Chapter 10

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives L01: Identify the kinds of behaviors managers need to motivate people L02: List principles for setting goals that motivate employees L03: Summarize how to reward good performance effectively L04: Describe the key beliefs that affect people?s motivation 10-* Learning Objectives L05: Discuss ways in which people?s individual needs affect their behavior. L06: Define ways to create jobs that motivate. L07: Summarize how people assess fairness and how to achieve fairness. L08: Identify causes and consequences of a satisfied workforce. 10-* 10-* Motivating for Performance Motivation ? forces that energize, direct and sustain a person?s efforts. Organizations want to motivate people to: Join the organization Remain in the organization Come to work regularly Work hard to achieve high output and high quality Exhibit good citizenship by being committed and performing above and beyond the call of duty to help the company 10-* Goal Setting Theory Proposes that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end 10-* Well-crafted goals are highly motivating Meaningful Acceptable Challenging but Attainable Specific and quantifiable 10-* Stretch Goals Targets that are exceptionally demanding, and that some people would never even think of. Vertical stretch goals are aligned with current activities including productivity and financial results Horizontal stretch goals involve people?s professional development, such as attempting and learning new, difficult things 10-* Test Your Knowledge Describe the characteristics of goals that most effectively motivate people. 10-* Reinforcing Performance Law of effect: A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated Reinforcers: Positive consequences that motivate behavior Organizational behavior modification (OB mod) ? The application of reinforcement theory in organizational settings 10-* The Consequences of Behavior 10-* Key Consequences of Behavior Positive reinforcement - applying a consequence that increases the likelihood that the person will repeat the behavior that led to it. Negative reinforcement - removing or withholding an undesirable consequence. Punishment - administering an aversive consequence. Extinction - withdrawing or failing to provide a reinforcing consequence. 10-* What do you want to reinforce? Solid solutions instead of quick fixes Risk taking instead of risk avoiding Applied creativity instead of mindless conformity Decision action instead of paralysis of analysis Smart work instead of busywork Simplification instead of needless complication 10-* What do you want to reinforce? Quietly effective behavior instead of squeaky wheels Quality work instead of fast work Loyalty instead of turnover Working together instead of working against 10-* Rewards Should support the firm?s strategy Should relate people?s performance in relation to strategic objectives Can be nonmonetary (intellectual challenge, greater responsibility, autonomy, recognition, flexible benefits, and greater influence over decisions) 10-* Should you punish mistakes? Appropriate Violation of law, ethical standards, important safety rules When employees perform like a slacker Inappropriate When poor performance is not the individual?s fault When managers take out their frustrations on the wrong people 10-* How to Manage Mistakes Recognize that everyone makes mistakes and that mistakes can be dealt with constructively by discussing and learning from them Praise people who deliver based news to their bosses Don?t punish, unsuccessful good-faith efforts Encourage people to try new things and don?t punish them if what they try doesn?t work out. 10-* Feedback should? Provide useful feedback Pay attention to your employee?s request for feedback 10-* Where can you get feedback from? Customers Work statistics Production data Supervisors Self assessment Peers 10-* Test Your Knowledge Identify four examples of people advertently reinforcing the wrong behaviors, or punishing or extinguishing good behaviors 10-* Performance-related Beliefs Expectancy theory: proposes that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome. 10-* Expectancy Theory Three events Effort Performance Outcome Beliefs Expectancy ? employees? perception of the likelihood that their efforts will enable them to attain their performance goals Instrumentality ? the perceived likelihood that performance will be followed by a particular outcome 10-* Expectancy Theory 10-* Managerial Implications of Expectancy Theory Increase expectancies - provide a work environment that facilitates good performance and set realistically attainable performance goals Identify positively valent outcomes ? Understand want people want to get out of work Make performance instrumental toward positive outcomes ? Make sure that good performance is followed by personal recognition and praise, favorable performance reviewers, pay increases, and other positive results 10-* Test Your Knowledge Discuss the managerial implications of expectancy theory. Relate them specifically to expectancy theory. 10-* Maslow?s Need Hierarchy 10-* Maslow?s Need Hierarchy Physiological ? food, water, sex, and shelter Safety ? protection against threat and deprivation Social ? friendship, affection, belonging, and love Ego ? independence, achievement, freedom, status, recognition, and self-esteem Self-actualization ? realizing one?s full potential, becoming everything one is capable of being 10-* Alderfer?s ERG Theory Proposes that people have three basic sets of needs that can operate simultaneously Existence: material and physiological desires Relatedness: relationships with other people Growth: full utilization of personal capacities and developing new capacities 10-* McClelland?s Theory Need for Achievement ? strong orientation toward accomplishment and an obsession with success and goal attainment Need for Affiliation - strong desire to be liked by other people Need for Power - desire to influence or control other people 10-* Test Your Knowledge A difference between Maslow's Need Hierarchy and Alderfer's ERG Theory is that A) ERG theory states that various needs operate simultaneously. B) Maslow's hierarchy has more scientific validity. C) Maslow's hierarchy reminds managers that even if one need seems to motivate people, other needs may still need attention. D) ERG theory focuses on five levels of need. E) only Maslow's theory serves to remind managers of the types of reinforcers that can be used to motivate people. 10-* Types of Motivation Extrinsic motivation ? rewards given to a person by the boss, the company or some other person Intrinsic motivation ? rewards a worker derives directly from performing the job itself 10-* Designing Motivating Jobs Job rotation: changing from one routine task to another to alleviate boredom Job enlargement: Giving people additional tasks at the same time to alleviate boredom Job enrichment: Changing a task to make it inherently more rewarding, motivating, and satisfying 10-* Herzberg?s two-factor theory Proposed two broad categories of factors that affect people working on their jobs: Hygiene factors: characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied. Motivators: Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement. 10-* Hackman and Oldham Model of Job Enrichment 10-* Hackman and Oldham Model Three critical psychological states They believe they are doing something meaningful because their work is important to other people They feel personally responsible for how the work turns out. They learn how well they performed their jobs. 10-* Hackman and Oldham Model Five core job dimensions 1. Skill variety ? different job activities involving several skills and talents 2. Task identity ? the completion of a whole identifiable piece of work 3. Task significance ? an important, positive impact on the lives of others 4. Autonomy ? independence and discretion in making decisions 5. Feedback ? independence and discretion in making decisions 10-* What is empowerment? The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. 10-* Why empowerment encourages employees? They perceive meaning in their work; their jobs with skill They feel competent, or capable of performing their jobs with skill They have a sense of self-determination, of having some choice in regard to the tasks, methods, and pace of their work They have an impact ? that is, they have some influence over important outcomes 10-* Test Your Knowledge Compare and contrast job enlargement, job enrichment, and job rotation. Give an example of each. 10-* Equity Theory Proposes that people assess how fairly they have been treated according to two key factors outcomes and inputs 1. Outcomes ? various things the person receives on the job 2. Inputs ? contributions the person makes to the organization 10-* Equity Equation Their own Outcomes/Inputs Versus Others? Outcomes/Inputs 10-* How people restore equity Reducing their inputs Increase their outcomes Decrease others? outcomes Increase others? inputs 10-* Procedural Justice Using a fair process in decision making and making sure others know that the process was as fair as possible. 10-* Test Your Knowledge Describe a time when you felt unfairly treated and explain why. How did you respond to the inequity? What other options might you have had? 10-* Job Satisfaction Job dissatisfaction leads to: higher turnover, higher absenteeism, less good citizenship among employees, etc. Dissatisfied workers negatively impact organizations, especially relationship-oriented service organizations 10-* Eight categories of needs addressed by QWL Adequate and fair compensation. A safe and healthy environment. Jobs that develop human capacities. A chance for personal growth and security. A social environment that fosters personal identity, freedom from prejudices, a sense of community, and upward mobility. Constitutionalism, or the rights of personal privacy, dissent, and due process. A work role that minimizes infringement on personal leisure and family needs. Socially responsible organizational actions. 10-* Quality of work life programs Create workplace that enhances employee well-being and satisfaction Satisfy the full range of employee needs 10-* Psychological Contract A set of perceptions of what employees owe their employers and what their employers owe them. 10-* Test Your Knowledge Identify the cause and consequences of a satisfied workforce. 10-* YOU should be able to L01: Identify the kinds of behaviors managers need to motivate people L02: List principles for setting goals that motivate employees L03: Summarize how to reward good performance effectively L04: Describe the key beliefs that affect people?s motivation 10-* YOU should be able to L05: Discuss ways in which people?s individual needs affect their behavior. L06: Define ways to create jobs that motivate. L07: Summarize how people assess fairness and how to achieve fairness. L08: Identify causes and consequences of a satisfied workforce. 10-* 10-*