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Managing employee motivation and performance, Determinants of individual…
Managing employee motivation and performance
The Nature of Motivation
Motivation
The set of forces that cause people
to behave in certain ways
The Needs Hierarchy Approach
Maslow’s hierarchy of needs
Belongingness
Physiological
Attending to basic survival and biological functions
Experiencing love and affection
Security
Seeking a safe physical and emotional environment
Process Perspectives on Motivation
Process perspectives
Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained those goals
Expectancy Theory
Goal-Setting Theory
Equity Theory
Porter-Lawler Extension of Expectancy Theory
Expectancy Theory
Suggests that motivation depends on two things–how much we want something and how likely we think we are to get it
Theory assumes that
Different 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.
People make decisions about their own behavior
Behavior is determined by personal and environmental
forces
Effort-to-Performance Expectancy
The individual’s perception of the probability that effort will lead to a high level of performance.
Performance-to-Outcome Expectancy
The individual’s perception of the probability that the performance will lead to a specific outcome, consequence, or reward in an organizational setting
Valences
An index of how much an individual values a particular outcome. It is also the attractiveness of the outcome to the individual.
Outcomes
Attractive outcomes have positive valences and unattractive outcomes have negative valences.
Outcomes to which an individual is indifferent have zero valences.
The Porter-Lawler Extension
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
Intrinsic rewards are outcomes that are internal to the individual
Equity Theory
Inputs to the job include
Time, experience, effort, education, and loyalty
Outcomes from a job include
Pay, recognition, promotions, social relationships, and intrinsic rewards
Feeling equitably rewarded
Maintain performance and accept comparison
as fair estimate.
Feeling under-rewarded—reduce inequity by
Changing inputs by trying harder or slacking
off.
Changing outcomes by demanding a raise.
Distorting ratios by altering perceptions of self or of others.
Leaving situation by quitting the job.
Choosing another object person.
Feeling over-rewarded
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
Goal-Setting Theory
Theory’s Assumptions
Behavior is a result of conscious
goals and intentions.
Setting goals influences behavior
in organizations.
Characteristics of Goals
Goal difficulty
Goal specificity
Goal acceptance
Goal commitment
Kinds of Reinforcement in
Organizations
Positive reinforcement
A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed
Avoidance
Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed
Punishment
Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed
Extinction
Used to weaken undesired behaviors by simply ignoring or not reinforcing them
Providing Reinforcement in
Organizations
Fixed-interval schedule
Provides reinforcement at fixed intervals of time, such as regular weekly paychecks
Variable-interval schedule
Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor
Fixed-ratio schedule
Provides reinforcement after a fixed number of behaviors regardless of the time interval involved, such as a bonus for every fifth sale
Variable-ratio schedule
Provides reinforcement after varying numbers of behaviors are performed, such as the use of compliments by a supervisor on an
irregular basis
Organizational behavior modification (OB Mod)
Method for applying the basic elements of reinforcement theory in an organizational setting
Specific behaviors are tied to specific forms of
reinforcement
Popular Motivational Strategies
Empowerment and Participation
Empowerment
The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority.
Participation
The process of giving employees a voice in making decisions about their own work
Alternative Forms of
Working Arrangements
Variable work schedules
Compressed work schedule
Working a full 40-hour week in fewer than the traditional five days
“Nine-eighty” schedule
Working one full week (five days) and one compressed week
(four days), yielding one off-work day every other week
Flexible work schedules
Work schedules that allow employees to select, within broad parameters, the hours they work
Job sharing
When two part-time employees share one full-time job
Telecommuting
Allowing employees to spend part of their time working offsite, usually at home
Using Reward Systems
to Motivate Performance
Reward system
Formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded
Effects of organizational rewards
Higher-level performance-based rewards motivate employees to work harder
Rewards help align employee self-interest with organizational goals
Rewards foster increased retention and citizenship
Merit Reward Systems
Merit pay
Pay awarded to employees on the basis of the relative value of their contributions to the organization
Merit pay plan
Compensation plan that formally bases at least some meaningful portion of compensation on merit
Incentive Reward Systems
Monetary Incentives
Piece-rate incentive plan
Reward system wherein the organization pays an employee a certain amount of money for every unit he or she produces
Sales commissions plan
Employee is paid a percentage of the employee’s sales to customers for selling the firm’s products or services
Nonmonetary Incentives
Immediate, and one-time rewards
Days off, additional paid vacation time, and special perks
Team and Group Incentive
Reward Systems
Gainsharing programs
Designed to share the cost savings from productivity improvements with employees
Scanlon plan
Similar to gainsharing, but the distribution of gains is tilted much more heavily toward employees
Profit-sharing plans
Provide an annual bonus to all employees based on corporate profits.
Executive Compensation
Standard Forms of Executive Compensation
Base salary
Incentive pay (bonuses)
Special Forms of Executive Compensation
Stock option plans
Established to give senior managers the option to buy company stock in the
future at a predetermined fixed price
Executive perks
Criticism of Executive Compensation
Excessively large compensation amounts
Compensation not tied to overall and long-term performance of the organization
Earnings gap between executive pay and typical employee pay
New Approaches to
Performance-Based Rewards
Employee participation
Allowing employee participation in the deciding the distribution of rewards
Innovation in incentive programs
Offering stock options to all employees
Individualizing reward systems such that different employees can be offered different incentives
More effective communication
Sharing information about how awards are earned and distributed
Determinants of individual performance
Motivation
Work
environment
Ability
Weaknesses of Maslow’s Theory
All levels of need are not always present
Cultural differences can impact the ordering and
salience of needs
Ordering or importance of needs is not always the same
Individual Human Needs
Need for achievement
The desire to accomplish a goal or task more
effectively than in the past
Need for affiliation
The desire for human companionship and acceptance
Need for power
The desire to be influential in a group and to control
one’s environment
Contributions of Maslow’s Theory
Emphasized importance of needs to motivation
Identified and categorized individual needs
Motivation becomes a two-stage process
The Two-Factor Theory
Suggests that people’s satisfaction and dissatisfaction are influenced by two independent sets of factors–motivation factors and hygiene factors
Ensuring that deficient hygiene factors are not
blocking motivation
Using job enrichment and redesign of jobs to increase
motivational factors for employees
Esteem
Having a positive self-image/self-respect and recognition and
respect from others
Self-actualization
Realizing one’s potential for personal growth and
development
Contends that people are motivated to seek social equity in the rewards they receive for performance