how rewards can be used to motivate employees. It examines content, process, and reinforcement theories of motivation and explores the connection between motivation and compensation. Key points include defining intrinsic and extrinsic motivation, discussing Maslow's hierarchy of needs and ERG theory, equity theory, expectancy theory, goal setting theory, and reinforcement theory. It also covers using rewards to shape behaviors and the debate around using behavior modification in organizations.

1. ◦ Provide you with a thorough understanding of
the dynamics of motivation and the ways in
which rewards can be used to motivate
employees.
◦ Examine the Content, Process, and
Reinforcement Theories of Motivation , and
◦ Take a look at the connection between
Motivation and Compensation.
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2.  MOTIVATION is the term used to describe
the forces within the individual that
account for the level, direction, and
persistence of effort expended at work.
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3.  A REWARD is a work outcome of positive
value to the individual.
◦ EXTRINSIC REWARDS are externally
administered (e.g., pay and verbal praise);
the motivational stimulus originates
outside the person.
◦ INTRINSIC REWARDS are self-
administered; they occur "naturally" as a
person performs a task. The feelings of
competency, personal development, and
self-control people experience in their
work.
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4.  Both Intrinsic and Extrinsic rewards
can help the manager to lead
effectively through motivation, and to
achieve maximum motivational
impact, it is necessary to:
◦ Respect diversity and individual
differences.
◦ Clearly understand what people want
from work.
◦ Allocate rewards to satisfy the interests
of both individuals and the organization.
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5.  Content Theory
◦ Needs are physiological and
psychological deficiencies that an
individual feels some compulsion to
eliminate.
 Process Theory
◦ People give meaning to rewards and the
work opportunities available to them.
 Reinforcement Theory
◦ People's behavior is influenced by its
environmental consequences.
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6.  Maslow's Hierarchy of Needs Theory
◦ Lower Order Needs
 Physiological
 Safety
 Social
◦ Higher Order Needs
 Esteem
 Self-actualization
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7.  Deficit Principle
◦ Holds that a satisfied need is not a motivator of
behavior; people act to satisfy needs in
which a deficit exists.
 Progression Principle
◦ Holds that the five needs exist in a strict
hierarchy of prepotency such that a need at one
level doesn't become activated until the next
lower-level need is satisfied.
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8.  An extension of Maslow's theory that
proposes the existence of three needs
as opposed to five.
◦ Existence Needs: Desires for physiological
and material well-being.
◦ Relationship Needs: Desires for satisfying
interpersonal relationships.
◦ Growth Needs: Desires for continued
psychological growth and development.
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9.  ERG Theory
◦ Does not assume that lower-level needs must
be satisfied before higher-level needs become
activated and,
◦ This theory includes a unique " frustration-
regression " principle whereby an already
satisfied lower-level need becomes reactivated
when a higher-level need is frustrated.
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10.  Hygiene Factors
◦ Working Conditions
◦ Interpersonal Relations
◦ Organizational Policies
◦ Quality of Supervision
◦ Base Wage or Salary
 Improvements in Hygiene Factors can
prevent and/or eliminate job
dissatisfaction; they will not improve
job satisfaction.
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11.  Satisfier Factors
◦ Sense of Achievement
◦ Feeling of Recognition
◦ Sense of Responsibility
◦ Opportunity for Advancement
◦ Feelings of Personal Growth
 Improvements in Satisfier Factors can
increase job satisfaction; they will not
prevent job dissatisfaction.
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12.  David McClelland proposes that people
acquire needs through their life
experiences.
 He uses a Thematic Apperception Test
(TAT) to measure the strengths of three
acquired needs:
Achievement - Power - Affiliation
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13. ◦ Need for Achievement ( nAch)
 The desire to do something better or more
efficiently, to solve problems, or to master complex
tasks.
◦ Need for Power (nPower)
 The desire to control other persons, to influence
their behavior, or to be responsible for other
people. A finer distinction can be made between:
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14.  The need for Personal Power and,
 The need for Social Power
◦ Need for Affiliation ( nAff)
 The desire to establish and maintain friendly and
warm relations with other persons.
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15.  The most important need for executive
success is the need for social power.
 Persons with a high need for affiliation
may not make the best managers.
 While nPower is often accompanied by a
high need for achievement the later need
in itself is not consistently associated with
executive success.
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16.  Equity Theory
◦ Asserts that when people
believe that they have been
treated inequitably in
comparison to others, they
eliminate the discomfort and
restore equity.
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17.  Equity Theory (cont)
◦ Perceived Equity - occurs whenever a
person perceives that their
personal rewards/inputs ratio is
equivalent to the rewards/inputs
ratio of a comparison other .
◦ Perceived Inequity - occurs whenever
one's rewards/input ratio is
perceived to be unequal...
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18.  “ People will do what they can do when
they want to do it.” The question is ‘what
makes them want to do it?’
 Vroom suggests that the motivation to
work depends on the relationships
between the following three expectancy
factors:
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19.  Expectancy: A person's belief that
working hard will result in a desired
level of task performance.
 Instrumentality: A person's belief
that successful task performance will
be followed by rewards and other
potential outcomes.
 Valence: The value a person
assigns to possible rewards and
other work-related outcomes.
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20.  Implies that for motivation to be high,
Expectancy, Instrumentality and Valence
must be high.
Motivation =
Expectancy x Instrumentality x Valence
A zero at any location on the right side of
the equation will result in zero motivation.
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21.  To Maximize Expectancy
◦ Select workers with ability
◦ Train workers to use ability
◦ Support work effort
◦ Clarify performance goals
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22.  To Maximize Instrumentality
◦ Clarify psychological contracts
◦ Communicate performance-
outcome possibilities
◦ Demonstrate what rewards are
contingent on performance
 To Maximize Valence
◦ ID needs and adjust rewards to
match
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23. The basic premise is that well-set and
well-managed task goals are important
sources for motivation.
 Task goals ,
in the form of clear and
desirable performance targets,
◦ Provide direction,
◦ Energize persistent long-term work efforts,
◦ Clarify performance expectations, and
◦ Serve as a basis for feedback.
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24.  Set Specific Goals
 Set Challenging Goals
 Build Goal Acceptance and Commitment
 Clarify Goal Priorities
 Reward Goal Accomplishment
Management-by-Objectives ( MBO )
is one example of a goal-setting
system which promotes participation .
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25.  Unlike the prior motivation theories
which rely on cognitive explanations of
behavior, reinforcement theory focuses
instead on the impact which external
environmental consequences have on
behavior.
 The law of effects states that behavior
followed by pleasant consequences is
likely to be repeated; behavior followed
by unpleasant consequences is not
likely to be repeated.
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26.  Operant Conditioning
◦ A term popularized by B. F.
Skinner, is the process of
controlling behavior by
manipulating its consequences;
i.e., learning by reinforcement.
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27.  Organizational Behavior
Modification
◦ Involves the application of operant
conditioning techniques to
influence human behavior in work
settings. (Reinforcing desirable
behaviors while denying
reinforcement for unwanted
behaviors.) 27

28.  There Are Two Types of Reinforcement:
◦ Positive Reinforcement
 Increases the frequency of a behavior through
the contingent presentation of a desirable
consequence.
◦ Negative Reinforcement
 Increases the frequency of a behavior through
the contingent removal of an undesirable
consequence.
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29.  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 a pleasant
consequence. 29

30.  Law of Contingent Reinforcement
◦ In order for a reward to have maximum
reinforcing value, it must be delivered only if the
desired behavior is exhibited.
 Law of Immediate Reinforcement
◦ The more immediate the delivery of a
reward after the occurrence of a desirable
behavior, the greater the reinforcing value of
the reward.
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31.  Shaping
◦ The creation of a new behavior by the
positive reinforcement of successive
approximations of the desired
behavior.
 Intermittent reinforcement only rewards behavior
periodically.
 Continuous reinforcement administers a reward
each time a desired behavior occurs.
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32.  Clearly identify desired work behaviors
 Maintain diverse inventory of rewards
 Inform everyone what must be done to
get rewards.
 Recognize individual differences when
allocating rewards.
 Follow the laws of immediate and
contingent reinforcements.
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33.  Tell the person what is being done
wrong.
 Tell the person what is right.
 Make sure the punishment matches the
behavior.
 Administer the punishment in private.
 Follow the laws of immediate and
contingent reinforcement.
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34.  There is considerable debate over the
ethics of using OB MOD to influence
behavior.
 But as the text notes, "the real
question may be not whether it is
ethical to control behavior, but
whether it is ethical not to control
behavior well enough that the goals of
both the organization and the
individual are well served."
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35.  Motivation leads to Effort which, along
with appropriate Abilities and
Organizational Support, lead to
Performance.
 This model illustrates how Rewards for
performance, when they are perceived as
Equitable and possess Reinforcement
Value, can produce satisfaction.
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36.  Incentive Compensation Systems
◦ Bonus systems in which employees at all
levels participate.
◦ Bonus Pay Plans
◦ Profit-Sharing Plans
◦ Gain-Sharing Plans
◦ Employee Stock Ownership Plans
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37.  Pay for Knowledge
◦ Skill-based pay ties pay to the number of job-
relevant skills an employee masters.
 Entrepreneurial pay requires individuals to
put part of their pay at risk, in return for
the right to pursue entrepreneurial ideas,
and share in any resulting profits.
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38. Thanks
RB
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