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Chapter 08 - Foundations of Motivation
8-31
3. Do you believe that recognition will motivate layoff survivors? Explain.
a. If employees believe that the layoff process was handled as fairly and as
4. Do you agree that managers should find ways to have fun in the work
environment after a layoff? Why or why not?
emotions.
5. What is the biggest takeaway you get from trying to link content in this chapter to
this case?
a. This is an opinion question and student responses will vary accordingly.
LEGAL/ETHICAL CHALLENGE: Should Retrocessions Be Allowed in the United
States?
What is Your Opinion about Retrocessions?
1. A retrocession is like getting a sales commission and thus should be allowed.
2. A retrocession is another way that bankers are taking advantage of investors.
Commissions should be passed to investors and not kept by bankers. This
practice should be against the law.
3. Bankers should be required to disclose this issue to potential investors and then
let individuals decide for themselves. A bank customer may be okay with this
practice because they have a long-term relationship with the banker.
4. Invent other options.
Discussion:
Chapter 08 - Foundations of Motivation
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A retrocession could be viewed as a reward for an asset manager for effectively
deciding where to invest a client’s money. If the asset manager is doing a great job in
managing the client’s wealth, the client might be more than willing to pay such a reward
to be able to have access to the best asset manager’s time and/or the best investment
opportunities. If clients felt that the asset manager was not providing them a good
return on their investments, they could simply select another asset manager. The
danger of a retrocession is that the payments may encourage the asset manager to
invest the client’s money in an inappropriate investment. The asset manager may make
investment decisions based on which investments paid the highest retrocession rates
rather than making decisions based on what was in the best interests of their client. It
may be that the client will not realize that it was a bad investment decision until it was
too late, such as those who invested in Bernie Madoff’s feeder funds. The fact that
there historically has not been a high degree of transparency with these payments
makes this a compelling concern and a valid reason why governments should act to
limit retrocessions or establish standards for their transparency. Even if governments
do not restrict retrocessions, investors always have choices as to where to invest. If an
asset manager refuses to disclose retrocessions or if the asset manager’s contract
contains a clause where the client expressly renounces all rights to retrocessions paid
to the asset manager, the client can find another asset manager.
INTERNET EXERCISE
http://money.cnn.com/magazines/fortune/bestcompanies
Chapter 8 discussed a variety of approaches for motivating employees. The purpose of
this exercise is for you to identify motivational techniques or programs that are being
used at different companies. Each year Fortune magazine ranks the “100 Best
Companies to Work For.” For the last two years (2010-2011) the winner has been SAS.
The list of employers changes each year, but you should be able access the 2011 list by
clicking on the drop-down year menu on the “Best Companies” homepage once the new
list is posted in January of 2012.
From the 2011 list, first read the profiles of the top ten firms. Then watch the videos in
the “See the Best Employers in Action” section. Then read the sections “I work for one
of the 10 Best Companies” and “Botox? Wine bars? 13 Unusual Perks.” You can also
read about any companies located in your geographic region or the firms offering the
benefits most important to you. After reading these profiles and any supplemental
articles provided on the site, answer the following questions:
Questions:
1. What factors do you think contributed to the firm receiving the top honors in the
current year?
Chapter 08 - Foundations of Motivation
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2. What concepts from the motivational theories that you read about in Chapter 8
were illustrated in the practices of the companies that you reviewed?
3. Which company would you be most interested in working for and why?
Note to Instructors: Fortune magazine publishes the “100 Best Companies to Work
For” list each year and it is possible that the link provided will no longer be accurate
once the 2012 list is announced. If this happens, it should be easy to locate the new
web link and provide the students with the updated address. Using the “Search” option
within the Fortune magazine web site with the phrase “100 Best Companies to Work
For” should bring up the new link, if it is not prominently displayed on the front page.
Alternatively, there is currently a drop-down year menu on the page that should take
you back to the 2011 list.
INSTRUCTIONAL RESOURCES
1. See “Topic 7: Motivation and Goal Setting” in “An Instructor’s Guide to an Active
Classroom” by A. Johnson and A. Kinicki (McGraw-Hill/Irwin, 2006).
2. See “Experiencing Organizational Work Design: Beyond Hackman and Oldham”
by C. Fornaciari and K. Dean in Journal of Management Education, 2005, Vol.
29(4), pp. 631-653.
3. For great material for enlivening classroom discussions pertaining to job
satisfaction see the book “How to Love the Job You Hate: Job Satisfaction for the
21st Century” by J. Boucher (Beagle Bay Books, 2004).
4. See “What Do You Value” in “An Instructor’s Guide to an Active Classroom” by A.
Johnson and A. Kinicki (McGraw-Hill/Irwin, 2006).
5. Changes in the expectations and values of university students are discussed in
“Expectations and Values of University Students in Transition: Evidence from an
Australian Classroom” by C. Pearson and S. Chatterjee in Journal of
Management Education, 2004, Vol. 24(4), pp. 427-446.
TOPICAL RESOURCES
1. See “Employee Commitment and Motivation: A Conceptual Analysis and
Integrative Model” by J. Meyer, T. Becker, and C. Vandenberghe in Journal of
Applied Psychology, 2004, Vol. 89(6), pp. 991-1007.
2. A great summary of modern principles of motivation in a work environment is
provided in “Work Motivation: History, Theory, Research, and Practice” by J.
Fleenor and W. Harrison in Personnel Psychology, 2007, Vol. 60, pp. 503-505.
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3. A great discussion on managerial motivation can be found in “Managerial
Motivation Dynamics and Incentives” by A. Kocabıyıkoğlu and I. Popescu in
Management Science, 2007, Vol. 53, pp. 834-848.
4. McClelland's motivation concepts are presented in “Human Motivation” by D.
McClelland (Scott, Foresman, 1985).
5. Maslow's theory is developed in the 2nd edition of “Motivation and Personality” by
A. Maslow (Harper & Row, 1970).
VIDEO RESOURCES
1. The differing motivational needs of employees are examined in "New Look at
Motivation" (CRM Films).
2. An in-depth look at job enrichment is found in the video "Job Enrichment:
Managerial Milestone or Myth?" (Salenger).
3. An analysis of achievement motivation is presented in "The Self-Motivated
Achiever" (BNA Communications, Inc.).
4. Maslow’s need theory is explored in the video “Motivation” (Insight Media).
5. The classic motivation theories are covered in the video "Motivation: The Classic
Concepts" (CRM Films).
DISCUSSION QUESTIONS
1. Compare and contrast Maslow’s need hierarchy theory, ERG theory and
McClelland’s need theory.
2. Has there been a time when you have experienced an inequitable situation?
How did you address the situation?
3. Analyze the advantages and disadvantages of the five top-down approaches to
job design.
4. Describe how you could apply the theories of motivation presented in this chapter
to explain your success in this course.
5. What are the most valuable lessons about employee motivation that you have
learned from this chapter?
Chapter 08 - Foundations of Motivation
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SUPPLEMENTAL EXERCISE 1: ASSESS YOUR NEED STRENGTH WITH A
THEMATIC APPERCEPTION TEST (TAT)
APPLICATION
The purpose of this exercise is to help students identify motivational themes expressed
in the picture and assess achievement, power, and affiliation needs.
* * *
There are two steps. First, briefly look at the picture (10 to 20 seconds) and write the
story it suggests by answering the following questions: (1) What is happening? Who are
the people? (2) What past events led to this situation? (3) What is wanted by whom?
and (4) What will happen? What will be done? Next, score your story for achievement,
power, and affiliation motivation by using the provided scoring guide and scales. Score
the motives on each dimension from 1 (low) to 5 (high). The scoring guide identifies the
types of story descriptions/words that are indicative of high motives. Give yourself a low
score if you fail to describe the story with words and phrases contained in the scoring
guidelines. A moderate score indicates that you used some of the phrases identified in
the scoring guide to describe your story. Do not read the scoring guidelines until you
have written your story.
Scoring Guidelines:
Score achievement motivation high if:
• A goal, objective, or standard of excellence is mentioned.
• Words such as “good,” “better,” or “best” are used to evaluate performance.
• Someone in your story is striving for a unique accomplishment.
• Reference is made to career status or being a success in life.
Score power motivation high if:
• There is emotional concern for influencing someone else.
• Someone is actively striving to gain or keep control over others by ordering,
arguing, demanding, convincing, threatening, or punishing.
• Clear reference is made to a superior-subordinate relationship and the superior is
taking steps to gain or keep control over the subordinate.
Chapter 08 - Foundations of Motivation
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Score affiliation motivation high if:
• Someone is concerned about establishing or maintaining a friendly relationship
with another.
• Someone expresses the desire to be liked by someone else.
• There are references to family ties, friendly discussions, visits, reunions, parties,
or informal get-togethers.
SUPPLEMENTAL EXERCISE 2: ROBERTA AND THE UNDERMOTIVATED
EMPLOYEE1
APPLICATION
This is the third installment of the continuing Roberta case. Students should preferably
read “Introduction to Roberta” from Chapter 1 to provide background information. Other
installments may be used in conjunction with each other or independently. In this
installment, Roberta is faced with an undermotivated employee. Mary Jo, the problem
employee, is clearly motivated by different factors than the rest of Roberta’s staff. Up
until now, Roberta herself has not been motivated to deal with this issue. The
increasing resentment of other staff members, however, let Roberta know that she can
no longer ignore this problem. Motivational concepts from Chapter 9 may also be used
in this episode. Students may point out the inequity existing between Mary Jo and the
other employees. Students may discuss the case questions after reading the case, or
you may prefer to use it as a written assignment. Discussion questions are provided at
relevant points throughout the case.
* * *
Mary Jo has been on the staff in Roberta's department for six months. Her work is
always accurate, and she is well liked in other departments. However, her productivity
is consistently behind the other staff members. A report that takes the average
employee 45 minutes to prepare takes her an hour. It seems that Mary Jo averages
25% fewer customer transactions than her coworkers also.
Another concern is her tendency to focus too heavily on personal business when in the
1 Originally developed and written by Maria Muto, Arizona State University. Cooperatively revised by Maria Muto,
Arizona State University, and Edwin C. Leonard, Jr., Indiana-Purdue University at Fort Wayne.
Chapter 08 - Foundations of Motivation
8-37
office. On several occasions, Roberta has heard Mary Jo put a customer on hold to talk
to her babysitter. One time, Mary Jo put a customer on hold and forgot about him. He
called back, irate, and Roberta spent 20 minutes soothing the situation.
Roberta can tell that some of the other staffers resent what they perceive as Mary Jo's
inappropriate attention to personal matters. This resentment is compounded by the fact
that Mary Jo has chosen not to socialize with others in the department. She has also
made several comments to the effect that she is only working at HRI for the money, and
would rather be home with her three-year-old daughter.
Several pointed asides have made Roberta aware that some of the staff think that Mary
Jo is able to "get away with" this behavior because she is a minority employee. Roberta
knows, however, that it is her own discomfort with the situation that is causing the
problem. While Roberta feels comfortable keeping an enthusiastic employee motivated,
she just isn't sure how to handle a person who clearly doesn't want to be there.
Sunday morning, Roberta's parents came over for brunch, and she described the
situation to them.
"I've spoken to her about it several times, but there has been no appreciable change,"
Roberta commented. "I guess I've gotten spoiled by my other employees--one word
from me and they really respond. But they all love the work and the department. Mary
Jo just isn't interested. The biggest concern that I have is that the other staff members
are starting to express frustration at her performance."
Roberta's father commented, "Remember Roberta, if you don't demand excellent
performance from all of your employees, you won't get it from any of them."
"You're not-doing yourself, your department, or Mary Jo any favors by backing off of this
situation," Roberta's mother stated. You have to do something to get Mary Jo to
improve, for the sake of everyone else."
1. Using the Job Performance Model of Motivation, analyze the situation for Mary
Jo, Roberta's department, and Roberta.
2. Using the motivation theories discussed in Chapter 8 what approach do you think
Roberta should use to correct Mary Jo's behavior?
3. Explain Roberta's father's statement, "If you don't demand excellent performance
from all of your employees, you won't get it from any of them."
4. What’s the cause of Mary Jo's apparent low motivation? Is there anything
Roberta can do to increase Mary Jo's interest in her work?
Chapter 08 - Foundations of Motivation
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SUPPLEMENTAL EXERCISE 3: EXPECTANCY THEORY APPLICATION
APPLICATION
This exercise may be used to illustrate Vroom’s expectancy theory. Students are asked
to apply Vroom’s expectancy theory to predict motivation levels for Joyce, a car
salesperson. To do so they must calculate performance valence and force values, and
then compare force values for each performance level to predict Joyce’s likely level of
performance.
* * *
EXPECTANCY THEORY APPLICATION
Vroom used two equations to predict employee motivation. Imagine that you are the
sales manager at a local automobile dealership. You are trying to determine whether
Joyce, one of your promising young salespeople, is motivated to exert high or low effort.
There are three steps to follow in applying Vroom's theory.
STEP 1. Calculate the valence for all levels of performance. The equation is:
Valence for performance = [the sum of (Instrumentality x Valence) for all outcomes].
This equation determines the value that a worker places on accomplishing a specific
STEP 2. Calculate the force on an individual to exert different levels of effort. Force
represents the strength of an individual's intention to respond in a particular manner.
The equation for calculating force is:
Force = the sum of [Expectancy x Valence for Performance (from STEP 1)] for all levels
Chapter 08 - Foundations of Motivation
8-39
STEP 3. Compare force values for each performance level. The final step consists of
DISCUSSION QUESTIONS:
1. Do you think predictions based on expectancy theory are accurate?
2. What are the advantages and disadvantages of using expectancy theory to
predict employee motivation?
SUPPLEMENTAL EXERCISE 4: AN IN-CLASS GOAL SETTING EXPERIMENT2
APPLICATION
This exercise gives students first-hand experience with the power of goal setting. To
begin, students should be randomly divided into three goal groups: Hard, Easy, and
Nonspecific. Each group should be instructed and run separately to avoid
communication between group members prior to performing the experimental task. A
minimum of eight students per group typically produces the expected results. If a class
has less than 24 students, a two-group format, with one group being assigned a "hard"
and the other an "easy" goal, is recommended. There is no upper limit for the number
of students in a group. Operating within three one-minute time frames, the exercise
involves three trials in which subjects list objects or things that can be described by a
given adjective (e.g., "thin"). The following procedure is based on a three-group format.
* * *
STEP 1. Ask students in Group One to remain in the classroom to begin the
experiment. Students in Groups Two and Three should be asked to wait outside the
classroom.
STEP 2. Read the following instructions: "This exercise is designed to test your
creativity. You will be asked to list objects or things that can be described by a given
adjective. There will be three trials. You will be given a different adjective on each trial
and told to list objects that can be described by the adjective for one minute. For
example, if the adjective you are given is red, you could list fruit, clothes, houses, cars,
2 Excerpted from Jiing-Lih Farh and Arthur G Bedeian, “Understanding Goal Setting: An In-Class Experiment” The
Organizational Behavior Teaching Review, 1987-1988, Vol. XII Issue 3, pp. 75-79.
