Chapter Sixteen: Managing Employee Motivation and Performance
Chapter Sixteen: Managing Employee Motivation and Performance
Chapter Sixteen: Managing Employee Motivation and Performance
Managing Employee
Motivation and
Performance
Slide content created by Charlie Cook, The University of West Alabama
Copyright Houghton Mifflin Company. All rights reserved.
Learning Objectives
After studying this chapter, you should be able to:
1. Characterize the nature of motivation, including its
importance and basic historical perspectives.
2. Identify and describe the major content perspectives on
motivation.
3. Identify and describe the major process perspectives on
motivation.
4. Describe reinforcement perspectives on motivation.
5. Identify and describe popular motivational strategies.
6. Describe the role of organizational reward systems in
motivation.
Content Perspectives on
Motivation
Content Perspectives
Approaches to motivation that try to answer the
question, What factors in the workplace motivate
people?
Content Perspectives on
Motivation (contd)
The Need Hierarchy Approach
Maslows Hierarchy of Needs
Content Perspectives on
Motivation (contd)
The ERG Theory
Needs are grouped into three overlapping categories:
Existence needsphysiological and security needs.
Relatedness needsbelongingness and esteem by others.
Growth needsself-esteem and self-actualization.
Content Perspectives on
Motivation (contd)
The Two-Factor Theory (Herzberg)
Satisfaction and dissatisfaction are influenced by
two independent sets of 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.
Content Perspectives on
Motivation (contd)
The Two-Factor Theory (contd)
Theory posits that 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.
Content Perspectives on
Motivation (contd)
Individual Human Needs (McClelland)
The need for achievement
The desire to accomplish a goal or task more effectively
than in the past.
Process Perspectives on
Motivation
Process Perspectives
Approaches to motivation that focus on:
Why people choose certain behavioral options to satisfy
their needs
How they evaluate their satisfaction after they have
attained their goals.
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory
Process Perspectives on
Motivation (contd)
Expectancy Theory
Motivation depends on how much we want something and how
likely we are to get it.
Assumes that:
Behavior is determined by personal and environmental forces.
People make decisions about their behavior in organizations.
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 that, when combined with ability and
environmental factors, results in performance which leads to
various outcomes that have value (valence) to employees.
Process Perspectives on
Motivation (contd)
Elements of Expectancy Theory
Effort-to-Performance Expectancy
The employees perception of the
probability that effort will lead to a high
level of performance.
Performance-to-Outcome
Expectancy
The employees perception of the
probability that performance will lead to a
specific outcomethe consequence or
reward
for behaviors in an organizational setting.
Process Perspectives on
Motivation (contd)
Elements of Expectancy Theory (contd)
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.
Process Perspectives on
Motivation (contd)
The Porter-Lawler Extension of Expectancy
Theory
Assumptions:
If performance 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 internal to the individual
(e.g., self-esteem and feelings of accomplishment).
Process Perspectives on
Motivation (contd)
Equity Theory
People are motivated to seek social equity in the
rewards they receive for performance.
Equity is an individuals belief that the treatment he or
she receives is fair relative to the treatment received by
others.
outcomes (other)
inputs (other)
Process Perspectives on
Motivation (contd)
Equity Theory (contd)
Conditions of and reactions to equity comparisons:
Feeling equitably rewarded.
Maintain performance and accept comparison as fair estimate.
Feeling over-rewarded.
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
Process Perspectives on
Motivation (contd)
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
Process Perspectives on
Motivation (contd)
Characteristics of Goals (contd)
Goal acceptance
The extent to which persons accept a goal
as their own.
Goal commitment
The extent to which an individual is
personally interested in reaching a goal.
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.
Reinforcement Perspectives on
Motivation (contd)
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.
Reinforcement Perspectives on
Motivation (contd)
Providing Reinforcement in Organizations
Reinforcement schedules
Fixed interval schedulereinforcement applied at fixed
time intervals, regardless of behavior.
Variable intervalreinforcement applied at variable time
intervals.
Fixed ratioreinforcement applied after a fixed number
of behaviors, regardless of time.
Variable Ratioreinforcement applied after a variable
number of behaviors, regardless of time.
Reinforcement Perspectives on
Motivation (contd)
Providing Reinforcement in Organizations (contd)
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.
Participation
Giving employees a voice in making decisions about their
work.
Decentralization
Changing the overall method of organizing the firm
Key Terms
motivation
content perspectives
Maslows hierarchy of needs
ERG theory of motivation
two-factor theory of
motivation
need for affiliation
need for achievement
need for power
process perspectives
expectancy theory
effort-to-performance
expectancy
outcomes
valence
equity theory
avoidance
positive reinforcement
extinction
variable-ratio schedule
variable-interval schedule
participation
Key Terms
behavior modification (OB
Mod)
compressed work
schedule
job sharing
telecommuting
merit pay plan
reward system
piece-rate incentive plan
gainsharing programs
Scanlon plan