Chapter 13
Motivation
Motivation
• The psychological forces acting on an individual
that determine:
– Direction—possible behaviors the individual
could engage in
– Effort—how hard the individual will work
– Persistence—whether the individual will keep
trying or give up
• Explains why people behave the way they do in
organizations
Motivation
• Intrinsically Motivated Behavior
– Motivation that comes from actually engaging
in the behavior
– The sense of accomplishment and achievement
derived from doing the work itself
• Extrinsically Motivated Behavior
– Behavior that is performed to acquire material
or social rewards or to avoid punishment.
– The source of the motivation is the
consequences of the behavior
Inputs & Outcomes
• Input
– Anything a person contributes to his or her job
or organization
• Time, effort, skills, knowledge, work behaviors
• Outcome
– Anything a person gets from a job or an
organization
• Pay, job security, autonomy, accomplishment
Motivation Equation
Expectancy Theory
• Expectancy—the belief that effort (input)
will result in a certain level of performance
• Instrumentality—the belief that
performance results in the attainment of
outcomes
• Valence—the desirability of an outcome
Expectancy Theory
• Motivation = Expectancy x Instrumentality x
Valence
• If one of the values is low, motivation will be low.
– Workers do not believe they can perform well.
– Workers do not believe that performance and
rewards are closely linked.
– Workers do not value the rewards offered for
performance.
Need Theories
• Need
– A requirement for survival and well-being
• Need Theories
– Focus on what needs people are trying to
satisfy at work and what outcomes will satisfy
those needs
– Determine what needs a worker wants satisfied
– Ensure that a person receives the outcomes
when performing well
Maslow’s Needs Hierarchy
SelfActualization
Esteem
Affiliation
Security
Physiological
Maslow’s Hierarchy of Needs
Needs
Highest-level
needs
Lowest-level
needs
Description
Examples
Selfactualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower-level needs must be satisfied before higherlevel needs are addressed.
Alderfer’s ERG Theory
Needs
Description
Examples
Highest-level
needs
Lowest-level
needs
Growth
Self-development,
creative work
Continually
improve skills
Relatedness
Interpersonal
relations, feelings
Good relations,
accurate feedback
Existence
Food, water,
clothing, and shelter
Adequate pay
for necessities
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
Herzberg’s Motivator - Hygeine
• Motivators
– Factors that can lead to job satisfaction &
motivation
– Intrinsic Factors
– Enjoying the work, challenges, autonomy,
accomplishment, developmental opportunities
• Hygeine Factors
– Factors that cause dissatisfaction
– Extrinsic Factors
– Working conditions, pay, job security, benefits
McClelland’s Need for Power,
Affiliation, & Achievement
• Achievement
– Need to perform challenging tasks well
• Power
– Desire to control or influence others
• Affiliation
– Concern for good interpersonal relations &
being liked
McClelland’s Need for Power,
Affiliation, & Achievement
• Achievement & Power
– Assets for managers
– Power is especially common in upper managers
• Affiliation
– Could be a handicap for managers
– Try to hard to be liked
Equity Theory
• Perceived fairness of work outcomes
relative to work inputs
• People compare their input/output ratio with
a referent other
Equity Theory
• Equity occurs when your input/output ratio
equals the referent other’s ratio
• People are motivated to keep Equity
– Keep inputs consistent when outputs are
consistent
– Increase inputs if you want outputs increased
Equity Theory
• Inequity exists when worker’s
outcome/input ratio is not equal to referent.
– Underpayment inequity: ratio is less than the
referent.
– Overpayment inequity: ratio is higher than the
referent.
Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore
equity
• Underpayment inequity
– Decrease inputs, Increase outputs
• Overpayment inequity
– Increase inputs, Decrease outputs
Goal-Setting Theory
• Goals motivate behavior when they are:
– Specific – help people focus their attention in
the right direction
– Difficult – challenges the individual to work
hard; not too difficult.
– Give Feedback – allows the individual to know
how effective their behaviors are
Learning Theories
• Learning – relatively permanent change in
knowledge or behavior that results from
practice or experience
• In organizations: When people learn to
repeat behaviors because of rewards
• Operant Conditioning
• Social Learning Theory
Operant Conditioning
• People learn to perform behaviors that lead
to desired consequences
• People learn to avoid behaviors that result
in negative consequences
Four Types of Reinforcement
• Positive Reinforcement
– Positive outcomes follows a desirable behavior
• Negative Reinforcement
– Unpleasant event is removed when desired behavior
occurs
• Extinction
– Remove all reinforcement
• Punishment
– Negative consequence follows an undesirable behavior
Four Types of Reinforcement
• Positive & Negative reinforcement
Increase the frequency of Desirable
behaviors.
• Extinction & Punishment Decrease the
frequency of Undesirable behaviors.
Social Learning Theory
• People learn through regular social interactions
• Vicarious Learning
– Watch someone perform a behavior and receive
positive reinforcement
• Self-Reinforcement
– Reward yourself when you have met a goal
• Self-Efficacy
– Prohibits motivation even when positive reinforcement
is present
Bandura’s Bobo Experiment
Bandura’s Bobo Experiment
Pay as a Motivator
• Expectancy: Instrumentality, the association
between performance and outcomes, must be high
for motivation to be high.
• Need Theory: pay is used to satisfy many needs.
• Equity Theory: pay is given in relation to inputs.
• Goal Setting Theory: pay is linked to attainment of
goals.
• Learning Theory: outcomes (pay), is distributed
upon performance of functional behaviors.
Bonus vs. Salary Increase
• Bonuses
– Do not become permanent part of compensation
– Are more directly tied to current performance
• Salary Increase
– Gets continued next time period
– May include cost-of-living (not performance
related)
Employee Stock Options
• Option to buy shares of stock at a certain
price at a certain point in time.
• Uses
– To attract high-level managers
– To motivate employee performance through
ownership in the firm
Examples of Merit Pay
• Piece-rate Pay
– Pay is based on the number of units that the employee
produces.
• Commission Pay
– Pay is based on a percentage of sales that the employee
makes.
• Organization-based Merit Plans
– Scanlon plan — reduced expenses or cutting costs
– Profit sharing — employees receive a share of an
organization’s profits