Understanding
and
Managing
Organizational
Behavior
Chapter 6:
The Nature of Work
Motivation
4th Edition
JENNIFER GEORGE
& GARETH JONES
6-1
©2005 Prentice Hall
Chapter Objectives
 Appreciate why motivation is of central
importance in organizations and the
difference between intrinsic and extrinsic
motivation
 Understand what we can learn about
motivation from need theories
6-2
©2005 Prentice Hall
Chapter Objectives
 Describe why expectancy, valence, and
instrumentality are of central importance for
work motivation
 Appreciate the importance of equity and
the dangers of inequity
 Understand why procedural justice is so
important and how to promote it
6-3
©2005 Prentice Hall
Opening Case: Motivating
Employees at SAS Institute
 How can organizations continue to grow and
have satisfied employees in the hard times
as well as the good times?
 SAS – the largest privately owned software
company in the world
 9,000 employees
 1 of the 100 Best Companies to Work for in
America and 100 Best Companies for
Working Mothers
6-4
©2005 Prentice Hall
What is Work Motivation?
 Psychological forces within a person that
determine
– the direction of a person’s behavior in an
organization,
– a person’s level of effort, and
– a person’s level of persistence in the face
of obstacles
 Table 6.1
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©2005 Prentice Hall
Motivation and Performance
 Performance is an evaluation of the results
of a person’s behavior
 Motivation is only one factor among many
that contributes to an employee’s job
performance
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©2005 Prentice Hall
Motivation
 Intrinsic
– Source of
motivation is
actually performing
the behavior
– Behavior performed
for its own sake
6-7
 Extrinsic
– Source of
motivation is
acquisition of
material or social
rewards or to avoid
punishment
©2005 Prentice Hall
Theories of Motivation
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6-8
Need Theory
Expectancy Theory
Equity Theory
Procedural Justice Theory
©2005 Prentice Hall
Need Theory
 What outcomes is an individual motivated to
obtain from a job and an organization?
 Employees have needs that they are
motivated to satisfy in the workplace
 Only unsatisfied needs motivate
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©2005 Prentice Hall
Expectancy Theory_1
 Does the individual believe that his or her
inputs will result in a given level of
performance?
 Employees will not be motivated to
contribute their inputs to the organization
unless they believe that their inputs will
result in achieving a given level of
performance, regardless of available
outcomse
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©2005 Prentice Hall
Expectancy Theory_2
 Does the individual believe that
performance at this level will lead to
obtaining desired outcomes?
 Employees will be motivated to obtain given
level of performance only if that level of
performance leads to desired outcomes
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©2005 Prentice Hall
Equity Theory
 Are outcomes perceived as being at an
appropriate level in comparison to inputs?
 From past experience or observation,
employees will have a sense of what level of
inputs should result in a certain level of
outcomes
 Outcomes based upon inputs
 Different employees’ outcome/input ratios
equal
6-12
©2005 Prentice Hall
Procedural Justice Theory
 Are the procedures used to assess inputs
and performance and to distribute outcomes
perceived as fair?
 Employees will not be motivated to
contribute inputs unless they perceive that
fair procedures will be used to distribute
outcomes
6-13
©2005 Prentice Hall
Need Theories
 Maslow’s Hierarchy of
Needs
– 5 universal needs
– Hierarchy of
importance
– Once satisfied,
need no longer
motivates
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 Alderfer’s ERG Theory
– 3 universal needs
– Hierarchy of
importance
– Flexible movement
amongst levels
©2005 Prentice Hall
Expectancy Theory
 Valence
– How desirable is an outcome?
 Instrumentality
– What is the connection between job
performance and an outcome?
 Expectancy
– What is the connection between effort
and job performance?
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©2005 Prentice Hall
Yes or No?
 Will I be able to obtain outcomes I desire?
 Do I need to perform at a high level to
obtain these outcomes?
 If I try hard, will I be able to perform at a
high level?
– Motivation occurs only when the answer
is YES to all three questions!
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©2005 Prentice Hall
Equity Theory
 Inputs
– Special skills
– Training
– Education
– Work experience
– Effort on the job
– Time
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 Outcomes
– Pay
– Fringe benefits
– Job satisfaction
– Status
– Opportunities for
advancement
– Job security
©2005 Prentice Hall
Equity Theory_2
 Inputs lead to outcomes
 Objective level of outcomes does not
determine work motivation
 Outcome/input ratio compared to ratio of
referent others leads to work motivation
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©2005 Prentice Hall
Ways to Restore Equity
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6-19
Change inputs or outcomes
Change referent’ inputs or outcomes
Change perceptions of inputs and outcomes
Change the referent
Leave the job
Force referent to leave the job
©2005 Prentice Hall
Procedural Justice Theory
 Perceived fairness of the procedures used
to make decisions about the distribution of
outcomes
– Not the actual distribution of outcomes
 Procedural decisions
– How performance levels are evaluated
– How grievances are handled
– How outcomes are distributed
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©2005 Prentice Hall
Procedural Justice Theory_2
 Higher motivation occurs when procedures
used to make decisions are perceived as
fair
 Factors for determination of fairness
– Interpersonal treatment of employees
– Extent to which managers explain
decisions to employees
6-21
©2005 Prentice Hall