Motivating Employees Achieving Superior Performance in the Workplace

Chapter 12

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Major Questions You Should Be Able to Answer

12.1 What’s the motivation for studying motivation?

12.2 What kinds of needs motivate employees?

12.3 Is a good reward good enough? How do other factors affect motivation?

12.4 What’s the best way to design jobs—adapt people to work or work to people?

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Major Questions You Should Be Able to Answer

12.5 What are the types of incentives I might use to influence behavior?

12.6 How can I use compensation and other rewards to motivate people?

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Motivation: What It Is, Why It’s Important

Motivation

the psychological processes that arouse and direct goal-directed behavior

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12-4

Figure 12.2

Motivation: What It Is, Why It’s Important

Extrinsic rewards

payoff a person receives from others for performing a particular task

Intrinsic rewards

satisfaction a person receives from performing the particular task itself

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12-5

Question

Bethany is writing a paper for her Management class. She already has a strong ‘A’ in the class, and only needs to get a C on the paper to keep her A. As she prepares the final version of the paper, she takes special care that the paper is well-written, insightful, and error-free, something that she can be proud of. Bethany is experiencing:

An intrinsic reward

High equity

A belongingness need

A hygiene factor

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12-6

The correct answer is “A”.

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Lecture Script 6-6

Why Is Motivation Important?

You want to motivate people to:

Join your organization

Stay with your organization

Show up for work at your organization

Be engaged while at your organization

Do extra for your organization

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1. Join your organization. You need to instill in talented prospective workers

the desire to come to work for you.

2. Stay with your organization. Whether you are in good economic times or

bad, you always want to be able to retain good people.

3. Show up for work at your organization. In many organizations, absenteeism

and lateness are tremendous problems. 15

4. Be engaged while at your organization. Engaged employees produce higher quality

work and better customer service.

5. Do extra for your organization. You hope your employees will perform extra

tasks above and beyond the call of duty (be organizational “good citizens”).

7

Content Perspectives

Content perspectives

theories that emphasize the needs that motivate people

Needs

physiological or psychological deficiencies that arouse behavior

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12-8

Maslow’s Hierarchy of Needs

Hierarchy of needs theory proposes that people are motivated by five levels of needs

Physiological

Safety

Love

Esteem

Self-actualization

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1. Physiological Needs These are the most basic human physical needs, in

which one is concerned with having food, clothing, shelter, and comfort and with

self-preservation.

2. Safety Needs These needs are concerned with physical safety and emotional

security, so that a person is concerned with avoiding violence and threats.

3. Love Needs Once basic needs and security are taken care of, people look for

love, friendship, and affection.

4. Esteem Needs After they meet their social needs, people focus on such matters

as self-respect, status, reputation, recognition, and self-confidence.

5. Self-Actualization Needs The highest level of need, self-actualization is self-fulfillment—

the need to develop one’s fullest potential, to become the best one

is capable of being.

9

Maslow’s Hierarchy of Needs

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Figure 12.3

Example: A Hotel CEO Applies Maslow’s Hierarchy

In Peak: How Great Companies Get Their Mojo from Maslow, CEO Chip Conley describes how JDV used Maslow’s theory to motivate the business’s three key stakeholders—employees, customers, and investors—by tapping into the power of self-actualization to create peak performance

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McClelland’s Acquired Needs Theory

Acquired Needs Theory

states that three needs – achievement, affiliation, and power – are major motives determining people’s behavior in the workplace

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The Three Needs

Need for achievement

desire to achieve excellence in challenging tasks

Need for affiliation

desire for friendly and warm relations with other people

Need for power

desire to be responsible for or control other people

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12-13

Question

Patty prefers working alone, is comfortable taking moderate risks, and feels good when accomplishing a goal. Patty probably has a:

High need for achievement

High need for affiliation

High need for power

Low need for achievement

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12-14

The correct answer is “A”

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Lecture Script 6-14

Deci & Ryan’s Self-Determination Theory

Self-determination theory

assumes that people are driven to try to grow and attain fulfillment, with their behavior and well-being influenced by three innate needs: competence, autonomy, and relatedness

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The Three Innate Needs

Competence

People need to feel qualified, knowledgeable, and capable of completing a goal or task and to learn different skills.

Autonomy

People need to feel they have freedom and the discretion to determine what they want to do and how they want to do it.

Relatedness

People need to feel a sense of belonging, of attachment to others.

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Herzberg’s Two-Factor Theory

Two-Factor Theory

proposed that work satisfaction and dissatisfaction arise from two different factors – work satisfaction from so-called motivating factors and work dissatisfaction from so-called hygiene factors

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Herzberg’s Two-Factor Theory

Hygiene factors

factors associated with job dissatisfaction which affect the job context in which people work

Motivating factors

factors associated with job satisfaction which affects the job content or the rewards of work performance

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Using two-factor theory to motivate employees

Managers should first eliminate dissatisfaction making sure that working conditions, pay levels, and company policies are reasonable

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Lecture Script 6-18

Herzberg’s Two-Factor Theory

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Figure 12.5

A comparison of needs & satisfaction theories: Maslow, McClelland, Deci & Ryan, and Herzberg

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20

Figure 12.6

Process Perspectives on Employee Motivation

Process perspectives

concerned with the thought processes by which people decide how to act—how employees choose behavior to meet their needs

Equity theory

Expectancy theory

Goal-setting theory

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Equity Theory

Equity theory

focuses on employee perceptions as to how fairly they think they are being treated compared to others

Inputs, outputs, comparison

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Equity Theory

Figure 12.7

12-23

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Some Ways Employees Try to Reduce Inequity

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Table 12.1

Practical Lessons from Equity Theory

Employee perceptions are what count

Employee participation helps

Having an appeal process helps

12-25

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Expectancy Theory

Expectancy Theory

suggests that people are motivated by two things: (1) how much they want something and (2) how likely they think they are to get it

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Expectancy Theory

Expectancy

belief that a particular level of effort will lead to a particular level of performance

Instrumentality

expectation that successful performance of the task will lead to the desired outcome

Valence

the value a worker assigns to an outcome

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12-27

Expectancy Theory: The Major Elements

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12-28

Figure 12.8

Question

Last year, Diana’s boss promised her a big bonus if she met her goals. At the end of the year, after Diana had exceeded her goals, she found her bonus was very small. In the future, Diana’s _____ will probably be ____.

Valence; low

Instrumentality; low

Expectancy; low

Expectancy; high

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12-29

The correct answer is “B”

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Lecture Script 6-29

Goal-Setting Theory

Goals should be specific

Goals should be challenging but achievable

Goals should be linked to action plans

Goals need not be jointly set to be effective

Feedback enhances goal attainment

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12-30

Job Design Perspectives

Job design

division of an organization’s work among its employees and the application of motivational theories to jobs to increase satisfaction and performance

Job simplification, job enlargement, job enrichment

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Job simplification – the process of reducing the number of tasks a worker performs

Job enlargement consists of increasing the number of tasks in a job to increase variety and motivation

Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement

31

Job Characteristics Model

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12-32

Figure 12.9

Applying the Job Characteristics Model

Diagnose the work environment to see whether a problem exist

Determine whether job redesign is appropriate

Consider how to redesign the job

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Lecture Script 6-32

Reinforcement Perspectives on Motivation

Reinforcement theory

attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated

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Types of Reinforcement

Positive reinforcement

use of positive consequences to encourage desirable behavior

Negative reinforcement

process of strengthening a behavior by withdrawing something negative

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Types of Reinforcement

Extinction

weakening of behavior by ignoring it or making sure it is not reinforced.

Punishment

process of weakening behavior by presenting something negative or withdrawing something positive

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12-35

Question

When a manager stops nagging a subordinate, the manager is using:

Positive reinforcement

Negative reinforcement

Punishment

Intrinsic motivation

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12-36

The correct answer is “B”

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Lecture Script 6-36

Four Types of Reinforcement

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12-37

Figure 12.10

Using Reinforcement to Motivate Employees

Positive reinforcement

Reward only desirable behavior

Give rewards as soon as possible

Be clear about what behavior is desired

Have different rewards and recognize individual differences

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12-38

Popular Incentive Compensation Plans

Piece rate

Sales commission

Bonuses

Profit-sharing

Gainsharing

Stock options

Pay for knowledge

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12-39

Piece rate

employees paid according to how much output they produce

Sales commission

sales reps are paid a percentage of the earnings the company made from their sales

Bonuses

cash awards given to employees who achieve specific performance objectives

profit sharing – the distribution to employees of a percentage of the company’s profits

-gainsharing – the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity

-stock options – certain employees are given the right to buy stock at a future date for a discounted price

-pay for knowledge – employee pay is tied to the number of job relevant skills or academic degrees they earn

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Lecture Script 6-39

Question

In Earl’s department at Pencilchicken, Inc. employees get money based on how much the department has been able to save in costs. This is an example of a ____________ compensation plan.

Pay for performance

Pay for knowledge

Bonus

Gainsharing

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12-40

The correct answer is “D”

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Lecture Script 6-40

Nonmonetary Ways of Motivating Employees

Flexible workplace

Thoughtfulness

Work-life benefits

Surroundings

Skill-building & educational opportunities

Sabbaticals

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12-41

The most common non-monetary incentive is the flexible workplace

Companies need to offer employees a means of balancing their work and their personal lives

Companies need to create a work environment that is conducive to productivity

Companies can help employees build their skills by developing “shadowing” programs and offering tuition reimbursement

Offering sabbaticals to long-term employees gives people a change to recharge themselves

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Lecture Script 6-41