Motivation in Organizations
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Motivation in Organizations
Chapter 7
Chapter 7 Preview:
Motivation in OrganizationsWhat do individuals need to do to meet a personal goal? What are the most important sources of work motivation (e.g., money? recognition? other?)What do you think makes for effective goal-setting? What happens when people feel that they are underpaid compared to their peers? What do people need to believe about a possible reward, in order for it to be motivating?
Components of motivation: What are the basic components of motivation? Page Ref: 214
Motivation: What motivates people to work? What are the most important sources of work motivation? Page Ref: 215
Guidelines for setting effective performance goals: What are they? Page Ref: 220-223
Equity Theory: What are some possible reactions to inequity? Page Ref: 226-227
Expectancy Theory: What are the three types of beliefs that people have, and what do they mean? Page Ref: 230
Copyright
Learning ObjectivesDefine motivation and explain its importance in the field of organizational behavior.Identify and explain the conditions through which goal setting can be used to improve job performance.
Learning ObjectivesDescribe equity theory and how it may be applied to motivating people in organizations.Describe expectancy theory and how it may be applied in organizations.
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Today’s AgendaMotivationGoal SettingEquity TheoryExpectancy Theory
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Today’s AgendaMotivationGoal SettingEquity TheoryExpectancy Theory
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The set of processes thatarousedirect, and maintain
human behavior toward attaining some goal
Motivation
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Motivation Components
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Motivation
Key PointsMotivation and job performance are not synonymousMotivation is multifacetedPeople are motivated by more than just money
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What Motivates You to Work?
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What Motivates People to Work?
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Today’s AgendaMotivationGoal SettingEquity TheoryExpectancy Theory
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Goal Setting
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Goal Setting
Do you have goals?Have you been successful in meeting them?What do you think are important characteristics of attainable goals?How does it make you feel to achieve goals?
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Goal Setting Guidelines
For ManagersAssign specific goalsAssign difficult, but acceptable, performance goalsstretch goalsProvide feedback on goal attainment
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Today’s AgendaMotivationGoal SettingEquity TheoryExpectancy Theory
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Equity TheoryPeople strive to maintain ratios of their own outcomes (rewards) to their own inputs (contributions) that are equal to the outcome / input ratios of others with whom they compare themselves
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Equity Theory
Possible Reactions to Inequity
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Equity Theory
Managerial ImplicationsAvoid underpaymentAvoid overpaymentBe honest and open with employees
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Equity Theory
Pay Practices in the NewsPay Practices at Reddit, Google and Gravity Payments
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Equity Theory
Pay Practices in the NewsQuestions to co.
1. Motivation in Organizations
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Motivation in Organizations
Chapter 7
Chapter 7 Preview:
Motivation in OrganizationsWhat do individuals need to do to
meet a personal goal? What are the most important sources of
work motivation (e.g., money? recognition? other?)What do you
think makes for effective goal-setting? What happens when
people feel that they are underpaid compared to their peers?
What do people need to believe about a possible reward, in
order for it to be motivating?
Components of motivation: What are the basic components of
2. motivation? Page Ref: 214
Motivation: What motivates people to work? What are the most
important sources of work motivation? Page Ref: 215
Guidelines for setting effective performance goals: What are
they? Page Ref: 220-223
Equity Theory: What are some possible reactions to inequity?
Page Ref: 226-227
Expectancy Theory: What are the three types of beliefs that
people have, and what do they mean? Page Ref: 230
Copyright
Learning ObjectivesDefine motivation and explain its
importance in the field of organizational behavior.Identify and
explain the conditions through which goal setting can be used to
improve job performance.
Learning ObjectivesDescribe equity theory and how it may be
applied to motivating people in organizations.Describe
expectancy theory and how it may be applied in organizations.
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Today’s AgendaMotivationGoal SettingEquity
TheoryExpectancy Theory
4. *
Motivation
Key PointsMotivation and job performance are not
synonymousMotivation is multifacetedPeople are motivated by
more than just money
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What Motivates You to Work?
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What Motivates People to Work?
5. *
Today’s AgendaMotivationGoal SettingEquity
TheoryExpectancy Theory
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Goal Setting
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Goal Setting
Do you have goals?Have you been successful in meeting
them?What do you think are important characteristics of
attainable goals?How does it make you feel to achieve goals?
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6. Goal Setting Guidelines
For ManagersAssign specific goalsAssign difficult, but
acceptable, performance goalsstretch goalsProvide feedback on
goal attainment
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Today’s AgendaMotivationGoal SettingEquity
TheoryExpectancy Theory
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Equity TheoryPeople strive to maintain ratios of their own
outcomes (rewards) to their own inputs (contributions) that are
equal to the outcome / input ratios of others with whom they
compare themselves
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Equity Theory
Possible Reactions to Inequity
7. *
Equity Theory
Managerial ImplicationsAvoid underpaymentAvoid
overpaymentBe honest and open with employees
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Equity Theory
Pay Practices in the NewsPay Practices at Reddit, Google and
Gravity Payments
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Equity Theory
8. Pay Practices in the NewsQuestions to consider:What do you
think about the idea of banning salary negotiations at
Reddit?Google’s “unfair on purpose” policy?Specific Gravity’s
“equal pay” policy?What about Equity Theory and Distributive
Justice?
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Today’s AgendaMotivationGoal SettingEquity
TheoryExpectancy Theory
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Expectancy Theory
DefinitionsExpectancy: Will my efforts lead to
performance?Instrumentality: Will I be rewarded for good
performance?Valence: Do I value the potential reward?
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9. Expectancy Theory
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Other Job Performance DeterminantsSkills and abilitiesRole
perceptionsOpportunities to perform
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Managerial ImplicationsHelp ensure that effort will lead to
performanceTrainingEliminate obstaclesClearly link
performance and valued rewardsPay-for-performance
plansIncentive stock optionProvide rewards that are valued by
employees
10. *
Chapter 7 Review:
Motivation in OrganizationsComponents of motivation: What
are the basic components of motivation? Motivation: What
motivates people to work? What are the most important sources
of work motivation? What are the guidelines for setting
effective performance goals? Equity Theory: What are some
possible reactions to inequity? Expectancy Theory: What are the
three types of beliefs that people have, and what do they mean?
Components of motivation: What are the basic components of
motivation? Page Ref: 214
Motivation: What motivates people to work? What are the most
important sources of work motivation? Page Ref: 215
Guidelines for setting effective performance goals: What are
they? Page Ref: 220-223
Equity Theory: What are some possible reactions to inequity?
Page Ref: 226-227
Expectancy Theory: What are the three types of beliefs that
people have, and what do they mean? Page Ref: 230
Copyright
Questions / Comments?
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11. *
ORGANIZATIONAL CULTURE, CREATIVITY, AND
INNOVATION
Chapter 14
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Organizational Culture: What does the term “organizational
culture” mean to you? In what ways can organizational cultures
be different? How do think that organization culture is
established or changed? How would you define
innovation?What is necessary for someone to be creative?
The Competing Values Framework: What are the four quadrants
of the competing values framework and what do they mean?
Page Ref: 486-487
Organizational Culture: What is the definition of organizational
culture? How is organizational culture created? Page Ref: 481
and 488-489
Innovation: What is the definition of innovation? Page Ref: 504
12. Creativity: What are the three basic components of creativity?
Page Ref: 496-498
Copyright
Define organizational culture, and identify its core
characteristics and the various functions it serves in
organizations.
Describe the four forms of organizational culture specified by
the competing values framework.
Explain the factors responsible for creating and transmitting
organizational culture, as well as those for making it change.
Define creativity and describe the basic components of
individual and team creativity.
Identify the basic forms and targets of innovation and the stages
of the innovation process.
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TODAY’S AGENDA
Organizational Culture
Creating, Transmitting & Changing Culture
Creativity
Innovation
13. *
TODAY’S AGENDA
Organizational Culture
Creating, Transmitting & Changing Culture
Creativity
Innovation
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A cognitive framework consisting of attitudes, values,
behavioral norms, and expectations shared by organization
members.
A set of basic assumptions shared by members of an
organization.
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Sensitivity to OthersInterest in New IdeasWillingness to Take
RisksThe Value Placed on PeopleOpenness of
CommunicationFriendliness and Congeniality
14. Sensitivity to others – Many branches of the government have
traditionally been seen as closed / arrogant. This is changing
somewhat.
Interest in new ideas – My experience at Siemens with hiring
plant manager.
Openness of Communication – my example of Intel vs. Unisys.
Friendliness and Congeniality – my experience at CSUSB. The
culture at Amazon is generally seen as more competitive.
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ORGANIZATIONAL CULTUREDoes CSUSB have a
culture?Do different colleges or different classrooms have
different subcultures?
14-3
14-3
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Inside Amazon: Wrestling Big Ideas in a Bruising Workplace
What are the most pronounced characteristics of Amazon’s
culture?How do you believe the culture originated?Do you
believe that the culture has served the company in achieving its
goals?Would you fit in well in Amazon’s culture?
16. *
Company Founders
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Experiences with the External Environment
Sony Betamax vs. JHV VHS (1975-1988)
Sony Blu-ray vs. Toshiba HD DVD (2006-2008)
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Symbols
Slogans
Stories
Jargon
17. Ceremonies
Statements of principle
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Just do it.
The Few, The Proud, The…
The happiest place on earth.
Eat Fresh.
Taste the Rainbow
American by Birth. Rebel by Choice.
Think Different.
I’m Lovin’ It
Nike
Marines
Disneyland
Subway
Skittles
Harley Davidson
Apple
McDonalds
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Composition of workforce
Mergers and acquisitions
Strategic cultural change
Responding to the Internet
18. *
TODAY’S AGENDA
Organizational Culture
Creating, Transmitting & Changing Culture
Creativity
Innovation
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GROUP CREATIVITY
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The process by which individuals or teams produce novel and
useful ideas.
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19. *
TODAY’S AGENDA
Organizational Culture
Creating, Transmitting & Changing Culture
Creativity
Innovation
The successful implementation of creative ideas within an
organization
https://www.forbes.com/innovative-companies/list/#tab:rank
Product
Service
21. Are most decisions today made at the top of the organization
(by managers) or by lower-level employees? Do you think this
has changed over time?What are some of the benefits of having
groups make decisions? What are some of the potential
problems?What does the term “groupthink” mean to you?What
are some way that biases might enter into individual decision-
making? When are groups better at making decisions than
individuals? When are individuals better?
Top-Down and Empowered Decisions: What is the difference
between these two approaches? Page Ref: 341
Potential Benefits and Problems of Decision-Making Groups:
What are they? Page Ref: 345-346
Groupthink: What is it and how does it affect decision-making?
Page Ref: 346
Biased Nature of Individual Decisions: What are the primary
biases in individual decision-making? What do they mean?
Page Ref: 356-359
When are Groups Superior to Individuals? When are group
decisions superior to individual decisions? Page Ref: 361
Copyright
General Model of Decision-MakingTypes of Organizational
DecisionsFactors Affecting Decisions in OrganizationsHow
Individual Decisions are MadeImperfect DecisionsGroup
Decisions vs. Individual Decisions
Definition: the process of making choices from among several
22. alternativesDecision making is one of the most important – if
not the most important – of all managerial activities.
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General Model of Decision-MakingTypes of Organizational
DecisionsFactors Affecting Decisions in OrganizationsHow
Individual Decisions are MadeImperfect DecisionsGroup
Decisions vs. Individual Decisions
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23. *
General Model of Decision-MakingTypes of Organizational
DecisionsFactors Affecting Decisions in OrganizationsHow
Individual Decisions are MadeImperfect DecisionsGroup
Decisions vs. Individual Decisions
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Exercise on Page 370-371 in text
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24. *
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Potential benefitsPooling of resourcesSpecialization of
laborGreater acceptance
Potential problemsWasted timeDisruptive conflictIntimidation
by group leaders
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The tendency for members of highly cohesive groups to so
strongly conform to group pressures regarding a certain
decision that they fail to think critically, rejecting the
potentially correcting influences of outsiders
25. Bay of Pigs video
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Invasion plan initiated by Eisenhower administration, but
Kennedy White House "uncritically accepted" CIA's plan.When
advisors, such as Arthur M. Schlesinger, Jr. and Senator J.
William Fulbright, attempted to present objections to the plan,
Kennedy team ignored objections Eventually Schlesinger
minimized his own doubts, performing self-censorship.Kennedy
team stereotyped Castro and the Cubans by failing to question
the CIA about its many false assumptions, including the
ineffectiveness of Castro's air force, the weakness of Castro's
army, and the inability of Castro to quell internal uprisings.
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General Model of Decision-MakingTypes of Organizational
DecisionsFactors Affecting Decisions in OrganizationsHow
Individual Decisions are MadeImperfect DecisionsGroup
Decisions vs. Individual Decisions
26. IMPERFECT DECISIONS
Sure gain of $240
25% chance to gain $1,000 and 75% chance to gain
nothing
Sure loss of $740
75% chance to lose $1,000 and 25% chance to lose
nothing
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___
___
___
___
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Sure gain of $240
27. 25% chance to gain $1,000 and 75% chance to gain
nothing
$240 Gain
$250 Gain
“Better!”
Expected Return
Sure loss of $740
75% chance to lose $1,000 and 25% chance to lose
nothing
Expected Return
$740 Loss
$750 Loss
“Better!”
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In general, individuals tend to: be risk averse when offered a
gainbut be risk-taking when faced with a loss.
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28. The tendency for people to make different decisions based on
how a problem is presented to them.
Framing Effects
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Implicit favoriteConfirmation CandidatesHindsightHindsight is
20-20
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Person Sensitivity: Tendency to give too little credit to others
when things are going poorly and too much credit when things
are going well
Remember the Fundamental Attribution Error?
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29. Escalation of Commitment: Continuing to support unsuccessful
courses of action - “Sunk Costs”
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General Model of Decision-MakingTypes of Organizational
DecisionsFactors Affecting Decisions in OrganizationsHow
Individual Decisions are MadeImperfect DecisionsGroup
Decisions vs. Individual Decisions
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Top-Down and Empowered Decisions: What is the difference
between these two approaches? Page Ref: 341Potential Benefits
and Problems of Decision-Making Groups: What are they? Page
Ref: 345-346Groupthink: What is it and how does it affect
30. decision-making? Page Ref: 346Biased Nature of Individual
Decisions: What are the primary biases in individual decision-
making? What do they mean? Page Ref: 356-359When are
group decisions superior to individual decisions? Page Ref: 361
Top-Down and Empowered Decisions: What is the difference
between these two approaches? Page Ref: 341
Potential Benefits and Problems of Decision-Making Groups:
What are they? Page Ref: 345-346
Groupthink: What is it and how does it affect decision-making?
Page Ref: 346
Biased Nature of Individual Decisions: What are the primary
biases in individual decision-making? What do they mean?
Page Ref: 356-359
When are Groups Superior to Individuals? When are group
decisions superior to individual decisions? Page Ref: 361
Copyright
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Jason Sheets
MGMT 302-05
Professor Habich
June 10, 2017
31. Organizational Behavior Final Self-Reflection
I was fascinated by the course content in Organizational
Behavior this spring. I learned that I still have a lot of growing
to do if I want to be a good leader and a fulfilled employee. The
key topics for my growth were “Theory X” versus “Theory Y,”
empowerment, and sources of motivation at work.
Our “Theory X” and “Theory Y” discussion of management
styles showed me early in the quarter that I need to evolve if I
want to be an effective manager. In the past, I was a manager at
a customer-support call center, leading a team of people that
were all poorly trained and under immense pressure from the
CEO to finish as many calls as quickly as possible. He mostly
took a “Theory X” approach and that trickled down to me and
the other managers. We were constantly pushing our teams
harder and harder. Morale was terrible. I was distrusting of the
people on my team and assumed they would be a lazy as I would
allow them to be.
If from day one there was a “Theory Y” approach at the call
center, I think the organization would have been very different.
The low interest I perceived in my team was partly a result of
the way they had been treated. “Theory Y” says that people will
work hard if they are appropriately trained, and that they have
an innate desire to find achievement through their work. I saw
glimpses of this in my time there. In the future, I would want
my team to learn how to properly complete the tasks their
customers needed, so they could get some satisfaction through
their accomplishments.
I can see now that my call-center experience was also a lesson
in empowerment. Because I did not trust my team, I gave them
very specific guidelines for how to do their work. They had
little freedom. Learning this quarter that people thrive on
empowerment, I would like to give people more autonomy and
32. freedom to decide how to accomplish their tasks.
The other important lesson for me this quarter came from our
discussion on motivation. I would have imagined my ideal job
involving the completion of a series of easy tasks each day and
hopefully necessitating minimal interaction with other
coworkers. This could have been a recipe for an unsatisfying
career. I have now learned that people thrive when challenged
and when part of a supportive team. I need to be considering
these variables when I start my job search. I need look for
opportunities to push myself and be proactive about working
together with my fellows.
I am grateful for my experience in Organizational Behavior. I
am walking away with several new insights. If I want to be a
good team leader I need to ensure my team is thoroughly trained
and that they feel sufficiently rewarded. People want to be
empowered. I need to get out of my comfort zone to find real
satisfaction at work. That means taking on challenges and
finding motivation through the support of a team.