Week 4BUSI7280 Managing in a Global Context1.docx

Week 4
BUSI7280 Managing in a Global Context
1
Weekly Learning Insights
Some insights still (!) not relating your ideas to the course
material
Management may be seen as a process with many aspects
Relate your insights specifically, explicitly to aspect(s) of the
management process
Due date for Reflective Essay 1 – 30 August 2019
Week 4
Managing People
3
Your motivation
Relates to the question ‘why are you here?’ are you here to get
good marks or to learn something new to help you achieve your
goals?
Why are you here?

Small group discussion
Motivation
Equity theory – people will be motivated when they perceive
that they are being treated fairly (transactional) – theory of
motivation or observation of some people?
Expectancy theory – effort = good performance = reward >
attractive reward (the perceived/learned relationship between
effort and performance and the value of the outcome) –
extrapolation of reinforcement/behaviourism. Learning by
association.
Alternative theories
Motivation
Reinforcement theory – behaviours with positive consequences
will occur more frequently than behaviours with negative
consequences - behaviourism – positive and negative
reinforcement, punishment and extinction; e.g. ‘incentivizing’
and bonuses.
Goal setting theory – people will be motivated to the extent to
which they accept a goal and receive feedback toward
achievement. It is based on the premise that conscious goals
affect action.
More alternative theories
Motivation
Goal Orientation Theory – early conceptualizations from the

1970s. Most current research is based on Dweck’s (1989) theory
of goal orientation (designed to understand children’s
acquisition of new skills) – performance (perform well relative
to others) v learning (improve skills) goals (situational
characteristics or individual trait)?.
And you guessed it ….
Motivation – a mangerialist approach
https://www.ted.com/talks/dan_pink_on_motivation/discussion
What assumptions are made in this talk?
What are the underlying assumptions?
Motivation
SDT focuses on the ‘nature’ of motivation, that is, the ‘why of
behaviour.’
The underlying assumption is that “human beings are active,
growth-oriented organisms who are naturally inclined toward
integration of their psychic elements into a unified sense of self
and integration of themselves into larger social structures”
(Deci & Ryan, 2000, p. 229).
Self-Determination Theory
SDT
Doing an activity for its own sake because one finds the activity
inherently interesting and satisfying.
Think about your core values and how they relate to the things
you love doing.

What sorts of activities are intrinsicly motivating for you?
Intrinsic motivation
SDT
Doing an activity for an instrumental reason.
Some extrinsic motivation can be relatively controlled by
external factors.
Some extrinsic motivation can be relatively autonomous - i.e.
self-regulated through an individual’s acquired goals and
values.
Extrinsic motivation
SDT
having no desire or inclination to undertake a particular
task or role.
Amotivation
Work motivation
The Work Extrinsic and Intrinsic Motivation Scale (WEIMS) is
an 18-item measure of work motivation theoretically grounded
in self-determination theory (Deci & Ryan, 2000).
Results are discussed in regard to the applicability of self-
determination theory to the workplace.
Complete for yourself with regard to current work, future work
or current study
WEIMS (Tremblay et al., 2009)

Optimal motivation
Can we create environments that encourage optimal levels of
motivation?
As a manager, what level of motivation do you need from
individuals in your team?
How might you create an environment or culture that facilitates
this optimal level of motivation?
How might a manager know when an employee is not optimally
motivated for their work and what might you do about it?
Small Group discussion
In your small groups answer each of the three questions
What is the best insight you gain from this discussion?
Insight writing break
Employee Empowerment
SDT research suggests that managers should promote high-
quality performance and wellness among employees by:
acknowledging employees’ views;
encouraging initiative;
offering choices in how work is done;
providing meaningful feedback;
assign tasks that are challenging; and
giving a rationale when requesting a behavior.
Effort and Innovation

Based on the findings of a
In their study of engineers, Doll and Deng (2010) found that
psychological empowerment leads to increased effort and
innovation.
Small group discussion
Has anyone been in a working environment in which managers
empowered employees?
“
”
20
Performance management
The ability to bring out the best in others is a key management
competency
Developing self-awareness and awareness of others helps you
communicate with influence
But creating environments with optimal motivation brings out
the best in both yourself and others.
Performance Appraisals
Generally have three main components:

Setting performance ratings or assessment criteria that will be
applied to employees;
Judging employees against the ratings; and
Providing feedback about the judgment to the employee.
Performance appraisals
Developmental – to help improve performance through greater
awareness, motivation or effort or used to determine
development and training needs.
Administrative –used as the basis for decisions about rewards,
promotions, training, contract renewal or redundancies.
Gifford 2016
Must keep these activities separate
23
Goal Setting
Links goal setting to task performance:
specific and challenging goals,
combined with appropriate feedback,
contribute to enhanced task performance (Williams and
McWilliams, 2014).
Edwin Locke and Gary Latham (1990)
Goal Setting Theory
Goals provide direction, guiding an employee’s attention and
effort towards goal-relevant activities;

Goals can be motivating, ambitious goals lead to greater effort
than low goals;
Goals increase persistence, when people are allowed to control
the time they spend on a task they generally spend longer on
challenging goals; and
Goals lead to the development and use of task-relevant
knowledge and strategies, and thus indirectly contribute to
performance.
Locke and Latham 2002
Goal Setting Activity
List what you are working on right now
Write a brief statement about your motivational relationship
with each of these projects
Note your goal/s for each of these projects
Separately, write down one or more of your long-term goals, for
example, what do you want to be doing in 5-10years?
27
Listening activity
Find someone you haven’t already talked to
Share your immediate and long-term goals
Talker – discuss how the projects you are currently working on
are aligned with your goals
Listen to each other carefully
How would you classify your partner’s motivation?

Emotional Intelligence
The ability to monitor one’s own and other’s feelings and
emotions, and the ability to discriminate or discern among those
and to use this information to guide one’s thinking and actions
(Salovey and Mayer, 1990).
Mohapel, P. (2013)
Author of Enhancing Working Relationships: Incorporating
Dialogue with Emotional Intelligence (2012)
Coaching activity
Team member / Client:
Your WEIMS/EI scores
Your management competency strengths
Your goals/dreams
What is important to you in life
What you value/what motivates you
Things to work on
Manager/Coach
Active/Mindful listening
Focused attention
Show your own vulnerability/talk tentatively/give your client
the joy of talking
Practice empathy, compassion and listen for understanding
Can you bring out the best in your team member?
Learning Insights…
Your own ideas are important but don’t forget to check current
research:

https://hbr.org/topic/managing-people
31
Thank you
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Venona 2.0Lorem Ipsum
25Week 4
Seminar Notes
Semester 2, 2019, Module 1
Week 4
Managing People
Welcome to Topic 4
Welcome to the fourth topic of the course Evidence-based
Foundations of Management. This topic will introduce you to
relational management and evidence-based methods for
developing the interpersonal skills required to manage other
people effectively in a variety of contexts.

It might be said, that one of our primary jobs as a manager is to
create a work environment that facilitates optimal levels of
motivation and brings out the best in our employees. This can
be, at least partly achieved through two-way communication,
listening to hear rather than to respond and being empathic in
your communication style. Done well, these factors serve to
manage performance, often without the need for further
intervention, however, the application of coaching skills to
performance management processes can further enhance
outcomes. This topic will explore the importance of taking a
relational approach to effective business and performance
management.
Topic Learning Outcomes
By the end of this topic, participants will be able to address the
following learning objectives:
TLO 4.1 Recognise the antecedents and consequences of
optimal work motivation.
TLO 4.2 Discuss the role of emotional intelligence in
communicating effectively.
TLO 4.3 Explain the interaction between motivation,
communication and performance.
TLO 4.4 Recognise the importance of coaching skills and the
implications these have for performance management.
Introduction: Lesson 1
Thanks to the Hawthorne Studies in the 1920s and 30s, we now
have an understanding of the effects that managers can have on
their subordinates as a result of the relationship they share.
Now known as the human relations or the relational approach to
management, the perspective places emphasis on the
relationships with or between people. Scholars such as business

strategy Professor Edward Hess at the Darden School of
Business, suggest that it will be the ability to establish
relationships that enable and empower others that will define
leadership success and create competitive advantage for
organisations as we move toward the Smart Machine Age.
Mini-case: The Surprising Power of Human Relationships
Opthomologist Dr Starla Fitch shares a number of stories about
the power of connecting with people and how this can change
the way you see the world. In her talk, Dr Fitch draws on both
personal experience and research evidence to demonstrate the
importance of human relations in the workplace, at home and in
life more generally.
Connect or Die: The Surprising Power of Human Relationships |
Starla Fitch - https://youtu.be/z-WwsALhH04
Cheryl Conner (2015). For personal and business success,
connection’s the key. Forbes. Available online at:
https://www.forbes.com/sites/cherylsnappconner/2015/03/21/for
-personal-and-business-success-connections-the-
key/#796b1018491a
Jing Guo (2014). The power of powerless communication: How
to influence others softly. Available online at:
https://blogs.worldbank.org/publicsphere/power-powerless-
communication-how-influence-others-softly
Note from Michael Hess: This is a particularly interesting voice
in the contemporary debate. I was unable to access this in July
2019. If anyone can find it or a similar source and let me know
how it is accessible I’d appreciate it.

Case Question
In the video, The surprising power of human relationships, Dr
Fitch tells a number of stories about how we can get the wrong
idea about a person or a situation as a result of not fully
connecting with other people. We’d like you to think of an
example, at work or in your life more generally, when a lack of
connection between two people has led to a miscommunication
or a poor outcome.
>> Share a story about a time when two people didn’t fully or
properly connect and it led to a negative outcome for one or
both of them.
Theory: Human Relations and the Relational Approach to
Management
Often referred to as the soft skills of management, being able to
connect with other human beings is not only an essential
management capability, it is essential for a healthy, happy life.
Elton Mayo, one of the researchers who performed the
Hawthorne Studies and who played a key role in founding the
human relations movement in management studies, suggested
than all that was needed to improve the effectiveness and
happiness of people at work was to improve the social skills of
the managers in an organization (Argyle, 1989).
In 1973, Mintzberg found that the CEOs of five large corporate
organizations spent 78 per cent of their time with other people.
In a replication of Mintzberg’s study, Tengblad (2006) found
that there had been little change in the time CEOs spend with

other people and if anything, it had gone up slightly and more
time was spent with subordinates in team settings rather than
with one on one meetings with stakeholders. There are many
more studies, both case studies and experiments similar to the
Hawthorne studies, which highlight the importance of managers
being able to effectively build, manage and maintain
relationships with other people.
History of the Human Relations Movement
The human relations movement arose, accidently, from the work
of a group of Harvard researchers, headed by Elton Mayo. In
1924, the researchers conducted a series of experiments on
worker productivity at the Hawthorne plant of Western Electric
Company in Illinois. Mayo and his colleagues were initially
studying the effects of lighting and other environmental factors
on productivity but instead found that the way people were
treated had a more substantial impact on performance and
productivity. Individual and social processes were found to play
a major role in influencing worker attitudes and behaviour. It
has been concluded, on the basis of these studies and many
more following in the tradition, that management must
acknowledge and act on a worker's needs for recognition and
social satisfaction in order to generate optimal performance.
Mayo referred to this concept as the social man (even though
most of the participants in the original experiments were
women), and concluded that individuals are motivated by social
factors, such as good on-the-job relationships, and respond
more positively to work-group norms than to attempts by
management to control their activity (Argyle, 1989). Thus, the
human relations movement, is concerned primarily with finding
ways of increasing employee motivation but is also interested in
related factors such as morale, leadership, cooperation in teams,
employee empowerment and the wellbeing of workers.
Human Relations. Chapter 1. ‘What is human relations?’

https://saylordotorg.github.io/text_human-relations/s05-what-is-
human-relations.html
Taking a Relational Approach to Management
The Human Relations movement has been the subject of
criticism including:
· further research has found that the style of supervision may
not have as strong effects on performance as first thought;
· there is too much emphasis on employee satisfaction at the
‘expense’ of making a profit; and
· the movement didn’t pay enough attention to organisational
structure, technology and job design factors in understanding
individual motivation (Argyle, 1989).
However, despite these and other criticisms, the human
relations movement has made a significant contribution to our
understanding of human performance and productivity and to
the health, happiness and overall wellbeing of people at work.
Links to the human relations movement can be seen in the work
of many prominent scholars and researchers today. Professors
such as Mary Uhl-Bien, Adam Grant, Daniel Goleman, and
Richard Boyatzis talk about the importance of connecting with
others and developing resonant relationships, while industry
leaders such as Gary Hamel, William Ury, and Sheryl Sandberg
echo this sentiment in their corporate work.
The social nature of managerial work is clear, being able to
manage relationship with and between people is fundamental to
being a manager. In reviewing Mintzberg’s framework for
understanding the nature of managerial work, we see that at
least 7 out of the 10 roles Mintzberg describes are social in
nature: figurehead, leader, liaison, disturbance handler,

disseminator, spokesperson and negotiator. Further to this,
examining the 11 competency clusters provided by Spreitzer and
colleagues (1997) to help identify people with the potential for
success as an international executive, reveals that at least 6 of
the 11 clusters are either social in nature or have implications
for your relationships with others, particularly the cluster
represented by the competency to bring out the best in others.
Essentially, the relational approach suggests that management
effectiveness has to do with the ability of the manager to create
positive relationships with people both within and external to
the organisation. While research and experience tell us that
social and interpersonal skills are not the only competencies
required by managers (for example, managers also need
information management skills such as the EBM competencies),
the emphasis placed on professional networks, circles of
influence, mentors, role models and other relationship based
means of enhancing your career, serves to highlight the need for
managers to be good at managing relationships.
Principles of Management. Chapter 9. Available online at:
https://open.lib.umn.edu/principlesmanagement/
EBM Spotlight: Evidence for connection
This lesson focuses on the importance of being able to establish
and maintain good relationships as a manager. Drawing upon
the EBM capabilities that you developed in the Evidence-Based
Practice in Management course, we would like you to gather
evidence from 3-4 people you know who have had at least 2
different managers during their working lives. Ask these people
who they think were their best managers and who were the
worst and the reasons for these evaluations. Once you have
collected the responses, read back over them and see what
evidence you have for whether or not having good ‘people

skills’ is a factor contributing to whether other people see you
as a good manager or not.
Activity: Lesson 1
Activity: Connecting with others
In the mini-case at the beginning of this lesson Dr Starla Fitch
describes several situations with other people where she tried
something different in an attempt to increase the depth of
connection between them. For example, in her operating theatre
she introduced the idea of the team members each sharing 3
things that they were grateful for. As she describes in her video,
people initially thought she was a bit weird but after a while,
people outside of her team were participating in her experiment
to bring people closer together.
We’d like for you to try a ‘connection experiment’ of your own.
Next time you are doing something with someone, for example
washing and drying the dishes, or waiting for the microwave in
the lunch room, ask them an unusual (but not too personal)
question that might inspire a deeper connection between you.
For example, you might ask;
· What’s today like for you?
· What do you love about your work?
· What do you find challenging about your work?
After conducting this ‘experiment’ please answer the following
questions.

Question #1: With regard to the person who participated in your
experiment, would you say that their response to you was
positive or negative? Please describe their initial response.
Question #2: Please describe any beneficial outcomes of this
experiment for either yourself or your unsuspecting participant.
Question #3: Would you say that your attempt to connect more
deeply with this person was successful? Why / why not?

Question #4: If you were to do the experiment again, what
would you do differently in order to connect more deeply with
the next person?
This lesson introduces you to theories for understanding
motivation in the workplace.
There are many theories of motivation, some are derived from
psychological approaches to behavior modification, rewarding
desired behavior and punishing undesirable behavior. Other
theories of motivation stem from research in behavioural
economics and attempt to create conditions that increase the
likelihood that people will act in a predetermined way.
Self Determination Theory (SDT) (Ryan and Deci, 2000)
however, provides an empirically based framework for
understanding the nature of motivation in the workplace and
how this varies both within and between individuals and
contexts. SDT also helps us to understand why employee
empowerment has become such an important concept for
managers to understand.
Mini-case: What makes us feel good about our work?
Behavioural economist Dan Ariely describes a number of
behavioural experiments looking at the conditions that can be
created that significantly affect our motivation for work.
Meaning and purpose come in many forms, in this video,
Professor Ariely examines a number of different factors that
affect our motivation for different task, factors that perhaps
managers can consider in their approach to managing other

people?
What makes us feel good about our work? | Dan Ariely | TEDx
Rio de la Plata - https://youtu.be/5aH2Ppjpcho
Principles of Management, Chapter 14. Available at:
https://open.lib.umn.edu/principlesmanagement/
Case question
We’d like you to think about managerial work specifically, and
how people come to be in management positions
>> What do you think motivates people to become managers?
And on this basis, what meaning do you think they derive from
holding the position? What does being a manager mean to
people?
Theory: Motivation
Understanding an individual’s relationship with their work is an
essential skill for effective management. Each person comes to
work and gets on with the job for their own reasons. Many will
tell you it is for the money, but the reason they want or need the
money will most likely vary from person to person. Other
people come to work for the satisfaction they get from their
achievements, some come for the company and the network of
people associated with their role and still others do it for the
sense of meaning and purpose it instills in their life.
From time to time, almost everyone lacks motivation for their
work for some reason or another, it is during these times that a
manager’s role becomes vital in ensuring that necessary work
continues to be done, and in helping the employee to rediscover
their motivation for the job. This is when it is essential for a
manager to be able to decipher what motivates this particular
individual and how to use this information to create an

environment that supports the employee in re-establishing
optimal levels of motivation.
Let’s take a look at a theory that provides a framework for
managers who wish to provide a sustainable source of
motivation – Self Determination Theory.
Understand your motivations – Human Relations chapter 6.
Available online at https://saylordotorg.github.io/text_human-
relations/s10-understand-your-motivations.html
Self Determination Theory (A Macro Theory of Human
Motivation)
Self Determination Theory (SDT) (Ryan and Deci, 2000)
focuses on the nature of motivation per se, that is, the process
of being inclined to act (or not) in a particular way. The theory
is based on the underlying assumption is that “human beings are
active, growth-oriented organisms who are naturally inclined
toward integration of their psychic elements into a unified sense
of self and integration of themselves into larger social
structures” (Deci & Ryan, 2000, p. 229).
The theory was initially proposed by Edward Deci (University
of Rochester) and Richard Ryan (Australian Catholic
University), and has been developed and refined by many
scholars from many different countries over the past 20-30
years. Several scales have been developed to measure and better
understand various components of the theory, some examples of
these measures include:
· Problems at Work Questionnaire (PAW)
· Work-related Extrinsic-Intrinsic Motivation Scale (WEIMS)
· Work-related Basic Needs Satisfaction scale (W-BNS)
· Mindful Attention Awareness Scale (MAAS)
· Self-Determination Scale (SDS)

· Perceived Competence Scale (PCS)
SDT suggests that people experience positive psychological
outcomes from pursuing goals or activities that provide them
with opportunities to experience a sense of effectiveness,
connectedness and coherence leading to purpose or meaning
which is aligned with both their sense of self and the sense they
make of the world around them (Deci and Ryan, 2000). In this
sense, your motivation for a particular task and your capacity
for self-regulation toward getting a particular task done, is a
product of your sensemaking about this task.
Deci, E. L., & Ryan, R. M. (2000). The 'what' and 'why' of goal
pursuits: Human needs and the self-determination of behavior.
Psychological Inquiry, 11, 227-268. Available online at:
https://www.annualreviews.org/doi/abs/10.1146/annurev-
orgpsych-032516-113108
Intrinsic and Extrinsic Motivation for Work
A group of Canadian researchers developed a scale to look at
relative levels of self-determination at work. The Work
Extrinsic and Intrinsic Motivation Scale (WEIMS) is an 18-item
measure of work motivation theoretically grounded in self-
determination theory (Tremblay, Blanchard, Taylor, Pelletier
and Villeneuve, 2009). People hoping to increase levels of
motivation at work might use a scale such as the WEIMS to
measure the effectiveness of their efforts.
It is argued that in the new knowledge economy, a motivated
workforce represents both a competitive advantage and a
critical strategic asset. Indeed, increasing numbers of studies
are indicating a relationship between your motivational
relationship with your work and levels of creativity and

innovation (e.g. Fidan and Ozturk, 2015; Cassidy, 2011).
Your motivational relationship with your work might vary
depending on the task you are engaged in, the role you currently
hold or the nature of the work more generally. SDT
distinguishes between three broad types of motivation:
· intrinsic motivation - doing an activity for its own sake
because one finds the activity inherently interesting and
satisfying; and
· extrinsic motivation - doing an activity for an instrumental
reason; and
· amotivation – having no motivation for an activity or
inclination to undertake particular behaviours.
Intrinsic motivation and amotivation are distinct categories in
themselves, however extrinsic motivation is separated into 4
different sub-types which differ in terms of the source of the
impetus for the regulation of behaviour. Behaviour which is
extrinsically motivated can be regulated by external factors
(such as rewards and incentives) or it can be relatively
autonomous (i.e., self-regulated as a result of the individual’s
acquired goals and values). This continuum is illustrated in
figure 1.
Figure 1. SDT continuum of motivation
The SDT continuum of motivation illustrated in figure 1 is not
developmental, but rather, an individual can cultivate a more
internalised sense of motivation for an activity as they become
more competent or start to understand the purpose for it. The
theory also acknowledges that people have different
motivational relationships with different activities and can be at
once intrinsically motivated toward some aspects of their work

and lack all motivation (i.e. be amotivated) for other work
tasks. This could happen when an employee’s role entails a mix
of high-level tasks (e.g. engaging with external stakeholders)
and mundane responsibilities (e.g. emptying the recycling). At
this point you might also start to see how sensemaking is an
important aspect of motivation; for example, someone who
interprets recycling as meaningful and contributing to the
sustainability of the planet, is more likely to be motivated to do
it than someone who doesn’t make sense of this task in a
meaningful way. As a manager who needs a job done you may
need to help employees see the meaning and purpose in a task to
help them find motivation for doing it well.
Managerial Style and Work Motivation
SDT emphasises that it is important for individuals to feel
autonomous and competent and to experience a sense of
relatedness in order to display optimal motivation, performance
and well-being at work (Deci, Connell & Ryan, 1989).
To explore this further, researchers asked ‘do managers with an
understanding and acceptance of SDT and who interact with
their team members with this mindset have more positive
workplace outcomes’? A study was designed to measure the
effect of a managerial training course on supporting self-
determination in the workplace on subordinate outcomes. The
factors measured in this study included the work climate (e.g.
current levels of job security and issues around remuneration),
and the motivational relationship, job satisfaction, and job
attitudes of the subordinates.
The study found that managers who were oriented more toward
supporting their subordinates’ autonomy had subordinates who
were more satisfied with their jobs and had a higher level of
trust in the organization (Deci, Connell & Ryan, 1989).

However, the research also found that managerial support for
self-determination at work is only important for trust and
satisfaction when the overall organisational climate is secure,
for example, when jobs are not under threat or pay is being cut.
The researchers concluded therefore, that managerial support
for self-determination in the workplace is not enough to buffer
employees from major problems in an organisation, but when an
organisation is functioning well, support for self-determination
becomes a very important part of keeping employees happy at
work.
Promoting Self-Determination at Work
The value of promoting self-determination in a healthy, well
functioning organisation has been demonstrated by numerous
studies. Deci, Olafsen and Ryan (2017) suggest that anyone
interested in improving the work environment of an
organization, and thus the performance and wellness of its
employees, could evaluate the policies or practices of the
organisation in terms of whether they are likely to:
a) allow the employees to gain competencies and/or feel
confident;
b) experience the freedom to experiment and initiate their own
behaviors and not feel pressured and coerced to behave as
directed; and
c) feel respect and belonging in relation to both supervisors and
peers.
Based on a review of research using SDT to understand
workplace motivation, Deci, et. al. (2017) suggest that “policies
or practices that are likely to support the employees in each of
the three ways outlined above are likely to facilitate
autonomous motivation, well-being, and high-quality
performance. Those that thwart any of these employee
experiences are likely to promote controlled motivation or

amotivation, along with ill-being and, at best, quantity but not
quality of performance” (p.38).
Motivation and Money
A number of studies have examined the relationship between
money and motivation. One such study looked at whether pay
for performance (PFP) schemes increase performance. The
researchers found that performance contingent rewards (such as
a PFP scheme) were negatively correlated with autonomous
motivation, meaning that people perceive PFP as controlling,
which in turn, leads them to exert less effort at work and have a
greater desire to leave their jobs (Kuvaas, Buch, Gagne, Dysvik
and Forest, 2016).
Another study, in the telecommunications industry where
employees worked entirely on commission so that their pay was
based wholly on their performance, found that 75% of
employees had left the industry within 12 months – this level of
employee turnover is obviously very costly for organisations
(Harrison, Virick and William, 1996).
In another line of research looking at the relationship between
pay and performance, researchers asked whether incentive
schemes undermine intrinsic motivation in employees. A meta-
analysis on such studies found that extrinsic incentives (such as
money) led to better performance on simple tasks but poorer
performance on complex tasks (Weibel, Rost and Osterloh,
2010). These researchers also found that intrinsic motivation
was a stronger predictor of performance quality whereas
extrinsic motivation was a stronger predictor of performance
quality (Weibel, et al., 2010). Thus, research suggests that
managers who need high-quality outcomes on complex tasks
should not use extrinsic incentives or performance-contingent
reward systems, but instead should be supportive of the
employees’ autonomy.

On the basis of their literature review, Deci et al. (2017)
conclude that contingent-based reward and incentive schemes
are not compatible with optimal motivation. Rather, equitable
pay that is not directly contingent on performance is a key
ingredient to creating optimal motivation in the workplace,
which in turn, leads to high-quality performance and employee
well-being.
Organizational Behavior. Chapter 6 section 5 – Motivating
Employees through performance incentives. Available via link
in this week’s readings on Wattle.
Employee Empowerment
Overall, SDT research suggests that in order to create work
environments that lead to both high-quality performance and
wellness among employees (Deci et. al., 2017) managers
should:
· acknowledge employees’ perspectives,
· encourage initiative,
· offer choices for individuals and groups,
· provide meaningful feedback,
· assign tasks that are optimally challenging, and
· give a rationale when requesting a behavior.
Essentially, being supportive of employee self-determination
and autonomous motivation is about empowering your
employees. It is suggested that interest in empowerment in the
workplace has risen since global competition and market
disruptions have led to a demand for employee initiative and
innovation (Drucker, 1988, Spreitzer, 1995).

Empowering management practices may include processes such
as the delegation of decision making from higher organizational
levels to lower ones and increasing access to information and
recourses for employees at the lower levels (Spreitzer, 1995).
However, whether or not an employee experiences a sense of
empowerment as a result of these practices is a separate issue.
The psychological empowerment of an individual employee is
thought arise from the integration of a number of key factors
including;
· a sense of meaning in the work;
· feelings of competence or self-efficacy;
· a sense of self-determination in having choice about initiating
and regulating one’s own actions; and
· the capacity for impact on workplace processes and outcomes.
As you can see, empowerment, defined by Spreitzer (1995) is
very similar to autonomous motivation as described Deci and
Ryan (2000).
Based on the findings of a study with 208 engineers, researchers
Doll and Deng (2010) suggest that psychological empowerment
leads to increased effort and innovation. The findings of this
research also support the notion that taking a relational
approach to management (i.e. demonstrating an understanding
of the needs of the individual employee) can enhance
psychological empowerment and thus have a positive impact on
the cycle of knowledge creation (through applied effort) and
innovation. Doll and Deng (2010) provide a model for
understanding this relationship and suggest that management
practices that take a relational approach increase employee
psychological empowerment, which in turn, leads to increased
effort and innovation. This is depicted in figure 1.

Figure 1. Doll and Deng’s (2010) model for employee
empowerment
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-
determination theory in work organizations: The state of a
science. Annual Review of Organizational Psychology and
Organizational Behavior, 4, 19-43. doi: 10.1146/annurev-
orgpsych-032516-113108
Available online at: selfdeterminationtheory.org/wp-
content/uploads/2017/03/2017_DeciOlafsenRyan_annurev-
orgpsych.pdf
EBM Spotlight: Meaning and motivation
We would like for you now to take a case study approach to
exploring a real example of someone who you admire and
believe to be highly successful. Find an interview with this
person online and see if you can pick up on any evidence for the
motivational relationship this person has with their work and
how this might be related to the sense of meaning that they have
attached to what they do. Also take notice of any evidence
suggestive of how this person might relate to colleagues or
subordinates.
Drawing upon the EBM capabilities that you developed in
the Evidence-Based Practice in Management course, we would
like you to use the information you have gathered about the
person you admire to reflect on your personal perceptions about
the connection between meaning and motivation and how this
understanding might influence the way you manage other
people.
Activity: Lesson 2

Activity: Explore your motivation
We would like you now to take some time to reflect on the
content of this lesson and how it relates to you personally.
Create a table with three column headings: amotivation (things
you are not inclined to do, but possibly should), extrinsic
motivation (things you do to please someone else, avoid
punishment, to substantiate your role or membership of a group
or reinforce an identity you value) and intrinsic motivation
(things you do because you love to). In this table, list as many
of the tasks and activities you undertake at work as you can
think of.
Question #1: What do your lists suggest about the motivational
relationship you have with the tasks you undertake at work?
Question #2: Do the lists correspond with your feelings of
satisfaction and self-esteem at work and also with your attitude
to work and perceived performance in your role?
Question #3: Do you believe an individual needs to experience
intrinsic motivation for their work in order to find a sense of
meaning or purpose in what they do?

Question #4: In your opinion, what can a manager do to help an
employee find a sense of meaning or purpose in their work?
Performance management is a key factor in a manager’s suite of
responsibilities, however, it is neither well defined nor well
practiced for the most part (Gifford, 2016). Generally speaking,
performance management involves establishing objectives,
encouraging and facilitating improved performance and
ensuring people are accountable for their actions. In order to
achieve this a manager needs to focus, not only on performance
outcomes, but also on the skills, knowledge and behaviour of
the employees they are responsible for.
Mini-case: Underlying biases and assumptions in managing
performance
Susan Colantuono, CEO and founder of Leading Women, shares
an important insight in this video stating that people forget to
tell middle managers that the key to moving into senior
executive roles is business, strategic and financial acumen, the
competency underlying the ability to achieve and sustain
extraordinary outcomes.
Susan Colantuono | The career advice you probably didn’t get |
TEDx Beacon Street - https://youtu.be/JFQLvbVJVMg
Paola Cecchi Dimeglio (2017). How Gender Bias Corrupts
Performance Reviews, and What to Do About It. HBR
https://hbr.org/2017/04/how-gender-bias-corrupts-performance-
reviews-and-what-to-do-about-it%20

Case Question
Gender bias is just one form of bias that affects people’s
judgments in performance management, recruitment and
promotion. Most of us will be subject to bias at some time or
another in our lives.
>> Describe a time when you (or someone you know) were
judged harshly or treated unfairly because of an assumption that
someone made about you (or your friend).
Theory: Performance Management
Introduction
Performance management is often regarded as a complex
activity due to the need to align its processes with the way work
is organised, central human resource procedures, recruitment
practices and reward systems. There is also a wide variety of
tools that can be used to facilitate the process of performance
management including objective setting, performance
appraisals, 360-degree feedback, learning and development
programs and reward and recognition schemes (Gifford, 2016).
Interestingly, organisations across a range of industries are
either completely reinventing performance management
processes or getting rid of them altogether. Since 2013
companies such as Accenture, Microsoft, Adobe, GE and
Netflix have all abolished performance management systems or
developed entirely new processes for doing so. Organisations
that have questioned the value and relevance of traditional

methods of performance management are trending toward
processes that are aligned with shifts in business practices more
generally. We now need performance management systems that
address the need for greater agility, the need to account for
more short-term targets, and the need to manage more team
work rather than individual performance (Gifford, 2016). In
redesigning and realigning performance management systems
we first need to know what actually works in improving and
enhancing employee performance and for this, we need to
review the evidence.
Evidence for what works in performance management
“There has been a great deal of interest in alternative
approaches to performance
management over recent years, borne of a sense that traditional
methods do not work. However, popular articles on new
practices present little if any evidence on what is and isn’t
effective in improving performance. This report sets out to
address this gap.” (Gifford, 2016, p. 9). The report referred to
in this quote is based on a rapid evidence assessment, which is
essentially a truncated version of a systematic review. Gifford’s
(2016) report outlines his findings from a review of the
literature on two core aspects of performance management: goal
setting and performance appraisals, and represents an evidence-
based summary of what we know from empirical research about
these processes. The following sections summarise the main
points from these findings.
Goal Setting
“Goal setting is the process of consciously deciding goals you

or the organisation want to accomplish and within what
timeframe” (Gifford, 2016, p. 10). In the context of
management, goals can be defined as observational or
measurable organizational outcomes to be achieved within a
specified time limit (Locke and
Latham 2002). Goal-setting theory was jointly developed by
Edwin Locke and Gary Latham (Locke and Latham 1990 cited
in Gifford, 2016). This theory suggests that goal setting is
linked to task performance and that specific and challenging
goals, combined with appropriate feedback, contribute to
enhanced task performance (Williams and McWilliams, 2014).
According to goal-setting theory, goals affect performance
through four causal mechanisms (Locke and Latham 2002):
· Goals provide direction, guiding an employee’s attention and
effort towards goal-relevant activities;
· Goals can be motivating, research has found that ambitious
goals lead to greater effort than low goals;
· Goals increase persistence, when people are allowed to control
the time they spend on a task they generally spend longer on
challenging goals; and
· Goals lead to the development and use of task-relevant
knowledge and strategies, and thus indirectly contribute to
performance.
In order to better understand why goal setting has a
motivational influence on employee behaviour a meta-analysis
was conducted, the findings of which suggest that monitoring
goal progress is a crucial step from goal setting to goal
attainment (Harkin et al., 2016). Therefore, in order for goal
setting to be useful in managing performance, employees need
to be able to track their progress and see how far they have to
go toward completing the goal (Gifford, 2016).

In his analysis of the literature Gifford (2016) found that the
empirical evidence supports the use of goal setting to improve
workplace performance, however, the goals need to match the
nature of the work being undertaken, which is not always easy
to do. For example, behavioural (e.g. good time management)
and learning goals (skill or knowledge gained in the process of
work) tend to be more effective than straight forward, outcome
oriented SMART goals (SMART goals are specific,
measureable, attainable, realistic and timely – however the
constructs represented by the acronym vary), when the work is
complex and outcomes are somewhat ambiguous or ill-defined.
Therefore, matching a goal to the work for the purposes of
improving performance may require discussion and negotiation
between the manager and the employee.
Employees through goal setting. Available via link in this
week’s readings on Wattle.
http://open.lib.umn.edu/organizationalbehavior/chapter/6-3-
motivating-employees-through-goal-setting/
Performance Appraisals
Following on from goal setting, performance appraisals
typically comprise a formal evaluation of an employee’s job
performance to determine whether or not they are performing
effectively (i.e. meeting their goals). The way performance
appraisals are conducted vary from organisation to organisation,
and may involve ratings applied by a manager or third person
but can also be based on self-evaluation or decided on in
conversation between the manager and employee.
Performance appraisals generally have three main components:
1. Setting performance ratings or assessment criteria that will
be applied to employees;
2. Judging employees against the ratings; and

3. Providing feedback about the judgment to the employee.
Gifford (2016) notes that performance appraisals can serve two
main functions;
1. Developmental – they can be used to help individuals and
teams improve their performance through greater awareness
which can be translated into greater focus, motivation or effort
or used to determine development and training needs.
2. Administrative – in this sense performance appraisals are
used as the basis for decisions about rewards, promotions,
training or for human resource purposes such as determining
contract renewal or redundancies.
Feedback, in the form of a performance appraisal, is also a
necessary ingredient for the effectiveness of goal setting.
What’s the point of setting a goal if we don’t know how we’re
going in relation to the goal? Based on his analysis of the
empirical research conducted on performance appraisals Gifford
(2016) emphasises that the critical aspect of performance
appraisals is that the information provided to the employee is
credible and enables employees to track their progress towards
established goals.
Another important finding from the review undertaken by
Gifford (2016) is that, in order to be effective in improving an
employee’s performance, discussions about the developmental
components of a performance appraisal need to be kept separate
from conversations about the administrative aspects. The reason
for this is that managers tend to apply a different mindset to
decision making when assessing workers for administrative
compared to developmental purposes (Gifford, 2016). Research
has shown that managers generally rate people more generously
for developmental purposes and more harshly for administrative
purposes (Jawahar and Williams, 1997). Therefore, there seems

to be good evidence for keeping these conversations separate.
Employees through performance appraisals. Available via link
in this week’s readings on Wattle.
http://open.lib.umn.edu/organizationalbehavior/chapter/6-4-
motivating-employees-through-performance-appraisals/
Performance Feedback
With regard to performance management, the reaction of the
employee to the feedback provided is crucial in determining any
change and improvement in future performance and the way the
feedback is communicated is paramount to it being of benefit
(Gifford, 2016). On this basis, it is important to follow-up with
employees after performance appraisals. In particular managers
need to ensure that employees perceive the performance
appraisal process as being fair as this perception has also been
found to have a significant effect on whether or not feedback is
used to improve future performance.
Research has also found that positive feedback is more effective
for the purposes of managing performance than negative
feedback. Framing feedback as constructive suggestions with a
focus on ‘enhancing performance’ rather than ‘correcting poor
performance’ has a much greater likelihood of being effective
(Gifford, 2016). In particular, feedback that threatens an
employee’s sense of self-esteem tends to lead to negative
responses (Kluger and DeNisi, 1996).
The final factor contributing to the effectiveness of feedback in
improving future performance is the relationship between the
manager and the employee. Genuine two-way conversations that
the employee can fully participate in and contribute to are
perceived as more fair and are more likely to led to improved
performance than directive orders (Gifford, 2016). Managers
who are able to take a strengths-based approach to performance

management and draw on coaching skills to engage the
employee in processes of continual learning and growth will get
batter outcomes from performance review conversations than
managers who simply inform and direct.
Boyatzis, R., Smith, M., and Van Oosten, E. (2010). Coaching
for Change. People Matters. June, 2010.
https://www.peoplematters.in/article/training-
development/coaching-for-change-422
EBM Spotlight: Goal Attainment Feedback
You are a team manager in a consulting firm and it is time for
your team’s annual performance reviews. Drawing upon the
EBM capabilities that you developed in the Evidence-Based
Practice in Management course, you decide, prior to speaking to
any of your team members, to start by gathering the best-
available evidence regarding how to provide feedback on the
fact that several of your team members have fallen short of their
performance goals this year.
Based on the "best-available" evidence, what might be the most
effective way to approach this delicate conversation with your
team members?
Activity: Lesson 3
Activity: Overcoming bias
The mini-case at the beginning of this lesson highlighted how
bias can affect people’s judgments in performance management,
recruitment and promotion. Unconscious bias can even
influence the simple and well-intended act of offering

advice.Keeping in mind the theory and evidence introduced in
this lesson, we would like you to take a moment to think about
strategies you could use to avoid bias influencing the way you
manage employee performance.
Question #1: What would be the first step you would take to
help ensure you were unbiased in the way you manage employee
performance?
Question #2: How might you go about checking in to see if any
unconscious bias is influencing your approach to performance
management?
Question #3: How would you respond to an employee who
suggested you were in some way biased in your performance
appraisals?

Question #4: What would you suggest as the key elements in a
performance management system designed specifically to avoid
unconscious bias?
References
Argyle, M. (1989). The Social Psychology of Work. Penguin
Books: London.
Cassidy, S. E. (2011). Web-based training for innovation: An
examination of training regimens, training environment and the
moderating influence of creative personal identity and intrinsic
motivation Unpublished doctoral dissertation. State College,
PA: Pennsylvania State University.
Deci, E. L., Connell, J. P., & Ryan, R. M. (1989). Self-
determination in a work organization. Journal of Applied
Psychology, 74, 580-590.
Doll, W. and Deng, X. (2010). A technology empowerment
model for engineering work. Information Systems, 41(4), 52-
74.
Drucker, P. (1988). The Coming of the New Organization.
Harvard Business Review. January-February, pp1-19.
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-
determination theory in work organizations: The state of a

science. Annual Review of Organizational Psychology and
Organizational Behavior, 4, 19-43.
Fidan, T. and Ozturk, I. (2015). TheRelationship of the
Creativity of Public and Private School Teachers to Their
Intrinsic Motivation and the School Climate for Innovation.
Procedia - Social and Behavioral Sciences, 195, 905-914.
Gifford, J. (2016). Could Do Better? Assessing What Works in
performance Management. Centre for Evidence-Based
Management.
Harkin, B., Webb, T.L., Chang, B.P., Prestwich, A., Conner, M.,
Keller, I., Benn, Y. and Sheeran, P. (2016) Does monitoring
goal
progress promote goal attainment? A meta-analysis of the
experimental
evidence. Psychological Bulletin, 142(2), 198–229.
Harrison, D., Virick, M., and William, S. (1996). Working
without a net: time, performance, and turnover under maximally
contingent rewards. Journal of Applied Psychology, 81(4), 331-
345.
Jawahar, I. and Williams, C. (1997). Where all the children are
above average: The performance appraisal purpose effect.
Personnel Psychology, 50(4), 905-925.
Kluger, A. and DeNisi, A.(1996). The effects of feedback
interventions on performance: A historical review, a meta-
analysis and a preliminary feedback intervention theory.
Psychological Bulletin, 119(2), 254-284.
Kuvas, B., Buch, R., Gagne, M., Dysvik, A., and Forest, J.
(2016). Do you get what you pay for? Sales incentive and
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and work effort. Motivation and Emotion, 40(5), 667-680.
Locke, E. and Latham, G. (2002). Building a practically useful
theory of goal setting and task motivation: A 35 year odyssey.
American Psychologist, 57(9), 705-717.
Ryan, R. M., & Deci, E. L. (2000). Self-determination theory
and the facilitation of intrinsic motivation, social development,
and well-being. American Psychologist, 55, 68-78.
Ryan, R. and Deci, E. (2000). Intrinsic and extrinsic
motivations: Classic definitions and new directions.
Contemporary Educational Psychology, 25, 54-67
Spreitzer, G., McCall, M., and Mahoney, J. (1997). Early
identification of international executive potential. Journal of
Applied Psychology, 82(1), 6-29.
Spreitzer, G. (1995). Psychological empowerment in the
workplace: Dimensions, measurement and validation. The
Academy of Management Journal, 38(5), 1442-1465.
Tengblad, S. (2006). Is there a new 'managerial work'? A
comparison with Henry Mintzberg's classic study 30 years later.
Journal of Management Studies, 43(7), 1437-1461.
Tremblay, M., Blanchard, C., Villeneuve, M., Taylor, S., and
Pelletier, L. (2009). Work extrinsic and intrinsic motivation
scale: Its value for organizational psychology research.
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Williams, A. and McWilliams, C. (2014). MGMT2: Asia-Pacific
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