CHAPTER
16
Managing
Employee
Motivation and
Performance
PowerPoint Presentation
by Charlie Cook
Copyright © by Houghton Mifflin Company.
All rights reserved.
Learning Objectives
After studying this chapter, you should be able to:
– Characterize the nature of motivation, including its
importance and basic historical perspectives.
– Identify and describe the major content perspectives on
motivation.
– Identify and describe the major process perspectives on
motivation.
– Describe reinforcement perspectives on motivation.
– Identify and describe popular motivational strategies.
– Describe the role of organizational reward systems in
motivation.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–2
Chapter Outline
• The Nature of Motivation
– The Importance of Motivation in
the Workplace
– Historical Perspectives on
Motivation
• Content Perspectives on
Motivation
– The Need Hierarchy Approach
– The Two-Factor Theory
– Individual Human Needs
• Process Perspectives on
Motivation
– Expectancy Theory
– Equity Theory
– Goal-Setting Theory
Copyright © by Houghton Mifflin Company. All rights reserved.
• Reinforcement Perspectives on
Motivation
– Kinds of Reinforcement in
Organizations
– Providing Reinforcement in
Organizations
• Popular Motivational Strategies
– Empowerment and Participation
– New Forms of Working
Arrangements
• Using Reward Systems to
Motivate Performance
– Effects of Organization Rewards
– Designing Effective Reward
Systems
– Popular approaches made to
client
16–3
The Nature of Motivation
• Motivation
– The set of forces that cause people to behave in certain
ways.
– The goal of managers is to maximize desired behaviors and
minimize undesirable behaviors.
• The Importance of Motivation in the Workplace
– Determinants of Individual Performance
• Motivation—the desire to do the job.
• Ability—the capability to do the job.
• Work environment—the resources
to do the job.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–4
The Motivation Framework
Need or
deficiency
Search for ways
to satisfy need
Determination of
future needs and
search/choice for
satisfaction
The motivation processes through a series of discreet
steps. Content, process, and reinforcement perspectives
on motivation address different parts of this process.
Copyright © by Houghton Mifflin Company. All rights reserved.
Choice of
behavior to
satisfy need
Evaluation of
need satisfaction
Figure 16.1
16–5
Historical Perspectives on Motivation
• The Traditional Approach
– Frederick Taylor (Scientific Management)
– Assumptions:
• Managers know more than workers.
• Economic gain (money) is the primary
motivation for performance.
• Work is inherently unpleasant.
• The Human Relations Approach
– Emphasized the role of social processes in the workplace.
– Assumptions:
• Employees want to feel useful and and important.
• Employees have strong social needs, more important than money.
• Maintaining the appearance of employee participation is important.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–6
Historical Perspectives on Motivation
(cont’d)
• The Human Resource Approach
– Assumptions:
• Employee contributions are important and valuable to the employee
and the organization.
• Employees want to and are able to make genuine contributions.
• Management’s job is to encourage participation
and create a work environment that
motivates employees.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–7
Content Perspectives on Motivation
• Content Perspectives
– Approaches to motivation that try to answer the question,
“What factors in the workplace motivate people?”
• Content Perspectives of Motivation
–
–
–
–
Maslow’s Hierarchy of Needs
Aldefer’s ERG Theory
Herzberg’s Two-Factor Theory
McClelland’s Achievement,
Power, and Affiliation Needs
Copyright © by Houghton Mifflin Company. All rights reserved.
16–8
Content Perspectives on Motivation (cont’d)
• The Need Hierarchy Approach
– Maslow’s Hierarchy of Needs
• People must, in a hierarchical order, satisfy five groups of needs:
– Physiological needs for basic survival and biological function.
– Security needs for a safe physical and emotional environment.
– Belongingness needs for love and affection.
– Esteem needs for positive self-image/self-respect and recognition
and respect from others.
– Self-actualization needs for realizing one’s potential for personal
growth and development.
– Weakness of Maslow’s theory
• Five levels of need are not always present.
• Ordering or importance of needs is not always the same.
• Cultural differences.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–9
Maslow’s Hierarchy of Needs
NEEDS
General Examples
Organizational Examples
Achievement
Selfactualization
Status
Esteem
Friendship
Belongingness
Stability
Food
Security
Physiology
Challenging
job
Job
title
Friends
at work
Pension
plan
Base
salary
Figure 16.2
Copyright © by Houghton Mifflin Company. All rights reserved.
16–10
Content Perspectives on Motivation (cont’d)
• The ERG Theory (Alderfer)
– People’s needs are grouped into three overlapping
categories—existence, relatedness, and growth.
– Maslow’s hierarchy is collapsed into three levels:
• Existence needs related to physiological and security needs.
• Relatedness needs that are similar to belongingness and esteem by
others.
• Growth needs encompass needs for self-esteem and selfactualization.
– ERG theory assumes that:
• Multiple needs can be operative at one time (there is no absolute
hierarchy of needs).
• If a need is unsatisfied, a person will regress to a lower-level need and
pursue that need (frustration-regression).
Copyright © by Houghton Mifflin Company. All rights reserved.
16–11
Content Perspectives on Motivation (cont’d)
• The Two-Factor Theory (Herzberg)
– People’s satisfaction and dissatisfaction are influenced by
two independent sets of factors—motivation factors and
hygiene factors.
– Theory assumes that job satisfaction and job dissatisfaction
are on two distinct continuums:
• Motivational factors (work content) are on a continuum that ranges
from satisfaction to no satisfaction.
• Hygiene factors (work environment) are on a separate continuum that
ranges from dissatisfaction to no dissatisfaction.
• Motivation is a two-step process:
– Ensuring that the hygiene factors are not deficient and not blocking
motivation.
– Giving employees the opportunity to experience motivational factors
through job enrichment.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–12
The TwoFactor
Theory of
Motivation
Motivation Factors
• Achievement
• Recognition
• The work itself
• Responsibility
• Advancement
and growth
Satisfaction
No satisfaction
Hygiene Factors
• Supervisors
• Working conditions
• Interpersonal relations
• Pay and security
• Company policies and
administration
Dissatisfaction
No dissatisfaction
Figure 16.3
Copyright © by Houghton Mifflin Company. All rights reserved.
16–13
Content Perspectives on Motivation (cont’d)
• Individual Human Needs (McClelland)
– The need for achievement
• The desire to accomplish a goal or task more effectively than in the
past.
– The need for affiliation
• The desire for human companionship and acceptance.
– The need for power
• The desire to be influential in
a group and to be in control
of one’s environment.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–14
Process Perspectives on Motivation
• Process Perspectives
– Approaches to motivation that focus on why people choose
certain behavioral options to satisfy their needs and how
they evaluate their satisfaction after they have attained their
goals.
• Process Perspectives of Motivation
–
–
–
–
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory
Copyright © by Houghton Mifflin Company. All rights reserved.
16–15
Process Perspectives on Motivation (cont’d)
• Expectancy Theory
– Motivation depends on how much we want something and
how likely we are to get it.
– Assumes that:
• Behavior is determined by a combination of personal and
environmental forces.
• People make decisions about their own behavior in organizations.
• Different people have different types of needs, desires, and goals.
• People choose among alternatives of behaviors in selecting one that
that leads to a desired outcome.
• Motivation leads to effort, when combined with ability and
environmental factors, that results in performance which, in turn,
leads to various outcomes that have value (valence) to employees.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–16
Process Perspectives on Motivation (cont’d)
• Elements of Expectancy Theory
– Effort-to-Performance Expectancy
• The employee’s perception of the probability that effort will lead to a
high level of performance.
– Performance-to-Outcome Expectancy
• The employee’s perception of the probability
that performance will lead to a specific
outcome—the consequence or reward
for behaviors in an organizational
setting.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–17
Process Perspectives on Motivation (cont’d)
• Elements of Expectancy Theory (cont’d)
– Valence
• An index of how much an individual values a particular outcome.
• It is the attractiveness of the outcome to the individual.
– Attractive outcomes have positive valences and unattractive
outcomes have negative valences.
– Outcomes to which an individual is indifferent have zero valences.
– For motivated behavior to occur:
• Both effort-to-performance expectancy and performance-to-outcome
expectancy probabilities must be greater than zero.
• The sum of the valences must be greater than zero.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–18
Process Perspectives on Motivation (cont’d)
• The Expectancy Model of Motivation
Environment
Motivation
Effort
Ability
Performance
Outcome
Valence
Outcome
Valence
Outcome
Valence
Outcome
Valence
Outcome
Valence
Figure 16.4
Copyright © by Houghton Mifflin Company. All rights reserved.
16–19
Process Perspectives on Motivation (cont’d)
• The Porter-Lawler Extension of Expectancy
Theory
– Assumptions:
• If performance in an organization results in equitable and fair rewards,
people will be more satisfied.
• High performance can lead to rewards and high satisfaction.
– Types of rewards:
• Extrinsic rewards are outcomes set and awarded by external parties
(e.g., pay and promotions).
• Intrinsic rewards are outcomes that are internal to the individual (e.g.,
self-esteem and feelings of accomplishment).
Copyright © by Houghton Mifflin Company. All rights reserved.
16–20
Process Perspectives on Motivation (cont’d)
• The Porter-Lawler Extension of Expectancy
Theory
Intrinsic
rewards
(outcomes)
Perceived
equity
Performance
Satisfaction
Extrinsic
rewards
(outcomes)
Figure 16.5
Copyright © by Houghton Mifflin Company. All rights reserved.
16–21
Process Perspectives on Motivation (cont’d)
• Equity Theory
– People are motivated to seek social equity in the rewards
they receive for performance.
– Equity is an individual’s belief that the treatment he or she
receives is fair relative to the treatment received by others.
– Individuals view the value of rewards (outcomes) and inputs
of effort as ratios and make subjective comparisons of
themselves to other people.
outcomes
(self)
inputs (self)
Copyright © by Houghton Mifflin Company. All rights reserved.
=
outcomes (other)
inputs (other)
16–22
Process Perspectives on Motivation (cont’d)
• Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:
• Feeling equitably rewarded.
– Maintain performance and accept comparison as fair estimate.
• Feeling under-rewarded—try to reduce inequity.
– Change inputs by trying harder or slacking off.
– Change outcomes by demanding a raise.
– Distort the ratios by altering perceptions of self or of others.
– Leave situation by quitting the job.
– Change comparisons by choosing another object person.
• Feeling over-rewarded.
– Increase or decrease inputs.
– Distort ratios by rationalizing.
– Help the object person gain more outcomes.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–23
Process Perspectives on Motivation (cont’d)
• Goal-Setting Theory
– Assumptions
• Behavior is a result of conscious goals and intentions.
• Setting goals influence the behavior of people in organizations.
• Characteristics of Goals
– Goal difficulty
• Extent to which a goal is challenging and requires effort.
• People work harder to achieve more difficult goals.
• Goals should be difficult but attainable.
– Goal specificity
• Clarity and precision of the goal.
• Goals vary in their ability to be
stated specifically.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–24
Process Perspectives on Motivation(cont’d)
• Characteristics of Goals (cont’d)
– Acceptance
• The extent to which persons accept a goal
as their own.
– Commitment
• The extent to which an individual is
personally interested in reaching a goal.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–25
Process Perspectives on Motivation (cont’d)
• The Expanded Goal-Setting Theory of Motivation
Goal
difficulty
Goal
acceptance
Organizational
support
Goal-Directed
Effort
Goal
specificity
Goal
commitment
Intrinsic
Rewards
Satisfaction
Performance
Individual
abilities and
traits
Source: Reprinted by permission of the publisher, from Organizational
Dynamics, Autumn/1979, copyright © 1979, copyright © 1979 by
American Management Association, New York. All rights reserved.
(http://www.amanet.org)
Copyright © by Houghton Mifflin Company. All rights reserved.
Extrinsic
Rewards
Figure 16.6
16–26
Reinforcement Perspectives
on Motivation
• Reinforcement Theory
– The role of rewards as they cause behavior to change or
remain the same over time.
– Assumes that:
• Behavior that results in rewarding consequences is likely to be
repeated, whereas behavior that results in punishing consequences is
less likely to be repeated.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–27
Reinforcement Perspectives on Motivation
(cont’d)
• Kinds of Reinforcement in Organizations
– Positive reinforcement
• Strengthens behavior with rewards or positive outcomes after a
desired behavior is performed.
– Avoidance
• Strengthens behavior by avoiding unpleasant consequences that
would result if the behavior is not performed.
– Punishment
• Weakens undesired behavior by using negative outcomes or
unpleasant consequences when the behavior is performed.
– Extinction
• Weakens undesired behavior by simply ignoring or not reinforcing
that behavior.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–28
Reinforcement Perspectives on Motivation
(cont’d)
• Providing Reinforcement in Organizations
– Reinforcement schedules
• Fixed interval schedule—reinforcement applied at fixed time
intervals, regardless of behavior.
• Variable interval—reinforcement applied at variable time intervals.
• Fixed ratio —reinforcement applied after a fixed number of
behaviors, regardless of time.
• Variable Ratio—reinforcement applied after a variable number of
behaviors, regardless of time.
– Behavior modification (OB mod)
• A method for applying the basic elements of reinforcement theory in
an organizational setting.
• Specific behaviors are tied to specific forms of reinforcement.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–29
Popular Motivational Strategies
• Empowerment and Participation
– Empowerment
• The process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of influence.
– Participation
• The process of giving employees a voice in making decisions about
their work.
– Areas of Participation for Employees
• Making decisions about their jobs.
• Decisions about administrative matters (e.g., work schedules).
• Participating in decision making about broader issues of product
quality.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–30
Popular Motivational Strategies (cont’d)
• Techniques and Issues in Empowerment
– Using work teams
• Collections of employees empowered to plan, organize, direct, and
control their work.
– Changing the overall method of organizing the firm by
becoming more decentralized.
– Conditions necessary for empowerment:
• Organization must be sincere about spreading power to lower levels.
• Organization must be committed to empowering workers.
• Organization must be systematic and patient in its efforts to empower
workers.
• Organization must be prepared to increase its commitment to training.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–31
Popular Motivational Strategies (cont’d)
• New Forms of Working Arrangements
– Variable Work Schedules
• Compressed work schedule—Working a full forty-hour week in less
than five days.
• Flexible work schedules (flextime)—Allowing employees to select,
within broad parameters, the hours they will work.
• Job sharing—When two part-time employees share one full-time job.
• Telecommuting—Allowing employees to spend
part of their time working off-site, usually
at home, by using e-mail, the Internet, and
other forms of information technology.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–32
Using Reward Systems to
Motivate Performance
• Reward System
– The formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded.
• Effects of Organizational Rewards
– Effect of Rewards on Attitudes
• Satisfaction is influenced by how much is received and how much the
person thinks should have been received.
• Satisfaction is affected by comparison with others.
• The rewards of others are often misperceived.
• Overall job satisfaction is affected by employee satisfaction with
intrinsic and extrinsic rewards.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–33
Using Reward Systems to
Motivate Performance (cont’d)
• Effects of Organizational Rewards (cont’d)
– Effect of Rewards on Behaviors
• Extrinsic rewards affect employee satisfaction and reduce turnover.
• Rewards influence patterns of attendance and absenteeism.
• Employees tend to work harder for rewards based on performance.
– Effect of Rewards on Motivation
• Employees will work harder when performance will be measured.
• Employees will work harder if
performance is closely followed
by rewards.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–34
Using Reward Systems to
Motivate Performance (cont’d)
• Designing Effective Reward (cont’d)
–
–
–
–
Reward system must meet an individual’s needs.
Rewards should compare favorably with other organizations.
Distribution of rewards must be perceived to be equitable.
Reward system must recognize different needs.
• New Approaches
– Merit system
• A reward system whereby people get different pay raises at the end of
the year depending on their overall job performance.
– Incentive system
• A reward system whereby people get different pay amounts at each
pay period in proportion to what they do.
Copyright © by Houghton Mifflin Company. All rights reserved.
16–35