Principles of Management Topic 4
Principles of Management Topic 4
Principles of Management Topic 4
Chapter
5
Motivating
Organizational
Members
Motivating Organizational
Members
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Rewarding “A” While Hoping For “B”
• Steven Kerr’s classic article argued that many
organizations and managers want one thing but
reward other things instead.
• Why do they (managers) do this?
Managers have not clearly identified what is
necessary for good performance.
Managers have not determined how to measure
successful performance.
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Rewarding “A” While Hoping For “B”
(cont’d)
• How it affects employees:
Employees do not see clear links between their
performance and achievement of the goals.
Employees may not have the right abilities to carry
out the job.
Employees want rewards different from what their
supervisors think they want.
Employees have different levels of motivation to do
the job.
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Motivation
• Motivation Defined
Forces either internal or external to a person that act
as inducements or that influence action to do
something.
The forces acting upon or within a person that cause
that person to behave in a specific, goal-directed
manner.
A psychological process that gives purpose and
direction to behavior.
Motivation × Ability = Performance
M×A=P
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Motivation Defined
What is motivation
• Motivation is the management process of
influencing another person based on the
knowledge of “what makes the person tick”
• Motivation are those factors that cause
people’s behavior
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The Relationship between Motivation and Performance
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Basic assumption about
motivation
•
• 1.Motivation is considered as
something good
• 2Motivation affect performance
• 3.Motivation may decline
• 4.Motivation is one of mgt tools to
influence performance
MOTIVATION PROCESS
Satisfied needs
Reduction of Tension (Needs to be fulfilled)
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The Early Views Of Motivation
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The Traditional Model
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The Human relations model
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Needs-Based Approaches to Motivation
Maslow’s Herzberg’s
Hierarchy of Needs Two-Factor Model
Motivation
Acquired-Needs Model
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Maslow’s Hierarchy of Needs
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Maslow’s Hierarchy of Needs
• Abraham proposed that there are five levels of
human needs:
1.Physiological needs e.g need for food and shelter
2.Safety and security e.g Freedom from fear
3.Social needs e.g affection, affiliation and
belongings
4.Esteem e.g Power, respect and prestige
5.Self actualization e.g Advancement and career
development
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Assumptions of the Maslow’s
Hierarchy of Needs model
• 1.Human needs are satisfied in stages
beginning with the lower level needs
• 2.A satisfied need is not a motivator of
behavior, only unsatisfied needs are motivator
• 3.If higher level needs are not satisfied, lower
level needs will again become dominant
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Maslow’s Hierarchy of Needs
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Hertzberg’s two factor
theory Hertzberg proposed
•Frederick
that motivation depends on two
factors:
•1.Motivators/Satisfiers
•2.Hygiene /Dissatisfiers
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Motivators/Satisfiers
•Factors that causes satisfaction
•Satisfiers are factors in the job
content. E.g Work itself,
responsibility, interest, autonomy
and feedback
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Hygiene/Dissatisfiers
• Factors that causes dissatisfaction
• Hygiene are factors in the job context. E.g
Wages and salary, company policy and social
factors
• Hygiene factors if present will not create
satisfaction, it only prevent dissatisfaction
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Herzberg’s Two-Factor Theory
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McGregor Theory X VS
Theory Y
•Mcgregor proposed that there are
two different sets of assumptions
about what motivates people:
•1.Theory X
•2.Theory Y
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Theory X
• Contends that people dislike work
and will avoid it whenever possible
• They must be controlled or even
threatened with punishment to get
them to work.
• Managers have to be strict and
authoritarian
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Theory Y
•An optimistic view of people and
their work.
•People accept and even seek
responsibility.
• People are creative , imaginative
and able to exercise self direction
and self control
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The McClelland Acquired-Needs Model
• Need for Achievement (nAch)
The drive to excel, to accomplish challenging tasks,
and to achieve a standard of excellence.
• Need for Power (nPow)
The desire to influence and control one’s
environment.
• Need for Affiliation (nAff)
The desire for friendly and close interpersonal
relationships.
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Likert System Four Management
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Process-Based Approaches to Motivation
Expectancy Model
Expectancy Model
Goal Setting
Reinforcement
Theory
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Process-Based Approaches
• The Expectancy Model
The motivation to expend effort to do something is
determined by three basic individual perceptions:
Effort will lead to performance.
Rewards are attached to performance.
Outcomes, or rewards, are valuable to the
individual.
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Expectancy Model
Effort
Expectancy
Performance
Instrumentality
Outcomes: Rewards
Valence
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The Equity Theory
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Process-Based Approaches (cont’d)
• The Equity Model
Focuses on an individual’s feelings about how fairly
he or she is treated in comparison with others.
Individualshave a perception of the ratio of their
inputs compared to their own outcomes in a
situation.
Individuals
also have a perception of the ratio of
everyone else’s inputs to outcomes.
Then, each person compares his or her own ration
to that of everyone else.
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Equity Model
• Maintaining Equity
Equity theory suggests that maintaining one’s self-esteem is
an important priority. To reduce a perceived inequity, a
person may take one of the following actions:
Change work inputs either upward or downward to
an equitable level.
Change outcomes to restore equity.
Psychologically distort comparisons.
Ways of reducing a perceived inequity:
Change the comparison person he or she is using
to another person.
Leave the situation (e.g., quit the job or transfer to
another department). 34
Process-Based Approaches (cont’d)
• Goal Setting
A process intended to increase efficiency and
effectiveness by specifying the desired outcomes
toward which individuals, groups, departments, and
organizations work.
• Goals setting serves three purposes:
To guide and direct behavior toward overall
organizational goals and strategies.
To provide challenges and standards against which
the individual can be assessed.
To define what is important and provide a framework
for planning.
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SMART Goal Setting
• Effective goal setting should be:
S pecific
M easurable
A chievable
R esults oriented
T ime-related
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Process-Based Approaches (cont’d)
• Reinforcement Theory
Based on the idea that people learn to repeat
behaviors that are positively rewarded (reinforced)
and avoid behaviors that are punished (not
reinforced).
Application of reinforcement theory (also called
behavior modification) involves changing one’s own
behavior or the behavior of another.
Managers should reward desirable employee
behavior (e.g., high performance) and punish
behavior (e.g., poor performance) that is not.
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Increasing Desired Behavior
• Positive Reinforcement
The administration of positive and rewarding
consequences following a desired behavior.
• Negative Reinforcement
Also called avoidance learning, strengthens desired
behavior by allowing escape from an undesirable
consequence.
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Decreasing Desired Behavior
• Extinction
The withdrawal of the positive reward or reinforcing
consequences for an undesirable behavior.
• Punishment
The administration of negative consequences
following undesirable behavior.
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Schedules of Reinforcement
• Interval Reinforcement
Reinforcement that is based on time.
• Ratio Reinforcement
Reinforcement that is based on exhibiting the desired
behavior.
• Fixed Reinforcement
Reinforcement that is administered at each interval or
for each desired behavior.
• Variable Reinforcement
The reinforcer is given at essentially a random time or
random occurrence of the desired behavior.
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Schedules of Reinforcement (cont’d)
• Fixed-Interval Schedule
Rewards employees at specific time intervals,
assuming that the desired behaviors have continued
at an appropriate level.
• Fixed-Ratio Schedule
Provides a reinforcement after a fixed number of
occurrences of the desired behavior.
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Schedules of Reinforcement (cont’d)
• Variable-Interval Schedule
When reinforcement is administered at random or
varying times that cannot be predicted by the
employee.
• Variable-Ratio Schedule
Reinforcement administered after a varying or
random number of occurrences.
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Motivational Challenges for Today’s
Managers
• Participative Management
• Recognition Programs
• Money as a Motivator
• Employee Ownership
• Rewarding Team Performance
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Participative Management
• Encompasses various activities in which
subordinates share a significant degree of
decision-making power with their immediate
superiors.
Involves any process where power, knowledge,
information, and rewards are moved downward in the
organization.
When companies increase the amount of control and
discretion workers have over their jobs, they empower
employees and can improve the motivation of both
employees and management.
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Recognition Programs
• Use reward and recognition programs to:
Instill company values, meet goals, and improve
financial performance.
Provide a powerful way to motivate employees.
Celebrate behaviors that reinforce the culture.
Ensure that the recognition is timely, specific, and
meaningful to the person who receives it.
Access communication processes that reinforce
values publicly.
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Money as a Motivator
• Money motivates:
As a means (medium of exchange)
to acquire things.
When a “significant amount of
money” is clearly tied to a desired
behavior.
When it is desired by the person
engaging in the behavior.
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Employee Ownership
• Employee Ownership
Assumes that owning part of a company motivates
employees d to contribute to make the company more
successful and more profitable.
• Ownership, including stock options, works to
motivate behavior only when:
Productive behavior and goals have been defined.
Good performance can be measured.
The awards of stock or stock options are tied directly
to performance.
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Rewarding Team Performance
• How do you reward team performance?
A significant part of the reward given to team
members must be based on total team performance.
Individual rewards probably should be given.
However, individuals should be rewarded for
contributing to the team success, effort, and
function… not for individual performance itself.
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International Perspectives
• No single approach to motivation (or achievement) fits—
there are significant differences in what motivates
individuals from other cultures and countries.
• Managers in multinational corporations take the social
character, values, and cultural practices of each country
into consideration when determining compensation
packages, responsibilities, rules and procedures,
organizational structure, control systems, job design, and
management techniques.
• A well-managed, diverse workforce is instrumental for a
globalized firm’s competitive advantage.
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