8-1

2007 The McGraw-Hill Companies, Inc. All rights reserved.

8
Chapter

Foundations of Motivation
Content Theories of Motivation Process Theories of Motivation Vrooms Expectancy Theory Motivation through Goal Setting Motivating Employees through Job Design Putting Motivational Theories to Work

Ch. 8 Learning Objectives

1. Contrast Maslows, Alderfers, and McClellands need theories. 2. Explain the practical significance of Herzbergs distinction between motivators and hygiene factors. 3. Discuss the role of perceived inequity in employee motivation. 4. Explain the differences among distributive, procedural, and interactional justice. 5. Describe the practical lessons derived from equity theory.
8-3
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Ch. 8 Learning Objectives

6. Explain Vrooms expectancy theory and review its practical implications., racial and ethnic, and disability stereotypes. 7. Explain how goal setting motivates an individual and review the five practical lessons from goalsetting research. 8. Review the mechanistic, motivational, biological, and perceptual-motor approaches to job design. 9. Specify issues that should be addressed before implementing a motivational program.
8-4
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Motivation
Motivation
psychological processes that arouse and direct goal-directed behavior Does high motivation mean better job performance? A=Yes, B=No Is money the only motivator?

8-5
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Theories of Motivation
Content Theories
Identify internal factors influencing motivation

Process Theories
Identify the process by which internal factors and cognitions influence motivation

Maslows Need Hierarchy Alderfers ERG McClellands Need Herzbergs MotivatorHygiene

Adams Equity Vrooms Expectancy Goal Setting Theory 8-6

2007 The McGraw-Hill Companies, Inc. All rights reserved.

Maslows Need Hierarchy Theory

How does the theory work? What research support does this theory have? What are the managerial implications of this theory?
8-7
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Alderfers ERG Theory

Existence: Desire for physiological and materialistic well-being Relatedness: Desire to have meaningful relationships with significant others Growth: Desire to grow and use ones abilities to their fullest potential How does this theory work?

What is the research support? What are the managerial implications?

8-8
2007 The McGraw-Hill Companies, Inc. All rights reserved.

McClellands Need Theory

The Need for Achievement
Desire to accomplish something difficult

The Need for Affiliation

Desire to spend time in social relationships and activities

The Need for Power

Desire to influence, coach, teach, or encourage others to achieve McGraw-Hill

8-9
2007 The McGraw-Hill Companies, All rightsreserved. reserved. 2004 The McGraw-Hill Companies, Inc.Inc. All rights

McClellands Needs Theory in Practice

1. Is high need for power good or bad?
A= Good, B=Bad, C= It depends

2. What is the most important need for leaders?

a. Achievement b. Affiliation c. Power

3. What is the least important?

a. Achievement b. Affiliation c. Power
8-10
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Test Your Knowledge

A manager made the following work assignments based on her perception of her employees needs. Sam responsible for orienting new employees to the team; Rex responsible for operations of an entire division; Jose researcher in R & D. Which of the following set of pairs below is probably true? a. Sam- power; Rex- achievement; Jose- affiliation; b. Sam affiliation; Rex- power; Jose achievement c. Sam achievement, Rex affiliation, Jose power d. Sam achievement; Rex power; Jose - affiliation
8-11
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Herzbergs Motivator-Hygiene Model

Hygiene Factors job characteristics associated with
job dissatisfaction Salary Supervisory relations Working conditions

Motivators job characteristics associated with job

satisfaction
Achievement Recognition Responsibility
8-12
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Herzbergs Motivator-Hygiene Model

Basic premise: Job satisfaction is not a continuum from satisfied to dissatisfied Rather, there are two continuums
No Satisfaction Satisfaction Dissatisfaction No dissatisfaction

8-13
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Herzbergs Motivator-Hygiene Model

8-14
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Comparison of Content Theories of Motivation

Needs Hierarchy Theory ERG Theory McClellands Learned Needs Motivator--Hygiene Theory

SelfActualization
Growth Esteem Belongingness Safety Existence Physiological Relatedness

Need for Achievement

Motivators Need for Power Need for Affiliation Hygienes

8-15
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Theory
Equity theory people strive for fairness and justice in social exchanges People will be motivated to the extent their perceived inputs to outcomes is in balance
A. Compare personal outcomes to inputs. B. Compare your outcomes to relevant others: 1. Comparisons to teammates or coworkers 2. Comparisons to another group (e.g. department/unit) 3. Comparisons to others in your field or occupational.
8-16
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Theory
A. An Equitable Situation
Self Other

$2

= $2 per hour 1 hour

$4

= $2 per hour 2 hours

8-17
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Theory
B. Negative Inequity
Self Other

$2

= $2 per hour 1 hour

$3 1 hour

= $3 per hour
8-18

2007 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Theory
C. Positive Inequity
Self Other

$3

= $3 per hour 1 hour

$2

= $1 per hour 8-19 1 hours

2007 The McGraw-Hill Companies, Inc. All rights reserved.

Test Your Knowledge

Deena works 60 hours per week and does not feel that she is being adequately recognized or rewarded. According to equity theory, Deena is least likely to: a. Ask for a raise or bonus b. Reduce her efforts by decreasing her hours c. Increase her efforts by working longer hours d. Frame the situation as a learning experience and beneficial for her future career.

8-20
2007 The McGraw-Hill Companies, Inc. All rights reserved.

For Discussion: Assess Yourself Equity Sensitivity

Which of the following best describes you? In most situations, I

a. put in more than I get out, which is fine with me b. typically strive for equity and fairness in terms of my inputs and outcomes (even if I feel positive inequity) c. try to put in as little effort as possible to attain desired rewards
8-21
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Sensitivity
Equity Sensitivity an individuals tolerance for negative and positive equity
Benevolents have a higher tolerance for
negative inequity

Sensitives adhere to strict norm of reciprocity Entitleds have no tolerance for negative inequity
8-22
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Justice
Distributive Justice the
perceived fairness of how resources and rewards are distributed

Interactional Justice

extent to which people feel fairly treated when procedures are implemented

Procedural Justice the

perceived fairness of the process and procedure used to make allocation decisions
8-23
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Lessons From Equity Theory & Justice

What important work-related variables are perceptions of equity related to? What are the managerial implications of equity theory and organizational justice research?

8-24
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Expectancy Theory of Motivation

E-to-P Expectancy
P-to-O Instrumentality Outcomes & Valences

Outcome 1
+ or -

Effort

Performance

Outcome 2
+ or -

Outcome 3
+ or -

8-25
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Test Your Knowledge

For each of the following actions, indicate which part of the expectancy model, specifically, would be improved for an unmotivated employee?
A. Effort to Performance (Expectancy) B. Performance to Outcome (Instrumentality) C. Value of rewards (Valence)

1. 2. 3. 4. 5.

Show direct link between performance and raises. Set clear goals, establish positive expectations Base rewards on what the employee values. Establish a pay for performance plan. 8-26 Provide adequate resources and training.
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Implications of Expectancy Theory

8-27
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Goal-Setting Theory
Goal what an
individual is trying to accomplish

8-28
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Lockes Model of Goal Setting

Directing ones attention

Regulating ones effort Goals motivate the individual by... Task performance Increasing ones persistence

Encouraging the development of goalattainment strategies or action plans

8-29
McGraw-Hill
2007 The McGraw-Hill Companies, All rightsreserved. reserved. 2004 The McGraw-Hill Companies, Inc.Inc. All rights

Test Your Knowledge

True (A) or False (B)? 1) The more difficult the goal, the higher performance will be 2) Do your best goals maximize performance 3) Feedback enhances the effect of specific, difficult goals 4) Participative goals, assigned goals, and self-set goals are equally effective 5) Goal commitment affects goal-setting outcomes 6) Monetary incentives for goals always improve goalsetting outcomes
8-30
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Guidelines for SMART Goals

Specific Measurable Attainable Results oriented Time bound

Give feedback regularly!
8-31
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Job Design Approaches to Motivation

Job Design: Changing the content or process of a specific job to increase job satisfaction and performance Motivational strategies: Job Rotation moving employees from one
specialized job to another Job Enlargement putting more variety into a job

Job Enrichment building achievement, recognition,

responsibility, and advancement into the work
8-32
McGraw-Hill
2007 The McGraw-Hill Companies, All rightsreserved. reserved. 2004 The McGraw-Hill Companies, Inc.Inc. All rights

The Job Characteristics Model

Core job characteristics
Skill variety Task identity Task significance

Critical psychological state

Experienced meaningfulness of work Experienced responsibility for outcomes of the work

Outcomes

High intrinsic work motivation

Autonomy

High growth satisfaction High general job satisfaction

Feedback from job

Knowledge of the actual results of the work activities

High work effectiveness

1. 2. 3.

Moderators Knowledge and skill Growth need strength Context satisfaction

8-33
2007 The McGraw-Hill Companies, Inc. All rights reserved.

8
Chapter

Supplemental Slides

Video Case: Working for the Best: The Container Store

Using Maslows hierarchy of needs, explain how The Container Store satisfies the needs of its employees. How are workers at The Container Store motivated? What theories can be used to explain motivation at The Container Store? Why dont managers at The Container Store use just one approach in motivating employees? What issues must be considered in designing and 8-35 implementing a motivational program?
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Office Space Movie Clip

Which type of organizational justice (or injustice) is being displayed in this clip? Do you agree with the advice of the consultants? Why or why not? In the real world, what effect might this approach have on employees and the organization as a whole?

8-36
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Office Space Movie Clip #2

Does Peter believe his effort will lead to better performance? Does Peter believe his performance will lead to an outcome? Does Peter value the outcomes hes been receiving? What impact does the management structure have on Peter?

8-37
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Drive Engagement

Sr. Managements interest in employees well-being Challenging work Decision-making authority. Evidence that the company is focused on customers. Career advancement opportunities Companys reputation as a good employer Collaborative work environment Resources to get the job done Input on decision making
8-38
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Drive Employee Commitment

The companys care and concern for employees Fairness at work Feelings of accomplishment Day-to-day satisfaction Appreciation of ideas
8-39
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Underlying Propositions of ERG Theory

Need Frustration
Existence 1

Desires for
Existence

Satisfied Needs
3
Existence

2 Relatedness 4 Relatedness 6 Relatedness

5 Growth Growth

Growth

8-40
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Engagement
Employee Engagement at Companies That Did Respond to September 11

Engaged Actively Disengaged Not Engaged

8-41
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Engagement
Employee Engagement at Companies That Did Not Respond to September 11

Engaged Actively Disengaged Not Engaged

8-42
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Engagement
Overall Rating of Companys Response
Excellent Actively Disengaged Not Engaged Engaged

Good

Fair

Poor 0% 20% 40% 60% 80%

8-43

2007 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Engagement: An Inverse Relationship

40% 30% 20% 10% 0% Less than 6 mos. 6 mos. to less than 3 yrs. 3 to less 10 yrs. than 10 or more yrs.
8-44
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Percentage of Engaged Workers

Time Spent with Company

Boosting Productivity
40%

30%

20%

10%

0%
Working without Knowing job has a Having clear, Seeing results of dealing with larger purpose work-related goals effort workplace bureacracy

8-45

2007 The McGraw-Hill Companies, Inc. All rights reserved.

Sense of Purpose
80% 70% 60% 50% 40% 30% 20% 10% 0% Work I do is Half is very important, important or half is important busywork Work is mostly or entirely busywork

72% 23% 5%

8-46
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Theft on the Rise

Employee theft at retail stores: $14.9 billion in 2000 Employee theft responsible for 46% retail shrinkagemore than shoplifters 30 major retail chains caught 73,300 employees stealing Employee theft costs companies $20 billion to $40 billion a year
8-47
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Flexible Pay Growing in Popularity

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% '96 '98 '00 Est.
8-48
2007 The McGraw-Hill Companies, All rightsreserved. reserved. 2004 The McGraw-Hill Companies, Inc.Inc. All rights

Some form of variable pay* Stock options**

21st Century Psychological Contracts

A psychological contract refers to the beliefs held by an individual employee regarding the terms of the exchange agreement between that employee and his/her organization.

8-49
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

Survey participants reported
Which psychological obligations were most important, The extent to which their organization had fulfilled its obligations, Their job satisfaction, Their intent to leave the organization, Their perceived performance on the job, Organizational citizenship behaviors.
8-50
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

The most important psychological contract items include:
opportunities for promotion & advancement, trust & respect, open & honest communication, fair treatment, challenging & interesting work.

8-51
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

Psychological contract items with the greatest discrepancy include:
competent management, open & honest communication, pay & bonuses tied to performance, meaningful work, clear goals & direction.

8-52
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

Relationship between psychological contract discrepancy scores and dependent measures:
21 of 32 contract discrepancy scores were positively correlated to intentions to leave the organization, 23 of 32 discrepancy scores were negatively related to job satisfaction, 4 of 32 discrepancy scores were negatively correlated to employee performance, 2 of 32 discrepancy scores were negatively correlated to organizational citizenship behaviors. 8-53
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

Managerial implications:
Organizations may focus on fulfilling the most important psychological contract items (based on the survey information). When it has been necessary to make changes in the psychological contract, employers should attempt to renegotiate the contract to foster more accurate employee perceptions.

8-54
2007 The McGraw-Hill Companies, Inc. All rights reserved.

21st Century Psychological Contracts Cont.

Managerial implications Cont.:
Fulfillment of psychological contract obligations is a key way to retain top employees. Managers should ensure that employees are aware of organizational attempts to meet employee needs and keep organizational promises.

8-55
2007 The McGraw-Hill Companies, Inc. All rights reserved.

A General Model of Expectancy Theory

Outcome 1 High Effort Performance Goal Outcome 2

Expectancy: What are my chances of reaching my Decision goal if I work To Exert hard? Expectancy: Effort What are my chances of reaching my goal if I slack off? Low Effort

Outcome 3
Instrumentality: What are my chances of getting various outcomes if I achieve my goal?

Valence: How much do I value these outcomes?

Outcome 1
Outcome 2 Outcome 3
8-56
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Performance Goal

Attractiveness of Achieving a Performance Goal

Vj = the attractiveness of
achieving a performance goal,

Vj = (VkIjk)
K=1

Ijk = the instrumentality of

outcome j for the attainment of outcome k,
k,

Where:

Vk = the valence of outcome n = number of outcomes

8-57
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Force to Exert a Level of Effort

Fj = the force to exert a
certain level of effort

F j = (EijVj)
Where:

Eij = the expectancy of

attaining a performance goal if one exerts a certain level of effort

Vj = the attractiveness of
reaching the performance goal

8-58
2007 The McGraw-Hill Companies, Inc. All rights reserved.

Expectancy Theory Application

STEP 1. Valence represents the value placed on outcomes. Calculate the valence for all levels of performance. The equation is: Performance Valence = [(Instrumentality1 x Valence1) + (I2 x V2) + (I3 x V3) + (In x Vn)] STEP 2. Calculate the force on an individual to exert different levels of effort. Force represents the strength of an individuals intention to respond in a particular manner. The equation is: Force = the sum of [Expectancy x Performance Valence] for all levels of performance associated with one level of effort. STEP 3. Compare force values for each performance level.

8-59

2007 The McGraw-Hill Companies, Inc. All rights reserved.

.75

OUTCOME 1 Publish 2 articles / year

OUTCOME 2 Gain respect & recognition OUTCOME 3 Spend more time with spouse

+5

HIGH EFFORT Work hard for 10 hours a day

.90

PERFORMANCE Submit 3 manuscripts / year

.70

+2

-.9

+3

EXPECTANCY

INSTRUMENTALITY OUTCOME 1 Publish 1 article / 3 years OUTCOME 2 Lose respect & recognition OUTCOME 3 Get fired

VALENCE

.65

+.5

LOW EFFORT Work hard for 3 hours a day

.80

PERFORMANCE Submit 1 manuscript / year

.80

-2

.95

-6
8-60

2007 The McGraw-Hill Companies, Inc. All rights reserved.