MOTIVATING
PERFORMANCE 8
Changes in Chapter 8 from the 9th Edition to the 10th Edition
The entire chapter has been updated with 79 (86%) new references to this new edition.
Only the references to the classic motivation theories have been retained to provide the
original source for further information.
Throughout the chapter, minor changes have been made to shorten the text.
The subsection Why Knowing How to Motivate Employees is Important has been deleted
and the reasons now appear it the section How Motivation Affects Behavior, Human
Relations and Performance. Also, this section has been re-written with all new references
to support the need for motivation. A new term employee engagement has also been
added to this section.
A new section Your Motivation has been added to help student relate motivation to them.
A couple of company examples were added to illustrate incentive programs.
SMART goals were added to the Objectives section.
There is a new introduction to the section Self-Motivation.
There is a new introduction to the section Do Motivation Theories Apply Globally?
The case has been updated including providing a Web address to watch Kevin Plank give
a 20 minute talk about entrepreneurship. Also, a new question has been added related to
the video.
Chapter Outline
I. THE IMPORTANCE OF MOTIVATION
A. What is Motivation?
B. How Motivation Affects Behavior, Human Relations, and Performance
1. The Performance Formula, 2. Theory and Application, 3. Your Motivation
II. CONTENT MOTIVATION THEORIES
A. Needs Hierarchy.
1. Physiological, 2. Safety, 3. Social, 4. Esteem, 5. Self-actualization
B. ERG Theory.
1. Existence, 2. Relatedness, 3. Growth
C. Two Factor Theory
1. Hygiene, 2. Motivator
D. Manifest Needs Theory.
1. Achievement, 2. Power, 3. Affiliation
E. How Organizations Meet Employee Needs.
III. PROCESS MOTIVATION THEORIES
A. Expectancy Theory.
B. Equity Theory.
IV. REINFORCEMENT THEORY
A. Types of Reinforcement.
1. Positive, 2. Avoidance, 3. Extinction, 4. Punishment.
B. Schedule of Reinforcement.
1. Continuous reinforcement, 2. Intermittent reinforcement.
V. MOTIVATION TECHNIQUES
A. Incentive and Recognition
1. Incentive and Recognition Programs, 2. Giving Praise.
B. Objectives and MBO.
1. Criteria for objectives, 2. Writing objectives, 3. MBO.
C. Job Enrichment.
D. Job Design
VI. PUTTING THE MOTIVATION THEORIES TOGETHER
A. Self-Motivation
VII. DO MOTIVATION THEORIES APPLY GLOBALLY?
A. Cross-Cultural Differences in Motivation
LECTURE OUTLINE PLUS
Power Point: You may use the Power Point supplement to enhance your lectures. Even if your classroom is not
equipped to use Power Point, you can review the material on your personal computer to get teaching ideas and to
copy the slides. Copies of the slides can be made into overheads.
I. THE IMPORTANCE OF MOTIVATION
A. What is Motivation?
KT- motivation. Motivation is the process of meeting our needs. The motivation process steps include: need–>
Work Application (WA): NOTE: All the work application questions appear in the test bank so that you can assess
WA 1- Give an example of how you followed the motivation process. Identify the need, motive, behavior and
satisfaction or dissatisfaction.
SA- I had a need for a college education, so I was motivated to apply to different colleges and am attending
1. Why knowing how to motivate employees is important. As was stated earlier, the goal of human relations is to
B. How Motivation Affects Behavior, Human Relations, and Performance.
Our needs lead to behavior and interaction with others as we attempt to meet our needs.
1. Performance Formula KT- performance formula. Without motivation performance is usually below potential.
Motivation is one of the three interdependent factors of performance. The Performance Formula states that
performance = ability X motivation X resources. If any one of these three factors is missing, performance will be
adversely affected. EX. There are two athletes on the college team. One is highly motivated and practices hard on
his own, as well as during team practices; however, he has low ability. A second athlete has high ability but is not
motivated to practice. As a result, both athletes and the team do not perform well.
Application Situations
The Performance Formula, AS-8.1
1. A. Ability. The others appear to have more ability.
2. B. Motivation. S/he is not willing to work for the grade of As.
LO 1. Explain the motivation process and the three factors affecting performance.
The motivation process steps are: need–> motive–> behavior–> satisfaction or dissatisfaction. The three factors
2. Theory and Application. The chapter has both,
3. Your Motivation. Your ability to meet your needs and wants is based you’re your ability to motivate others to help
you get what you want.
II. CONTENT MOTIVATION THEORIES
KT- content motivation theories. They focus on identifying people’s needs in order to understand what motivates
them. We do the things we do to meet our needs.
Exhibit 8-1, Needs Hierarchy and ERG Theory may be shown.
A. Needs Hierarchy.
KT- Needs hierarchy. It is based on five categories of needs. According to Maslow our five levels of needs are:
1. physiological
2. safety
3. social
4. esteem
5. self-actualization
B. ERG Theory. Alderfer’s ERG Theory classifies three needs rather than five-
1. existence,
2. relatedness,
3. growth needs.
Motivating with Needs Hierarchy and ERG Theory. The supervisor should get to know and understand employee’s
needs, and meet them as a means of increasing productivity.
C. Two Factor Theory.
KT- Two-factor theory. It classifies needs as (1) hygienes and (2) motivators. According to Herzberg, if you want to
motivate employees do not give them hygiene factors like job security, better working conditions, and fringe
benefits; give them motivators like achievement, recognition, challenge, advancement, and growth.
Exhibit 8-2, Two Factor Theory may be shown.
Self-Assessment Exercise 8-1.
WA 2- In Self-Assessment Exercise 8.1 Motivators and Hygienes, did you select motivators or hygienes as being
important to you? Explain.
SA- Motivators are more important to me. My hygiene score was 18 and my motivator score was 25. The only
1. Using two-factor theory to motivate employees.
SB 8.1- What Do You Want From A Job? may be used to help students understand the difference between hygiene
and motivators and what motivates them and others.
D. Manifest Needs Theory.
KT- Manifest needs theory. It classifies achievement, power, and affiliation needs. Everyone has these three needs,
but to various levels. Understanding your own dominate need can help you to understand your own behavior, and
that of others.
Self-Assessment Exercise 8-2.
1. The need for achievement (n Ach). People with a high need for achievement are goal oriented, they seek
challenging situations, and they like getting feedback.
To motivate them the supervisor should continue to delegate more responsibility for challenging jobs with clear
goals.
2. The need for power (n Pow). People with a high need for power like to compete, control the situation, and they
are willing to confront others. Managers tend to have a high need for power.
To motive employees with n Pow the supervisor should allow them as much autonomy as they are capable of,
delegate entire assignments to them, and let them work alone.
3. The need for affiliation (n Aff). People with a high need for affectation want to be liked by others, they put
relationships before the task.
To motivate employees with n Aff the supervisor should let them work as part of a team, delegate tasks like
orientation and training to them.
WA 3- Explain how your personal n Ach, n Pow, and n Aff affect your motivation. How can you use manifest needs
theory to motivate employees?
SA- My major need is power, I like to be in charge and enjoy competition, which increases my motivation. My
second need is for achievement, I enjoy challenging work, and seek it. I also have a need for affiliation, I seek
Exhibit 8-3, Classification of Needs by Four Theories of Motivation may be shown to compare the four content
motivation theories.
LO 2. Describe four content motivation theories.
Content motivation theories focus on identifying people’s needs in order to understand what motivates them. Needs
hierarchy is Maslow’s theory of motivation based on five categories of needs. Alderfer’s ERG Theory classifies
E. How Organizations Meet Employee Needs.
Exhibit 8-4, How Organizations Meet Employee Needs, may be shown.
III. PROCESS MOTIVATION THEORIES
KT- Process motivation theories. They attempt to understand how and why people are motivated.
A. Expectancy Theory.
KT- Expectancy theory. According to Vroom motivation = expectancy X valence. To motivate employees they must
perceive that they can do the job that their efforts will result in rewards. Employees must view the rewards as
valuable to them. EX. We all know some students who expect to do well in school and place value in good grades.
They are motivated to study hard to be successful students. Students with ability usually do well. While on the other
hand, you may know some students who say “I could get good grades if I wanted to, but its not worth the time and
effort, I’d rather have a good time than study.” These students are not motivated.
1. Motivating with expectancy theory. Supervisors should: 1. clearly define objectives and the performance needed,
2. tie performance to rewards, and 3. offer rewards employees value.
WA 4- Give an example of how expectancy theory has affected your motivation. How can you use expectancy
theory to motivate employees?
SA- On my job I work on different projects and I have noticed that my motivation is stronger when I know I can do
the project well. When I am not sure of myself I procrastinate. Also, I know that if I do a good job my boss will tell
B. Equity Theory.
KT- Equity theory. People tend to compare their situation to relevant others. In doing so they perceive one of three
situations: 1. equitable reward: they are satisfied that their inputs and outputs are equal. 2. Underreward: they
perceive their inputs exceed their output. They tend to change the situation by trying to increase outputs, reduce
inputs, rationalize, or leave the situation to make thing equitable. 3. Overrewarded, people don’t usually get upset
when they are overrewarded, but they may increase inputs or reduce outputs to maintain equity.
EX. Lord and Hahenfeld wrote an article entitled “Longitudinal Field Assessment of Equity Effects on the
Performance of Major League Baseball Player, which appeared in the JOURNAL OF APPLIED PSYCHOLOGY,
Vol. 64, 1979, pp.19-26. Their research hypothesized that the 23 players who elected to become free agents for the
1976 season would have a drop in performance levels because they had to take a pay cut. Taking a pay cut resulted
in their perception of being underrewarded. The 23 players did reduce their performance (inputs) during the 1976
season. Performance for 1973, 1974, 1975, and 1977 (as free agents) was higher than 1976.
1. Motivating with equity theory. To motivate employees the supervisor should: 1. understand employee perception
of equity, 2. make rewards equitable, 3. reward high performance to motivate people to work harder to attain the
rewards.
WA 5- Give an example of how equity theory has affected your motivation. How can you use equity theory to
motivate employees?
SA- Equity theory has definitely affected my motivation. My inputs (study) affect my outputs (grades) when I first
I compare my inputs to others all the time. Based on my inputs I can predict what others will think, but also what I
I will use equity theory to motivate employees by telling them to compare there inputs to their outputs, and what
LO 3. Describe two process motivation theories.
Process motivation theories attempt to explain how and why people are motivated. Expectancy theory is Vroom’s
IV. REINFORCEMENT THEORY
KT- Reinforcement Theory.
Reinforcement theory attempts to get employees to do what management wants them to do. The process is:
stimulus–>response–>consequences.
A. Types of Reinforcement.
1. Positive reinforcement. When employees perform to management standards they are rewarded to reinforce this
behavior.
EX. If an employee does a good job, the supervisor can say thank you for a job well done.
2. Avoidance reinforcement. It is also known as negative reinforcement. When management establishes rules
employees often do not break them because they want to avoid the negative consequences for doing so. EX.
Company rule- wear safety shoes in the shop. Consequence- employees who come to work without safety shoes will
3. Extinction. With extinction the manager ignores the behavior or withholds rewards in order to get the employee to
perform to expectations.
EX. An employee purposely makes faces at the supervisor because he gets upset by the employee’s behavior. To
stop the employee the supervisor realizes what is going on and ignores the faces. He does not say or do anything to
4. Punishment. Employees who conduct undesirable behavior are given a negative consequence. Rules are designed
to be avoidance reinforcement. However, when rules are broken, punishment for the violation is designed to stop
repeat offenses.
EX. Soldiers reporting for role call late are told to do 50 push-ups.
B. Schedule of Reinforcement. The second consideration is when to reinforce behavior. There are two major
schedules:
1. Continuous reinforcement. Each and every time the desired behavior is performed the employee is reinforced.
EX. A commissioned sales person knows that every time she makes a sale 20% of the sales price will be put in
2. Intermittent reinforcement. It is not always practical or possible to use continuous reinforcement. In most
situations the supervisor can reinforce behavior based on the passage of time or output. The four alternatives are:
fixed interval schedule
variable interval schedule
fixed ration schedule
variable ration schedule
3. Motivating with reinforcement. To motivate employees, supervisors should select the appropriate types and
schedules of reinforcement. Use positive rather than negative reinforcement, and only reward good performance.
Application Situations
Motivation Theories, AS-8.2
6. A. Expectancy. S/he is referring to the valence aspect of the theory.
7. C. Needs hierarchy. Safety needs are met, so s/he is trying to meet social needs.
11. D. Manifest needs. S/he is aware of his or her need for power, and employees too. S/he will attempt to meet
15. F. Reinforcement. S/he is using extinction reinforcement.
LO 4. State how reinforcement is used to increase performance.
Reinforcement theory is primarily Skinner’s motivation theory contending that behavior can be controlled through
the use of rewards. Through the use of positive, avoidance, extinction, and punishment reinforcement employees can
WA 6- What type(s) and schedule(s) of reinforcement does or did your supervisor use to motivate you? Explain
each. How can you use reinforcement to motivate employees?
SA- My boss used positive reinforcement. He gave me time off when I needed it (variable interval) and bonuses and
V. MOTIVATION TECHNIQUES
A. Incentive and Recognition
1. Incentive and Recognition Programs. Organizations are using separate and incentives (give cash) and recognition
(doesn’t give cash) programs to motivate employees.
2. Giving Praise. A quick no cost motivator is to give praise.
BMV-8 Video Behavior Module 8, Giving Praise may be shown in place of, or in addition to this section. It takes
less than 2 minutes to view.
Model 8-1, Giving Praise Model, may be shown as an illustration of the steps to follow when giving praise. The four
steps are also on the video module.
Giving praise: step 1. tell the employee exactly what was done correctly, 2. tell the employee why the behavior is
important, 3. stop for a moment of silence, 4. encourage repeat performance.
SB 8.2- Giving Praise may be used to develop students’ skill in giving praise. BM-5 may be shown as a behavior
model for this exercise.
LO 5. List the four steps in the giving praise model.
Step 1. tell the employee exactly what was done correctly, 2. tell the employee why the behavior is important, 3. stop
B. Objectives and MBO.
KT- objectives and MBO.
1. Criteria for objectives. For objectives to motivate employees they must meet the following five criteria. They
must be:
-difficult but achievable
-observable and measurable
-specific, with a target date
-participatively set when possible
-accepted
Application Situations
Objectives, AS-8.3
You may find students can find other areas not meet because some are interrelated. However, the answers give the
area the author tried to convey.
16. B. Observable and measurable. How will the company know if it’s reputation has improved? How will they
17. C. Specific target date. Without a specific target date the person will probably forget when the two weeks started
18. A. Difficult but achievable. Passing is most likely not to difficult for most students. Stating a grade like A or B is
19. C. Specific. By how many units will they increase production? It is hard to say if increasing production is
20. A. Difficult. The objective is observable and measurable with, specific with a target date. However, it is most
2. Writing objectives. When writing objectives use the model: Infinitive + action verb + singular behavior result +
target date. EX. To + complete + the entire human relations book + by May 200 .
Model 8-2, Writing Objective Model, may be shown.
LO 6. Identify the four parts of the writing objectives model.
The writing objectives model: To + action verb + singular behavior result + target date.
3. Management by objectives (MBO) KT- MBO. The three steps to MBO are: (1) Set individual objectives and
LO 7. Explain the three steps of managing by objectives.
1. Set individual objectives and plans. 2. give feedback and evaluate performance. 3. reward according to
C. Job Enrichment.
Four simple was to make jobs more interesting and challenging are: (1) Delegate more variety and responsibility. (2)
Form natural work groups. (3) Make employees responsible for their own identifiable work. (4) Give employees
more autonomy.
WA 7- Describe how a present or past job you hold or have held could be enriched.
SA- I saw a little of job enrichment at Stormy Container Co. If work groups in a department do a good job over a
D. Job Design.
KT- job design and job simplification. Working with both experts and employees, supervisors can come up with
effect job designs. Job design and simplification call for increase productivity through working smarter not harder.
WA 8- Describe how a present or past job you hold or have held could be simplified. Specify if it is an elimination,
combination, or change in sequence has simplified the job.
SA- When I worked at Shore Co. I had to keep track of the present employees. We used to use lists of names for
each department. However, with the high turnover rate, the lists were always a mess, and had errors. We got a big
LO 8. State ways to enrich, design, and simplify jobs.
Job enrichment is the process of building motivators into the job itself by making it more interesting and
VI. PUTTING THE MOTIVATION THEORIES TOGETHER
Exhibits 8-5 and 8-6, Motivation Theories and The Motivation Process, may be shown as a summary and
comparison of the major motivation theories.
WA 9- Which motivation theory do you feel is the best? Explain why.
SA- This is a tough question, but I guess I’ll say reinforcement theory. I picked it because it gives you some good
WA 10- What is your motivation theory. What are the major methods, techniques, etc., you plan to use on the job as
a supervisor to increase motivation and performance?
SA- My motivation theory is to meet employee needs while getting the job done. I will get to know my employees
A. Self-Motivation
Model 8.3 can be shown to list the step in self-motivation
1. Set Objectives: To be motivated, develop objectives using Model 8.2 to be sure to meet the criteria with high
expectations for yourself.
Drive and Persistence to Succeed
2 Develop Plans—Willpower Alone Fails
3. Measure Results
4. Reinforce Results
Remember, what you think about, is how you feel and what you feel is how you behave. So develop a
self-motivation objective, plan, measure, and reinforce and think about it and visualize yourself accomplishing the
objective. Model 8.3 reviews the steps of self-motivation
WA- 11. Using Model 8-3, set an objective and develop a plan to achieve it to motivate yourself.
5. Bored or Feeling Trapped on the Job? One, you can look for another job (within or leaving the firm) following
the four steps of self-motivation model. Two, you can think about how your job can be enriched or change the
design. With ideas in mind, talk to your boss about implementing was to improve your job satisfaction.
VII. DO MOTIVATION THEORIES APPLY GLOBALLY?
Not exactly. Cultural differences limit theory generalizations.
LO 9. Explain possible limitations of using motivation theories outside North America.
People of different cultures have different needs and values. What works well in one country may not be effective in
A. Cross-Cultural Differences in Motivation
1. Hierarchy of Needs, ERG, and Two-Factor Theory
2. Manifest Needs Theory
3. Equity Theory
4. Expectancy Theory
5. Reinforcement Theory
6. Goal Setting