2. Learning Objectives
L01: Behaviors managers need to motivate people
L02: Principles for setting goals that motivate employees
L03: How to reward good performance effectively
L04: Key beliefs that affect people’s motivation
L05: Ways in which people’s individual needs affect their
behavior.
L06: Ways to create jobs that motivate.
L07: How people assess fairness and how to achieve
fairness.
L08: Identify causes and consequences of a satisfied
workforce.
10-2
3. Motivating for Performance
Motivation
forces that energize, direct and sustain a person’s
efforts.
Organizations want to motivate people to:
Join the organization, and stay
Come to work regularly
Work hard to achieve high output and high quality
Exhibit good citizenship
be committed and perform above and beyond the call of
duty to help the company
10-3
4. Goal Setting Theory
Proposes that people have conscious goals that
energize them and direct their thoughts and
behaviors toward a particular end
10-4
5. Well-crafted goals are highly motivating
Meaningful
Acceptable
Challenging but Attainable
Specific and quantifiable
10-5
6. Stretch Goals
Targets that are exceptionally demanding, and that
some people would never even think of.
Vertical stretch goals are aligned with current activities
including productivity and financial results
Horizontal stretch goals involve people’s professional
development, such as attempting and learning new,
difficult things
10-6
7. Reinforcing Performance
Law of effect
Law formulated by Edward Thorndike in 1911
Behavior that is followed by positive consequences will
likely be repeated
Reinforcers
Positive consequences that motivate behavior
Organizational behavior modification (OB mod)
Application of reinforcement theory in organizational
settings
10-7
8. Key Consequences of Behavior
1. Positive reinforcement
applying a consequence that increases the likelihood
that the person will repeat the behavior that led to it.
2. Negative reinforcement
removing or withholding an undesirable consequence.
3. Punishment
administering an aversive consequence.
4. Extinction
withdrawing or failing to provide a reinforcing
consequence.
10-8
9. What do you want to
reinforce?
Solid solutions NOT quick fixes
Risk taking NOT risk avoiding
Applied creativity NOT mindless conformity
Decision action NOT analysis paralysis
Smart work NOT busywork
Simplification NOT needless complication
Quietly effective behavior NOT squeaky wheels
Quality work NOT fast work
Loyalty NOT turnover
Working together NOT working against
10-9
10. Rewards
Support the firm’s strategy
Relate people’s performance in relation to strategic
objectives
Can be nonmonetary
intellectual challenge, greater responsibility, autonomy,
recognition, flexible benefits, and greater influence
over decisions
10-10
11. Should you punish mistakes?
Appropriate Inappropriate
Violation of law, ethical When poor performance
standards, important is not the individual’s
safety rules fault
When employees When managers take out
perform like a slacker their frustrations on the
wrong people
10-11
12. How to Manage Mistakes
Recognize that everyone makes mistakes
Handle constructively by discussing and learning from
them
Praise people who deliver based news to their
bosses
Don’t punish, unsuccessful good-faith efforts
Encourage people to try new things and don’t
punish them if what they try doesn’t work out.
10-12
13. Performance-related Beliefs
Expectancy theory
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.
Effort ∇ Performance ∇ Outcome
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14. Managerial Implications of Expectancy
Theory
c Increase expectancies
Provide work environment that facilitates good
performance
Set realistically attainable performance goals
y Identify positively valent outcomes
Understand want people want to get out of work
p Make performance instrumental toward
positive outcomes
Follow good performance by personal recognition
and praise, favorable performance reviewers, pay
increases, and other positive results
10-14
16. Types of Motivation
Extrinsic motivation
rewards given to a person by the boss, the company
or some other person - EXTERNAL
Intrinsic motivation
rewards a worker derives directly from performing the
job itself - INTERNAL
10-16
17. Designing Motivating Jobs
Job rotation
changing from one routine task to another to alleviate
boredom
Job enlargement
Giving people additional tasks at the same time to
alleviate boredom
Job enrichment
Changing a task to make it inherently more rewarding,
motivating, and satisfying
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18. Herzberg’s two-factor theory
Proposed two broad categories of factors that affect
people working on their jobs
Hygiene factor
Workplace characteristics that can make people dissatisfied
Company policies, working conditions, pay, and supervision
Motivators
Factors that make a job more motivating
Additional job responsibilities, opportunities for personal
growth and recognition, and feelings of achievement
10-18
19. What is empowerment?
The process of sharing power with employees,
thereby enhancing their confidence in their
ability to perform their jobs and their belief that
they are influential contributors to the
organization.
10-19
20. Equity Theory
Proposes that people assess how fairly they
have been treated according to two key factors
1. Outcomes – various things the person receives
on the job
2. Inputs – contributions the person makes to the
organization
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21. How people restore equity
Reducing their inputs
Increase their outcomes
Decrease others’ outcomes
Increase others’ inputs
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22. Quality of work life programs
Create workplace that enhances employee well-being
and satisfaction
Satisfy the full range of employee needs
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25. YOU should be able to
L01: Identify the kinds of behaviors managers need
to motivate people
L02: List principles for setting goals that motivate
employees
L03: Summarize how to reward good performance
effectively
L04: Describe the key beliefs that affect people’s
motivation
10-25
26. YOU should be able to
L05: Discuss ways in which people’s individual
needs affect their behavior.
L06: Define ways to create jobs that motivate.
L07: Summarize how people assess fairness and
how to achieve fairness.
L08: Identify causes and consequences of a
satisfied workforce.
10-26
28. Test Your Knowledge
Describe the characteristics of goals that most
effectively motivate people.
10-28
29. Test Your Knowledge
Identify four examples of people advertently
reinforcing the wrong behaviors, or
punishing or extinguishing good behaviors
10-29
30. Test Your Knowledge
Discuss the managerial implications of
expectancy theory. Relate them specifically
to expectancy theory.
10-30
31. Test Your Knowledge
A difference between Maslow's Need Hierarchy and
Alderfer's ERG Theory is that
A) ERG theory states that various needs operate
simultaneously.
B) Maslow's hierarchy has more scientific validity.
C) Maslow's hierarchy reminds managers that even if
one need seems to motivate people, other needs may
still need attention.
D) ERG theory focuses on five levels of need.
E) only Maslow's theory serves to remind managers of
the types of reinforcers that can be used to motivate
people. 10-31
32. Test Your Knowledge
Compare and contrast job enlargement, job
enrichment, and job rotation. Give an example
of each.
10-32
33. Procedural Justice making and
Using a fair process in decision
making sure others know that the process was
as fair as possible.
10-33
34. Test Your Knowledge
Describe a time when you felt unfairly treated and
explain why. How did you respond to the
inequity? What other options might you have
had?
10-34
35. Test Your Knowledge
Identify the cause and consequences of a
satisfied workforce.
10-35