CH 12- MOTIVATING EMPLOYEES MOTIVATING FOR PERFORMANCE Motivation is defined as the psychological processes that arouse and direct people?s goal-directed behavior. Motivation: What It Is, Why It?s Important What Is Motivation & How Does It Work? Motivation is defined as the psychological processes that arouse and direct people?s goal-directed behavior. Inferred from one?s behavior People have certain needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original need. A SIMPLE MODEL OF MOTIVATION Feedback Reward informs you whether behavior worked and should be used again Extrinsic rewards---satisfaction in the payoff from others The payoff, such as money, a person receives from others for performing a particular task Intrinsic rewards---satisfaction in performing the task itself The satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself Why Is Motivation Important? You want to motivate people to? Join your organization Stay with your organization Show up for work at your organization Perform better for your organization Do extra for your organization CONTENT PERSPECTIVES ON EMPLOYEE MOTIVATION Content perspectives (need-based perspectives): theories that emphasize the needs that motivate people. Needs: physiological or psychological deficiencies that arouse behavior. Maslow?s Hierarchy of Needs Theory: Five Levels Hierarchy of needs theory: proposes that people are motivated by five levels of needs: (1) physiological, (2) safety, (3) love, (4) esteem, and (5) self-actualization. The Five Level of Needs Needs are never completely satisfied, our actions are aimed at fulfilling the ?deprived? needs, the needs that remain unsatisfied at any point in time. Maslow?s Hierarchy of Needs Physiological Needs: the most basic human physical needs (food, clothing, shelter, comfort, and self-preservation) Safety Needs: needs concerned with physical safety and emotional security Love Needs: people look for love, friendship, and affection Esteem Needs: people focus on self-respect, status, reputation, recognition, and self-confidence. Self-Actualization Needs: need to develop ones? fullest potential; to become the best one is capable of being. Using the Hierarchy of Needs Theory to Motivate Employees The importance of Maslow?s contribution is that he showed that workers have needs beyond that of just earning a paycheck. Alderfer?s ERG Theory: Existence, Relatedness, & Growth ERG Theory: assumes that three basic needs influence behavior---existence, relatedness, and growth. The Three Kinds of Needs E---Existence Needs: the desire for physiological and material well-being. R---Relatedness Needs: the desire to have meaningful relationships with people who are significant to us. G---Growth Needs: the desire to grow as human beings and to use our abilities to their fullest potential. Frustration-regression component: if our higher-level needs are frustrated, we will then seek more intensely to fulfill our lower-level needs. Using the ERG Theory to Motivate Employees ERG theory is consistent with the finding that individual and cultural differences influence our need states. Managers should customize their reward and recognition programs to meet employees? varying needs. McClelland?s Acquired Needs Theory: Achievement, Affiliation, & Power Acquired Needs Theory: states that three needs---achievement, affiliation, and power---are major motives determining people?s behavior in the workplace. We are not born with our needs; rather we learn them from the culture---from our life experiences. The Three Needs Need for achievement---?I need to excel at tasks.? Desire to excel, to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks. Need for affiliation---?I need close relationships.? Desire for friendly and warm relationships with other people. Need for power---?I need to control others.? Desire to be responsible for other people, to influence their behavior or to control them. Personal power (negative): the desire to dominate others, and involves manipulating people for one?s own gratification. Institutional power (positive): the need to solve problems that further organizational goals. Using Acquired Needs Theory to Motivate Employees Need for achievement. High need for achievement: happy with accomplishment of task being its own reward, don?t mind or even prefer working alone, and are willing to take moderate risks. Tend to advance in technical fields requiring creativity and individual skills. Need for power. High need for power: enjoy being in control of people and events and being recognized for this responsibility. Preference for work that allows you to control or have an effect on people and be publicly recognized for your accomplishments. Need for affiliation. High need for affiliation: tend to seek social approval and satisfying person relationships. Prefer work such as sales, which provides for personal relationships and social approval. Herzberg?s Two-Factor Theory: From Dissatisfying Factors to Satisfying Factors Two-factor theory: proposed that work satisfaction and dissatisfaction arise from two different factors---work satisfaction from motivating factors and work dissatisfaction from hygiene factors. Hygiene Factors versus Motivation Factors Herzberg?s Two-Factor TheoryHygiene factors are the lower-level needs, the motivating factors are the higher-level needs Motivating Factors: ?What will make my people satisfied?? Achievement Recognition The work itself Responsibility Advancement & growth Neutral area: neither satisfied nor dissatisfied No dissatisfaction Satisfaction Dissatisfaction No satisfaction Hygiene Factors: ?What will make my people dis satisfied?? Pay & security Working conditions Interpersonal relationships Company policy Supervisors Hygiene factors---?Why are people dissatisfied?? Factors associated with job dissatisfaction---such as salary, working conditions, interpersonal relationships, and company policy---all of which affect the job context in which people work. Motivating factors---?What will make my people satisfied?? Factors associated with job satisfaction---such as achievement, recognition, responsibility, and advancement---all of which affect the job content or the rewards of work performance. Using Two-Factor Theory to Motivate Employees Managers should first eliminate dissatisfaction, making sure those working conditions, pay levels, and company policies are reasonable. Then concentrate on spurring motivation by providing opportunities for achievement, recognition, responsibility, and personal growth. PROCESS PERSPECTIVES ON EMPLOYEE MOTIVATION PROCESS PERSPECTIVES: concerned with the thought processes by which people decide how to act---how employees choose behavior to meet their needs. Equity Theory: How Fairly Do You Think You?re Being Treated in Relation to Others? Equity theory (J. Stacy Adams): focuses on employee perceptions as to how fairly they think they are being treated compared to others. Based on the idea that employees are motivated to see fairness in the rewards they expect for task performance. Employees are motivated to resolve feeling of injustice. The Elements of Equity Theory: Comparing Your Inputs & Outputs with Those of Others Inputs---?What do you think you?re putting into the job?? Time, effort, training, experience, intelligence, creativity, seniority, status, etc? Outputs or rewards---?What do you think you?re getting out of the job?? Rewards that people receive from an organization: pay, benefits, praise, recognition, bonuses, promotions, status perquisites. Comparison---?How do you think your ratio of inputs and rewards compares with those of others?? People compare the ratio of their own outcomes to inputs against the ratio of someone else?s outcomes to inputs, then make final judgment about fairness. Using Equity Theory to Motivate Employees Employees who feel they are being under-rewarded will respond to the perceive inequity in one or more negative ways. Employees who think they are treated fairly are more likely to support organization change, more apt to cooperate in group settings, and less apt to turn to arbitration and the courts to remedy real or imagined wrongs. Some ways employees try to reduce inequity Employee Perceptions Are What Count Employee Participation Helps Having an Appeal Process Helps Expectancy Theory: How Much Do You Want & How Likely Are You to Get It? Expectancy Theory (Victor Vroom): suggests that people are motivated by two things: (1) how much they want something and (2) how likely they are to get it. The Three Elements: Expectancy, Instrumentality, Valence Motivation involves the relationship between your effort, your performance, and the desirability of the outcomes of your performance. Expectancy---?Will I be able to perform at the desired level on a task?? Expectancy: the belief that a particular level of effort will lead to a particular level of performance. (Effort-to-performance expectancy) Instrumentality---?What outcome will I receive if I perform at this level?? Instrumentality: the expectation that successful performance of the task will lead to the outcome desired. (performance-to-reward expectancy) Valence---?How much do I want the outcome?? Valence: value, the importance a worker assigns to the possible outcome or reward. For your motivation to be high, you must be high on all three elements---expectancy, instrumentality, and valence. Using Expectancy Theory to Motivate Employees When attempting to motivate employees, ask the following questions: What rewards do your employees value? You need to get to know your employees and determine what rewards (outcomes) they value, such as pay raises ore recognition. What are the job objectives and the performance level you desire? Clearly define the performance objectives and determine what performance level or behavior you want. Are the rewards linked to performance? Reward high performance. Do employees believe you will deliver the right rewards for the right performance? Employees must believe that you have the power, the ability, and the will to give them the rewards you promise for the performance you are requesting. Goal-Setting Theory (Edwin Locke & Gary Latham): Objectives Should Be Specific & Challenging but Achievable. Goal-setting theory: employees can be motivated by goals that are specific and challenging but achievable. It is natural for people to set and strive for goals; however, the goal-setting process is useful only if people understand and accept the goals. Three Elements of Goal-Setting Theory A goal is defined as an objective that a person is trying to accomplish through his or her efforts. Goals Should Be Specific Goals need to be specific---usually meaning quantitative. Goals Should Be Challenging Set goals that are challenging, which will impel people to focus their attention in the right place and to apply more effort or inputs toward their jobs. Goals Should Be Achievable Managers need to make sure employees have additional training, if necessary, to achieve difficult goals. Using Goal-Setting Theory to Motivate Employees Important to make sure that employees have the abilities and resources to accomplish their goals. Make sure to give feedback so that employees know of their progress---and don?t forget to reward people for doing what they set out to do. JOB DESIGN PERSPECTIVES ON MOTIVATION Job Design: (1) the division of an organization?s work among its employees and (2) the application of motivational theories to jobs to increase satisfaction and performance. Fitting people to jobs (traditional): based on the assumption that people will gradually adapt to any work situation. Job simplification: the process of reducing the number of tasks a worker performs. A job is stripped down to its simplest elements; it enables a worker to focus on doing more of the same task, thus increasing employee efficiency and productivity. Fitting Jobs to People Fitting jobs to people (modern): based on the assumption that people are underutilized at work and that they want more variety, challenges, and responsibility. Job Enlargement: Putting More Variety into a Job Job enlargement: consists of increasing the number of tasks in a job to increase variety and motivation. Horizontal loading---giving employees additional tasks of similar difficulty Job Enrichment: Putting More Responsibility & Other Motivating Factors into a Job Job enrichment: consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement. Vertical loading---employees are given more responsibility The Job Characteristics Model: Five Job Attributes for Better Work Outcomes Job characteristics model (Hackman & Oldham): (a) five core job characteristics that affect (b) three critical psychological states of an employee that in turn affect (c) work outcomes---the employee?s motivation, performance, and satisfaction. Five job Characteristics Skill Variety??How Many Different Skills Does Your Job Require?? Describes the extent to which a job requires a person to use a wide range of different skills and abilities Task Identity---?How Many Different Tasks Are Required to Complete the Work?? The extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end. Task Significance??How Many Other People Are Affected by Your Job?? The extent to which a job affects the lives of other people, whether inside or outside the organization. Autonomy??How Much Discretion Does Your Job Give You?? Extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them. Feedback??How Much Do You Find Out How Well You?re Doing?? Extent to which workers receive clear, direct information about how well they are performing on the job. How the Model Works Job design works when employees are motivated, to be so, they must have: Necessary knowledge and skill Desire for personal growth Context satisfactions?that is, the right physical working conditions, pay, and supervision. Applying the Job Characteristics Model Diagnose the work environment to see whether a problem exists Job diagnostic survey: indicates whether an individual?s motivating potential score (MPS)?the amount of internal work motivation associated with a specific job?is high or low. Determine whether job redesign is appropriate Consider how to redesign the job. REINFORCEMENT PERSPECTIVES ON MOTIVATION Concerned with how the consequences of a certain behavior affect that behavior in the future. Reinforcement theory (Thorndike & Skinner): attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated. The Four Types of Reinforcement: Positive, Negative, Extinction, & Punishment Reinforcement: anything that causes a given behavior to be repeated or inhibited. Positive Reinforcement: Giving Rewards Positive Reinforcement: the use of positive consequences to encourage desirable behavior. Negative Reinforcement: Avoiding Unpleasantness Negative reinforcement: the removal of unpleasant consequences following a desired behavior. Extinction: Withholding Rewards Extinction: the withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future. Punishment: Applying Negative Consequences Punishment: the application of negative consequences to stop or change undesirable behavior. Using Reinforcement to Motivate Employees Positive Reinforcement Reward only desirable behavior Give rewards as soon as possible Be clear about what behavior is desired Have different rewards and recognize individual differences Punishment Punish only undesirable behavior Give reprimands or disciplinary actions as soon as possible Be clear about what behavior is undesirable Administer punishment in private Combine punishment and positive reinforcement USING COMPENSATION & OTHER REWARDS TO MOTIVATE Employee engagement: a heightened emotional connection that an employee feels for his or her organization, which influences him or her to exert greater discretionary effort in his or her work. Motivation & Compensation Characteristics of the Best Incentive Compensation Plans For incentive plans to work: (1) rewards must be linked to performance and be measurable, (2) the rewards must satisfy individual needs, (3) the rewards must be agreed on by manager and employees, and (4) the rewards must be believable, and achievable by the employees. Popular Incentive Compensation Plans Pay for performance (merit pay): bases pay on one?s results. Piece rate: employees are paid according to how much output they produce. Sales commission: sales representatives are paid a percentage of earnings the company made from their sales. Bonuses: cash awards given to employees who achieve specific objectives Profit sharing: the distribution to employees of a percentage of the company?s profits. Gainsharing: the distribution of savings or ?gains? to groups of employees who reduced costs and increased measurable productivity. Stock options: employees are given the right to buy stock at a future date for discounted price. Pay for knowledge (skill-based pay): ties employee pay to the number of job-relevant skills or academic degrees they earn. Nonmonetary Ways of Motivating Employees The need for work-life balance The need to expand skills The need to matter EX: Flexible workplace?including part-time work, flextime, compressed workweek, job sharing, and telecommuting. Thoughtfulness: The Value of Being Nice ?Being nice? means: reducing criticism, becoming more effusive in your praise, and writing thank you notes to employees for exceptional performance. Work-Life Benefits Programs used to increase productivity and commitment by removing certain barriers that makes it hard for people to strike a balance between their work and personal lives. Include helping employees with daycare costs or even establishing on-site centers; domestic-partner benefits; job-protected leave for new parents; and provision of technology such as mobile phones and laptops to enable parents to work at home. Surroundings Skill-Building & Educational Opportunities Tuition reimbursement Sabbaticals Enables employees to recharge themselves in hopes of cementing their loyalty to the organization. They will reduce their inputs They will try to change the outputs or rewards they receive The will distort the inequity They will change the object of comparison They will leave the situation
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